Vivant Corp. said its income last year fell 10 percent to P1.6 billion from the previous year’s P1.77 billion even though its power business continued to drive the company’s profits.
It recognized a P53.59 million non-recurring income arising from gains 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 stood at P1.54 billion, 15 percent lower than previous year’s P1.8 billion.
“By adapting to the challenging business environment, we have been able to pursue our expansion plans in power with particular focus on growing our renewable energy portfolio as we continue to develop our water projects. All these are aligned to our commitment to provide solutions that support economic development and improve everyday living in our communities,” Vivant CEO Arlo A.G. Sarmiento said.
The total income contribution of the power business segment was lower by 13 percent to only P2.25 billion. Power generation and electricity distribution comprised the bulk of profits for the year accounting for 64 percent and 33 percent of total, respectively.
Its power generation business ended 2022 with income contribution of only P1.45 billion from the previous year’s P1.72 billion, a 16 percent decline attributed to the diesel group, more particularly its grid assets which recorded an 80 percent drop in contribution of only 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,” the company said.
Vivant’s off grid assets showed a strong recovery in earnings as it reported a 273 percent expansion in income to P61.91 million from the previous year’s P16.62 million. 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 from the previous year. 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 reduction in bottom line as the retail electricity supply companies posted a 29 percent earnings decline to only P48.73 million while the solar rooftop business posted a turnaround with a positive contribution of P4.23 million during the year.
Vivant acquired a solar power plant with a target capacity of 22MW in San Ildefonso, Bulacan contributing to the company’s efforts to grow its renewable energy portfolio.
The electricity distribution business contributed P755.32 million in earnings for the year, some 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, which hit the country in December 2021, resulted to 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.
The infrastructure business unit, meanwhile, recorded annincome 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.
