KEPCO Reports Operating Profit of 2 Trillion Won in Q3... First Surplus in 10 Quarters

Cumulative Operating Loss of 6.45 Trillion KRW in Q3

Korea Electric Power Corporation (KEPCO) recorded an operating profit of approximately 2 trillion won in the third quarter of this year. However, the continuation of profitability remains uncertain due to concerns over rising international oil prices and increased electricity purchase costs.

On the 13th, KEPCO announced that its consolidated operating profit for the third quarter was 1.9966 trillion won, marking a return to profitability after 10 quarters.

Reflecting this, the cumulative operating loss from the first to the third quarter decreased by 15.3808 trillion won, from 21.8342 trillion won in the same period last year to 6.4534 trillion won. While cumulative sales increased by 13.9214 trillion won to 65.6865 trillion won, operating expenses decreased by 1.4594 trillion won to 72.1399 trillion won due to reduced fuel costs, resulting in a smaller operating loss.

Compared to the same period last year, major factors affecting changes include electricity sales revenue, which increased by 13.8281 trillion won despite a 0.3% decrease in sales volume, due to a 29.8% rise in the sales unit price from 116.4 won per kilowatt-hour (kWh) in January-September last year to 151.1 won.

Subsidiaries' fuel costs decreased by 2.6599 trillion won, but electricity purchase costs from private power producers increased by 267.4 billion won. A KEPCO official explained, "Although subsidiary power generation decreased due to reduced electricity demand, electricity purchases increased due to the entry of new private coal power plants. Also, while subsidiaries' fuel costs fell by 10.9% due to lower energy prices, electricity purchase costs through the power market increased by 0.9%."

However, KEPCO forecasted that sustaining profitability will be difficult going forward. A KEPCO official stated, "Although operating profit was generated in the third quarter on a consolidated financial statement basis due to five tariff adjustments and fuel price stabilization since April, the continuation of profitability is uncertain due to uncertainties in international oil prices and exchange rates caused by the Israel-Hamas war. We will do our best to thoroughly and swiftly implement the self-help efforts promised to the public to normalize management."

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