VIVANT CORP. saw a 35% drop in after-tax net income to P814.4 million as the company’s subsidiaries recorded reduced power in the first semester.
In a regulatory filing, the Cebu-based listed firm posted a 31.7% decline in attributable income to P743.41 million between January and June.
Its total revenues dropped by 43% to P1.8 billion in the period mainly due to the slump in its power sales.
The 62% drop in the sale of power to P761 million was driven mainly by the 53% sales contraction of 1590 Energy Corp. on reduced volume and prices in the Wholesale Electricity Spot Market (WESM), as well as the absence of energy sales in Vivant Energy Corp. (VEC).
To recall, VEC’s supply deal with state-led Power Sector Assets and Liabilities Management Corp. (PSALM) got terminated in September last year.
However, the holding firm’s special purpose vehicle ET-Energy Island, Inc., which carries out rooftop solar projects, saw an 11% increase in energy sales.
Vivant’s share in net earnings of associates and joint ventures decreased by 13% to P905.5 million in the first six months of 2020.
Visayan Electric Co., the company’s wholly-owned utility, brought in P394.6 million in net income contribution, down 3% from last year due to an 8% drop in volume sold during the period.
Reduced energy sales pulled down Minergy Power Corp.’s income share by 10%.
Lower spot market sales by its associate, Cebu Energy Development Corp., drove Abovant Holdings, Inc.’s income share down 9%. Cebu Private Power Corp. also saw a drop in its contribution due to depressed revenues from its sale of excess capacity at the spot market.
The maintenance work of its 20%-owned Therma Visayas, Inc. in the first quarter caused the company to shoulder an interest expense on debts and replacement power costs of P44 million.
Further, the declines in contracted capacities and lower selling prices brought down retail electricity supplier Prism Energy, Inc.’s contribution by 56%.
Only Delta P, Inc. and Calamian Islands Power Corp., both 50%-owned firms, contributed higher income shares at P34 million and P24.6 million, respectively, due in part to reductions in debt service costs.
On Monday, shares in Vivant Corp. jumped by 10.81% to close at P14.96 each. — Adam J. Ang
