A REGIONAL expansion will be a big part of Aboitiz Power Corp.’s new 2025 targets when it holds a strategic planning this year, its president said on Monday, as the company is on track to meet its 2020 target capacity of 4,000 megawatts (MW).
“We’re kind of targeting certain countries,” Antonio R. Moraza, president of AboitizPower told reporters after the company’s stockholders meeting in Makati City.
“We’re due to do a strat [strategic] planning this year because we want to go up to 2025 now,” he said.
Asked if a regional expansion will have a big part of the company’s new targets, he said: “I believe it would be.”
He identified these countries as Myanmar and Indonesia, where the company is looking to build large hydroelectric power plants.
Mr. Moraza said part of the reason for the strategic planning for the years 2021-2025 is because the company is close to hitting its target capacity ahead of the 2020 deadline.
The company currently has nearly 3,000 MW in sellable capacity, while expecting an additional 536 MW this year. New power plant units are expected to come online next year and in 2020.
Mr. Moraza said the company is not likely to expand the 2020 target to accommodate new acquisitions in the next two years.
“Frankly that’s not being contemplated in our calculations,” he said.
Mr. Moraza said greenfield projects would be out of the question for the company because of an existing over-capacity.
For this year, he said AboitizPower has allotted P62 billion in capital expenditures, lower than last year’s P30 billion.
The bulk of this year’s capex has been set aside for GNPower Dinginin Ltd. Co., which is developing a two-unit supercritical coal-fired power with a net capacity of 668 MW. It is expected to start commercial operations in 2019.
Liza Luv T. Montelibano, AboitizPower senior vice-president and chief financial officer, said P37 billion of the capex has been set aside for GNPower Dinginin. The company has a 40% stake in the project in Barangay Dinginin, Mariveles, Bataan.
“TVI (Therma Visayas, Inc.) and Pagbilao (Energy Corp.) will be online this year, but there’s still capex for that on its first year, that’s about P13 billion,” she said, noting about P10-P15 billion is allocated for regular operation and “exploratory” capex.
Ms. Montelibano said this year’s budget for GNPower Dinginin is just part of the total funding for the project, with at least P30 billion set aside for next year.
“Right now, this is the chunk of the spending for the construction of unit one,” she said, adding that next year’s budget would have the second unit cornering the biggest portion.
On Monday, shares in AboitizPower slipped 1.80% to close at P38.15 each. — Victor V. Saulon