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Utilities

Korea Electric Power Corp.

Company Background

Korea Electric Power Corp., known as Kepco, has a virtual monopoly in power generation and distribution in South Korea. The company was founded in 1982 when the government nationalized the electric power industry. Even though Kepco has gone public in Seoul and New York, the South Korean government and a government-controlled bank together hold more than 50% of the utility.

Kepco spun off its power generation operations to form six units, including Korea Hydro & Nuclear Power, in the 2000s. All six of the new companies are wholly owned subsidiaries.

Some independent companies have entered the power generation business.

Kepco's rates are regulated by the government. Since the utility cannot pass on fuel cost swings to customers, its earnings tend to fluctuate along with crude oil and natural gas prices. Since it has extremely good credit standing, it has managed to maintain a strong credit rating even when high crude oil prices meant it was losing money.

In line with government policy, Kepco intends to invest in nuclear power plants. As of 2013, South Korea was dependent on the atom for 26% of its power needs. The government aims to raise that ratio to 29% by 2035.

With South Korea's overall energy demand on the rise, it is estimated that the country will need to add at least 16 to 18 nuclear power reactors to the 23 has been operating by 2035. And even more new reactors will need to be built if any existing reactors are decommissioned.

Kepco also exports nuclear reactors. It landed a contract from the United Arab Emirates, beating competition from leading Japanese and U.S. companies.

Following the meltdowns at Japan's Fukushima Daiichi nuclear complex in 2011, however, some South Koreans have been calling for an end to nuclear power.

Business Summary

Korea Electric Power Corp. engages in the generation, transmission and distribution of electricity. It operates through the following Businesses: Sale of Electric Power, Development of Electric Power Resources, Investment, and Real Estate. The company was founded on July 1, 1961 and is headquartered in Naju, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue59,172.89B50,740.59M
Gross Profit1,592.65B1,365.69M
Operating income-1,295.69B-1,111.05M
Income before tax-3,432.65B-2,943.49M
Net income-2,345.51B-2,011.27M
EBITDA9,834.51B8,433.07M
Diluted EPS-3,653.65-3.13
Dividends Per Share00
Total Assets197,597.79B170,865.83M
Total liabilities128,708.14B111,295.90M
Total equity67,496.31B58,365.09M
Operating cash flow8,213.42B7,042.99M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 58,957.72B 60,190.38B 59,814.86B 60,627.61B 59,172.89B
Gross Profit 13,782.71B 14,950.24B 7,987.80B 2,657.01B 1,592.65B
Operating income 11,340.36B 12,065.85B 4,967.19B -231,324M -1,295.69B
Income before tax 18,461.51B 10,532.39B 3,614.21B -2,000.81B -3,432.65B
Net income 13,289.12B 7,048.58B 1,298.72B -1,314.56B -2,345.51B
EBITDA 19,681.08B 21,026.16B 14,739.73B 9,792.54B 9,834.51B
Diluted EPS 20,701 10,980 2,023 -2,047.72 -3,653.65
Dividends Per Share 3,100 1,980 790 0 0
Total Assets 175,257.35B 177,837.04B 181,788.91B 185,249.06B 197,597.79B
Total liabilities 107,314.88B 104,786.49B 108,824.27B 114,150.48B 128,708.14B
Total equity 66,634.46B 71,723.69B 71,681.44B 69,743.92B 67,496.31B
Operating cash flow 16,943.10B 16,520.55B 11,249.89B 6,680.13B 8,213.42B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 52,091.83M 51,879.77M 52,909.61M 55,090.06M 50,740.59M
Gross Profit 12,177.65M 12,886.03M 7,065.66M 2,414.32M 1,365.69M
Operating income 10,019.72M 10,399.89M 4,393.76M -210.19M -1,111.05M
Income before tax 16,311.58M 9,078.16M 3,196.97M -1,818.07M -2,943.49M
Net income 11,741.54M 6,075.36M 1,148.79M -1,194.49M -2,011.27M
EBITDA 17,389.13M 18,123.03M 13,038.12M 8,898.12M 8,433.07M
Diluted EPS 18.29 9.46 1.78 -1.86 -3.13
Dividends Per Share 2.73 1.70 0.69 0 0
Total Assets 149,466.84M 147,240.46M 169,808.89M 166,023.53M 170,865.83M
Total liabilities 91,522.64M 86,758.14M 101,652.67M 102,303.70M 111,295.90M
Total equity 56,828.67M 59,383.74M 66,957.58M 62,505.75M 58,365.09M
Operating cash flow 14,970.00M 14,239.52M 9,951.16M 6,069.98M 7,042.99M

Valuation Measures

Dec 2019
PER--
ROA-1.22%
ROE-3.41%
Operating margin-2.18%
Profit margin-3.96%

Key executives

  • President, Chief Executive Officer & Director: Jong-Kap Kim
  • Head of Finance & IR Team: Jeong-soo Kim
  • Head-Technological Innovation: Jong-Hwan Lee
  • Vice President: Jong-Soo Kim
  • Director & Head-Power Grid: Bong-Su Mun

Shareholders

  • Government of South Korea (51.1%)
  • National Pension Service of Korea (7.8%)
  • Orbis Investment Management Ltd. (1.4%)
  • The Vanguard Group, Inc. (0.9%)
  • BlackRock Fund Advisors (0.8%)
  • Samsung Asset Management Co., Ltd. (0.7%)
  • Eastspring Investments (Singapore) Ltd. (0.6%)
  • Fidelity Management & Research Co. LLC (0.3%)
  • Invesco Asset Management Ltd. (0.3%)
  • Mirae Asset Global Investments Co., Ltd. (0.3%)

Contact Details

Related Companies

  • Kepco-Salcon Power Corp.
  • Gunsan Bio Energy Co., Ltd.
  • Busan Shinho Solar Power Co., Ltd.
  • KEPCO Shanxi International Ltd.
  • Komipo Global Pte Ltd.
  • Gyeongju Wind Power Co. Ltd.
  • KEPCO Neimenggu International Ltd.
  • Recurrent Energy LLC /3 Solar Projects/
  • KEPCO Energy Solution Co., Ltd.
  • RES Technology AD
  • Woobang ENC Co., Ltd.
  • KST Electric Power Co. SAPI de CV
  • Garolim Tidal Power Plant Co., Ltd.
  • PT Tanggamus Electric Power
  • KOSEP Material Co., Ltd.
  • Honam Wind Power Co., Ltd.
  • Kepco International Hong Kong Ltd.
  • Egbin Power Plc
  • Anglo Coal Bylong Pty Ltd.
  • Korea Electric Power Corp. Employee Stock OwnershipAssn
  • Kepco International Philippines, Inc.
  • Kepco Ilijan Corp.
  • KEPCO Engineering & Construction Co., Inc.
  • KEPCO Australia Pty Ltd.
  • Korea Waterbury Uranium LP
  • KEPCO Plant Service & Engineering Co., Ltd
  • Horizon International Ltd.
  • Kepco Philippines Holdings, Inc.
  • East-West Power Corp.
  • KEPCO Philippines Corp.

Competitors

  • Aboitiz Equity Ventures Inc.
  • Inscobee, Inc.
  • PS Tec. Co., Ltd.
  • Taihan Fiberoptics Co., Ltd
Last Updated on 27 May, 2020

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