Korea Ratings and NICE upgrade unsecured bond rating

Company eyes global competitiveness through DL Group energy value chain

A view of DL Energy's Niles power plant in the United States. [Provided by DL E&C]
A view of DL Energy's Niles power plant in the United States. [Provided by DL E&C]

DL Energy has had its credit rating upgraded.

DL Energy said Monday that Korea Ratings and NICE had raised its corporate bond credit rating from A to A+ (stable).

According to industry sources, the two rating agencies cited three main reasons for the upgrade in their assessment reports: stable earnings and an improved financial structure at key subsidiary Pocheon Power, expanded investment returns from power generation projects in the United States, Australia and other overseas markets, and enhanced financial stability as investment recovery has gained momentum. Industry observers say the decision reflects recognition of DL Energy's strong market position across its domestic and overseas power portfolio, consistent investment performance and solid financial stability.

DL Energy has demonstrated resilient profitability amid global economic uncertainty, backed by crisis management capabilities and portfolio diversification. Its core subsidiary, Pocheon Power — a 1,560-megawatt LNG combined-cycle power plant — generates annual EBITDA (earnings before interest, taxes, depreciation and amortization) of more than 100 billion won ($72.5 million), drawing on its competitive location as a Greater Seoul-area plant and a favorable market environment.

Overseas power operations are also showing improved earnings. DL Energy holds power generation assets including the Millmerran plant in Australia and the Niles and Fairview natural gas plants in the United States. Surging power demand driven by AI industry growth and the resulting data center expansion has accelerated profitability and equity-method gains from the Niles and Fairview natural gas projects, both located in areas of concentrated data center construction.

DL Energy's Fairview power plant in the United States. [DL E&C]
DL Energy's Fairview power plant in the United States. [DL E&C]

DL Energy is also taking a proactive approach to financial risk management. Investment recovery has gained full momentum through asset sales — including Poseung Green Power, EMA Power Investment Limited and the Cochrane power plant in Chile — as well as dividend inflows. Net borrowings on a consolidated basis stood at negative 202.1 billion won in the first quarter of this year, achieving a fully net-cash position. Cash and cash equivalents held by overseas subsidiaries also exceeded 400 billion won, providing ample liquidity to support new investment and maintain financial stability.

A DL Energy official said the company plans to "become a multi-player capable of developing and operating across all global power sectors — not only fossil fuels but also renewable energy such as solar and wind, as well as next-generation power projects including fuel cells and small modular reactors — through DL Group's energy value chain."

Meanwhile, DL Energy serves as an intermediate holding company within DL Group responsible for energy project development, financing and operations, and has been making its mark in the US LNG power generation business.


hope@heraldcorp.com