Vivant eyes P3-B equity infusion for further expansion

By: INQUIRER.net 02:51 PM June 17th, 2016

http://business.inquirer.net/211143/vivant-eyes-p3-b-equity-infusion-for-further-expansion

 

Listed energy firm Vivant Corporation (Vivant) is eyeing P3 billion in additional equity investments to finance further expansion of its power generation portfolio.

In a statement following its Annual Stockholders’ meeting, the company disclosed that as of end-2015, its generation capacity has reached 252 MW. A 55 percent expansion is expected once ongoing projects are completed, for which the firm needs additional equity infusion.

 To date, Vivant has invested over P2.5 billion in two project involved in the construction of two thermal power generation plants. The company owns 40 percent and 20 percent equity stakes in Minergy Power Corporation (MPC) and Therma Visayas, Inc. (TVI), respectively. These investments are expected to add 120 MW of attributable capacity to Vivant’s portfolio by 2017-2018.

MPC is currently constructing a 3 x 55-MW coal-fired power generation facility in Misamis Oriental. Its completion by year-end 2017 should provide a new and stable source of power for the island of Mindanao.

TVI, meanwhile, is building a 300-MW coal-fired power generation facility in Toledo City, Cebu. The project consists of two units, with the first one expected to be completed and connected to the grid by end-2017, to be followed by a second unit three months after.

Vivant’s investments in 2015 did not only focus on new projects. The company, through a 50 percent-owned associate, embarked on a P1.6 billion-expansion project involving the construction of an additional 30-MW diesel-fired plant in Puerto Princesa, Palawan. This is targeted for completion by end-2016.

The company continues to explore opportunities to expand and strengthen its core business, which are power generation and electricity distribution. Vivant said this would be done through acquisitions, green and brownfield initiatives or joint venture projects.

In 2015, the company reported P1.1 billion in net profits, down 22% from year ago levels.

The soft spot market prices mainly accounted for the reduced income contribution of the power generation group at P723 million vis-à-vis P1.1 billion the year before. This was offset by robust earnings of P631 million for the distribution group, a 14-percent increase versus the previous year.

Vivant is the publicly-listed holding company of the Garcia-Escaño family of Cebu, with investments in the power generation and electricity distribution businesses. /rga