Kepco, Stuck in "Cumulative Deficit Swamp," Sells Jordan Power Plant

Korea Electric Power Corporation (KEPCO), which has been suffering from a cumulative deficit exceeding 47 trillion won since 2021, is selling its stakes in two power plants in Jordan.

Exterior view of Korea Electric Power Corporation Naju Headquarters building.

According to the energy industry on the 12th, KEPCO has selected Samjong KPMG as the lead manager for the sale of its stakes in the Al Qatrana combined cycle gas power plant and the Fujeij wind power plant in Jordan. KEPCO plans to sell 29?45% of its stake in Al Qatrana and 40% of its stake in Fujeij. The Al Qatrana power plant, with a capacity of 373 megawatts (MW), was completed in 2012. KEPCO holds an 80% stake, having invested 113.4 billion won. The Fujeij power plant is an 89.1 MW wind power facility that began operations in 2019. KEPCO owns 100% of the stake, having invested 87.7 billion won.

KEPCO’s sale of overseas asset stakes is closely related to its ongoing cumulative deficit situation. In particular, ahead of the electricity rate decision for the fourth quarter of this year (October to December), KEPCO’s massive cumulative deficit issue is being reexamined. As of the end of June, KEPCO’s total debt on a consolidated basis reached 201.4 trillion won, surpassing 200 trillion won for the first time in history. Moreover, due to the continued negative margin structure, KEPCO has recorded operating losses exceeding 47 trillion won since 2021. With ongoing operating losses, KEPCO has also reached the limit on additional bond issuance. KEPCO stated, “The sale of overseas assets is part of the self-rescue measures announced last May.”

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