KEPCO Reports Q3 Operating Profit of 5.6 Trillion Won, Up 66.4% Year-on-Year

Increase in Electricity Sales Revenue and Reduction in Fuel Costs Drive Performance

Korea Electric Power Corporation (KEPCO) announced on the 13th that, on a consolidated basis for the third quarter of this year, it recorded sales of 27.5724 trillion won and an operating profit of 5.6519 trillion won. Sales increased by 5.62% and operating profit by 66.4% compared to the same period last year. Notably, operating profit reached its highest level in eight years since the third quarter of 2016 (4.4242 trillion won). Net profit for the period rose by 101.6% to 3.79 trillion won.

The cumulative performance for the first three quarters also showed a clear improvement. Sales amounted to 73.7465 trillion won (up 5.5% year-on-year), operating profit was 11.5414 trillion won (up 94.1%), and net profit for the period reached 7.3281 trillion won (up 182.9%). During the same period, operating expenses decreased by 2.7% to 62.2051 trillion won. Since the third quarter of 2023, the company has posted an operating profit for nine consecutive quarters.

The improvement in performance has been attributed to factors such as stable fuel prices and rate adjustments. Revenue from electricity sales increased by 3.9037 trillion won, as sales volume rose by 0.4% and the unit sales price climbed by 5.5%. The nuclear power plant utilization rate increased from 81.7% to 86.5%, leading to higher nuclear power generation. As a result, power generation from subsidiary coal and LNG plants decreased, reducing fuel costs by 2.8151 trillion won. The cost of purchasing electricity from private power producers also fell by 213 billion won.

However, other operating expenses increased by 1.3091 trillion won, mainly due to higher depreciation costs. Nevertheless, KEPCO and its power group affiliates reported that, in line with their financial soundness plan, they achieved total cost reductions of 3.5 trillion won by the third quarter. KEPCO reduced costs by 1.6 trillion won through efficiency improvements in power facility inspections, tight budget management, and adjustments to certain investment projects. The power group affiliates cut 1.9 trillion won by strengthening budget and project reviews and improving the finances of invested subsidiaries.

On a separate basis, KEPCO's cumulative results for the first three quarters were sales of 72.4684 trillion won and operating profit of 5.536 trillion won. Operating profit surged by 1300% compared to the previous year. However, out of the accumulated operating loss of 47.8 trillion won caused by soaring fuel costs from 2021 to 2023, 39.1 trillion won still remains.

Financial burdens persist as well. KEPCO's total debt amounts to 118.6 trillion won, with a debt ratio of 490%. Outstanding borrowings stand at 86.1 trillion won, resulting in daily interest payments of approximately 7.3 billion won. KEPCO explained that its recently improved performance is being prioritized for debt repayment, interest payments, and essential investments in power facilities.