Vivant Corporation Reported P2.3 Billion Net Income in 2023, Up 43%

Vivant Corporation (Vivant), a publicly listed company, reported a 43% year-on-year (YoY) increase in its bottom line in 2023 with a net income of P2.3 billion, despite the difficult macroeconomic and financial conditions that persisted throughout the year.

Inflation and high interest rates put pressure on 2023, primarily as a result of trade restrictions, persistent geopolitical tensions, and weather-related increases in commodity prices. With the help of the government's structural changes and policy response, the local economy was able to weather the challenging financial and economic climate and record a respectable 5.6% annual GDP growth.

The realized gain from a subsidiary's share acquisition, one-time management and technical contracts, fair value recognition of certain investments, and other events contributed to the P366.4 million in non-core income recognized by the company. After deducting the one-time charges, Vivant's core net income for the year ended at P1.9 billion, which was 24% more than the P1.5 billion earned the year before.

​The company's financial performance was driven by the Energy strategic business unit (SBU) in 2023, which had a 36% YoY increase in income contribution to P3.1 billion. The performance of the unit was supported by all business segments, and it benefited from the accelerated economic activity in both the main and island grids. A crucial metric for assessing the health of the economy, electricity consumption increased at a healthy rate in 2023. Peak demand increased in major grids, with YoY expansions of 3.6%, 6.2%, and 7.2% recorded in Luzon, Visayas, and Mindanao, respectively. The same is true for island economies, where the ongoing rebound in tourism has further stimulated commercial activity.
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In 2023, however, the Water SBU's financial performance reversed. In contrast to the P6.3 million profit share from the prior year, the unit posted a negative income contribution of P15.6 million. Due to increased incurred expenditures and operating expenses during the year, the two other segments—water solutions and water supply—offset the waste water business's better profitability.

The company's consolidated assets reached P29.9 billion as of December 31, 2023, a YoY growth of 13%. The Energy and Water SBUs' acquisition and project development efforts were primarily responsible for the expansion. 

Prepayments to suppliers and the effects of the company combination were the primary causes of the 2% growth in total current assets, which went from P7.2 billion to P7.3 billion. Advances to associates and cash holdings were down 45% and 10%, respectively, year over year. The primary cause of the cash use in 2023 was investing operations; however, the impact of the business combination and the collection of advances from affiliates led to a decrease in recoverable accounts from associates.
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All non-current assets increased to P22.6 billion, a YoY growth of 17%. This was mostly caused by the 41% rise in fixed assets to P8.3 billion from the previous year. This growth was driven by the Energy and Water SBUs' expansion plans.

By the end of 2023, Vivant's total consolidated liabilities had increased by 20% year over year to P10.2 billion. The growth in non-current commitments was 32% YoY, while current liabilities increased by 6%. In order to partially fund its investments and project development activities, the Energy SBU turned to the debt capital market in 2023. The growth in the company's total long-term loans was also influenced by the consolidation of a new subsidiary.
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The income earned in 2023 caused the total equity attributable to equity holders of the parent to increase to P18.3 billion from P16.5 billion.

​At year's end, Vivant's debt-to-equity ratio was marginally higher at 0.52x (compared to 0.48x in 2022), and its current ratio was 1.80x (compared to 1.87x in 2022).

​Vivant Corporation is a publicly listed holding company registered with the Philippine Stock Exchange (PSE) with investments in various segments of the power value chain and a growing interest in infrastructure development.