Publicly-listed energy and water company Vivant Corporation of Cebu posted a 43 percent year-on-year growth in net income to P2.3 billion last year on the back of strong contributions from its power generation and distribution businesses.
In a disclosure to the Philippine Stock Exchange (PSE), Vivant Corporation CEO Arlo Sarmiento said, “2023 was another banner year for us at Vivant and we could have not achieved this without the support of our shareholders, customers and our employees.”
“We take pride in helping the nation move forward by supplying reliable, consistent and steady supply of electricity and more recently, offer alternative solutions to address the water security concerns through our foray in the water infrastructure sector,” he added.
Vivant Energy Corporation, the company’s energy strategic business unit (SBU), continued to drive its solid financial performance in 2023 with a total income contribution of P3.1 billion, up by 36 percent from the previous year.
The power generation business segment ended the year with a total income contribution of P1.9 billion, versus the previous year’s P1.5 billion – due to strong results from both the on grid and off grid business segments.
Vivant Energy also expanded its off grid portfolio in 2023 by consolidating ownership in facilities located in Puerto Princesa, Palawan (Delta P, Inc.), Coron and Busuanga, Palawan (Calamian Islands Power Corp.) and Bantayan Island, Cebu (Isla Norte Power Corporation).
The acquisition resulted in an expanded investment in the Small Power Utilities Group (SPUG) from 35 MW to 63 MW, nearly doubling Vivant Energy’s attributable installed capacity in this segment.
The firm said 2023 also showed great progress in the energy SBU’s renewable energy target through the acquisition of a solar facility in Bulacan (San Ildefonso Alternative Energy Corp.) and the signing of a joint venture agreement with Vena Energy and Aboitiz Renewables Inc. for the construction of a wind farm in Samar, Leyte.
The completion of these projects will increase Vivant Energy’s attributable capacity by 22 MW this year and 62 MW in 2025.
On the other hand, the distribution business segment posted a positive recovery in 2023 with an income contribution of P1 billion, a 33 percent year-on-year increase.
This was on the back of a 12 percent growth in electricity sales for the year, with both residential and non-residential markets posting healthy consumption growth.
The retail group ended the year with a bottomline share of P72.4 million, up by 33 percent year-on-year. Rooftop solar and the retail electricity business contributed to the favorable earnings due to increased energy delivered and increased customer base.
Results were not as favorable for the company’s water SBU, Vivant Infracore Holdings Inc., which posted a negative income contribution of P15.6 million versus 2022’s profit share of P6.3 million. The decline was due to higher incurred costs and operating expenses.
The Water SBU continued with the development and construction of its 20 million liter per day (MLD) desalination plant in Cordova, Cebu, the first utility scale seawater desalination facility in the country, which is expected to be operational by end of the third quarter of 2024.
This project is Vivant’s attempt at providing a sustainable solution to Cebu’s water crisis as it is expected to produce potable water that will satisfy the daily consumption of roughly 20,000 households.
“Vivant remains bullish in sustaining our growth in the power generation and electricity distribution sector as well as in the water infrastructure segment.
“We will continue to play a pivotal role in transitioning to more renewable energy sources and work towards a more sustainable and environmentally friendly future,” said Sarmiento.