Conglomerate Ayala Corp. said Friday it is allocating P285 billion in group-wide capital expenditures this year as it expects the overall business environment to improve amid increased mobility.
“We continue to see an improvement in the business environment with better mobility and ability of both enterprises and consumers to adjust to disruptions. With the recent de-escalation of quarantine measures to the lowest status, we are hopeful that 2022 will be the start of our country’s recovery,” Ayala president and chief executive Fernando Zobel de Ayala said in a statement.
“The Ayala Group aims to continue its investment programs and for 2022, we have allocated up to P285 billion in combined capital expenditure and investments to execute on the growth initiatives across our businesses,” he said.
Zobel, however, said the group was mindful of the impact of the Russia-Ukraine conflict on recovery and investment programs, especially the surge in fuel prices which would affect interest rates, inflation and the global supply chain.
Ayala Corp. said net income grew rose 62 percent in 2021 to P27.8 billion, fueled by divestment gains and improved performance of property and banking units. The conglomerate booked gains from the re-measurement of its stake in Manila Water following the sale of secondary shares to Trident Water and stake in GNPower Kauswagan Ltd. Co., and the entry of a new investor in Mynt.
Excluding gains and other one-offs, Ayala’s core net income decreased 10 percent to P23.5 billion.
Ayala said fourth-quarter income grew 46 percent to P8.4 billion from the same period a year earlier.
Property unit Ayala Land Inc. booked a net income of P12.2 billion in 2021, up 40 percent from a year ago, while telecom arm Globe Telecom saw profit jump 27 percent to P23.7 billion.
Bank of the Philippine Island’s net earnings increased 12 percent to P23.9 billion on lower loan loss provisions and record-high fee income.
AC Energy Corp.’s net income went up 22 percent to P5.3 billion as robust earnings from international assets supported softness in Philippine operations.