KEPCO posts 3.8 trillion won operating profit in Q1
16 trillion won cumulative surplus since Q3 2023
KEPCO: "Debt stands at 205.4 trillion won as of end of last year... Will faithfully implement financial soundness plan"
Korea Electric Power Corporation (KEPCO) posted an operating profit of 3.8 trillion won in the first quarter of this year, continuing its streak of seven consecutive quarters in the black since the third quarter of 2023. However, this is still insufficient to offset the accumulated deficits from previous years.
On May 13, KEPCO announced that it recorded an operating profit of 3.7536 trillion won for the first quarter of 2025. This represents an increase of 2.4543 trillion won (188.9%) compared to the same period last year.
The scale of the surplus in the first quarter is the highest in nine years since the third quarter of 2016, when it reached 4.4242 trillion won. In terms of first-quarter figures alone, this is the highest since the adoption of International Financial Reporting Standards (IFRS) in 2011.
A KEPCO official explained, "Revenue in the first quarter of this year increased by 4% to 24.224 trillion won, while operating expenses decreased by 6.9% to 20.4704 trillion won," adding, "The stabilization of fuel prices and previous rate adjustments contributed to achieving operating profit surpluses for seven consecutive quarters."
KEPCO's electricity sales revenue in the first quarter was 23.21121 trillion won, up 1.0462 trillion won from the same period last year. While sales volume decreased by 0.5%, the unit selling price per kWh rose by 5.3% from 160.9 won to 169.5 won, resulting in increased revenue.
Fuel costs for subsidiaries decreased by 1.1501 trillion won, and electricity purchase costs from private power generators fell by 446.1 billion won. A KEPCO official said, "Fuel costs for subsidiaries decreased due to reduced coal and liquefied natural gas (LNG) generation by power generation subsidiaries, resulting from increased nuclear power generation and falling fuel prices." The official added, "Although the volume of private purchases increased, electricity purchase costs declined due to a drop in the system marginal price (SMP)."
Despite achieving a surplus for seven consecutive quarters, KEPCO still faces a massive accumulated deficit. The cumulative surplus from the third quarter of 2023 to the first quarter of 2025 amounts to 16.0267 trillion won, but when including results since 2021, the accumulated operating deficit reaches 30.9 trillion won. The debt burden remains heavy as well. As of the end of last year, KEPCO's debt stood at 205.445 trillion won, with a debt ratio of 496.7%.
KEPCO stated, "Since 2021, the accumulated operating deficit has reached 30.9 trillion won, so continued efforts to improve performance are necessary." The company added, "KEPCO will faithfully implement its financial soundness plan and discuss various institutional improvement measures with the government, such as reducing electricity purchase costs. We will also actively respond to external uncertainties, including fluctuations in exchange rates and international fuel prices."
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