Doosan Enerbility Signs KRW 838 Billion EPC Contract for Vietnamese Thermal Power Plant

[Financial News] Doosan Enerbility announced in a regulatory filing that it had signed an engineering, procurement, and construction (EPC) contract for the Vietnam National Industry and Energy Group's O Mon II combined-cycle power plant project. According to the Korea Exchange's listed disclosure system (KIND) on the 1st, the contract is valued at KRW 837,970,880,000, equivalent to 4.91% of the company's recent sales of KRW 17,057,876,460,000. The contract amount excludes value-added tax (VAT).
The project involves building a combined-cycle power plant in Can Tho, Vietnam. Doosan Enerbility will handle the EPC work, including the design, procurement of equipment, and construction required for the power plant. The counterparty, PVN, is a Vietnamese state-owned energy company.
The contract period runs from October 6 through October 6, 2030. The construction start date is the scheduled issuance date of the Notice to Proceed (NTP), while the end date is the expected completion date. Both dates may change depending on the actual progress of the project.
Payments will be made based on the achievement of milestones for each stage of the work. Doosan Enerbility plans to receive the contract payments in line with the project's progress.
The contract is worth nearly 5% of Doosan Enerbility's recent sales and is a major project expected to contribute to future revenue and order backlog. However, the timing and amount of revenue recognition may vary depending on the progress of the work and the terms of the contract.
[email protected] Kang Jung-mo Reporter