By Katlene O. Cacho
Monday, December 3, 2012
THE Aboitiz Group is relying on its power business to drive the company’s future growth, a top official said last week.
AboitizPower (AP) president and chief executive officer (CEO) Erramon Aboitiz announced that the company and its partners are investing P170 billion in the next four years into additional generation capacity for several greenfield and brownfield projects of both hydro and clean coal technology.
“AboitizPower will continue to spearhead the group’s future growth,” said Aboitiz during its annual gathering with the Cebu media at the Cebu City Marriott Hotel. “We continue to enhance our power distribution networks, driving further efficiencies and productivity, with the end goal of improving reliability and customer service.”
AP is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. The company recorded a net income of P18.4 billion for the first nine months of 2012, a 13 percent increase compared to the P16.2 billion recorded during the same period last year.
Aboitiz said AP is also prepared to embrace open access when it comes, giving end users (consumers of over one megawatt at first) the choice.
The open access scheme is expected to spur competition among power stakeholders, resulting in a more competitive electricity prices. Under this regime, large power users will have the liberty to choose their own electricity suppliers, unlike the current system that users are limited to the supplier that has jurisdiction over their respective areas.
The Department of Energy is eyeing a partial implementation of open access this month.
UnionBank
In terms of growing their financial services unit, Aboitiz said UnionBank will boost its customer franchise through greater retail focus and stronger sales management.
He said the bank will continue investing in technology and rationalize branch network expansion in strategic areas to maximize growth channels for deposits and loan accounts.
He said the company is also expected to increase the branch network of its thrift bank City Savings in Luzon. The bank recently opened branches in Batangas and Bicol.
The company’s food business unit continued to grow its flour and feed business.
Aboitiz reported that construction of Pilmico’s third feedmill is already underway.
Aboitiz also announced Aboitiz Equity Ventures (AEV) acquisition of AboitizLand Inc., the real estate arm of the Aboitiz Group.
“Its strong recurring income from its industrial estates as well as its backlog of prospective innovative projects makes it a very exciting business opportunity, in line with AEV’s growth plans,” said Aboitiz, who is also the president and CEO of AEV.
Aboitiz also announced the company’s 20 years of partnership with the Kambara Group for its industrial estate joint venture, Cebu Industrial Park Developers, Inc. (CIPDI). He said that their shipyard in Balamban continues to roll out bulk carriers of up to 180,000 deadweight tonnage (DWT) with a back log up to 2014.
Metaphil, on the other hand, is eyeing complex and large-scale projects in the power, mining, petrochemical, oil and gas industries, while continuing to grow its capabilities in construction, fabrication, and engineering design and detailing, Aboitiz said.
AEV’s consolidated net income in the first nine months of 2012 increased by 12 percent year-on-year to P18 billion from P16 billion. The power unit continued to account the lion’s share of the company’s income at 78 percent, followed by banking at 17 percent and food at five percent.
CSR plans
On top of growing its businesses, Aboitiz also said the company will continue to strengthen their corporate social responsibility projects and sustainability initiatives.
Despite the company’s major decision of moving AEV and AP’s corporate headquarters to Manila next year, Aboitiz said Cebu “will always be their home.”
“We are, however, retaining Aboitiz & Company’s head office in Cebu and expect that our businesses operating in Cebu like AboitizLand, Veco, the different power plants, Tsuneishi, and others, will continue to be active partners in Cebu’s economic development,” he said.
“We will always continue to be proudly Cebuano as we pursue expanding the business in the national arena,” he added. source
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