Aboitiz Equity Ventures Proposes P48bn Spending in 2021

Aboitiz Equity Ventures

METRO MANILA – Aboitiz Equity Ventures, Inc., together with its partners, has allotted ₱48 billion in capital expenditure (CAPEX) for 2021, 69% higher than the ₱29 billion spent in 2020 — a year that saw unprecedented challenges due to Covid-19.

The company, which supplies close to 20% of the country’s population through its critical businesses in power, banking and financial services, food, land, and infrastructure, including cement manufacturing, said it will continue to rise above the challenge and deliver on its commitments.

“We continue to invest in our country to support economic recovery and growth, as millions of Filipinos are relying on us – families and communities. Our team members take this responsibility to heart. We simply cannot fail. Over the next 10 years, we commit to investing in capacities to advance business and communities in the nine Asia Pacific countries where we operate,” said Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz.

Majority of the budget or ₱23 billion was earmarked for its power strategic business unit (SBU) Aboitiz Power Corp. for the completion of GNPower Dinginin as well as the battery energy storage projects.

The 1,336 MW GNPower Dinginin baseload power plant is currently being constructed in Mariveles, Bataan. AboitizPower is likewise adding to its portfolio battery energy storage system projects that will help ensure grid stability through sufficient ancillary services, starting with the installation of a 49-MW facility of business unit Therma Marine, Inc. in Maco, Davao de Oro.

Meanwhile, Aboitiz InfraCapital, Inc. (AIC) has set aside ₱13 billion to fund its various projects including its common towers project and for the construction of Apo Agua Infrastructura, Inc.’s (Apo Agua) bulk water supply project with Davao City Water District (DCWD) and other water projects. About ₱2 billion will be earmarked for Republic Cement and Building Materials, Inc.

Its Food Group has allocated ₱4 billion mainly for feedmill expansion. For 2021, two feed facilities in China, one fish feed line in Malaysia, and three meat distribution channels in the Philippines are slated for completion in order to support the group’s growth initiatives.

Meanwhile, Businessman Dennis Uy is reportedly considering divesting his minority stake in shipping and logistics firm 2Go Group Inc for an undisclosed amount.

Uy, chairman of Chelsea Logistics, one of the biggest shipping and logistics companies in the Philippines, holds 28 per cent stake in 2Go, a company that he also chairs.

The Inquirer report quoted sources as saying that talks were ongoing and that a deal could be announced soon. Uy acquired the stake five years ago through Chelsea. SM Investments Corp is a major shareholder in 2Go.

If the divestment pushes through, it would strengthen Chelsea Logistics because it will no longer incur losses from its 2Go stake. 2Go reported a loss of 1.04 billion pesos as of September 2020. Chelsea recorded a net loss of 367.2 million from its 2Go stake. – BusinessNews.ph