The overseas operations of KEPCO has multiple advantages in that it can help the company reduce debt while bringing down the domestic electricity rates and creating high-paying jobs in overseas locations in which it does business. (image: Ramkumar/ Flickr)
SEOUL, Aug. 12 (Korea Bizwire) — Korean Electric Power Corporation (KEPCO) announced that the net earnings for this year’s first half from its thermal power generation businesses overseas reached 152 billion won (about US$147 million).
KEPCO currently operates 11 thermal power plants in a total of seven countries in the Middle East and Asia, and the businesses in the first half recorded the sales of 630 billion won and the net profit of 152 billion won, up 24 percent from the same period last year.
This is 21 percent and 58 percent, respectively, higher than the first half of 2013, which indicates that the state-run electricity utility’s overseas power plant management capabilities accumulated for the past two decades have finally paid off.
On the other hand, the power company has successfully paid down its debt as part of the government’s effort to cut debts of state-run enterprises. For example, the company recouped its investment of 210 billion won from overseas units for the first half. Given additional dividends scheduled for the second half, the company expects to earn 266 billion won from foreign operations by the year’s end.
The overseas operations of KEPCO has multiple advantages in that it can help the company reduce debt while bringing down the domestic electricity rates and creating high-paying jobs in overseas locations in which it does business. The company plan to increase the portion of foreign business in total sales revenue up to 20 percent by 2020.
By J. H. Kim (jhkim@koreabizwire.com)
