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Vivant: Typhoon, economic headwinds hit 9-month profit

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BY VG CABUAG – November 17, 2022
from Business Mirror

 

Listed Vivant Corp. said its net income in January to September fell 24 percent to P943.28 million from last year’s P1.23 billion on the impact of typhoon Odette and challenging macroeconomic conditions.

Total revenues grew 16 percent to P4.32 billion as of end-September from last year’s P3.72 billion, driven by the fresh contribution from power generation plants in Bantayan, Cebu as well as the improved solar rooftop business of wholly owned subsidiary COREnergy.

Vivant reported that sale of power grew by 34 percent year-on-year to P3.1 billion from P2.3 billion.

Vivant, a holding company with investments in energy and water infrastructure, reported fresh income contribution from subsidiary Isla Norte, which operates a 23.3-megawatt power plant to provide stable and reliable power to Bantayan Island in northern Cebu.

Meanwhile, subsidiary COREnergy reported an expansion in volume of energy sales on account of improved customer base for its solar rooftop business, higher revenues from retail electricity and improved earnings from its engineering solutions business.

“Although we continue to face industry wide external challenges, our third quarter results have shown that we are resilient and agile within a changing environment,” said Vivant CEO Arlo A.G. Sarmiento.

The company reported that income contribution from its distribution business was significantly affected by the aftermath of super typhoon Odette.

The slowdown in electricity sales in January and February, the assistance extended to its customers and the delayed recovery of generation charges weighed down the utility’s profit performance, which resulted in a 39-percent reduction in income contribution to Vivant.

Global trade conditions and inflationary pressures resulted in higher costs for the company’s businesses. The spike in fuel costs in 2022 contributed to the increase in cost of generation for its subsidiaries. The impact to bottom line was partially offset by the increase in contracted capacities and improved energy sales of some associates and joint venture companies.

Despite the headwinds it encountered, Cebu-based Vivant made significant investments in energy generation and water solutions while implementing cost efficiency measures to adapt to prevailing economic environment.

One of the most significant investments was the acquisition of the 225-megawatt Bauang Diesel Power Plant (BDPP) by 1590 Energy Corp. (EC), a majority-owned subsidiary of Vivant Energy Corp., which is a wholly owned subsidiary of Vivant Corp.

1590 EC has been operating and maintaining BDPP since 2010 under a lease contract with the La Union provincial government.

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