Listed Vivant Corp said its January-September net income fell 24 percent to 943.28 million pesos from 1.23 billion last year due to the impact of Hurricane Odette and difficult macroeconomic conditions.
Total revenue grew 16 percent to 4.32 billion pesos by the end of September from 3.72 billion pesos last year, driven by new contribution from power plants in Bantayan, Cebu as well as improved rooftop solar business of wholly owned subsidiary Cornergy.
Vivant reported that energy sales grew 34 per cent year-on-year to P3.1 billion P3.1 billion P2.3 billion.
Vivant, a holding company with investments in power and water infrastructure, reported a contribution to the new income from its Isla Norte subsidiary, 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 of power sales volume on account of an improved customer base for its rooftop solar business, increased revenue from retail electricity, and improved earnings from its engineering solutions business.
“Although we continue to face external challenges industry-wide, our results for the third quarter demonstrated that we are resilient and agile in a changing environment,” said Vivant Arlo AG CEO Sarmiento.
The company stated that the income contribution from its distribution business was significantly impacted by the effects of Super Typhoon Odette.
A slowdown in electricity sales in January and February, subsidies to its customers, and delayed generation fee refunds negatively impacted the utility’s earnings performance, resulting in a 39 percent decline in income contribution for Vivant.
Global trade conditions and inflationary pressures have pushed up the company’s business costs. The sharp rise in fuel costs in 2022 contributed to an increase in the generation cost of its subsidiaries. The impact on net income was partially offset by increased contracted capacities and improved power sales to certain associates and joint ventures.
Despite the headwinds it has faced, Cebu-based Vivant has 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 the acquisition of the 225 MW Bawang Diesel Power Plant (BDPP) by 1590 Energy Corp. (EC), a majority owned subsidiary of Vivant Energy Corp. It is a wholly owned subsidiary of Vivant Corp. .
1590 EC has operated and maintained the BDPP since 2010 under a lease with the La Union County government.