KEPCO logs 1st quarterly profit since 2021 Q1

Korea Electric Power Corp. (KEPCO) posted an operating profit in the third quarter for the first time since the first quarter of 2021 on the back of hikes in electricity prices, the state-run utility company said Monday.

KEPCO's net profit came to 833.3 billion won ($629 million) during the period from July to September, shifting from a loss of 5.88 trillion won a year earlier, according to the company.

Its operating profit during the period stood at 1.99 trillion won, compared with a 7.53 trillion won loss a year ago, while sales rose by 23.8 percent from last year to 24.47 trillion won.

The company attributed the profit to increases in electricity bills, which it has raised five times since April 2022. KEPCO this year raised the country's power rates by 8 won per kilowatt-hour (kWh) in the second quarter, following a 13.1 won increase in the first quarter.

The company's electricity sales from January to September this year logged 61.8 trillion won, up by 28.8 percent due to higher power rates.

KEPCO's overall sales from January to September this year recorded 65.7 trillion won, up 13.9 trillion from last year, while its operating cost hit 72.1 trillion won, down 1.4 trillion won from last year. It has resulted in a loss of 6.4 trillion won, down from last year when the loss stood at 21.8 trillion won.

Compared to last year, KEPCO's electricity rates this year increased by 29.8 percent. This has led to an increase in sales by 13.8 trillion won, despite the volume of sold electricity slowing down by 0.3 percent from last year.

With this year's overall decreased demand for power, the volume of electricity generated by KEPCO's subsidiaries also decreased and saw a year-on-year decrease of their fuel cost by 2.6 trillion won. But the volume of electricity purchased by private power plant operators increased year-on-year by 267 billion won.

KEPCO said that the latest quarterly profit, however, won't last because of the volatility in oil prices caused by the Israel-Hamas war. The company, burdened by an over 200 trillion won debt, said it will faithfully carry out its previously announced self-reliant measures to normalize operations.