Korea Electric Power (015760) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated operating profit was KRW 3.75 trillion and net profit was KRW 2.36 trillion, with revenue up 4% year-over-year to KRW 24.2 trillion, driven by a 4.7% increase in electricity sales revenue.

• Total assets reached KRW 249.9 trillion, 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, reflecting strong government support and a dominant market position.

• Electricity sales volume declined 0.5% year-over-year to 141 TWh due to weaker industrial demand and exports.

Financial highlights

• Consolidated operating revenue for Q1 2025 was KRW 24.2 trillion, up 4.0% year-over-year; operating profit was KRW 3.75 trillion, a significant turnaround from the previous year.

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

• Cost of sales and SG&A expenses decreased by 6.9% to KRW 20.47 trillion, with fuel costs down 18.7% and power purchase costs down 4.8% year-over-year.

• Sale of electric power increased by KRW 1.0 trillion due to a 5.3% rise in unit sales price, despite a 0.5% decrease in sales volume.

• Depreciation expenses increased 5.1% to KRW 2.95 trillion.

Outlook and guidance

• Full-year 2025 electricity sales are projected to decline slightly due to lower economic growth and manufacturing slowdown.

• 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.

• Fuel cost outlook for 2025: coal KRW 171,000/ton, LNG KRW 1.06 million/ton, oil KRW 1,031/liter, based on external forecasts.

• Nuclear and coal generation mix expected to rise slightly, LNG to decrease; nuclear utilization rate forecasted in mid-80%, coal early 50%, LNG mid-20%.