Daehan Green Power, Turned Profitable Last Year

[Asia Economy Reporter Hyungsoo Park] Daehan Green Power is expected to escape from being a management item this year.

Daehan Green Power announced on the 11th that its consolidated sales last year reached 22.3 billion KRW, an increase of 347% compared to the previous year. Operating profit during the same period turned positive to 1.9 billion KRW.

Sales in the fourth quarter of last year recorded 14.1 billion KRW, a 910% increase compared to the same period last year. This was due to the reflection of orders for 10 billion KRW worth of Gyeongju wind power generation equipment and transmission line equipment for Heochangman in Goheung.

Sales of equipment in the renewable energy sector grew by 2333% compared to the previous year. Maintenance sales also increased by more than 100%. Profitability improved through reduction of selling and administrative expenses, resulting in a turnaround to profitability. The loss-making bio-heavy oil business is being phased out. The possibility of operating profit improvement this year has increased.

The performance outlook for this year is also bright. Additional large-scale EPC (Engineering, Procurement, and Construction) projects will be secured. Visible achievements are expected in the offshore wind power business as well.

Following the 8MW-class West Coast offshore wind power, which is the first in Korea to enter commissioning, Daehan Green Power is promoting the Yeowol offshore wind power project in Yeonggwang and the Duuri offshore wind power project. According to the 'Renewable Energy 3020' plan, new facilities will be responsible for more than 95% of solar and wind power generation. Additionally, the Renewable Portfolio Standard (RPS) ratio for renewable energy supply obligations will increase to 12.5% this year and up to 25% from 2026.

A company official stated, "Thanks to the expansion of the renewable energy business last year, we succeeded in external growth and turning to profitability, so we expect to escape from being a management item." He added, "This year, we will continue the steep growth trend in performance by expanding orders for large-scale projects that perform overall EPC as well as existing orders."

This content was produced with the assistance of AI translation services.