RE Tops Aboitiz Group’s PHP153-B CapEx For 2024

The Aboitiz Group has increased its capital expenditure (CapEx) to PHP153 billion this year, more than doubling last year’s PHP65 billion, with renewable energy (RE) projects leading the list of investments for 2024.

The largest portion of the CapEx, amounting to PHP73 billion or 48 percent of the group’s spending this year, was allocated to its energy unit, the Aboitiz Power Corporation. I Photo: Aboitiz Power Corporation Facebook

Sabin Aboitiz, President and CEO of Aboitiz Group, stated, “Our substantial increase in capital expenditures is a clear reflection of our commitment to renewable energy. We believe that investing in sustainable energy sources is not just good for the environment, but also makes good business sense.”

The largest portion, amounting to PHP73 billion or 48 percent of the group’s spending this year, was allocated to its energy unit, the Aboitiz Power Corporation.

Aboitiz Group announced, “The company has over 1,000 megawatts (MW) of disclosed RE projects in construction and development en route to hitting a target of 4,600 MW within the next decade.”

The Group aims to commence various RE projects this year, such as the 89-MW peak Solar Project in San Manuel, Pangasinan, and a 50-MW wind plant in Camarines Sur in partnership with other energy companies.

The second largest allocation is for its holding company, Aboitiz Equity Ventures (AEV), which is receiving PHP44 billion, or 29 percent of this year’s CapEx for the acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI), the bottling arm of Coca-Cola in the country.

Furthermore, Aboitiz InfraCapital will spend PHP25 billion this year “to strengthen and optimize existing assets while sustaining its growth by exploring new projects and synergies within the Group.”

“Another PHP1 billion is allotted for major maintenance works and the purchase of critical spares for the Group’s cement business under Republic Cement,” it added.

Pilmico and Gold Coin Group, for their agribusiness expansion projects, are allocated nearly PHP4 billion this year.

Meanwhile, Aboitiz Land has set a CapEx of PHP3.3 billion to support its ongoing projects.

The allocation for Union Bank of the Philippines (UBP) from this year's CapEx will mostly be spent on UBP’s technology refresh, cybersecurity, and system integration, according to available information.

Aboitiz emphasized, “As a techglomerate, we intend to redefine the meaning of industry and community in the digital age.”

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