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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 2020 KRWUSD
Revenue58,569.31B49,639.72M
Gross Profit6,959.87B5,898.76M
Operating income4,085.18B3,462.34M
Income before tax2,712.40B2,298.87M
Net income1,991.34B1,687.74M
EBITDA15,631.74B13,248.50M
Diluted EPS3,101.962.62
Dividends Per Share1,2161.03
Total Assets203,142.11B187,003.68M
Total liabilities132,475.26B121,950.89M
Total equity69,296.68B63,791.47M
Operating cash flow13,208.47B11,194.68M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 60,190.38B 59,814.86B 60,627.61B 59,172.89B 58,569.31B
Gross Profit 14,950.24B 7,987.80B 2,657.01B 1,592.65B 6,959.87B
Operating income 12,065.85B 4,967.19B -231,324M -1,295.69B 4,085.18B
Income before tax 10,532.39B 3,614.21B -2,000.81B -3,432.65B 2,712.40B
Net income 7,048.58B 1,298.72B -1,314.56B -2,345.51B 1,991.34B
EBITDA 21,026.16B 14,739.73B 9,792.54B 9,834.51B 15,631.74B
Diluted EPS 10,980 2,023 -2,047.72 -3,653.65 3,101.96
Dividends Per Share 1,980 790 0 0 1,216
Total Assets 177,837.04B 181,788.91B 185,249.06B 197,597.79B 203,142.11B
Total liabilities 104,786.49B 108,824.27B 114,150.48B 128,708.14B 132,475.26B
Total equity 71,723.69B 71,681.44B 69,743.92B 67,496.31B 69,296.68B
Operating cash flow 16,520.55B 11,249.89B 6,680.13B 8,213.42B 13,208.47B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 51,879.77M 52,909.61M 55,090.06M 50,740.59M 49,639.72M
Gross Profit 12,886.03M 7,065.66M 2,414.32M 1,365.69M 5,898.76M
Operating income 10,399.89M 4,393.76M -210.19M -1,111.05M 3,462.34M
Income before tax 9,078.16M 3,196.97M -1,818.07M -2,943.49M 2,298.87M
Net income 6,075.36M 1,148.79M -1,194.49M -2,011.27M 1,687.74M
EBITDA 18,123.03M 13,038.12M 8,898.12M 8,433.07M 13,248.50M
Diluted EPS 9.46 1.78 -1.86 -3.13 2.62
Dividends Per Share 1.70 0.69 0 0 1.03
Total Assets 147,240.46M 169,808.89M 166,023.53M 170,865.83M 187,003.68M
Total liabilities 86,758.14M 101,652.67M 102,303.70M 111,295.90M 121,950.89M
Total equity 59,383.74M 66,957.58M 62,505.75M 58,365.09M 63,791.47M
Operating cash flow 14,239.52M 9,951.16M 6,069.98M 7,042.99M 11,194.68M

Valuation Measures

Dec 2020
PER8.83
ROA0.99%
ROE2.91%
Operating margin6.97%
Profit margin3.39%

Key executives

  • President, Chief Executive Officer & Director: Seung-il Cheong
  • Head of Finance & IR Team: Jeong-soo Kim

Shareholders

  • Government of South Korea (51.1%)
  • National Pension Service of Korea (6.1%)
  • The Vanguard Group, Inc. (0.8%)
  • BlackRock Fund Advisors (0.8%)
  • Korea Electric Power Corp. Employee Stock OwnershipAssn (0.4%)
  • Samsung Asset Management Co., Ltd. (0.4%)
  • Kopernik Global Investors LLC (0.3%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Geode Capital Management LLC (0.2%)
  • Mirae Asset Global Investments Co., Ltd. (0.1%)

Contact Details

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Competitors

  • Aboitiz Equity Ventures Inc.
  • POSCO
  • PS Tec. Co., Ltd.
  • Inscobee, Inc.
Last Updated on 6 Dec, 2021

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