Vivant profits rise on power sector gains – Manila Bulletin

Cebu-based investment holding company Vivant Corporation reported a 25% increase in core net income to 1.73 billion pesos last year, from 1.38 billion pesos earned in 2020.

In a statement, the company said it ended 2021 with total consolidated attributable net profit of 1.78 billion pesos, up 23% year-on-year from 1.44 billion pesos.

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This comes as Vivant continues to provide scalable solutions in both the energy and infrastructure sectors. Investments in power generation, power distribution and power retail make up Vivant’s energy business portfolio.

The power generation business continued to drive Vivant’s earnings performance, accounting for 69% of total business segment revenue.

The company recorded an 11% year-on-year increase in revenue contribution in 2021, from 1.53 billion pesos to 1.70 billion pesos due to favorable spot market prices and new contributions from newly acquired production companies in 2021.

The electricity distribution business recorded a contribution to net profit of 745.57 million pesos, up 29% from 579.02 million pesos in 2020.

Although electricity sales for the year increased only slightly, Vivant’s improved performance was driven by reduced system losses, reduced tax payments under the Republic 11534 or business recovery and tax incentives for businesses, and effective bad debt management.

“We are proud of what we have achieved in the face of the challenges posed by the pandemic. As we see businesses adapt to the changing landscape, we expect demand for customizable, forward-looking solutions that will help them thrive in the new environment,” said Vivant Corporation Chief Executive Officer, Arlo AG Sarmiento.

He added that “we are also grateful to the government for putting in place a policy that helps businesses survive the effects of the pandemic.” Vivant also recorded a one-time gain of 44.96 million pesos in 2021, mainly due to unrealized foreign exchange gains and its share in the fair value revaluation of investment properties.

In the same year, the electricity retail group recorded a net contribution of 64.40 million pesos, a significant improvement from the 3.93 million pesos of the previous year.

The increase in contribution results from an expansion of the customer base of wholly-owned subsidiary COREnergy, who now see the importance of energy engineering solutions in their operations.

Vivant saw its businesses in the water solutions sector take shape in 2021 with the commissioning of a combined sludge and wastewater treatment plant in the city of Puerto Princesa in Palawan.

The plant, a public-private partnership project with the Palawan city government, will help rehabilitate Puerto Princesa Bay.

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Rosemary C. Kearney