Korea Electric Power Secures $1.4B Contract with Aramco
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Significant Contract Value: Korea Electric Power (KEP) has secured a $1.4 billion contract with Saudi Aramco (ARMCO) to build and operate Phase 2 of the cogeneration power plant at the Jafurah project, showcasing the company's strong competitiveness in the international market.
- Robust Power Generation Capacity: The plant will have a generation capacity of 331 MW and is capable of producing approximately 465 metric tons of steam per hour, with construction scheduled for completion by June 2029, thereby enhancing Aramco's energy supply chain capabilities.
- Massive Project Scale: The Jafurah project, with a total investment of $100 billion, is expected to become the largest unconventional gas development outside the U.S., boasting reserves of 229 trillion cubic feet of natural gas and 75 billion barrels of condensate, further solidifying Saudi Arabia's dominance in the global energy market.
- Sustainable Production Outlook: Upon completion of the Jafurah project, Aramco's gas production is expected to increase from 450 million cubic feet per day to 2 billion cubic feet per day, ensuring stability and sustainability in future energy supplies, which will drive regional economic growth.
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Analyst Views on KEP
Wall Street analysts forecast KEP stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 12.870
Low
20.00
Averages
20.00
High
20.00
Current: 12.870
Low
20.00
Averages
20.00
High
20.00
About KEP
Korea Electric Power Corp is a Korea-based primarily company engaged in the development, generation, transmission, transformation, and distribution of power resources. Together with its subsidiaries, the Company operates its business through four segments. The Electricity Sales Business segment engages in the sale and supply of electricity for residential, general, educational, industrial, agricultural, streetlight, and off-peak electricity uses. The Thermal Power Generation Business segment engages in power generation using bituminous coal, anthracite coal, liquefied natural gas, and wood pellets. The Nuclear Power Generation Business segment operates nuclear, hydroelectric, and pumped-storage power generation businesses. The Other Business segment provides power plant design services, power facility maintenance services, nuclear fuel processing services, and power information technology (IT) services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Korea Electric Power Secures $1.4B Contract with Aramco
- Significant Contract Value: Korea Electric Power (KEP) has secured a $1.4 billion contract with Saudi Aramco (ARMCO) to build and operate Phase 2 of the cogeneration power plant at the Jafurah project, showcasing the company's strong competitiveness in the international market.
- Robust Power Generation Capacity: The plant will have a generation capacity of 331 MW and is capable of producing approximately 465 metric tons of steam per hour, with construction scheduled for completion by June 2029, thereby enhancing Aramco's energy supply chain capabilities.
- Massive Project Scale: The Jafurah project, with a total investment of $100 billion, is expected to become the largest unconventional gas development outside the U.S., boasting reserves of 229 trillion cubic feet of natural gas and 75 billion barrels of condensate, further solidifying Saudi Arabia's dominance in the global energy market.
- Sustainable Production Outlook: Upon completion of the Jafurah project, Aramco's gas production is expected to increase from 450 million cubic feet per day to 2 billion cubic feet per day, ensuring stability and sustainability in future energy supplies, which will drive regional economic growth.
See More
Korea Electric Power Reports Q1 Revenue Growth
- Revenue Growth: Korea Electric Power's Q1 operating revenue reached KRW 24.4 trillion, reflecting a 0.7% year-over-year increase, indicating the company's resilience in a stable market despite pressures from rising global commodity prices.
- Rising Costs: The cost of sales and SG&A also increased to KRW 20.6 trillion, up 0.7%, highlighting challenges in cost control that may impact future profitability and operational efficiency.
- Slight Profit Increase: Operating profit stood at KRW 3.8 trillion, up KRW 30.6 billion year-over-year, which, while modest, demonstrates the company's efforts to balance revenue growth with cost management amid a challenging economic landscape.
- Market Outlook Concerns: Following fluctuations in global commodity prices, BofA downgraded its rating on Korea Electric Power, reflecting market apprehensions regarding the company's future profitability, which could affect investor confidence.
See More
Korea Electric Power Set to Announce Q1 Earnings on May 13
- Earnings Announcement: Korea Electric Power (KEP) is set to release its Q1 2023 earnings report on May 13 before market open, with consensus EPS estimated at $1.12 and revenue at $16.66 billion, indicating significant investor interest in the company's performance.
- EPS Estimate Changes: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, reflecting fluctuations in market confidence regarding the company's profitability, which may impact investor decisions.
- Revenue Estimate Adjustments: In contrast to EPS, revenue estimates have experienced two upward revisions and one downward revision, suggesting a divergence in market expectations for the company's future revenue growth, potentially affecting stock performance.
- Market Reaction: Recently, Korea Electric Power's rating was downgraded by Bank of America due to unfavorable leverage to rising global commodity prices, which may lead to a cautious investor sentiment regarding its future performance.
See More
Korea Electric Power Corporation Files 2025 Annual Report
- Annual Report Submission: On April 29, 2026, Korea Electric Power Corporation (KEPCO) filed its annual report with the U.S. Securities and Exchange Commission, enhancing financial transparency and boosting investor confidence.
- Financial Disclosure: The report includes audited consolidated financial statements, providing detailed insights into the company's financial health, which aids investors in assessing operational performance and future prospects.
- Report Access: Investors can access the annual report through KEPCO's website or the SEC's site, and may request a hard copy free of charge, reflecting the company's commitment to investor service.
- Transparency Commitment: By timely submitting the annual report, KEPCO not only complies with regulatory requirements but also demonstrates its commitment to transparency, which helps build trust in the market.
See More
Korea Electric Power Corporation Files 2025 Annual Report
- Annual Report Submission: On April 29, 2026, Korea Electric Power Corporation submitted its audited consolidated financial statements for the year ended December 31, 2025, to the U.S. Securities and Exchange Commission, demonstrating the company's ongoing commitment to transparency and compliance.
- Report Access: Investors can access the 2025 Annual Report via KEPCO's website or the SEC's site, ensuring information availability and convenience, which enhances investor trust and engagement.
- Free Request Option: Investors may request a hard copy of the 2025 Annual Report free of charge by emailing the company, a move aimed at increasing investor participation and understanding of the company's financial health.
- Compliance Enhancement: The submission of this annual report not only meets regulatory requirements in the U.S. securities market but also reflects KEPCO's commitment to compliance and transparency in the international market, further solidifying its position in the global power industry.
See More
Korea Electric Power Shares Rise 3% Despite Downgrade
- Stock Performance: Korea Electric Power (KEP) shares rose 3% on Tuesday despite being downgraded to Neutral from Buy by Bank of America, indicating market confidence in its long-term potential despite short-term cost pressures.
- Cost Pressures: Bank of America highlighted that rising oil and liquefied natural gas prices have increased KEP's cost burden, with approximately 40% of operating expenses linked to these commodity prices, potentially impacting its H2 margins.
- Power Supply Challenges: While discussions are underway to increase coal and nuclear power utilization as alternatives, structural grid bottlenecks are likely to limit immediate impacts, constraining the company's ability to offset rising energy costs.
- Future Outlook: Although the government’s long-term plan to enhance nuclear power generation remains positive, the maintenance schedule of nuclear power plants and grid bottlenecks hinder immediate mitigation of energy price hikes, leading to cautious market expectations for future profitability.
See More
Korea Electric Power Secures $1.4B Contract with Aramco
- Significant Contract Value: Korea Electric Power (KEP) has secured a $1.4 billion contract with Saudi Aramco (ARMCO) to build and operate Phase 2 of the cogeneration power plant at the Jafurah project, showcasing the company's strong competitiveness in the international market.
- Robust Power Generation Capacity: The plant will have a generation capacity of 331 MW and is capable of producing approximately 465 metric tons of steam per hour, with construction scheduled for completion by June 2029, thereby enhancing Aramco's energy supply chain capabilities.
- Massive Project Scale: The Jafurah project, with a total investment of $100 billion, is expected to become the largest unconventional gas development outside the U.S., boasting reserves of 229 trillion cubic feet of natural gas and 75 billion barrels of condensate, further solidifying Saudi Arabia's dominance in the global energy market.
- Sustainable Production Outlook: Upon completion of the Jafurah project, Aramco's gas production is expected to increase from 450 million cubic feet per day to 2 billion cubic feet per day, ensuring stability and sustainability in future energy supplies, which will drive regional economic growth.
See More
Korea Electric Power Reports Q1 Revenue Growth
- Revenue Growth: Korea Electric Power's Q1 operating revenue reached KRW 24.4 trillion, reflecting a 0.7% year-over-year increase, indicating the company's resilience in a stable market despite pressures from rising global commodity prices.
- Rising Costs: The cost of sales and SG&A also increased to KRW 20.6 trillion, up 0.7%, highlighting challenges in cost control that may impact future profitability and operational efficiency.
- Slight Profit Increase: Operating profit stood at KRW 3.8 trillion, up KRW 30.6 billion year-over-year, which, while modest, demonstrates the company's efforts to balance revenue growth with cost management amid a challenging economic landscape.
- Market Outlook Concerns: Following fluctuations in global commodity prices, BofA downgraded its rating on Korea Electric Power, reflecting market apprehensions regarding the company's future profitability, which could affect investor confidence.
See More
Korea Electric Power Set to Announce Q1 Earnings on May 13
- Earnings Announcement: Korea Electric Power (KEP) is set to release its Q1 2023 earnings report on May 13 before market open, with consensus EPS estimated at $1.12 and revenue at $16.66 billion, indicating significant investor interest in the company's performance.
- EPS Estimate Changes: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, reflecting fluctuations in market confidence regarding the company's profitability, which may impact investor decisions.
- Revenue Estimate Adjustments: In contrast to EPS, revenue estimates have experienced two upward revisions and one downward revision, suggesting a divergence in market expectations for the company's future revenue growth, potentially affecting stock performance.
- Market Reaction: Recently, Korea Electric Power's rating was downgraded by Bank of America due to unfavorable leverage to rising global commodity prices, which may lead to a cautious investor sentiment regarding its future performance.
See More
Korea Electric Power Corporation Files 2025 Annual Report
- Annual Report Submission: On April 29, 2026, Korea Electric Power Corporation (KEPCO) filed its annual report with the U.S. Securities and Exchange Commission, enhancing financial transparency and boosting investor confidence.
- Financial Disclosure: The report includes audited consolidated financial statements, providing detailed insights into the company's financial health, which aids investors in assessing operational performance and future prospects.
- Report Access: Investors can access the annual report through KEPCO's website or the SEC's site, and may request a hard copy free of charge, reflecting the company's commitment to investor service.
- Transparency Commitment: By timely submitting the annual report, KEPCO not only complies with regulatory requirements but also demonstrates its commitment to transparency, which helps build trust in the market.
See More
Korea Electric Power Corporation Files 2025 Annual Report
- Annual Report Submission: On April 29, 2026, Korea Electric Power Corporation submitted its audited consolidated financial statements for the year ended December 31, 2025, to the U.S. Securities and Exchange Commission, demonstrating the company's ongoing commitment to transparency and compliance.
- Report Access: Investors can access the 2025 Annual Report via KEPCO's website or the SEC's site, ensuring information availability and convenience, which enhances investor trust and engagement.
- Free Request Option: Investors may request a hard copy of the 2025 Annual Report free of charge by emailing the company, a move aimed at increasing investor participation and understanding of the company's financial health.
- Compliance Enhancement: The submission of this annual report not only meets regulatory requirements in the U.S. securities market but also reflects KEPCO's commitment to compliance and transparency in the international market, further solidifying its position in the global power industry.
See More
Korea Electric Power Shares Rise 3% Despite Downgrade
- Stock Performance: Korea Electric Power (KEP) shares rose 3% on Tuesday despite being downgraded to Neutral from Buy by Bank of America, indicating market confidence in its long-term potential despite short-term cost pressures.
- Cost Pressures: Bank of America highlighted that rising oil and liquefied natural gas prices have increased KEP's cost burden, with approximately 40% of operating expenses linked to these commodity prices, potentially impacting its H2 margins.
- Power Supply Challenges: While discussions are underway to increase coal and nuclear power utilization as alternatives, structural grid bottlenecks are likely to limit immediate impacts, constraining the company's ability to offset rising energy costs.
- Future Outlook: Although the government’s long-term plan to enhance nuclear power generation remains positive, the maintenance schedule of nuclear power plants and grid bottlenecks hinder immediate mitigation of energy price hikes, leading to cautious market expectations for future profitability.
See More
