Vivant Corp. posted a net income of P1.60 billion last year as its power business unit continued to drive earnings while its infrastructure business unit started to post gains.
In a disclosure to the Philippine Stock Exchange, the firm said it recognized P53.59 million in non-recurring income in 2022, which mainly stemmed from gains resulting from the remeasurement of foreign currency held and the fair value of some of its investments.
Netting out the one-off items, Vivant’s core net income for the year closed at P1.54 billion in 2022, 15 percent lower than previous year’s P1.8 billion.
The total income contribution of Vivant’s power business segment was lower by 13 percent YoY at P2.25 billion. Power generation and electricity distribution comprised the bulk of the profits for the year accounting for 64 percent and 33 percent of total, respectively.
The power generation business ended 2022 with total income contribution of P1.45 billion versus previous year’s P1.72 billion.
The 16 percent decline is attributable to the diesel group, particularly the On Grid assets, which recorded an 80 percent drop in contribution at P131.73 million.
Lower revenues from ancillary services and spot market sales brought down the group’s performance for the year. Moreover, a subsidiary incurred one off expenses related to the purchase of its plant assets in April 2022.
In the meantime, the Off Grid assets showed a strong recovery in earnings as it recorded a 273 percent expansion in income, from P16.62 million in 2021 to P61.91 million in 2022. Operations of all island utilities showed significant expansion in energy sales.
Investments in coal assets generated profits of P1.13 billion in 2022, up by 53 percent. Improved revenues from spot market sales, lower operating expenses and the fuel cost management of an associate resulted to improved profitability for the year.
The retail group posted an income of P52.96 million, an 18 percent YoY reduction in bottomline contribution.
The Retail Electricity Supply (RES) companies posted a 29 percent YoY earnings decline at P48.73 million income, while the solar rooftop business exhibited a reversal with a positive contribution of P4.23 million during the year in review.
The electricity distribution business shored in P755.32 million in earnings for the year, 7 percent lower than previous year’s income level.
Electricity sales for the year were weighed down by the disruption in operations during the first two months of the year.
Restoration works due to Typhoon Odette (December 2021) resulted in phased-in energization of the utility’s franchise area.
Moreover, the financial assistance extended to its customers in the form of waived charges and the delayed recovery of generation charges contributed to the lower profit contribution for the year.
Vivant’s infrastructure business unit recorded a positive income share of P6.26 million, a reversal from previous year’s posted losses.
Fresh income contribution from its waste water treatment facility in Puerto Princesa and gains from foreign currency held by a subsidiary accounted for the favorable earnings results for the year.