Korea Electric Power Corp. (KEPCO) has reported a net income of 114.4 billion won ($83.1 million) for the second quarter of 2024, reversing a loss of 1.9 trillion won from the same period last year. The turnaround is attributed to reduced fuel costs and increased electricity rates.
For the April-June quarter, KEPCO achieved an operating profit of 1.25 trillion won, a stark contrast to the 2.27 trillion won loss reported a year ago. Sales increased by 4.3% to 20.47 trillion won, surpassing market expectations, which anticipated a net profit of 733.3 million won.
This marks the fourth consecutive quarter that KEPCO has posted an operating profit on a consolidated basis, driven by a 17% reduction in operating costs during the first half of 2024. The company spent 10.9 trillion won on resource procurement and 17.1 trillion won on electricity purchases from private power producers, decreasing these expenses by 27.9% and 18.6%, respectively.
Despite the recent profitability, KEPCO is addressing the cumulative loss of 43 trillion won from 2021 to 2023, incurred due to insufficient electricity price increases amidst soaring fuel costs during the COVID-19 pandemic. The company is implementing self-rescue measures, such as restructuring overseas operations, selling assets, and offering voluntary retirement programs.
KEPCO plans to collaborate with the government to reduce costs and tackle the evolving business environment, including challenges posed by the Middle East conflict and rising global energy prices.
