Korea Electric Power (015760) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached KRW 46.2 trillion, up 5.5% YoY, with operating profit of KRW 5.9 trillion and net profit of KRW 3.54 trillion, reflecting a strong recovery and improved profitability year-over-year.

• Net income for H1 2025 surged 398.1% YoY to KRW 3.5 trillion, with total assets at KRW 249.9 trillion and equity of KRW 43.7 trillion as of June 2025.

• The company benefits from strong government support, 51% government ownership, and credit ratings on par with the Korean sovereign.

• Major investments continued in power grid upgrades, renewables, nuclear, and overseas projects, with significant capital expenditures in HVDC, LNG, and grid modernization.

• 100% market share in transmission and distribution, with a dominant position in generation.

Financial highlights

• Electricity sales volume for H1 2025 was 268.4 TWh, down 0.05% YoY, with industrial sector accounting for 52% of sales.

• Cost of sales and SG&A fell 2.3% YoY, mainly due to a 14.6% drop in fuel costs, while power purchase costs rose 1.1%.

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

• Depreciation expense increased 4% YoY to KRW 5.88 trillion.

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

Outlook and guidance

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

• Management expects continued revenue growth from stable domestic demand, new overseas contracts, and renewables expansion.

• Ongoing investments in grid modernization, nuclear, and renewables are expected to support long-term growth and net zero targets.

• Nuclear generation mix expected to decrease, coal to remain stable, and LNG to decline slightly for the year; targeting 33% renewables and 35% nuclear by 2038.

• Tariff increases for non-industrial sectors are under review, with close government consultation planned.