Korea Electric Power Corp. (KEPCO) plans to set its 2016 dividend at some 2 trillion won in consideration of more than 10 trillion won in non-operation profit, including the proceeds from the sale of its former headquarters site in Samseong-dong, southeastern Seoul, in 2015.
Out of 13.413 trillion won in net profit based on the 2015 consolidated financial statement, 1.9 trillion won will be set aside for dividends, the government and KEPCO said on Feb. 26. The 2016 dividend will represent a six-fold jump over the 321 billion won in the 2014 combined dividend.
KEPCO officials said they would not disclose specific figures, but they will be finalized during a meeting of the board of directors, to be convened on Feb. 29, before they will be sent to an annual shareholders’ general meeting scheduled for March 22 for approval. Korea Development Bank has a 32.9 percent stake in KEPCO, followed by the government’s 18.2 percent stake. The National Pension Service owns a 6.74 percent stake in the power company.
The forthcoming dividend totaling some 2 trillion won will be higher than the market expected. KEPCO shareholders had expected higher dividends since the 10.5 trillion won in proceeds from the disposal of the former headquarters site was counted in non-operation profit. The market had expected the 2016 dividend total to stand at between 1.1 trillion won to 1.2 trillion won. The higher-than-expected dividend total is owed to one-time proceeds from the selling of the site. The 2016 payout ratio will fall below a range of 20 percent. The ratio had stayed at around 30 percent until 2007 since 2008 when 730 billion won was distributed in dividends. No dividend was given during the period between 2008 and 2012. The payout ratio was 23.5 percent in 2013 when 173.3 billion won was given in dividend payments.
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KEPCO headquarters in Naju. (Photos:KEPCO)
KEPCO to Tap New Indian Energy Industries
KEPCO officials, Indian Power Secretary Shri Pradeep Kumar Pujari and other ministry counterparts discussed ways of exploring new energy industries in India, including the energy storage system (ESS) and smart grids, on Jan. 13 in New Delhi to cope with India’s power losses and inefficiencies facing the South Asian country. The Indian Power Industry said it was welcoming KEPCO’s entry into the new Indian energy industries.
As part of efforts to flesh out these projects, KEPCO and Power Gird Corp., India’s largest power company, agreed to form a task force on personnel exchanges and the development of projects. In this regard, both sides signed an agreement to collaborate in such new energy industries as ESS and smart grids.
KEPCO agreed to dramatically increase the efficiency of power transmission and distribution by making the most of Korea’s advanced remote metering technology and to share proceeds coming from the implementation of projects to lift plant capacity via ESS.
KEPCO President Cho Hwan-eik met with Indian Prime Minister Narendra Modi and expressed KEPCO’s intention to participate in projects to improve power efficiency through such new technologies as ESS, smart grids, and micro grids. In particular, Prime Minister Modi stressed Korea’s cooperation in the ESS segment.
KEPCO strives to seize the latest collaboration with the Indian Power Ministry and Power Grid as an opportunity to make aggressive inroads into the Indian energy industries through the implementation of diverse programs and projects.
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