Daehan Green Power "Designated as a Management Item Due to Past Poor Performance... Switched to Profit Structure Last Quarter"

[Asia Economy Reporter Hyunseok Yoo] Daehan Green Power was designated as a management item due to poor performance in its existing business, but it announced on the 23rd that it has turned to a profitable structure since the fourth quarter thanks to the booming renewable energy business promoted as a new business, and significant performance improvement is expected this year.

A company official said, “Due to the accumulated losses in the existing bio-heavy oil business, the company was designated as a management item, and in the fourth quarter, the loss widened due to the additional inventory asset valuation loss in the bio-heavy oil business. From the fourth quarter, the merger effect of Daehan Power Technology was reflected, and sales from wind and solar power generation projects jointly promoted with the parent company Daehan Green Energy turned the company's profit structure to a profitable one since the fourth quarter.”

This performance improvement trend is expected to continue this year. This is because multiple offshore wind power projects are expected to be secured, and the restructuring of the bio-heavy oil business has been completed, limiting additional losses.

The parent company Daehan Green Energy plays a pivotal role in the large-scale offshore wind power complex project being promoted in Jeollanam-do, known as the mecca of domestic renewable energy. Last month, Daehan Green Power and Daehan Green Energy signed a business agreement with Korea East-West Power, Korea South-East Power, and Woori Green Energy for the joint development of the Yeosu Samsan Offshore Wind Power Complex, with a total project cost of 4.225 trillion won.

A company official emphasized, “Although designated as a management item due to poor performance in the existing business, the renewable energy business jointly promoted with the parent company Daehan Green Energy is already maintaining a clear profitable trend. While some shareholders have concerns due to the management item designation, the company has already undergone a complete transformation, and this year is not only the year of turning to profitability but also the inaugural year for promoting large-scale renewable energy power generation projects, so we expect a quantum jump in performance.”