Korea Electric Power (015760) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was KRW 46.3 trillion, up 0.3% year-over-year, with consolidated operating income at KRW 4.9 trillion and net income at KRW 2.8 trillion, both down sharply from the prior year due to higher costs and margin pressure.

• Power sales volume declined 0.6% YoY to 266.7 TWh, mainly from weaker industrial demand.

• Sales of electric power decreased by KRW 193.4 billion due to a 0.9% drop in sales volume, partially offset by a 0.2% increase in unit sales price.

• The company maintained strong liquidity with cash and cash equivalents of KRW 2.6 trillion at period end.

• Total assets reached KRW 262.6 trillion, with equity of KRW 51.8 trillion and a net debt-to-equity ratio of 2.52.

Financial highlights

• Gross margin for H1 2026 was 13.8%, with cost of sales at KRW 39.9 trillion.

• Fuel cost increased 8.8% YoY to KRW 10,142.9 billion, while purchased power cost decreased 0.9% to KRW 17,206.9 billion.

• Operating profit margin and net profit margin declined year-over-year.

• Dividends paid in H1 2026 totaled KRW 989.9 billion.

• Capital expenditures for property, plant, and equipment were KRW 6.6 trillion in H1 2026.

Outlook and guidance

• Full-year power sales volume expected to slightly increase with higher economic growth and more operating days.

• The company expects continued margin pressure due to fuel cost volatility and regulatory constraints on electricity pricing.

• Ongoing investments in grid modernization, renewables, and overseas projects are expected to support long-term growth.

• Regional electricity pricing differentiation to be finalized and introduced by year-end, with public hearings in the second half.

• Management is focused on maintaining financial stability and liquidity amid global market uncertainties.