Seoul: The state-run Korea Electric Power Corp. (KEPCO) announced a remarkable surge in net income, exceeding a tenfold increase from the previous year during the second quarter, largely attributed to declining global oil prices and strategic cost-cutting measures.
According to Yonhap News Agency, KEPCO's net profit for the April-June period reached 1.17 trillion won (approximately US$846.5 million), representing a significant 928.1 percent increase compared to the same period last year, as reported in a regulatory filing. The company's operating income also saw a substantial rise, increasing by 70.8 percent year-on-year to 2.13 trillion won, while revenue grew by 7.2 percent to 21.95 trillion won. This marks the eighth consecutive quarter in which KEPCO has achieved an operating profit.
The company's earnings have surpassed market expectations, with analysts previously estimating a net profit of 1.12 trillion won, according to a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. For the first half of the year, KEPCO reported an impressive operating profit of 5.9 trillion won, up 131 percent from the same period in the previous year, with sales increasing by 5.5 percent to 46.2 trillion won.
KEPCO attributed its robust financial performance to increased revenue from recent price adjustments, along with the stabilization of fuel costs and internal cost-cutting initiatives. The average selling price of electricity rose by 5.7 percent in the first six months of the year, following a 9.7 percent increase in electricity rates for industrial use implemented by the government in October. Despite a slight 0.05 percent decrease in sales volume, the price hike contributed an additional 2.45 trillion won in profit from electricity sales.
In efforts to enhance fiscal soundness, KEPCO and its affiliates successfully reduced operating costs by a combined total of 2.3 trillion won in the first half of the year. The company plans to proactively address potential volatility in currency exchange rates and international fuel prices, while continuing to implement measures aimed at improving financial stability to secure funding for new energy projects in the country.
The new government under Lee Jae Myung has emphasized the importance of constructing a next-generation power grid that will connect the entire nation, addressing the rising power demand driven by the growth of artificial intelligence (AI) and advanced industries.