KEPCO Reports Operating Profit of 4.1 Trillion KRW Last Year... Returns to Profit After 3 Years

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Electric Power Corporation (KEPCO) achieved an operating profit of 4.1 trillion KRW last year, thanks to low oil prices.

KEPCO announced on the 19th that it recorded consolidated sales of 58.6 trillion KRW and an operating profit of 4.1 trillion KRW last year. After posting losses of 200 billion KRW and 1.3 trillion KRW in 2018 and 2019 respectively, it turned a profit for the first time in three years.

The significant decrease in fuel costs for power generation subsidiaries and electricity purchase costs from private power producers, which fell to 30.5 trillion KRW last year from 36.5 trillion KRW the previous year due to the decline in international fuel prices amid the COVID-19 pandemic, had a major impact.

Specifically, subsidiary fuel costs decreased by 3.5 trillion KRW compared to the previous year due to the drop in fuel prices such as oil and thermal coal. Although the volume of electricity purchased from private power producers increased by 2%, the purchase cost decreased by 2.5 trillion KRW due to the decline in liquefied natural gas (LNG) and oil prices. The utilization rate of nuclear power plants, which have a low generation cost, rose sharply to 75.3% from 70.6% the previous year, also contributing to the results. However, the coal utilization rate fell to 61.2% from 70.8% the previous year.

KEPCO explained, "Operating performance is more affected by fluctuations in international fuel prices such as oil than by the utilization rates of nuclear or coal power."

Electricity sales volume fell by 2.2% due to reduced consumption caused by the resurgence of COVID-19 and prolonged rainy season, resulting in a 200 billion KRW decrease in electricity sales revenue.

KEPCO stated, "Along with electricity rate restructuring, we will continue efforts to improve profits by reducing power supply costs through management efficiency, minimizing factors that lead to electricity rate increases."

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