Vivant Corporation (PSE: VVT) has posted a consolidated core net income (CCNI) of PHP 313 million in the first quarter of 2026, down 2% year-on-year, as stronger water contributions and on-grid generation gains were offset by weaker off-grid performance and outage-related losses.

The company’s net income attributable to equity holders declined 6% to PHP 267 million, factoring in non-core items including losses tied to an unplanned plant downtime and foreign exchange gains.

Revenues rose 9% to PHP 2.6 billion, driven by higher electricity sales volumes and increased finance income from water concessions.

“The PHP 13 million CCNI posted in the first quarter of 2026 was supported by the steady contribution of our DU (distribution utility) business, reliable performance of our on-grid generation assets, improving results from our RES arm, and the positive contribution of our growing water business. We remain on track to meet our midterm goals,” said Arlo G. Sarmiento, Vivant Corporation Chief Executive Officer.

Energy remained the dominant earnings driver, contributing PHP 476 million, though generation income fell 16% as off-grid assets were hit by lower output and higher costs, alongside a one-off loss from a subsidiary’s plant outage.

Distribution utility Visayan Electric Company (VECO) remained the single largest contributor, adding PHP 267 million, supported by 975 GWh in electricity sales.

On the generation side, on-grid coal and oil assets delivered stronger spot market performance, with Abovant Holdings contributing PHP 114 million, Minergy Power PHP 79 million, and Meridian Power PHP 46 million, reflecting higher Wholesale Electricity Spot Market (WESM) volumes.

Retail electricity supply arm Corenergy narrowed losses to PHP 23 million, despite a 43% increase in energy sales to 91 GWh. Vivant’s solar facility SSREC contributed PHP 9 million during the period.

Off-grid operations slipped to 59 GWh, down from 61 GWh a year earlier, weighed by maintenance activities and higher generation costs, including downtime at Delta P’s Puerto Princesa plant.

The water segment emerged as a key offsetting driver, posting PHP 75 million in net income, a turnaround from a PHP 12 million loss in the same period last year. Growth was supported by concession income from Isla Mactan Cordova Corporation and wastewater operations in Puerto Princesa.

Isla Mactan Cordova Corporation (IMCC), Vivant’s water infrastructure project company, contributed PHP 76 million, driven by finance income recognized from its long-term concession agreement with the Metropolitan Cebu Water District for a 20 MLD seawater desalination project supplying Metro Cebu.

Vivant also increased its stake in wastewater operator FLOWs to 90% in March 2026, with treated wastewater volumes reaching 191 million liters in the quarter.

As of end-March, Vivant reported PHP 36.0 billion in assets, PHP 22.5 billion in equity attributable to parent, and PHP 7.8 billion in interest-bearing debt, with its debt-to-equity ratio steady at 0.49x.

How should investors weigh Vivant’s growing water income against persistent challenges in its off-grid power operations?

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