Seoul: The state-run Korea Electric Power Corp. (KEPCO) announced a notable rise in its net income for the first quarter of the year, amounting to a 6.7 percent increase from the previous year, attributed to its rigorous cost-saving strategies under an emergency management framework. Despite limited sales growth, the company managed to achieve a net profit of 2.51 trillion won (US$1.7 billion) for the January-March period, as revealed in a regulatory filing on Wednesday.
According to Yonhap News Agency, KEPCO's operating profit experienced a modest rise of 0.8 percent year-on-year, reaching 3.78 trillion won. Revenue saw a slight increase of 0.7 percent, totaling 24.39 trillion won. The utility company's electricity sales profit also edged up by 0.1 percent year-on-year to 23.2 trillion won in the first quarter.
KEPCO managed to keep its operating costs growth to 0.7 percent, capping at 20.6 trillion won. This was achieved despite the sharp rise in global oil and liquefied natural gas prices following the outbreak of the U.S.-Israeli conflict against Iran in late February, which was not yet reflected in the first-quarter earnings. However, the company anticipates that the recent surge in global energy prices could impact its earnings in the second quarter.
The company credits its cost-saving initiatives and measures to enhance fiscal stability for the positive net profit in the first quarter. Nonetheless, KEPCO continues to grapple with a substantial debt of 206 trillion won, incurring 11.4 billion won in interest payments daily. The financial challenges stem from the company's decision to supply electricity at prices below production costs, even as global energy prices soared between 2021 and 2023 due to the Russia-Ukraine conflict.