Seoul: The state-run Korea Electric Power Corp. (KEPCO) reported a significant 76.4 percent decline in its net profit for the second quarter, attributed to reduced electricity sales and increased fuel expenses. The company's net profit for the period ending in June decreased to 277.5 billion won (US$195.8 million) from 1.17 trillion won in the corresponding period the previous year, as revealed in a regulatory filing.

According to Yonhap News Agency, the decline in electricity sales was marginal, but the surge in global thermal coal prices significantly escalated KEPCO's fuel costs. A KEPCO spokesperson highlighted these challenges in tandem with the announcement of the financial results. The operating profit experienced a steep decline of 47.2 percent, totaling 1.12 trillion won in the second quarter, compared to 2.13 trillion won in the same timeframe last year. Furthermore, sales witnessed a slight reduction of 0.1 percent, falling to 21.91 trillion won from 21.95 trillion won during the specified period.

KEPCO also projected ongoing challenges in the second half of the year, citing the weak won and elevated oil prices amid the prolonged conflict between the United States and Iran in the Middle East as substantial obstacles to improving its financial outlook. The state-run corporation has been operating under emergency management since the onset of the Russia-Ukraine conflict on February 24, 2022, as soaring fuel prices have exacerbated its debt and interest expenses.

In the broader context of the first half of the year, KEPCO's net profit decreased by 21 percent to 2.79 trillion won, down from 3.53 trillion won in the same period the previous year. Operating income for the first half also fell by 16.6 percent to 4.91 trillion won, compared to 5.88 trillion won a year earlier. Despite these declines, sales in the first half saw a minor increase of 0.3 percent, reaching 46.31 trillion won from 46.17 trillion won.