Financial Indicators

Managing Director, Hilton Fulele commented

CEC-Renewables delivered a strong performance during the six months ended 30 June 2026, marked by continued progress in the execution of our renewable investment strategy. A key milestone achieved during the period was the successful commissioning and integration of the 136 MW Itimpi II Solar PV project, increasing the Company’s installed solar generation capacity from 94 MW to 230 MW. This significant expansion strengthens our generation portfolio, increases the availability of locally generated renewable energy and provides additional capacity to support growing energy demand.

The Company’s total renewable energy generation reached 158.78 GWh in the first half of 2026, up from 80.75 GWh in the same period of 2025, reflecting a remarkable 97% increase. The increase is attributed to the commissioning of the Itimpi II, supported by strong operational performance across our generation portfolio. The average plant availability remained strong at 99.96%, while the portfolio achieved an average performance ratio of 83.59%, demonstrating the reliability and operational efficiency of our renewable energy assets.

Revenue increased to USD 9.555 million from USD 4.657 million in the corresponding period in 2025. EBITDA increased to USD 8.681 million from USD 3.549 million. These results reflect the contribution from increased generating capacity, higher energy sales and continued strong operational performance across our generation portfolio.

Profit after tax increased significantly to USD 4.515 million from USD 0.671 million in the same period in 2025, primarily reflecting strong growth in operating earnings.

Following the completion of major construction activities related to the 136MW Itimpi II Solar project, Capital expenditure reduced to USD 16.617 million compared to USD 42.075 million invested during the first half of 2025, with our focus shifting from construction to maximising the value of the completed assets.

Additionally, the Company continued to fulfil its obligations under the Green Bond programme, paying USD 6.312 million in interest and USD 1.217 million in principal repayments to Green Bond noteholders during this period. These payments reflect our commitment to maintaining investor confidence and prudent financial management.

The expansion of our generation portfolio continues to contribute to Zambia’s energy supply while supporting the transition to lower-carbon sources of electricity. In the reporting period, our clean energy generation helped avoid 53,000 tons of CO2 emissions.

We continued to uphold high safety standards, recording zero Lost Time Injuries (LTI) from operations for the third consecutive year. Our focus remains on operating our assets safely, improving plant performance, and delivering reliable energy to the market.

As we look toward the second half of 2026, our priorities will be focused on optimising the performance of the expanded 230 MW portfolio, strengthening operational efficiency, and managing our capital structure prudently. With a larger operating asset base and established long-term power purchase agreements, the Company is well positioned to continue generating sustainable returns for shareholders while supporting the sustainability of Zambia’s energy sector.

Financial Highlights

The increase in generation capacity during the first half of 2026 contributed to strong growth in revenue increasing to USD 9.555 million (2025: USD 4.657 million), representing a 105% increase over the previous year, further translating to Profit after tax of USD 6.45 million compared to USD 0.671 million in the same period in 2025. This, together with strong operational performance across the generation portfolio, supported the improvement in profitability during the period. The results also benefited from favourable exchange movements, although the improvement was primarily underpinned by the stronger operating performance of the business.

We have continued to fulfil our obligations under the Green Bond programme. During the review period, interest paid on the Green Bond was USD 6.312 million, along with the principal amount of USD 1.217 million, making a total outflow of USD 7.529 million to bondholders. No additional debt was acquired during the period. However, net debt increased by 47% to USD 86.165 million at the end of the period.

Capital expenditure reduced by 61% during the period, primarily reflecting the successful completion of major construction works on the 136 MW Itimpi II Solar PV project. The commissioning of the project marked a transition of this investment from construction to operations, adding 136MW of new generation capacity to the Company’s renewable energy portfolio.

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.

CEC Renewables takes no obligation to revise of 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 power grid. The Company’s principal activity is renewable energy generation and currently has an installed capacity of 230 MW of Photovoltaic (PV) solar power generation from its 34 MW Plant in Riverside, Kitwe, and 196 MW Plant in Itimpi Park, Kitwe.

By Order of the Board
Mwenya Nalusenga
Acting Company Secretary

Related Download

CEC Renewables Unaudited Results for the Half Year period to 30 June 2026.pdf