Including non-recurring items—such as foreign exchange gains, insurance proceeds, and cost reimbursements from power subsidiaries—net income attributable to equity holders also reached P1.9 billion, up 12 percent year on year.
“Vivant continued to show strong results despite slower-than-expected GDP growth,” said Vivant CEO Arlo G. Sarmiento. “I am proud of the resilience of our teams as we navigated market challenges and saw positive results from our power generation, energy distribution, and wastewater treatment operations.”
Energy business remains key driver
Vivant’s energy segment remained its core earnings engine, contributing P2.5 billion. Power generation delivered P1.7 billion, or 63 percent of the total, while the distribution utility (DU) unit added P879 million. Retail energy posted a P79-million loss due to lower selling prices for retail electricity supply.
The company’s conventional plants sold 3,211 GWh of electricity during the period, with on-grid assets supplying 3,015 GWh and off-grid plants 196 GWh.
Despite a 15-percent decline in sales volume, generation income rose 12 percent, supported by trading gains from participation in the reserve market and the Wholesale Electricity Spot Market (WESM), along with revenues from Ancillary Services Procurement Agreement contracts.
Reserve market nominations surged 192 percent, led by 1590 Energy Corp. with 865 GWh. North Bukidnon Power Corp. and Cebu Energy Development Corp. posted the strongest year-on-year growth in spot market sales at 102 percent and 36 percent, respectively.
Distribution, water units post gains
The DU business, mainly through VECO, contributed P879 million, slightly higher than last year’s P871 million, supported by a 3-percent rise in sales volumes driven by residential customers.
The water segment returned to profitability, recording P184 million in income versus an P11-million loss a year earlier. The turnaround stemmed largely from concession asset recognition for Isla Mactan Cordova Corp., part of its 25-year joint venture with the Metropolitan Cebu Water District.
Earnings from Faith Lived Out Visions 2 Ventures Holdings Inc. (FLOWS) increased 13 percent to P8 million, supported by improved sewage operations in Puerto Princesa.
Financial position and outlook
Consolidated revenues were steady at P8.9 billion, with increased interest and concession income offsetting lower power sales. Operating expenses rose 26 percent to P1.2 billion on higher headcount, professional fees, and depreciation tied to recent acquisitions.
As of the period’s end, Vivant held P33.3 billion in assets, P21.3 billion in equity, and P6.9 billion in interest-bearing debt. Its current ratio improved to 2.10x, while debt-to-equity stood at 0.44x.
Sarmiento said Vivant expects to close the year strong, citing its acquisition of a 40-percent stake in Samal Solar Renewable Energy Corp., operator of a 53.14-MW solar farm in Bataan. The deal lifts Vivant’s attributable generation capacity to 471 MW and is expected to provide immediate earnings contribution. —Ed: Corrie S. Narisma
