The publicly traded Vivant Corp. announced that its January-September net income fell 24 percent to P943.28 million from P1.23 billion last year due to the impact of Typhoon Odette and difficult macroeconomic conditions.
Total revenue increased 16 percent to P4.32 billion at the end of September from P3.72 billion last year, driven by the new contribution from power generation assets in Bantayan, Cebu, as well as the improved solar rooftop business of wholly-owned subsidiary COREnergy.
Vivant reported that electricity sales rose 34 percent year-on-year to 3.1 billion pesos from 2.3 billion pesos.
Vivant, a holding company with investments in energy and water infrastructure, reported a new revenue contribution from its subsidiary Isla Norte, which operates a 23.3-megawatt power plant to provide stable and reliable electricity to Bantayan Island in northern Cebu.
Meanwhile, subsidiary COREnergy reported expansion in energy sales volume due to an improved customer base for its solar rooftop business, higher retail electricity revenues and improved earnings from its engineered solutions business.
“Although we continue to face industry-wide external challenges, our third quarter results have demonstrated our resilience and agility in a changing environment,” said Vivant CEO Arlo AG Sarmiento.
The company reported that the earnings contribution from its distribution business was significantly impacted by the aftermath of Super Typhoon Odette.
The slowdown in electricity sales in January and February, support from customers and the delay in recovering generation fees weighed on the utility’s earnings performance, resulting in a 39 percent drop in Vivant’s contribution to earnings.
Global trading conditions and inflationary pressures resulted in higher costs for the company’s operations. The increase in fuel costs in 2022 contributed to the increase in generation costs for its subsidiaries. The impact on the bottom line was partially offset by increases in contracted capacity and improved energy sales of some associated companies and joint venture companies.
Despite the headwinds it encountered, Cebu-based Vivant made significant investments in power generation and water solutions while implementing cost-efficiency measures to adapt to the prevailing economic environment.
One of the most significant investments was 1590 Energy Corp’s acquisition of the 225-megawatt Bauang Diesel Power Plant (BDPP). (EC), a majority-owned subsidiary of Vivant Energy Corp., which in turn is a wholly owned subsidiary of Vivant Corp.
1590 EC has operated and maintained BDPP since 2010 under a lease with the La Union Provincial Government.