Korea Electric Power Corp. on Thursday reported its second-quarter net income of 114.4 billion won (US$83.1 million), swinging from a loss of 1.9 trillion won a year earlier on the back of lower fuel costs and electricity bill hikes.
Operating profit for the April-June period was 1.25 trillion, compared with a loss of 2.27 trillion won a year ago, the company said in a regulatory filing. Sales rose 4.3 percent to 20.47 trillion won.
The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 733.3 million won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
It marked the fourth consecutive quarter for KEPCO to post an operating profit on a consolidated basis.
During the first half of 2024, KEPCO saw its operating costs fall 17 percent on-year to 41.2 trillion won due to stabilized global energy costs.
Specifically, the company spent 10.9 trillion won on purchasing resources and 17.1 trillion won on buying electricity from pri
vate power generation companies, representing decreases of 27.9 percent and 18.6 percent, respectively, over the period.
KEPCO reported a cumulative loss of 43 trillion won from 2021 to 2023, as the company could not raise electricity prices enough to cover soaring fuel costs during the COVID-19 pandemic and high inflation.
Accordingly, the company has been implementing various self-rescue measures, including restructuring overseas operations, selling properties and offering voluntary retirement programs.
“KEPCO intends to swiftly implement self-rescue measures and collaborate with the government on various initiatives to reduce costs and mitigate accumulated losses,” the company said in a statement.
KEPCO added that it will proactively address the changing business environment in the face of the conflict in the Middle East and rising global energy prices.
Shares of KEPCO closed at 19,190 won on the main bourse Thursday, down 1.54 percent from the previous day. The report was released after the market cl
osed.
Source : Yonhap News Agency