CREC first-half 2026 profit jumps 92% as new solar plants go online

Insider Spotlight

• Net income surged 92% to P1.2 billion, with EBITDA rising 63% and revenue growing 4%
• Total operational capacity to reach about 1.2 GW as five Luzon projects progress toward grid injection
• Electricity sales continued to anchor CREC’s growth, contributing 87% of total revenues

Citicore Renewable Energy Corp. (CREC) nearly doubled its net income in the first half of the year as newly energized power plants boosted the renewable energy company's profitability.

In a statement, CREC said its net income surged 92 percent to P1.2 billion from P630 million in the same period last year, driven mainly by high-margin contributions from its newly energized plants.

Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 63 percent to P1.5 billion, outpacing the 4-percent increase in revenues to P2.7 billion.

Oliver Tan

President and CEO, CREC

The company's gross margin expanded to 51 percent from 32 percent, while its EBITDA margin improved to 55 percent from 35 percent.

Electricity sales remained CREC's main revenue driver, accounting for 87 percent of total revenues.

More stable revenues

CREC also increased the share of revenues generated from long-term, government-backed renewable energy contracts.

Sales under the government's Green Energy Auction (GEA) and Feed-in Tariff (FiT) programs accounted for 51 percent of revenues during the period, up sharply from 13 percent a year earlier.

The company said the shift was part of its strategy to establish a more stable and predictable revenue base as it expands its renewable energy portfolio.

"The significant improvement in our margins demonstrates the strength and scalability of our growing operating portfolio," CREC president and CEO Oliver Tan said.

Tan said the company would continue bringing more projects online and expanding its capacity as it contributes to the country's transition to cleaner energy.

5-GW target

CREC said it has installed a total of 1.2 gigawatts (GW) of solar capacity, ahead of its commitment to the Department of Energy.

The company is advancing new renewable energy projects while looking to expand some of its existing installations as it pursues its target of developing 5 GW of capacity within five years.

"Reaching 1.2 GW in installed capacity is an important milestone for CREC, and we acknowledge that there is significant room to grow," Tan said.

He said the company's next phase would focus on translating its expanded portfolio into additional capacity as CREC works toward its 5-GW target. —Ed: Corrie S. Narisma