Kepco posts twofold hike in net profit for Q3 at $1.3 billion

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Kepco posts twofold hike in net profit for Q3 at $1.3 billion

Published: 13 Nov. 2024, 18:47

Korea Electric Power Corporation sign [YONHAP]

The Korea Electric Power Corporation (Kepco) said Wednesday that its third quarter net profit more than doubled from a year earlier on an electricity rate hike and stabilizing global energy prices.

Net profit reached 1.87 trillion won ($1.3 billion) in the July-September period, up 125.6 percent from the same period last year, the company said in a regulatory filing.

Operating profit for the third quarter rose 70.1 percent on year to 3.39 trillion won, while revenue increased 6.7 percent to 26.1 trillion won.

It marked Kepco's fifth consecutive quarter of operating profit.

The earnings exceeded market expectations, with analysts estimating an average net profit of 938.5 billion won, according to a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency.

Kepco said it expects fourth quarter earnings to rebound further, supported by the rate hike implemented last month, despite continued volatility in global energy prices amid the Middle East crisis and Russia's invasion of Ukraine.

In October, Kepco raised electricity rates for industrial use while freezing rates for households, citing global energy price fluctuations and the company's financial difficulties.

During a parliamentary audit last month, Industry Minister Ahn Duk-geun said no additional hikes are scheduled for this year but noted that Kepco is "in the process of gradually normalizing overall electricity rates," hinting at possible adjustments next year.

The energy company reported a cumulative loss of 43 trillion won from 2021 to 2023, as it was unable to raise electricity prices sufficiently to cover soaring fuel costs during the Covid-19 pandemic and a period of high inflation.

"Kepco will continue to implement self-rescue measures and coordinate with the government to gradually normalize electricity bills and address accumulated losses," the company said.

Shares of Kepco were trading at 22,150 won as of 2:24 p.m., up 3.02 percent from the previous session. The report was announced during market hours.

Yonhap