KEPCO expects all-time high $207 mn in 2024 overseas investment returns

Korea Electric Power Corp. (KEPCO), the state-run utility company, expects to post its highest-ever overseas business performance this year, thanks to improved profitability at its overseas ventures and rigorous risk management.

The company said on Thursday that it expects to achieve more than 300 billion won ($207 million) in investment returns from its overseas business and that its annual revenue will exceed 3 trillion won in 2024.

If confirmed, the figures will be a record high for the sole provider of electricity transmission and distribution in the country on an annual basis.

Investment returns include dividends from its overseas subsidiaries and loan recovery.

Its expected 2024 overseas revenue is up 20% from last year’s 2.5 trillion won, while its overseas investment returns are a 130% increase from 132.5 billion won the year prior.

The lion’s share of its overseas investment returns came from dividends, which stood at some 290 billion won. About 10 billion won in technical support fees for power generation projects also contributed to KEPCO’s decent performance, it said.

NINE-MONTH INVESTMENT RETURNS MORE THAN DOUBLE

Since it entered the global power business market in 1995, KEPCO has been operating 37 overseas projects across 17 countries, spanning thermal power, nuclear energy, renewable energy and other new energy businesses.

As of the third quarter of this year, the company’s cumulative overseas investment value totaled 2.5 trillion won, with investment returns reaching 3.2 trillion won, translating into an investment recovery rate of 127%.

Its January-September revenue from its overseas business stood at 46.2 trillion won.

In overseas markets, KEPCO operates power generation facilities with a capacity of 10.17 gigawatts (GW).

The company secured new overseas projects worth 6.2 GW in capacity this year.

These new ventures are expected to boost revenue by 6.4 trillion won and create opportunities for other domestic companies to expand abroad, generating an additional economic effect of 4.4 trillion won.

“We aim to proactively respond to the evolving energy market and expand our overseas operations, thereby enhancing KEPCO's financial stability and strengthening our global competitiveness,” said a KEPCO official.

The company generates more than two-thirds of Korea’s power supply, mostly through its six power generation subsidiaries.

Write to In-Soo Nam at isnam@hankyung.com

Jennifer Nicholson-Breen edited this article.