The Cebu-based listed firm reported a consolidated core net income (CCNI) of P313 million for the quarter ended March 31, slightly lower by 2 percent from the same period last year.
Accounting for non-core items, including losses from an unplanned outage of a subsidiary’s generating unit and foreign exchange gains, net income attributable to equity holders of the parent stood at P267 million, down 6 percent year-on-year.
“The P313 million CCNI posted in the first quarter of 2026 was supported by the steady contribution of our DU business, reliable performance of our on grid generation assets, improving results from our RES arm, and the positive contribution of our growing water business. We remain on track to meet our midterm goals,” said Vivant chief executive officer Arlo G. Sarmiento.
Revenue growth
Vivant’s consolidated revenues rose 9 percent to P2.6 billion, driven mainly by higher power sales and finance income from water concessions.
The company said in a statement that revenues from power sales increased due to improved participation in the Wholesale Electricity Spot Market (WESM), higher energy volumes from short-term supply agreements, and improved plant availability in some facilities.
Its retail electricity supply arm, Corenergy, sold 91 gigawatt-hours (GWh) of electricity to contestable customers during the quarter, 43 percent higher than in 2025 as customer acquisitions accelerated.
Meanwhile, operating expenses climbed 12 percent to P400 million due to higher manpower costs, professional fees tied to business development initiatives, and increased depreciation and amortization expenses.
Power segment
Vivant Energy contributed P476 million to the company’s net income, with distribution utility Visayan Electric Co. (VECO) accounting for the largest share.
VECO contributed P267 million, or 56 percent of total energy earnings, despite a 6-percent decline from the previous year due to the high base effect of distribution and wheeling service charges booked in 2025.
VECO sold 975 GWh of electricity to captive customers during the quarter, reflecting a 4-percent increase in electricity volumes.
The company’s portfolio of coal, oil, and solar facilities delivered a combined 886 GWh of electricity.
Its on-grid coal plants benefited from stronger WESM sales. Abovant Holdings Inc., which operates a 246-megawatt coal facility in Toledo City, contributed P114 million despite lower year-on-year earnings.
Minergy Power Corp., operator of a 165-MW plant in Misamis Oriental, contributed P79 million, up 69 percent from last year due to a surge in spot market volumes.
Vivant’s on-grid oil plants generated a combined P81 million contribution, led by Meridian Power Inc.’s 70-MW oil facility in Cebu City.
Meanwhile, Samal Solar Renewable Energy Corp. (SSREC), Vivant’s first operating renewable energy facility, contributed P9 million after delivering 18 GWh of electricity during the quarter.
Off-grid losses
Despite gains from on-grid assets, Vivant’s off-grid plants weighed on overall generation earnings.
The company said lower energy sales, higher generation costs, preventive maintenance activities, and the outage of one engine at Delta P Inc.’s Puerto Princesa facility resulted in losses during the quarter.
Power generation contributed P233 million to Vivant’s bottom line, but overall net income contribution from the segment declined by 16 percent year-on-year.
Water expansion
Vivant’s water business emerged as a major growth driver after contributing P75 million to net income, reversing the P12-million loss recorded in the same period last year.
The turnaround was fueled by finance income from the concessions of Isla Mactan Cordova Corp. (IMCC) and Puerto Princesa Wastewater Reclamation and Learning Center Inc. (PPWRLC).
The company also strengthened its wastewater treatment business after increasing its stake in Faith Lived Out Visions 2 Ventures Holdings Inc. (FLOWs) to 90 percent in March 2026.
In April, Vivant completed the acquisition of Bantayan Resource Management and Development Corp., a water distribution company serving more than 4,000 households in Bantayan.
Its subsidiary Bantayan Island Water Solutions Corp. also began commercial operations last month, providing water and wastewater services to around 1,000 households.
Outlook
Sarmiento said Vivant expects its energy and water expansion projects to continue supporting growth despite global economic uncertainties.
“While the first quarter of the year was not without challenges, the resilience of our Bais (employees) still showed in our results,” he said.
“Amid uncertainties in the current environment, especially considering the ongoing Middle East conflict, sound fiscal management will be key for our business sustainability,” added Vivant Group chief finance officer and chief risk officer Minuel Carmela N. Franco. —Ed: Corrie S. Narisma
