Business World Online
Posted on January 29, 2014 11:28:00 PM
ABOITIZ Equity Ventures, Inc. (AEV) plans to spend more this year, mostly for its power business, the listed conglomerate said in a statement yesterday.
The holding firm of the Aboitiz family said it has earmarked some P88 billion for capital expenditure (capex) of all its business units, higher than last year’s P59 billion.
AEV said bulk of investment -- amounting to P78 billion -- will be spent by its power unit as it continues to build new power plants intended to meet the increasing need for electricity by a growing economy.
“With this year’s capex budget, we reiterate our commitment to provide reliable and ample power supply at a reasonable cost and support the Philippines’ energy needs,” the statement quoted AEV President and Chief Executive Officer Erramon I. Aboitiz as saying.
Aboitiz Power Corp. (AboitizPower) -- the conglomerate’s power generation and distribution unit -- is implementing a five-year plan to increase total installed capacity to 2,098 megawatts (MW) by 2017, according to the statement.
AEV said AboitizPower is building three run-of-river hydro power plants with combined capacity of 28 MW. These plants consist of the 14-MW Tudaya I and II in Davao del Sur that slated to be completed this semester; as well as the 14-MW Sabangan plant in Mt. Province, expected to be finished in early next year.
Besides the hydro projects, AboitizPower is building a 300-MW coal-fired plant on a site straddling Davao City and Davao del Sur. The plant is scheduled to be operational in 2015.
“Additionally, the company aims to begin expansion of its Pagbilao base load plant (in Quezon province) and construction of its Cebu base load plant within 2014,” AEV said. “These two projects will increase capacity in the Luzon and Visayas grids by 400 MW and 300 MW, respectively, by 2017,” it added.
AEV’s banking unit, Union Bank of the Philippines, Inc. (UnionBank), will get a P680-million share of the capex.
The parent said this will be used “for technology-related expenditures and expansion of its branch network in line with initiatives to ensure customer satisfaction and maximize growth in both deposit and loan accounts.”
Pilmico Foods, Inc., the food subsidiary, will spend P2.7 billion for the expansion of its feeds and farm operations. The firm, according to AEV, will be building two new feed mills and will implement the third phase of breeder farm expansion.
Property unit Aboitiz Land, Inc. (AboitizLand), on the other hand, will be spending around P4 billion for new phases for its Priveya Hills, Pristina North, and Almiya projects.
“The developer is looking at launching at least three new residential projects within the year,” the firm said.
It noted that AboitizLand also entered into a joint venture agreement with Ayala Land, Inc. for the development and operation of a 15-hectare city center in Subangdaku, Mandaue City in Metropolitan Cebu to be launched in 2015.
Aseagas Corp. -- the company’s joint venture with UK-based Gazasia Ltd. -- will splend $50 million for its liquid biomethane plant in Batangas. The plant will produce transport fuel from organic waste produced by Absolut Distillers, Inc. “Once completed, the plant will have a capacity of around 9,000 metric tons of bio-methane per year.
Construction is expected to be completed within 18 months,” AEV said.
The conglomerate, in November last year, raised P8 billion from a retail bond sale to be used for investments and other corporate purposes.
The seven-year bonds -- worth P6.2 billion and due 2020 -- have a fixed interest rate of 4.4125% per year, while the 10-year bonds -- worth P1.8 billion and due 2023 -- carry an interest rate of 4.6188% per year.
AEV’s net income fell 10.9% to P20.23 billion as of September last year from P22.7 billion in the same nine months in 2012.
Revenues slipped 2.98% to P58.98 billion from P60.79 billion, while costs and expenses declined by 4.98% to P41.58 billion from P43.76 billion.
Yesterday, shares of AEV gained 10 centavos or 0.19% to P52 apiece from P51.90 on Tuesday; while those of AboitizPower lost 10 centavos or 0.28% to P35.90 from P36.00; and those of UnionBank shed 90 centavos or 0.71% to P126 each from P126.90. source
AEV said bulk of investment -- amounting to P78 billion -- will be spent by its power unit as it continues to build new power plants intended to meet the increasing need for electricity by a growing economy.
“With this year’s capex budget, we reiterate our commitment to provide reliable and ample power supply at a reasonable cost and support the Philippines’ energy needs,” the statement quoted AEV President and Chief Executive Officer Erramon I. Aboitiz as saying.
Aboitiz Power Corp. (AboitizPower) -- the conglomerate’s power generation and distribution unit -- is implementing a five-year plan to increase total installed capacity to 2,098 megawatts (MW) by 2017, according to the statement.
AEV said AboitizPower is building three run-of-river hydro power plants with combined capacity of 28 MW. These plants consist of the 14-MW Tudaya I and II in Davao del Sur that slated to be completed this semester; as well as the 14-MW Sabangan plant in Mt. Province, expected to be finished in early next year.
Besides the hydro projects, AboitizPower is building a 300-MW coal-fired plant on a site straddling Davao City and Davao del Sur. The plant is scheduled to be operational in 2015.
“Additionally, the company aims to begin expansion of its Pagbilao base load plant (in Quezon province) and construction of its Cebu base load plant within 2014,” AEV said. “These two projects will increase capacity in the Luzon and Visayas grids by 400 MW and 300 MW, respectively, by 2017,” it added.
AEV’s banking unit, Union Bank of the Philippines, Inc. (UnionBank), will get a P680-million share of the capex.
The parent said this will be used “for technology-related expenditures and expansion of its branch network in line with initiatives to ensure customer satisfaction and maximize growth in both deposit and loan accounts.”
Pilmico Foods, Inc., the food subsidiary, will spend P2.7 billion for the expansion of its feeds and farm operations. The firm, according to AEV, will be building two new feed mills and will implement the third phase of breeder farm expansion.
Property unit Aboitiz Land, Inc. (AboitizLand), on the other hand, will be spending around P4 billion for new phases for its Priveya Hills, Pristina North, and Almiya projects.
“The developer is looking at launching at least three new residential projects within the year,” the firm said.
It noted that AboitizLand also entered into a joint venture agreement with Ayala Land, Inc. for the development and operation of a 15-hectare city center in Subangdaku, Mandaue City in Metropolitan Cebu to be launched in 2015.
Aseagas Corp. -- the company’s joint venture with UK-based Gazasia Ltd. -- will splend $50 million for its liquid biomethane plant in Batangas. The plant will produce transport fuel from organic waste produced by Absolut Distillers, Inc. “Once completed, the plant will have a capacity of around 9,000 metric tons of bio-methane per year.
Construction is expected to be completed within 18 months,” AEV said.
The conglomerate, in November last year, raised P8 billion from a retail bond sale to be used for investments and other corporate purposes.
The seven-year bonds -- worth P6.2 billion and due 2020 -- have a fixed interest rate of 4.4125% per year, while the 10-year bonds -- worth P1.8 billion and due 2023 -- carry an interest rate of 4.6188% per year.
AEV’s net income fell 10.9% to P20.23 billion as of September last year from P22.7 billion in the same nine months in 2012.
Revenues slipped 2.98% to P58.98 billion from P60.79 billion, while costs and expenses declined by 4.98% to P41.58 billion from P43.76 billion.
Yesterday, shares of AEV gained 10 centavos or 0.19% to P52 apiece from P51.90 on Tuesday; while those of AboitizPower lost 10 centavos or 0.28% to P35.90 from P36.00; and those of UnionBank shed 90 centavos or 0.71% to P126 each from P126.90. source
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