KEPCO's first quarter profits failed to meet market expectations

In the first quarter of 2024, the Korea Electric Power Corporation (KEPCO) sustained its earnings momentum, nearly reaching an operating profit of 1.3 trillion Korean won. Despite this, the operating profits fell short of market expectations, amounting to only half of the predicted figures.

On Friday, KEPCO reported that total operating profits for the first quarter amounted to 1.29 trillion won, marking the third consecutive surplus since the third quarter of last year. Sales profits rose by 9.4% to 1.9 trillion won due to three electricity price hikes last year, while fuel and power purchase costs decreased by 20.8% to 5.7 trillion won, resulting in surplus operating profits.

Quarterly operating profits have been on a downward trend. From the third quarter of last year, when they stood at 1.99 trillion won, they decreased to 1.88 trillion won in the fourth quarter and dropped to 1.29 trillion won in the first quarter of this year. Before this earnings streak, KEPCO experienced operating losses for nine consecutive quarters, spanning from the second quarter of 2022 to the second quarter of 2023.

“Power purchase expenses exceeded expectations within the securities community, attributed to rising global oil prices and a stronger U.S. dollar,” an official from the Ministry of Trade, Industry and Energy said. “Additional fee increases might be necessary at the right juncture to tackle aggregate deficits.”


세종=조응형 기자 yesbro@donga.com