AboitizPower buys parent’s stake in Aseagas Corp.

by Madelaine B. Miraflor – July 5, 2016

from Manila Bulletin

Listed Aboitiz Power Corporation (AboitizPower) moved a bit closer to its target to boost its capacity to 4,000 megawatts (MW) over the next four years after striking a deal to acquire its parent firm’s shares in its own biomass renewable energy company.

A disclosure to the Philippine Stock Exchange showed on Tuesday that Aboitiz Renewables, Inc. (Aboitiz Renewables), a wholly-owned subsidiary of AboitizPower, purchased all of the equity interests of Aboitiz Equity Ventures, Inc. (AEV) in Aseagas Corporation (Aseagas).

“The acquisition of the shares in Aseagas is in line with AboitizPower’s target to increase its attributable net sellable capacity to 4,000MW by 2020,” the power company told the local bourse.

AEV, on the other hand, said in a separate filing with the exchange that “the disposal of the shares is in line with the overall strategy of rationalizing AEV’s investments.”

The transaction was valued at P605 million.

Now a wholly owned subsidiary of AboitizPower, Aseagas will be operating biomass renewable energy plants that produce power from organic wastes.

The first plant of Aseagas has a capacity of 8.8MW that could power 22,000 households and a 33 tpd liquid carbon dioxide (LCO2) for industrial and beverage industries.

For this year, AboitizPower pegged its capital expenditure (capex) to P51.5 billion, higher compared to P34.4 billion it had set last year.

The capex increase, according to the company, will help the company pursue its greenfield power projects.

“To continue its trajectory to hit 4,000MW by 2020, capex spend in 2016 will go up to P51.5 billion,” the company was earlier quoted as stating.

AboitizPower is currently ramping up the construction of two coal-fired power projects in Luzon and Visayas grids, which are both targeted to come online next year.

While pursuing coal plant builds, the company is also working on some renewable energy prospects.