Ayala Corp allots P187-B for 2014 capex
MANILA, Philippines – Ayala Corp. is planning to spend a record P187 billion in capital expenditures this year, surpassing the P128 billion spent last year.
Bulk of the spending will support Ayala Land’s expansion, Globe Telecom’s ongoing network improvements, and Manila Water Company’s service improvements.
“Our combined group capital spending has expanded aggressively over the past five years amounting to nearly P500 billion as our core businesses in real estate, banking, telecommunications and water distribution executed aggressive growth strategies to seize investment opportunities in their respective sectors. We consider this a significant contribution to our national economy,” Ayala Corp. chairman and chief executive officer Jaime Augusto Zobel de Ayala said in a statement.
The funds will also be used to fund Ayala group’s expansion in the power and transport infrastructure sectors.
Ayala president and COO Fernando Zobel de Ayala said the conglomerate is planning to invest a total of $800 million in the power sector by 2016.
Ayala is also involved in two public-private partnership (PPP) projects, including the Daang Hari connector road, which expected to be completed within the year.
The firm also recently signed the concession agreement for the Automated Fare Collection System project, which it won with a partnership with First Pacific.
In 2013, Ayala’s consolidated net income grew by 22 percent to P12.8 billion on the back of its real estate and banking units, and improved performance of its international businesses.