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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 2021 KRWUSD
Revenue60,574.81B52,896.41M
Gross Profit-2,819.41B-2,462.03M
Operating income-5,880.51B-5,135.10M
Income before tax-7,642.27B-6,673.54M
Net income-5,315.05B-4,641.32M
EBITDA6,056.37B5,288.67M
Diluted EPS-8,279.36-7.22
Dividends Per Share00
Total Assets211,108.87B177,588.95M
Total liabilities145,797.02B122,647.33M
Total equity63,769.01B53,643.75M
Operating cash flow4,473.18B3,906.16M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 59,814.86B 60,627.61B 59,172.89B 58,569.31B 60,574.81B
Gross Profit 7,987.80B 2,657.01B 1,592.65B 6,959.87B -2,819.41B
Operating income 4,967.19B -231,324M -1,295.69B 4,085.18B -5,880.51B
Income before tax 3,614.21B -2,000.81B -3,432.65B 2,712.40B -7,642.27B
Net income 1,298.72B -1,314.56B -2,345.51B 1,991.34B -5,315.05B
EBITDA 14,739.73B 9,792.54B 9,834.51B 15,631.74B 6,056.37B
Diluted EPS 2,023 -2,047.72 -3,653.65 3,101.96 -8,279.36
Dividends Per Share 790 0 0 1,216 0
Total Assets 181,788.91B 185,249.06B 197,597.79B 203,142.11B 211,108.87B
Total liabilities 108,824.27B 114,150.48B 128,708.14B 132,475.26B 145,797.02B
Total equity 71,681.44B 69,743.92B 67,496.31B 69,296.68B 63,769.01B
Operating cash flow 11,249.89B 6,680.13B 8,213.42B 13,208.47B 4,473.18B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 52,909.61M 55,090.06M 50,740.59M 49,639.72M 52,896.41M
Gross Profit 7,065.66M 2,414.32M 1,365.69M 5,898.76M -2,462.03M
Operating income 4,393.76M -210.19M -1,111.05M 3,462.34M -5,135.10M
Income before tax 3,196.97M -1,818.07M -2,943.49M 2,298.87M -6,673.54M
Net income 1,148.79M -1,194.49M -2,011.27M 1,687.74M -4,641.32M
EBITDA 13,038.12M 8,898.12M 8,433.07M 13,248.50M 5,288.67M
Diluted EPS 1.78 -1.86 -3.13 2.62 -7.22
Dividends Per Share 0.69 0 0 1.03 0
Total Assets 169,808.89M 166,023.53M 170,865.83M 187,003.68M 177,588.95M
Total liabilities 101,652.67M 102,303.70M 111,295.90M 121,950.89M 122,647.33M
Total equity 66,957.58M 62,505.75M 58,365.09M 63,791.47M 53,643.75M
Operating cash flow 9,951.16M 6,069.98M 7,042.99M 11,194.68M 3,906.16M

Valuation Measures

Dec 2021
PER--
ROA-2.56%
ROE-7.98%
Operating margin-9.70%
Profit margin-8.77%

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 (5.9%)
  • The Vanguard Group, Inc. (0.8%)
  • BlackRock Fund Advisors (0.8%)
  • Korea Electric Power Corp. Employee Stock OwnershipAssn (0.7%)
  • Kopernik Global Investors LLC (0.5%)
  • Samsung Asset Management Co., Ltd. (0.4%)
  • Geode Capital Management LLC (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Charles Schwab Investment Management, Inc. (0.2%)

Contact Details

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Competitors

  • Aboitiz Power Corp.
  • Aboitiz Equity Ventures Inc.
  • POSCO Holdings Inc.
  • PS Tec. Co., Ltd.
  • DOOSAN ENERBILITY CO., LTD.
  • Inscobee, Inc.
Last Updated on 23 Sep, 2022

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