Seoul:The state-run Korea Electric Power Corp. (KEPCO) announced a significant decrease in its third-quarter net profit, which plunged 78 percent from the previous year, attributed to escalating fuel costs.
According to Yonhap News Agency, KEPCO reported a net profit of 835.89 billion won for the three months ending in September, a sharp decline from 3.79 trillion won in the corresponding period last year. The company highlighted that the decrease in electricity sales and the continuous rise in global thermal coal prices were key factors impacting its financial performance.
The company disclosed that combined fuel costs for its power-generating subsidiaries, including Korea South-East Power Co., surpassed 2.2 trillion won in the third quarter, adversely affecting its earnings. Additionally, KEPCO's operating profit dropped 70.9 percent to 1.64 trillion won, compared to 5.65 trillion won in the same period last year, while sales saw a 2.6 percent reduction to 26.85 trillion won from 27.57 trillion won.
KEPCO stated its commitment to closely monitoring the volatile energy prices and sustaining an emergency management system aimed at enhancing its financial situation through cost-cutting measures and profitability-focused operations. The company has been under this system since the onset of Russia's invasion of Ukraine in February 2022, which has led to increased fuel prices, subsequently affecting the company's debt and interest payment expenses.
For the first nine months of the year, KEPCO's net profit dropped 50.4 percent to 3.63 trillion won from 7.33 trillion won in the year-ago period, with operating profit declining 43.2 percent year-on-year to 6.56 trillion won, and sales decreasing by 0.8 percent to 73.17 trillion won.