For 2025, the family-led conglomerate plans to boost capital expenditures by 37 percent to about P105 billion.
This comes as the P180 billion holding company saw earnings last year rise to P25.5 billion from P22.1 billion the previous year.
Management’s view
“The majority will be deployed at Aboitiz Power for their renewable energy pipeline, and to support the distribution business,” AEV chief financial officer Jose Emmanuel Hilado said during a media briefing after the company’s stockholders’ meeting on Monday.
“The next biggest chunk is allocated to Aboitiz InfraCapital to fund their expansion of economic estates and tower acquisitions. Then the rest will be in Union Bank for their digital infrastructure. And lastly, in AboitizFoods for swine farms and development of greenfield [research and development] farms,” he added.
Debt payments
Hilado said additional funding will be needed to settle debt maturities, including P5.8 billion for two-year bonds issued in 2023 and a callable bond of about P9 billion.
The company has not finalized its fund allocation, saying it will maximize the most cost-effective option, whether through bonds or bank loans, as it monitors the direction of interest rates.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
