KEPCO Q2 Net Profit Plunges 76.4 Percent on Lower Sales and Higher Fuel Costs

SEOUL, Aug. 12 (Yonhap) -- The state-run Korea Electric Power Corp. (KEPCO) said Wednesday its second-quarter net profit plunged 76.4 percent from a year earlier due to lower electricity sales and higher fuel costs.

Net profit for the three months ended in June fell to 277.5 billion won (US$195.8 million) from 1.17 trillion won in the same period last year, the company said in a regulatory filing.

"Electricity sales slightly declined, while rising global thermal coal prices pushed up the company's overall fuel expenses," a KEPCO spokesperson said.

Operating profit fell 47.2 percent to 1.12 trillion won in the second quarter from 2.13 trillion won a year ago.

Sales declined 0.1 percent to 21.91 trillion won from 21.95 trillion won during the cited period.

Looking ahead, KEPCO said the weak won and high oil prices amid the prolonged war between the United States and Iran in the Middle East were expected to continue to weigh on its efforts to improve its financial position in the second half.

KEPCO has been under emergency management since the Russia-Ukraine war broke out on Feb. 24, 2022, as rising fuel prices drove up its debt and interest expenses.

For the first six months of the year, net profit fell 21 percent to 2.79 trillion won from 3.53 trillion won in the year-ago period.

First-half operating income fell 16.6 percent to 4.91 trillion won from 5.88 trillion won a year earlier. Sales rose 0.3 percent to 46.31 trillion won from 46.17 trillion won.