Vivant Corporation Reported P1.7 Billion Net Income in 9M24

Vivant Corporation (Vivant) today reported a Consolidated Core Net Income (CCNI) of P1.6 billion, which was about the same level recorded for the same period last year. This amount excludes non-recurring income from gains from foreign exchange, sale of fixed assets and a one-off fee from an associate.

Meanwhile, Consolidated Net Income Attributable to Parent was at P1.7 billion as of end[1]September 2024, lower than the P2.0 billion reported in 2023. The decline was largely due to notable one-off gains last year relating to the fair value adjustments of acquired shares in two operating power entities, namely Calamian Islands Power Corporation (CIPC) and Delta P, Inc. (DPI). 

“Vivant is proud to show solid results in the first nine months of 2024 and poised to close the year strong. Our power generation units continued to bring encouraging results through our participation in the spot and reserve markets,” said Arlo G. Sarmiento, Vivant Corporation CEO.

Of the total net income, power generation accounted for the majority, representing 63% or P1.5 billion. The DU accounted for 37% or P871million. Retail energy contributed P6.4 million or less than 1%. The water business is still in its investment phase and is expected to contribute positively in the future.

Consolidated revenues reached P8.8 billion, 46% higher than 2023 primarily due to the combined effect of higher sales volumes from conventional power plants, retail electricity supply (RES), and solar rooftop businesses.

Operating expenses increased by 43% to P985 million primarily due to higher costs as a result of additional headcount, fixed asset investments, and consultancy services engagements brought about by business expansion plans. 

Vivant’s consolidated assets stood at P31.4 billion while total equity was at P19.5 billion. Total interest-bearing notes amounted to P6.8 billion.  

“Meanwhile, our business development teams are focused on building our pipeline of projects in both off-grid and on-grid locations to establish a more balanced portfolio. Our distribution utility business remains a reliable earnings contributor, while we also strengthen our retail energy arm to better serve existing and potential customers. Lastly, we are focused on delivering resilient and sustainable water management systems through Vivant Water. In all our business initiatives, we stay true to who we are as we create solutions for our changing world,” added Mr. Sarmiento

Vivant’s power generation business segment ended the period with a total net income contribution of P1.5billion, driven by better margins from sales to the WESM and reserve market. The strong performance was seen despite the 8% lower overall volumes recorded this year at 3,703 GWh.  

“Vivant Energy Corporation (Vivant Energy) is proud to support economic growth in the country by providing reliable and reasonably priced power to the communities we serve. Our conventional plants once again delivered for our customers in 2024. Looking ahead, we are committed to building a more balanced portfolio that will also include renewable energy (RE) facilities. Our target to reach 30% RE share by 2030 remains on track to date,” said Emil Andre M. Garcia, Vivant Energy President

As of end September 2024, Vivant Energy has a total gross conventional power generation capacity of 1,123 MW. Out of this total, 447 MW is attributable to the Company. Majority of its capacity is contracted with DUs, electric cooperatives and retail suppliers representing 52%, while the balance of 48% is available for trading at the spot or reserve markets.  

Vivant continues to build a robust pipeline of projects that will cater to the growing power demand in the areas we operate in and address emerging electricity needs in newly identified underserved locations.

San Ildefonso Alternative Energy Corporation (SIAEC) is a project company that will operate a 22 MWp solar power plant facility in San Ildefonso, Bulacan. Construction of the plant and ancillary facilities are underway with target commercial operations by 2025. SIAEC is 100% owned by Vivant.  

Lihangin Wind Energy Corporation (LWEC) is a project company that will construct and operate a 206 MW wind facility in San Isidro, Northern Samar. A joint venture with Aboitiz Renewables, Inc. (ARI) and Vena Energy, LWEC is 30% owned by Vivant.  

Net income contribution from 35%-owned DU Visayan Electric Company (VECO) increased by 8% to P871 million as energy sales volumes hit 2,934 GWh, 11% higher than the same period in 2023, driven by increased demand from all customer classes.

Residential volumes saw an 18% increase to 872 GWh due to warmer temperatures. Commercial and Industrial energy sales also grew by 11% and 8% respectively, driven by increased economic activity within VECO’s franchise area. 

Vivant Water, the Company’s water infrastructure arm is building a utility-scale seawater desalination plant that will augment the bulk water supply of Metro Cebu by twenty thousand cubic meters per day of treated and potable water. Development activities for the plant commenced in 2022 and is expected to be completed within the year.  

“Once operational, the water desalination plant in Cordova, Cebu will be the largest utility scale seawater desalination plant in the country. Through this project, Vivant not only protects Cebu’s limited freshwater resources by reducing pressure on groundwater aquifers, but also helps build a climate-resilient future,” according to Atty. Jess Anthony N. Garcia, Vivant Water CEO.