KEPCO Q3 Net Profit Plunges 78% Due to Rising Fuel Costs

Korea Electric Power Corp. (KEPCO) has announced a staggering 78% decline in its net profit for the third quarter of the year, primarily driven by escalating fuel costs. The company's net profit plummeted to 835.89 billion won, down from 3.79 trillion won in the same quarter last year.

A spokesperson for KEPCO attributed this significant downturn to a combination of factors, including a decrease in electricity sales and a rise in global thermal coal prices. The total fuel costs for KEPCO's power-generating subsidiaries exceeded 2.2 trillion won during the quarter, further straining the company's financial performance.

In addition to the net profit decline, KEPCO's operating profit also fell sharply by 70.9%, reaching 1.64 trillion won compared to 5.65 trillion won in the previous year. Overall sales dropped by 2.6% to 26.85 trillion won.

KEPCO has been operating under an emergency management system since the onset of the Ukraine conflict in February 2022, which has exacerbated its financial challenges due to rising fuel prices. The company plans to closely monitor energy price fluctuations while implementing cost reduction measures to improve profitability.

For the first nine months of the year, KEPCO reported a 50.4% decrease in net profit, totaling 3.63 trillion won, alongside a 43.2% decline in operating profit to 6.56 trillion won.