LISTED firm Aboitiz Equity Ventures Inc. remains confident its businesses in Cebu will continue to post strong growth this year on the back of the country’s healthy economy and the company’s expansion programs.
For this year, Visayan Electric Co. Inc., (Veco), the country’s second-largest privately-owned distribution utility, expects sales to grow by 5.3 percent.
Jaime Jose Aboitiz, the executive vice president and chief operating officer of the AboitizPower Distribution Business Group, noted that aside from the robust growth of the economy, factors such as the International Eucharistic Congress, which brought tourists in Cebu, the prolonged El Niño, which necessitated the use of cooling systems, and this year’s presidential election have already contributed significantly to the growth of the company in the first quarter this year. At present, Veco is undergoing cabling initiatives.
Anton Mari Perdices, Veco senior vice president and COO, said the project is a continuation of the initial implementation in building utility structures and distribution underground, compliant with Cebu City Ordinance 1894.
Meanwhile, AboitizLand intends to spend P5 billion this year to expand its industrial and residential land bank in the country.
The capital expenditure (capex), according to AboitizLand president and chief executive officer Andoni Aboitiz, will cover the five real estate projects planned for this year, land acquisitions and the completion of existing projects.
About half of the capex will go to AboitizLand’s projects in Luzon, said Aboitiz. The firm is on the final planning phase for three new projects in Luzon.
Last Monday, the real estate arm launched its latest venture with the AyalaLand —the 17.5 hectare mixed-use project called Gateway Central that will have an Ayala Mall, residential towers and office spaces.
AEV posted a consolidated income of P5 billion in the first quarter this year, up by 24 percent year on year, driven by the strong performance of its power, banking and financial services and infrastructure business units.
By KATLENE O. CACHO | Sun Star Cebu | June 10, 2016