Korea Electric Power (015760) Q1 2025 earnings summary

Executive summary

• Total assets reached KRW 249.9 trillion with KRW 24.2 trillion in revenue for 1Q 2025, maintaining a 100% market share in transmission and distribution.

• The company is majority-owned by the Korean government (over 51%) and is strategically important to national policy.

• Credit ratings remain on par with the Korean sovereign, with recent bond issues rated AAA and international ratings of Moody's Aa2, S&P AA, and Fitch AA-, reflecting strong government support and a dominant market position.

Financial highlights

• Consolidated operating revenue for 1Q 2025 was KRW 24.2tn, up 4.0% year-over-year; operating profit was KRW 3.8tn, a significant turnaround from the previous year.

• Net income rose to KRW 2.36tn, up 296.3% year-over-year.

• Total assets at March 31, 2025, were KRW 249.9 trillion, with equity of KRW 43.1 trillion and a net debt-to-equity ratio of 3.03.

• Cost of sales and SG&A decreased by 6.9% year-over-year, driven by a 18.7% reduction in fuel costs and a 4.8% decrease in purchased power costs.

• Cash flows from operations in Q1 2025 were KRW 6.75 trillion, with investing outflows of KRW 7.06 trillion and financing inflows of KRW 0.36 trillion.

Outlook and guidance

• The company is executing a roadmap to net zero by 2050, including shutting down coal plants, expanding renewables, and increasing nuclear capacity.

• Plans to add 10.3GW of new capacity by 2038, focusing on nuclear, renewables, and hydrogen.

• Committed to aborting coal-based generation by 2050 and expanding offshore wind, solar, and hydro generation.

• The company continues to invest in grid infrastructure, renewable energy, and overseas projects, with a focus on stable power supply and energy transition.

• Management expects continued revenue growth and stable profitability, supported by regulated tariffs and ongoing cost controls.