Korea Electric Power (015760) H1 2025 earnings summary

Executive summary

• Consolidated operating profit for H1 2025 was KRW 5.89 trillion, with net profit at KRW 3.54 trillion, reflecting a 398.1% YoY increase and improved profitability.

• Revenue rose 5.5% YoY to KRW 46.2 trillion, driven by a 5.9% increase in electricity sales, while other revenue declined 2.1%.

• Cost of sales and SG&A fell 2.3% YoY, with fuel costs down 14.6% and power purchase costs up 1.1%.

• Total assets reached KRW 249.9 trillion as of 2Q 2025, with 51% government ownership and 100% market share in transmission and distribution.

• Strong government support and credit ratings on par with the Korean sovereign (Aa2/AA).

Financial highlights

• Electricity sales volume for H1 2025 was 268.4 TWh, down 0.05% YoY due to weaker industrial demand.

• Nuclear generation mix increased due to new plant entry and higher utilization; coal and LNG shares declined.

• RPS costs for H1 2025 were KRW 1.95 trillion (consolidated) and KRW 2.18 trillion (separate).

• Borrowings as of H1 2025: KRW 131.9 trillion (consolidated), KRW 86.5 trillion (separate).

• Power sales revenue increased by KRW 2.5 trillion, driven by a 5.7% rise in unit sales price despite a slight volume decrease.

Outlook and guidance

• Full-year 2025 electricity sales expected to decline slightly due to lower economic growth and manufacturing downturn.

• Nuclear utilization rate forecasted in the mid-80% range, coal in the upper-40%, LNG in the mid-20%.

• Regional-based tariff system targeted for introduction by early 2026, with stakeholder consultation planned for H1 2025.

• Ongoing investment in renewable energy, nuclear, and grid infrastructure to support net zero targets.

• Targeting 33% renewable energy share and 35% nuclear in generation mix by 2038.