Along with the government’s ambitious energy security goals, Cebu-based listed firm Vivant Corp. wants to further boost its energy venture, which was instrumental in securing double-digit profit growth last year.
“Vivant remains bullish in sustaining our growth in the power generation and electricity distribution sector as well as in the water infrastructure segment,” Vivant Corp. CEO Arlo Sarmiento said.
“We will continue to play a pivotal role in transitioning to more renewable energy sources and work towards a more sustainable and environmentally friendly future,” he added.
In 2023, Vivant Corp.’s net income surged by 43 percent to P2.3 billion— primarily driven by the expanded portfolio of its energy arm, Vivant Energy Corp., whose bottom line profit clocked in at P3.1 billion, up by 36 percent from the previous year.
The power generation business segment ended last year with a total income contribution of P1.9 billion against the previous year’s P1.5 billion due to strong results from both the on-grid and off-grid business units.
Broader reach
Vivant Energy expanded its off-grid portfolio by consolidating ownership in facilities in Puerto Princesa, Palawan (Delta P Inc.), Coron and Busuanga, Palawan (Calamian Islands Power Corp.), and Bantayan Island, Cebu (Isla Norte Power Corp.) last year.
The acquisitions increased the company's investment in the Small Power Utilities Group (SPUG) from 35 megawatts (MW) to 63 MW, nearly doubling Vivant Energy's attributable installed capacity in this segment.
Last year, Vivant Energy also started taking up space in the renewable energy sector, which included the buyout of a solar facility in Bulacan, known as San Ildefonso Alternative Energy Corp.
It also signed a collaborative agreement with Vena Energy and Aboitiz Renewables Inc. for the construction of a wind farm in Samar, Leyte.
Through these initiatives, Vivant Energy plans to increase its capacity by 22 MW in 2021 and 62 MW by 2025.
Meanwhile, the distribution business segment rebounded positively in 2023, contributing P1 billion to the parent's income, a significant 33 percent year-on-year (YoY) increase.
The growth was mainly driven by a 12 percent surge in electricity sales, with residential and commercial customers showing solid consumption growth.
Meanwhile, the retail group ended the year with a 33 percent YoY increase in its bottom line, reaching P72.4 million.
Rooftop solar and retail electricity businesses were the key contributors to this favorable earnings performance, fueled by increased energy delivery and a growing customer base.
Water unit to keep up
However, Vivant's water SBU, Vivant Infracore Holdings Inc., did not fare as well, posting a negative income contribution of P15.6 million compared to a profit share of P6.3 million in 2022. Increased costs and operating expenses were the major contributors to the decline.
Despite the financial setback, Vivant continued to develop and construct its 20 million liters per day (MLD) desalination plant in Cordova, Cebu— the country's first utility-scale seawater desalination facility.
The plant is expected to be operational by the end of the third quarter of this year.
Vivant intends for this project to provide a sustainable solution to Cebu's water crisis by producing potable water to meet the daily consumption of approximately 20,000 households.
As of December 2023, Vivant has consolidated assets worth P29.9 billion from project development initiatives in the energy and water SBUs.