CREC profit down 22% on higher costs
Citicore Renewable Energy Corp. (CREC) saw a 22-percent decrease in its profit in the first semester due to higher service costs.
The Edgar Saavedra-led firm said net income attributable to the parent company dropped to P269.93 million against P345.91 million in the same period last year.
Its top line registered P2.09 billion versus the previous P1.85 billion as sales of power increased by 15 percent.
The company said 83 percent of its revenues came from electricity sales, while the remaining was from lease income and service fees. Power sales from commercial and industrial customers continued to fuel the company, rising by 11 percent to P1.08 billion.
Sales from the government’s feed-in-tariff program and the spot market reached P271.82 million and P57.84 million, respectively.
However, the cost of services was higher by 10 percent to P1.4 billion due to “additional third party supply arrangements in line with the full period to date [amid the] impact of increasing customers in 2023.”
Cash flow as measured by earnings before interest, taxes, depreciation and amortization stood at P765 million, 6 percent up from P723 million.
Full impact next year
“CREC attributes this robust performance to our portfolio of 10 operating solar power facilities with a combined gross operating capacity of 285 megawatts (MW), making us the second largest solar platform in the country. We ensure optimal performance in our plants to augment grid capacity for peak demand requirements,” said CREC president and chief executive Oliver Tan.
Tan expressed bullishness for the company’s growth outlook for 2025, especially as CREC pushes to expand its capacity to more than 1 gigawatt next year.
“The full impact of the power generation revenues will be felt next year since projects currently under construction will start to be energized by then. We will focus on adding solar capacity and looking at other opportunities that take us closer to our 5 gigawatts in 5 years goal,” Tan said.
