Net income attributable to equity holders of the parent declined 21 percent year-on-year to P757 million after accounting for non-core items, including losses from an unplanned plant downtime, foreign exchange gains and insurance proceeds.
Consolidated revenues, however, climbed to P7.6 billion from P5.4 billion a year earlier, with power sales accounting for P6.3 billion, or 83 percent of the total.
Power sales rose 53 percent on improved topline performance of six subsidiaries.
“Vivant recognizes that uncertainties continue to persist,” Vivant president and CEO Arlo Sarmiento said in a statement, citing the Middle East conflict, slower-than-expected economic growth and potential regulatory changes.
He said unplanned downtimes at two conventional plants also affected first-half earnings, adding that resources had been deployed to restore capacity and strengthen operations.
Retail energy takes a hit
Vivant’s energy business contributed P1.3 billion to net income, with power generation accounting for P853 million and electricity distribution contributing P553 million.
Retail energy, however, posted a P118-million loss contribution due to lower average selling prices from retail electricity supply sales.
The company’s portfolio of coal, oil and solar plants recorded a total sales volume of 2,132 gigawatt-hours, up 7 percent year-on-year.
Oil-fired plants contributed P531 million to generation earnings, led by Meridian Power Inc., which contributed P293 million as energy sales jumped 139 percent on higher spot-market transactions.
1590 Energy Corp., operator of a 225-megawatt plant in Bauang, La Union, contributed P204 million on strong revenues from bilateral contracts, the Reserve Market and the Wholesale Electricity Spot Market.
Delta P Inc., however, booked a P93-million loss contribution following the downtime of one of its engines in Puerto Princesa.
Coal plants contributed P311 million, down 27 percent year-on-year, as unplanned downtime at two units of Therma Visayas Inc.’s 340-MW facility in Toledo City, Cebu tempered gains elsewhere in the portfolio.
Renewables gain ground
Vivant’s first on-grid renewable energy facility, the 49.2-MW Samal solar plant in Bataan, contributed P23 million after delivering 40 GWh during the semester.
The company is pursuing its goal of having renewable energy account for 30 percent of attributable generating capacity by 2030.
Vivant Renewable Energy Corp. acquired Samar Philippines Renewable Corp. in June. SPRC is developing a 200-MW wind farm in Northern Samar targeted for completion by 2028.
Meanwhile, the 22-MW San Ildefonso solar project in Bulacan began testing and commissioning in July.
Water business grows
Vivant’s water business provided a bright spot, with its contribution to the company’s bottom line surging 86 percent to P174 million from P93 million a year earlier.
The improvement was driven largely by the recognition of concessions involving Isla Mactan-Cordova Corp. (IMCC) and Puerto Princesa Water Reclamation and Learning Center (PPWRLC).
IMCC booked an earnings share of P181 million following the start of its water supply contract in April, while PPWRLC contributed P15 million from wastewater treatment services.
Sarmiento said the diversified portfolio helped cushion weaker overall results from the energy business.
He added that Vivant expects its renewable-energy portfolio to expand further as new projects are completed, while its water operations continue to build their presence in bulk water, distribution and wastewater treatment.
Vivant chief finance and risk officer Minuel Carmela Franco said the company was implementing cost-optimization measures while maintaining a strong balance sheet to fund operations and expansion projects. —Ed: Corrie S. Narisma
