CEBU-BASED Vivant Corp. said on Wednesday that its net income attributable to its parent firm fell by 38% to P1.4 billion for the full-year 2020, as revenues declined.
In its annual report shared with the local bourse, Vivant said total revenues slid 37% to P3.8 billion last year compared with P6 billion in 2019. The drop was partly caused by lower power sales at P1.9 billion, a 47% decrease year on year.
The firm also noted that its subsidiary Vivant Energy Corp. did not record energy sales after its independent power producer administrator (IPPA) agreement with state-led Power Sector Assets and Liabilities Management Corp. was terminated in October 2019.
It said the decline in energy sales was mitigated by its subsidiaries’ improved revenues. Corenergy’s retail electricity supply business posted a 67% rise year on year, while ET Energy Island Corp.’s sales of solar rooftop projects were up by 20%.
Vivant President Arlo Angelo G. Sarmiento said the power generation business contributed 72% of the total income, followed by electricity distribution with a 27% share.
“Despite the challenges and uncertainties faced in 2020, Vivant has remained in a healthy financial position, maintaining healthy profits albeit lower than 2019, which had been our strongest year,” Mr. Sarmiento was quoted as saying in the report.
He said that the firm was able to secure a P3-billion fixed-rate corporate note facility despite the challenging times that it faced last year. The proceeds from the fund-raising activity will be used for the growth initiatives of Vivant’s power and infrastructure businesses.
Vivant also detailed its 20-year vision, saying it plans to become a “major conglomerate in the Philippines by 2040.”
Two months ago, the company said its subsidiaries Vivant Energy and Amberdust Holdings Corp. were set to acquire equity shares by infusing P433.83 million in Senator Juan Miguel F. Zubiri’s two power firms in Bukidnon. The acquisition will allow Vivant’s continued expansion in Mindanao.
Vivant, which is into power generation, distribution, and retail electricity supply, saw its shares inch up by 0.27% or four centavos to close at P14.62 each on Wednesday. — Angelica Y. Yang