Seoul: The state-run Korea Electric Power Corp. (KEPCO) is anticipated to achieve an operating profit for the year 2024, marking the first such profit in four years, following recent increases in electricity rates.
According to Yonhap News Agency, KEPCO is projected to record an annual operating profit of 8.86 trillion won (US$6.07 billion) for 2024. This marks a significant turnaround from a loss of 4.57 trillion won in 2023, based on data compiled by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company is expected to report an operating profit of 2.9 trillion won for the fourth quarter. KEPCO has experienced operating losses for three consecutive years since 2021, with a cumulative loss of 43 trillion won. The losses were attributed to rising global energy prices, influenced by the Russia-Ukraine war and other geopolitical factors.
As of June, KEPCO’s debt stood at 202.9 trillion won, an increase of 440 billion won from the end of 2023. In a bid to enhance its financial stability, KEPCO has raised the average electricity rate by a total of 50 percent across seven occasions since 2022.
Despite the expected operating profit, analysts suggest KEPCO is unlikely to distribute dividends to its shareholders, citing a combined net loss of approximately 830 billion won for the first nine months of 2024.