Thanks to low oil prices last year... KEPCO's operating profit in Q1 this year is 571.6 billion KRW

[Sejong=Asia Economy Reporter Joo Sang-don] Korea Electric Power Corporation (KEPCO) recorded an operating profit of 570 billion KRW in the first quarter of this year, continuing its profit streak for five consecutive quarters.

On the 14th, KEPCO announced that its first-quarter operating profit was 571.6 billion KRW, an increase of 141 billion KRW (32.8%) compared to the same period last year. The operating profit surplus, which began in January last year (430.6 billion KRW), has thus been maintained for five consecutive quarters.

The increase in KEPCO's first-quarter operating profit this year was due to reduced fuel purchase costs resulting from low oil prices. Despite a 2.5% increase in electricity sales volume compared to the previous year due to increased demand, electricity sales revenue decreased by 26.7 billion KRW due to the implementation of a cost-linked tariff system. However, fuel costs for subsidiaries decreased by 192.1 billion KRW compared to the same period last year, mainly due to the decline in oil and coal prices and reduced coal usage in thermal power generation caused by upper limit restrictions. Meanwhile, electricity purchase costs increased by 179.4 billion KRW due to a 6.9% increase in purchases from private power producers, resulting in a net decrease of 12.7 billion KRW in fuel and electricity purchase costs compared to the same period last year.

Additionally, other operating expenses decreased by 146.1 billion KRW compared to the same period last year due to reduced greenhouse gas emission allowance costs from additional free allocation of emission permits and decreased maintenance costs.

A KEPCO official stated, "It is expected that the impact of rising fuel prices will be fully reflected in the future," adding, "KEPCO and its power group companies will strive to secure an appropriate level of profit by minimizing factors that increase electricity rates through intensive management efficiency to suppress the rise in power supply costs."