NICE Investors Service Upgrades Doosan Enerbility's Rating Outlook to 'Positive'

On December 24, NICE Investors Service announced that it has upgraded the outlook for Doosan Enerbility from Stable to Positive.

The main reason cited for the upgrade is the company’s strong order performance, primarily in power generation equipment, driven by continued growth in global electricity demand. NICE Investors Service stated, “With global electricity demand expanding significantly in recent times, Doosan Enerbility has achieved solid order results, particularly in gas turbines and nuclear power. By the end of this year, the company’s order backlog is expected to reach approximately 20 trillion won, marking a substantial increase compared to 15.8 trillion won at the end of 2024.”

Although there is volatility in working capital due to the nature of the EPC (Engineering, Procurement, and Construction) business, the company’s medium-term operating cash generation is considered to be at a sound level. NICE Investors Service explained, “The increase in working capital burden stems from the characteristics of the EPC business, but given that billing and collection for major projects are proceeding smoothly, we assess that medium-term operating cash generation remains robust.”

They further noted, “During the fourth quarter of this year, collections have been made from major projects such as the Saudi combined gas power plant, and proceeds from the sale of non-core assets have also been received. Considering these factors, we expect the cash flow deficit to decrease significantly by the end of this year. In the medium to long term, as the proportion of the power equipment manufacturing business increases compared to the more volatile EPC business, cash flow volatility is expected to gradually ease.”

Financial stability is also expected to be maintained. NICE Investors Service stated, “Doosan Enerbility is planning large-scale investments between 2026 and 2028 to expand gas turbine production capacity and establish a dedicated factory for small modular reactors (SMRs). While funding needs are expected to rise, we anticipate that financial stability will be maintained, given that project execution and payment inflows from recently secured orders are set to accelerate around 2027.”