Publicly listed Vivant Corporation reported a 34 percent decrease in net income to P943 million year-one year due to the impact of Typhoon Odette and the challenging macroeconomic conditions.

In a disclosure to the Philippine Stock Exchange, the holding company with investments in energy and water infrastructure said 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.

The firm posted a 16 percent improvement in total revenues to P4.3 billion in the first nine months of 2022 from P3.7 billion in the same period last year.

The increase in total revenues is driven by 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 in the same period in 2021.

The firm also 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.

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 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 by 1590 Energy Corporation (1590 EC), a majority-owned subsidiary of Vivant Energy Corporation which is a wholly owned subsidiary of Vivant Corporation.

1590 EC has been operating and maintaining BDPP since 2010 under a lease contract with the Provincial Government of La Union.

“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 Corporation CEO Arlo A.G. Sarmiento.