CEBU-BASED Vivant Corp. is investing P30 billion to grow its power and water business in five years.
Of the total, Arlo Garcia Sarmiento, Vivant Corp. chief executive officer, said Vivant intends to invest P22 billion for its energy projects, of which P15 billion is booked for various renewable energy projects. The remainder or the P8 billion will be used to grow the company’s water business.
Sarmiento said Vivant had a banner year in 2023.
“We made P2.3 billion last year. It was our second-best year ever. It was a welcome result because as the economy opened up we were able to ride the wave and our profits followed. We are extremely proud of how we’ve been able to move the country forward with our significant investments in energy and power,” he said, at the sideline of the company’s Annual Stockholders’ Meeting on Thursday, June 20, 2024.
Vivant posted a 43 percent year-on-year growth in its bottom line for 2023, mainly driven by the solid financial performance of the company’s energy business unit.
Vivant Energy had a total income contribution of P3.1 billion, a 36 percent jump from the previous year, as its expanded investment in the small power utilities group resulted in a significant increase in attributable installed capacity from 35 megawatts to 63 megawatts.
Earnings were also boosted by its acquisition of San Ildefonso Alternative Energy Corp.–Vivant Energy’s first utility-scale solar power generation facility located in Bulacan with a total capacity of 22 megawatts.
The company also ventured into the wind space via a partnership with Aboitiz Renewables and Vena Energy for the development of a 206MW wind farm in San Isidro, Northern Samar, with expected project completion in the second quarter of 2025.
“Our goal is to hit 30 percent of green energy by 2030. Based on the pipeline that we have, we would far exceed that,” said Sarmiento. “Most of our projects leading to 2030 are RE, about 70 percent. We think we will exceed the mark of 30 percent easily.”
Sarmiento announced that this year, they expect to sign 500MW of RE service contracts composed of solar and wind projects, which will be set up across the country.
“We believe we will hit that 500MW this year,” he said.
Cordova water desalination
Meanwhile, for its water business, Vivant Water had the first water out of the first skid/train of its plant in Isla Mactan Cordova Corp., making history as the first company to construct a utility-scale seawater desalination facility in the Philippines.
Sarmiento said the construction of the 20MLD seawater desalination plant in Cordova, Cebu is now estimated at 92 percent and will be fully operational before the end of the year.
This project is Vivant’s attempt at providing a sustainable solution to Cebu’s water crisis as it is expected to produce potable water that will satisfy the daily consumption of roughly 20,000 households.
“Were are now finalizing our contract with Metro Cebu Water District which is timely because the project is about to finish,” he said.
Vivant Water’s investment in Puerto Princesa Palawan brought in P8.4 million in equity earnings for 2023, up by 32 percent year-on-year. The increase in revenue was due to higher earnings from septage operations on the back of increased desludging services.
To date, Vivant Water has invested P2 billion in water infrastructure.
Cebu is currently experiencing a water shortage, supplying only half of the 600MLD demand. Because of this shortage, people rely on trucking and sub-standard water quality.
According to Sarmiento, Cebu given its progress, deserves to have better water service. He said the company is open to embarking on similar projects in other areas in Cebu. / KOC
Original story: Sunstar Cebu
