Korea Electric Power (015760) Q3 2024 earnings summary

Executive summary

• Consolidated operating profit for Q3 2024 reached ₩5.9457 trillion, with net income at ₩2.59 trillion, marking a return to profitability from prior year losses.

• Sales rose 6.4% year-over-year to ₩69.8698 trillion, driven by an 8.0% increase in electricity sales.

• The company holds a dominant market position, supplying electricity nationwide and maintaining over 51% government ownership.

• Major investments continued in power grid expansion, renewable energy, and overseas projects, with significant capital raised through bond and commercial paper issuances.

• Credit ratings remain on par with the Korean sovereign, reflecting high government support and essential public-policy role.

Financial highlights

• Income from electricity sales was ₩66.7279 trillion, up 8.0% YoY; consolidated operating revenue for 3Q 2024 reached KRW 69.9tn, up 6.4% YoY.

• Operating profit turned positive at KRW 5.9tn (consolidated), a YoY increase of KRW 12.4tn; net income (consolidated) for 3Q 2024 was KRW 2.59tn, up 143.3% YoY.

• Cost of sales and SG&A dropped 11.4% YoY to ₩63.9241 trillion, with fuel and power purchase costs down 18.6% and 11.6% respectively.

• Basic EPS: ₩3,857, up from a loss of ₩7,512 per share last year.

• Total assets: ₩243.8 trillion; total equity: ₩39.7 trillion.

Outlook and guidance

• Profitability is expected to continue recovering in 2024, supported by lower fuel prices, power purchase costs, and stable electricity demand.

• Annual power sales expected to rise slightly, driven by increased heating and cooling demand.

• No further tariff hikes anticipated in the near term following the October increase; financial impact of recent hikes and FX to be monitored.

• The company is accelerating its coal exit plan and expanding renewable and nuclear capacity to achieve net zero by 2050.

• The company plans to maintain a strong capital structure and liquidity through further bond issuances and prudent financial management.