BY LENIE LECTURA AND VG CABUAG – MARCH 21, 2022
from Business Mirror
Vivant Corp., the publicly listed holding company of Cebu’s Garcia-Escaño family, posted a net income of P1.78 billion last year, up by 23 percent from P1.44 billion recorded in 2020, mainly due to unrealized foreign exchange gains.
It reported Monday that core profit last year stood at P1.73 billion, an increase of 25 percent from P1.38 billion posted in 2021.
“We’re proud of what we have accomplished amid the challenges brought by the pandemic. As we see businesses adapt to the changed landscape, we expect a demand for forward-looking, customizable solutions that will help them thrive in the new environment,” Vivant CEO Arlo A.G. Sarmiento said.
“We are also grateful to the government for laying out a policy that helps corporations survive the effects of the pandemic.”
Vivant’s power generation business continued to drive its earnings performance as it accounted for 69 percent of total income from business segments. The business recorded an 11-percent expansion in income contribution to P1.70 billion in 2021 from P1.53 billion. The favorable spot market prices and the fresh contributions of newly acquired generation companies in 2021 led to the enhanced profit performance of the group.
The electricity distribution business booked a net income contribution of P745.57 million, up 29 percent from P579.02 million. Although electricity sales for the year only grew marginally, enhancements in the bottomline performance of the business were driven by the reduction in systems loss, lower debt service, tax payments and provisions for doubtful accounts.
Its retail electricity group recorded a bottomline contribution of P64.4 million, a significant improvement from the previous year’s P3.93 million. The higher sales resulting from improved customer base and enhanced margins of an associate drove the Retail Electricity Supplier group’s earnings performance for the year.
Investments in power generation, electricity distribution and retail electricity comprise Vivant’s power business portfolio.
In 2019, the company ventured into the water infrastructure business and has made strategic investments in the water solutions and waste-water treatment segments of the industry. This business segment is still at its nascent stage and has not materially contributed to Vivant’s bottomline last year.
Vivant’s total consolidated assets as of end-2021 amounted to P25.02 billion compared to the previous year’s P22.58 billion, while equity attributable to parent stood at close to P17 billion from P15.45 billion.