Cebu-based Vivant Corporation reported a 36% drop in net income to Php1.71 billion in 2020 from Php2.67 billion year-on-year.
Based on the firm’s annual report as disclosed to the Philippine Stock Exchange, total revenues declined 37% to Php3.77 billion from Php5.98 billion in 2019, due to a 47% decline in energy sales and the termination of its independent power producer agreement with government-owned Power Sector Assets and Liabilities Management Corporation in October 2019.
The company’s net earnings of associations and joint ventures also fell by 30% to Php1.5 billion from Php2.2 billion.
Notable entities the posted lower incomes include Visayan Electric Company (VECO), which recorded a 26% year-on-year drop in income contribution to Php579 million from Php785.1 million. This was due to low electricity sales caused by the slowdown in economic activities resulting from the COVID-19 pandemic-induced lockdowns.
Vivant owns 40% of VECO, the second largest distribution utility in the country that provides power generation to most of Metro Cebu. Aboitiz Power Corporation is its majority owner with a 60% share.
Another Vivant-AboitizPower joint venture Prism Energy, Inc. posted a 68% decrease in earning contribution to Php11.4 million from Php35.5 million, as retail electricity sales dropped 35% due to the decline in contracted capacities caused by the pandemic’s adverse effect on power consumption. Vivant also owns 40% of Prism, while AboitizPower owns the remaining 60%.
Palawan-based Delta P Inc., meanwhile, recorded a 39% drop in its income contribution to Php34.7 million from Php61.5 million, following the expiration of its power supply agreement for its old facility last April, as well as lower electricity demand.
Established in 1990, Vivant has been involved in power generation and has built a portfolio of both renewable and traditional plants with a total attributable capacity of 356MW.