KEPCO Posts 4.9 Trillion Won Operating Profit in H1... Down 16.6% Due to Rising Fuel Costs

Revenue Reaches 46.3 Trillion Won, Net Profit at 2.8 Trillion Won
Liabilities Total 210.7 Trillion Won, with Daily Interest Expenses at 11.5 Billion Won

Korea Electric Power Corporation (KEPCO) continued its streak of profitability in the first half of this year, posting an operating profit of approximately 4.9 trillion won. However, operating profit decreased by 16.6% compared to the same period last year, due to a decline in electricity sales volume and increased fuel costs resulting from rising international coal prices.

On August 12, KEPCO announced that its consolidated revenue for the first half of the year was 46.3173 trillion won, up 0.3% from the same period last year. Operating profit declined by 976.8 billion won (16.6%) to 4.9127 trillion won, while net profit for the period dropped by 741.6 billion won (21.0%) to 2.7965 trillion won.

Revenue from electricity sales stood at 43.9641 trillion won, a decrease of 0.4%. Although the average unit price per kWh (kilowatt hour) was 167.6 won, similar to the same period last year, the decline is attributed to electricity sales volume falling by 0.6% to 266.7 TWh (terawatt hours).

A view of the headquarters building of Korea Electric Power Corporation located in Naju, Jeollanam-do. The Asia Business Daily DB

On the other hand, operating expenses increased by 2.8% to 41.4046 trillion won. Notably, fuel costs rose by 817.7 billion won (8.8%) to 10.1429 trillion won. This increase was driven by a 24.3% surge in the average coal price for the first half of the year to 128.2 dollars per ton compared to the same period last year, as well as higher coal-fired power generation.

Power purchase costs fell by 150.9 billion won (0.9%) to 17.2069 trillion won, mainly due to a reduction in purchases of private-sector liquefied natural gas (LNG).

Although KEPCO remained profitable in the first half, its financial burden is still considerable. As of the end of June this year, its consolidated liabilities amounted to 210.7 trillion won and borrowings reached 133.3 trillion won, with daily interest expenses alone averaging 11.5 billion won.

KEPCO stated that it achieved a cumulative financial improvement of 1.4 trillion won in the first half of the year through measures such as strengthening emergency management systems and implementing austerity management. Notable results include cost reductions of 600 billion won, revenue improvement of 200 billion won, and investment cost savings of 600 billion won.

KEPCO plans to maintain stable electricity rates in the second half, while also pushing ahead with reforms of the electricity market system and continuing strong self-rescue efforts. However, the company noted that if the impact of higher international oil prices and exchange rates following the war in the Middle East is fully realized, the pace of financial normalization may slow down.

This content was produced with the assistance of AI translation services.