CEC’s 1H25 Profits Surge 42% as Market Cap Tops $1 Billion

Zambia’s power giant rides copper demand, renewable bets, and investor appetite to record-breaking highs

Copperbelt Energy Corporation (CEC) has emerged as Zambia’s market bellwether, crossing USD 1 billion in market capitalization while reporting a 42% surge in net profits for the first half of 2025. The performance underscores the company’s central role in Zambia’s copper-driven economy and positions it as a frontier-market proxy for the global energy transition. With balance sheet resilience, renewable investments, and rising investor appetite, CEC is redefining what institutional capital can expect from Africa’s utilities sector.

Financial Performance: Profits in Lockstep with Copper Output

CEC’s H1 2025 unaudited results delivered standout growth. Revenue climbed 58% year-on-year to USD 360.3 million, supported by surging copper production in Zambia. EBITDA increased 43% to USD 101.2 million, while net profit advanced 42% to USD 61.5 million.

The strong topline was driven by Zambia’s 17.8% rise in copper output to 463,848 metric tons, fueled by mine recapitalizations, regulatory clarity, and a rebound in global demand for the red metal. With copper serving as a key input in electric vehicles and renewable technologies, CEC’s results validate its structural link to global decarbonization trends.

Balance Sheet Strength and Liquidity

The company’s financial footing remains robust. Assets rose to USD 936.6 million from USD 857.7 million in December 2024, while equity strengthened to USD 516.4 million. Borrowings were steady at USD 228.8 million, keeping leverage in check and preserving capacity for further capital expenditures.

CEC also reported cash reserves of USD 198.8 million. Operating cash flows dipped to USD 34.2 million from USD 49 million in 2024 due to front-loaded capital spending on renewable projects, signaling growth investment rather than weakness.

Strategic Investments: Betting on Renewables

CEC is expanding aggressively into renewables and transmission. Key projects include the 136MW Itimpi 2 Solar and 12.5MW Fitula Solar installations, alongside cross-border interconnection projects with the Democratic Republic of Congo. These initiatives will diversify Zambia’s generation mix away from hydro, reduce climate risk exposure, and attract ESG-conscious institutional investors.

The company also spearheaded Zambia’s USD 200 million debut green bond, setting a precedent for sustainable finance in the region. Rising depreciation costs (+16% YoY) reflect this long-term capex program - an upfront cost for building the grid of the future.

Market Positioning: Institutional-Grade Utility

Crossing USD 1 billion in market capitalization makes CEC investable for large funds that typically avoid small-cap frontier markets. Liquidity is improving, governance has remained stable, and CEC is increasingly viewed as a strategic play on copper demand and the global energy transition.

The company is now more than a regional utility; it is becoming a proxy for both Zambia’s copper expansion and global decarbonization. With Zambia targeting 1 million tons of copper production in 2025 and 3 million tons by 2033/35, the demand pull for electricity places CEC at the center of the growth story.

Risks to Watch

• Hydrological volatility: Reliance on hydro remains a vulnerability in the face of climate risk.

• Grid constraints: Transmission and infrastructure bottlenecks could slow expansion.

• Regulatory pressure: Tariff structures and policy reforms may affect margins.

• Global demand risk: A downturn in copper demand from geopolitical shocks or cyclical slowdowns could cascade into lower power consumption.

Broader Market Impact

CEC’s rise has energized Zambia’s capital markets. Together with ZCCM Investments Holdings—whose stock has soared 130% year-to-date—the two companies now comprise nearly half of Lusaka Securities Exchange’s total market capitalization. Their performance reflects the centrality of the mining-energy nexus in Zambia’s economic trajectory.

Conclusion

CEC’s first-half 2025 results confirm its evolution from a regional power supplier to a billion-dollar, institutional-grade utility. With surging profits, robust balance sheet metrics, ambitious renewable projects, and a structural role in Zambia’s copper expansion, CEC is cementing its place as both a domestic champion and a frontier-market proxy for the global energy transition. For investors, the thesis is clear: if copper is the future, CEC is the indispensable power behind it.

About the Author: Mutisunge Zulu is a Frontier Market Strategist and Qualified Risk Expert. A Manchester and Harvard Alumnus currently a PhD candidate in Business Management at École Supérieure de Commerce de Paris.