Vivant profit drops sans one-time gain
By Lenie Lectura – November 14, 2024
from Business Mirror
Cebu-based energy and water firm Vivant Corp. ended the nine months of the year with a net income of P1.7 billion, slightly lower than the P2 billion it posted at end-September last year due to one-off gains related to acquired shares in power firms.
“The decline was largely due to notable one-off gains last year relating to the fair value adjustments of acquired shares in two operating power entities, namely Calamian Islands Power Corp. (CIPC) and Delta P Inc. (DPI),” the company said in a disclosure to the stock exchange on Wednesday.
Its consolidated core net income (CCNI) was unchanged at P1.6 billion.
Of the total net income, power generation accounted for the majority, representing 63 percent or P1.5 billion. Power distribution accounted for 37 percent or P871 million while retail energy contributed P6.4 million.
“Vivant is proud to show solid results in the first nine months of 2024 and poised to close the year strong. Our power generation units continued to bring encouraging results through our participation in the spot and reserve markets,” said Vivant CEO Arlo G. Sarmiento.
Consolidated revenues reached P8.8 billion, 46 percent higher than the 2023 level primarily due to the combined effect of higher sales volumes from conventional power plants, retail electricity supply, and solar rooftop businesses.
The water business is still in its investment phase and is expected to contribute positively in the future. The company also said its seawater desalination project in Cordova, Cebu is on track to be completed within the year. Once operational, the plant will augment the bulk water supply of Metro Cebu by 20,000 cubic meters per day of treated and potable water.
“Once operational, the water desalination plant in Cordova, Cebu will be the largest utility scale seawater desalination plant in the country. Through this project, Vivant not only protects Cebu’s limited freshwater resources by reducing pressure on groundwater aquifers, but also helps build a climate-resilient future,” said Vivant Water CEO Jess Anthony N. Garcia.
Vivant said it continues to build a robust pipeline of projects that will cater to the growing power demand in the areas it operates.
“Our business development teams are focused on building our pipeline of projects in both off-grid and on-grid locations to establish a more balanced portfolio. Our distribution utility business remains a reliable earnings contributor, while we also strengthen our retail energy arm to better serve existing and potential customers.
Lastly, we are focused on delivering resilient and sustainable water management systems through Vivant Water. In all our business initiatives, we stay true to who we are as we create solutions for our changing world,” added Sarmiento.
