Korea Electric Power Corp. (KEPCO) is exporting its smart grid technology to the Middle East for the first time. It is significant because KEPCO is striving to make smart grid technology one of its cash cow businesses amidst a rising demand for infrastructure in markets in Asia and the Middle East. KEPCO signed a $3 million deal to launch a smart grid pilot project with the Dubai Electricity & Water Authority (DEWA) in Dubai on Oct. 28. It is the first time KEPCO is engaging in a smart grid city project in the Middle East.
Smart grid refers to an intelligent power grid in which electricity supplier and consumer interactively share information in real time to optimize energy efficiency.
The deal calls for the installation of a KEPCO-developed smart grid station, including photovoltaic power, electricity storage systems, and an integrated operation system at the Green Carage, DEWA headquarters. The pilot project, part of Dubai’s “Smart City” DEWA plans to build, involves improving national energy efficiency and reducing peak energy loads. DEMA is in charge of electricity and tap water in Dubai.
KEPCO President Cho Hwan-eik said, “KEPCO’s participation in the smart grid pilot project in Dubai has proved its global competitiveness and technological prowess in the global new energy industry, and it is significant to pave the way for making an inroad into the global smart grid market.”
This past July, KEPCO also sealed a 13 billion won deal to export microgrid technology to Power Stream of Canada. KEPCO also signed an agreement on smart grid and new energy industries with the City of Maryland in the United States.
KEPCO Likely to Offer 1,900 Won Dividend
Stock analyses show that Korea Electronic Power Corp. (KEPCO), which achieved an earnings surprise in the third quarter of this year, is forecast to offer a record high dividend. Stock analysts said KEPCO may emerge as a high-demand stocks now that the company has room to offer a higher dividend, thanks to improved business performances.
Dividend estimates made by major securities companies range from 1,400 won to 1,900 won. Shinhan Investment put the estimate at 1,900 won per KEPCO share, while HMC Investment Securities estimated it will be 1,800 won. KTB Investment Securities and KB Investment Securities each put the figure at 1,500 won, while KDB Daewoo Securities estimated it at 1,400 won per share.
If KEPCO offers a dividend as securities companies estimate, it will be the highest-ever dividend for the company. The financial information company FnGuide said the last highest dividend KEPCO previously offered was 1,150 won per share in 2004 and 2005. KEPCO did not pay a dividend for five consecutive years from 2008, when the company turned to a loss. KEPCO offered 90 won and 500 won per share in 2013 and 2014, respectively.
KEPCO chalked up a great performance in the third quarter of the year. KEPCO posted a 4.34 trillion won operating profit, a higher-than-expected 51.7 percent jump over the same period last year.
Researcher Huh Min-ho of Shinhan Investment said KEPCO will see its operating profit surge to 4.9 trillion won, a 196.6 percent jump over the same period of last year, based on 2015, and net profit will swell to 4 trillion won. If the conventional dividend trend is set at 30 percent of net profit, he estimated KEPCO’s dividend per share will stand at some 1,900 won.
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