Vivant Corporation, listed on the stock exchange, recorded a 34% decline in net profit to P943 million year-on-year due to the impact of Typhoon Odette and difficult macroeconomic conditions.
In a statement to the Philippine Stock Exchange, the holding company that invests in energy and water infrastructure said the revenue 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 provided to its customers and the late recovery of production costs weighed on the company’s results, which led to a 39% reduction in the contribution to living income.
The company saw a 16% improvement in total revenue to 4.3 billion pesos in the first nine months of 2022, from 3.7 billion pesos in the same period last year.
The increase in total revenue is due to the new contribution from power generation plants in Bantayan, Cebu, as well as improved solar rooftop activities from wholly-owned subsidiary COREnergy.
Vivant said electricity sales rose 34 percent year-on-year to 3.1 billion pesos from 2.3 billion pesos in the same period of 2021.
The company also reported a new revenue contribution from its 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 increase in energy sales volume due to improved customer base from its solar rooftop business, increased retail electricity revenue and improved revenue from its engineering solutions business.
Global trade conditions and inflationary pressures have resulted in higher costs for the company’s operations. Soaring fuel costs in 2022 contributed to the increased cost of production for its subsidiaries.
The impact on net income was partially offset by increased contracted capacity and improved energy sales from certain associates and joint ventures.
Despite the headwinds encountered, Vivant, based in Cebu, has made significant investments in power generation and water solutions while implementing cost-efficiency measures to adapt to the current economic environment.
One of the largest investments was the acquisition of the 225 megawatt Bauang diesel power station 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 operated and maintained BDPP since 2010 under a lease agreement with the provincial government of La Union.
“While we continue to face industry-wide external challenges, our third quarter results demonstrated that we are resilient and agile in a changing environment,” said Vivant Corporation CEO Arlo. AG Sarmiento.
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