Daehan Green Power "Wind Equipment Sales Generated from Daehan Power Technology Merger Effect... Switched to Profit Structure in 4Q"

[Asia Economy Reporter Hyunseok Yoo] Daehan Green Power announced on the 9th that it has successfully transitioned to a profitable structure since the fourth quarter of last year by restructuring its bio-heavy oil business and developing a new renewable energy business.

A company official stated, “As a result of the absorption merger with Daehan Power Technology completed at the end of September last year, maintenance service sales of 2.1 billion KRW and renewable energy equipment supply sales of 100 million KRW were generated in the fourth quarter, recording total sales of 2.2 billion KRW. Operating profit was estimated at 28 million KRW if the evaluation losses on inventory assets and accounts receivable of the bio-heavy oil business, which was the main business before Daehan Green Energy acquired the company, were not reflected.”

He continued, “Although the operating profit in the fourth quarter was not large, the restructuring of the bio-heavy oil business did not cause significant risks to the company, and the transition to the new renewable energy business proceeded smoothly. It is very encouraging that the company’s profit and loss structure has turned positive.”

Daehan Green Power has secured maintenance and equipment supply contracts totaling 57 billion KRW and currently holds an order backlog of 49 billion KRW. The company expects stable operating profits every quarter as fixed sales will be generated for up to 20 years. The transition to a profitable structure in the fourth quarter is significant as it represents a sustainable structural change rather than a temporary one.

A company official said, “Along with maintenance sales, sales of wind power equipment are expected from the Goheung Substation and Gyeongju Wind Power projects. Additionally, equipment sales will further increase from multiple large-scale offshore wind power projects that will be actively promoted starting this year.” He added, “Not only is the company expected to maintain a clear profit trend this year, but significant performance growth is also anticipated.”

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