For the first time in recent years, the Aboitiz Group has allotted the biggest share of its capital expenditure (capex) to its infrastructure business units instead of the power group in line with the conglomerate's long-term goal of balancing its portfolio.
The group has more than doubled its capex for 2022 to roughly P69 billion. This is 152% higher than the P27 billion utilized in 2021.
Of this amount, P29 billion will go to the infrastructure group. This is a 337% increase from the actual spending in 2021.
The conglomerate allotted P7 billion for land acquisition and new site development for Aboitiz InfraCapital’s (AIC) economic estates, P5 billion for the expansion of AIC’s telco tower business, and another P5 billion for AIC’s other digital infrastructure projects.
The group also set aside P3 billion for the completion of AIC’s bulk water project in Davao City this year. Once operational, this water project will supply over 300 million liters of safe and sustainable water to Davaoeños daily.
The rest of the budget will be for AIC’s other projects and Republic Cement’s major maintenance and safety-related capital expenditures.
The power business unit, which traditionally gets the biggest share as it is also the biggest contributor to the conglomerate's consolidated income, will get P28 billion for the development and construction of various solar power, hydro power, and battery energy-storage systems, and the continuous improvement of the reliability of baseload plants.
Aboitiz Power Corp., the conglomerate's holding company for its power generation and distribution units, remains focused on building more renewable energy generation capacity and maintaining the reliability of its existing assets.
Aboitiz Group president and CEO Sabin M. Aboitiz said they are committed to invest in accelerated growth and diversification over the next 10 years.
“We will advance business and communities in the 9 Asia Pacific countries where we operate by providing products and services that are not just life-essential but life-changing,” he said.
The conglomerate is also setting aside more than P3 billion for its banking business units, through Union Bank of the Philippines. This will be used to sustain investments in enhancing the features of its digital channels and platforms, transforming its branches and building capacity for the parent bank and its subsidiaries.
UnionBank's banner projects for 2022 include the acquisition and integration of the Citi Consumer Business and launch of its digital banking arm UnionDigital. The bank is also on track to open its Innovation Campus in San Pedro, Laguna and continue its cloud transformation initiative to further improve the agility of its business operations.
The food business unit, Pilmico and Gold Coin Group, has allocated P6 billion for various projects, including the expansion of feed mills in China and Vietnam. They are set to increase the capacities of the agribusiness division across the regions.
In the Philippines, a third breeder farm is set for completion this year. This puts the farm business on track to achieve its goal of boosting local production of pork to help alleviate the impact of pork scarcity in the market.
The group’s real estate arm, AboitizLand, Inc., has allocated a capital expenditure of P2 billion for the launch of new phases of its projects namely, Foressa Mountain Town in Cebu and The Villages at Lipa in Batangas.
Foressa Mountain Town’s launch this first quarter opens fresh inventory 117 estate lots with up to 2,040 square meter cuts, while The Villages at Lipa is slated to launch a new phase offering premier residential lots with bigger cuts in the third quarter of this year. (Marites Villamor-Ilano/Ventures Cebu)