KEPCO Posts Profit for Third Consecutive Quarter... Q1 Operating Profit of 1.3 Trillion Won

Sales Up 7.9% · Operating Expenses Down 20.8%
Operating Profit Scale Shrinks
KEPCO "Electricity Purchase Costs to Increase Due to Future Energy Price Hikes and High Exchange Rates"

Korea Electric Power Corporation (KEPCO) recorded operating profits for the first quarter of this year, marking three consecutive quarters of profitability.

KEPCO announced on the 10th that its operating profit for the first quarter was 1.2993 trillion KRW, an increase of 121.0% (7.4769 trillion KRW) compared to the same period last year.

A KEPCO official explained, "This operating profit increased by 7.4769 trillion KRW compared to the same period last year," adding, "While sales revenue increased by 1.6987 trillion KRW due to tariff adjustments, operating expenses decreased by 5.7782 trillion KRW due to reductions in fuel costs and power purchase costs."

Looking at the main factors in detail, electricity sales revenue increased by 1.9059 trillion KRW despite a 1.1% decrease in sales volume due to reduced industrial electricity consumption, as the unit sales price rose by 9.8% following three tariff hikes last year.

Subsidiaries' fuel costs decreased by 2.9229 trillion KRW, and power purchase costs from private power producers also dropped by 2.968 trillion KRW. Additionally, maintenance costs increased by 139.9 billion KRW due to an increase in power facilities.

A KEPCO official stated, "Operating profits have been recorded for three consecutive quarters on a consolidated financial statement basis due to three tariff hikes last year and stabilization of fuel prices," but added, "However, the quarterly operating profit scale has been decreasing, with 2 trillion KRW in Q3 last year, 1.9 trillion KRW in Q4, and 1.3 trillion KRW in Q1 this year." He further noted, "Due to the ongoing Russia-Ukraine war and the expansion of conflicts in the Middle East, increases in international energy prices and high exchange rates are expected to lead to higher power purchase costs amid changing business conditions."

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