Assets Manager, Hilton Fulele, Commented

I am pleased to share the CEC Renewables Limited results for the half-year ended 30 June 2025. This period was characterised by operational stability, great strategic progress, and resilience in the face of regional economic and climate-related challenges. Our 94 MW Solar PV portfolio continued to perform reliably and met expectations, reinforcing our position as a key contributor to Zambia’s energy transition and sustainability agenda.

Our two generating assets, the 60 MW Itimpi and the 34 MW Riverside Solar Plants, achieved exceptional performance with a high availability rate of 99.9%. They collectively generated 80.75 GWh in the first half of 2025, marking a remarkable 32% increase compared to 2024.

Our performance was further enhanced by continued investment in semi-automated module cleaning systems, which kept soiling losses well below the 5% threshold. This improvement supported a rise in average performance ratio across the portfolio from 83% in 2024 to 88% in 2025. It is important to highlight that our operational performance faced challenges due to solar resource conditions, with average global horizontal irradiance (GHI) declining by 12 % as a result of increased cloud cover in March, May and June compared to 2024. Nevertheless, the overall impact on energy yield was partially mitigated by high plant availability and high standards achieved in our Operations and Maintenance (O&M) approaches.

Our operations continue to make a tangible environmental contribution by avoiding an estimated 26,972 tonnes of carbon equivalent emissions during the period. Safety remains a top priority as we proudly report no lost-time injuries in H1 2025 compared to one recorded last year.

We continued to deliver value for our investors, with USD 3.97 million paid in coupon payments to the Green Bond noteholders. This represents a 64% increase from the USD 2.42 million paid in 2024 in the same period.

Looking ahead, we remain focused on the timely delivery of the 136 MW expansion of the Itimpi plant, which is scheduled to be commissioned in the first quarter of 2026. Once operational, the new solar plant is expected to increase our generation by 273 GWh per annum. We remain committed to upscaling our O&M practices to internationally acceptable levels so as to maximise value from our operational assets safely and reliably.

Financial Highlights

Revenue for the six months ended 30th June 2025 was USD 4.657 million, representing a 35% increase from USD 3.438 million. This growth is attributed to the availability of the Itimpi Solar Plant Phase 1 throughout the period and the improved performance from both plants, despite a noticeable reduction in solar irradiation. Profit for the six-month period was USD 0.671 million (2024: USD 0.200 million), a growth of 236% largely attributable to the higher revenue base and interest income earned on cash reserves that have been earmarked for the Itimpi expansion solar project.

We continued with our strong commitment to expand renewable energy generation capacity, with total capital expenditures (Capex) so far amounting to USD 42.075 million for the period ending June 30, 2025, compared to USD 6.609 million in 2024.

As of 30th June 2025, the cash balance stood at USD 91.761 million (2024: USD 11.501 million). Net debt increased by 39% to USD 58.505 million, owing to an increase in long term debt from USD 53.538 million as at 30 June 2024 to USD 150.266 million as at 30 June 2025. This is in line with the ramp up in capital investment activity.

Dividends

No dividend was declared and paid during the period under review.

Cautionary on Forward-looking Information

This summary results announcement contains financial and non-financial forward-looking statements about the Company’s performance and position. We believe that while all forward-looking information contained herein is realistic at the time of publishing this report, actual results in future may differ from those anticipated. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause CEC Renewables’ actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Although CEC Renewables believes that the expectations reflected in these forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. We take no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the statements have been made.

About the Company

CEC Renewables Limited is a wholly owned subsidiary of CEC PLC, incorporated on 28th October 2022 as a platform for renewable energy expansion, designed to scale up the deployment of renewable energy across the Zambian Grid. The Company’s principal activity is renewable energy generation. CEC Renewables currently has an installed capacity of 94 MW of Photovoltaic (PV) solar power generated from its 34 MW Plant in Riverside, Kitwe and 60 MW Plant in Itimpi, Kitwe and constructing a 136 MW (The Itimpi Expansion).

By Order of the Board
Eric M. Hanziba
Company Secretary

Related Download

CEC Renewables 2025 Half Year Results.pdf