(LEAD) KEPCO Q2 net plunges 76.4 pct on lower power sales, higher fuel costs

The state-run Korea Electric Power Corp. (KEPCO) reported a staggering 76.4% drop in its second-quarter net profit, plummeting to 277.5 billion won ($195.8 million) in the three months ending June from 1.17 trillion won in the same period last year. This decline was attributed to a slight decrease in electricity sales and a surge in fuel costs due to higher global thermal coal prices.

Operating profit also took a significant hit, falling 47.2% to 1.12 trillion won, down from 2.13 trillion won a year ago. Sales, however, saw minimal change, decreasing by just 0.1% to 21.91 trillion won, compared to 21.95 trillion won in the previous year.

KEPCO's financial challenges are expected to persist in the second half of the year. The company pointed to the weak South Korean won and high oil prices, exacerbated by the ongoing conflict between the United States and Iran, as factors that will continue to impact its financial recovery.

Since the Russia-Ukraine war commenced on February 24, 2022, KEPCO has been operating under emergency management. The rising fuel prices have significantly increased the company's debt and interest expenses. During the first half of the year, KEPCO's net profit fell 21% to 2.79 trillion won, and operating income dropped 16.6% to 4.91 trillion won, despite a slight increase in sales to 46.31 trillion won from 46.17 trillion won during the same period.