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Utilities

Korea Electric Power Corp.

  • 32,000.00 KRW
  • -600.00
  • -1.84%
  • South Korea
    Dec 14, 2018
  • Ticker
    KRX(015760)
  • Prev. close
    32,600
  • Market cap (KRW)
    20,928.00B
  • Market cap (USD)
    18,508.10M
  • Shares
    641.96M

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 January 1, 1982 and is headquartered in Naju-si, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue59,814.86B52,909.61M
Gross Profit7,987.80B7,065.66M
Operating income4,967.19B4,393.76M
Income before tax3,614.21B3,196.97M
Net income1,298.72B1,148.79M
EBITDA14,739.73B13,038.12M
Diluted EPS2,0231.78
Dividends Per Share7900.69
Total Assets181,788.91B169,808.89M
Total liabilities108,824.27B101,652.67M
Total equity71,681.44B66,957.58M
Operating cash flow11,249.89B9,951.16M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 54,037.79B 57,474.88B 58,957.72B 60,190.38B 59,814.86B
Gross Profit 3,728.03B 7,987.32B 13,782.71B 14,947.03B 7,987.80B
Operating income 1,514.72B 5,820.86B 11,340.36B 12,065.85B 4,967.19B
Income before tax -425,903M 3,988.29B 18,461.51B 10,532.39B 3,614.21B
Net income 60,011M 2,686.87B 13,289.12B 7,048.58B 1,298.72B
EBITDA 8,906.19B 13,693.49B 19,681.08B 21,026.16B 14,739.73B
Diluted EPS 96 4,290 20,701 10,980 2,023
Dividends Per Share 90 500 3,100 1,980 790
Total Assets 155,527.33B 163,708.28B 175,257.35B 177,837.04B 181,788.91B
Total liabilities 104,076.59B 108,883.27B 107,314.88B 104,786.49B 108,824.27B
Total equity 50,259.66B 53,601.33B 66,634.46B 71,723.69B 71,681.44B
Operating cash flow 6,883.90B 12,045.69B 16,943.10B 16,520.55B 11,249.89B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 49,360.28M 54,599.75M 52,091.83M 51,879.77M 52,909.61M
Gross Profit 3,405.33M 7,587.76M 12,177.65M 12,883.26M 7,065.66M
Operating income 1,383.61M 5,529.67M 10,019.72M 10,399.89M 4,393.76M
Income before tax -389.03M 3,788.78M 16,311.58M 9,078.16M 3,196.97M
Net income 54.81M 2,552.46M 11,741.54M 6,075.36M 1,148.79M
EBITDA 8,135.27M 13,008.49M 17,389.13M 18,123.03M 13,038.12M
Diluted EPS 0.08 4.07 18.29 9.46 1.78
Dividends Per Share 0.08 0.47 2.73 1.70 0.69
Total Assets 147,370.38M 148,940.80M 149,466.84M 147,240.46M 169,808.89M
Total liabilities 98,618.08M 99,061.34M 91,522.64M 86,758.14M 101,652.67M
Total equity 47,623.69M 48,766.16M 56,828.67M 59,383.74M 66,957.58M
Operating cash flow 6,288.03M 11,443.11M 14,970.00M 14,239.52M 9,951.16M

Valuation Measures

Dec 2017
PER18.85
ROA0.72%
ROE1.81%
Operating margin8.30%
Profit margin2.17%

Key executives

  • Chief Executive Officer & Director: Jong-Kap Kim
  • President & Director: Hwan-Eik Cho
  • Director & Vice President: Si-Ho Kim
  • Director & Vice President: Hyang-ryul Ryu
  • Director & Head-Planning: Sang-Kwon Hyun

Shareholders

  • Government of South Korea (51.1%)
  • National Pension Service of Korea (5.6%)
  • JF Asset Management Ltd. (1.0%)
  • Orbis Investment Management Ltd. (1.0%)
  • BlackRock Fund Advisors (0.9%)
  • Invesco Asset Management Ltd. (0.8%)
  • Eastspring Investments (Singapore) Ltd. (0.8%)
  • The Vanguard Group, Inc. (0.8%)
  • Samsung Asset Management Co., Ltd. (0.5%)
  • Hermes Investment Management Ltd. (0.3%)

Contact Details

Related Companies

  • 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.
  • KEPCO KDN Co., Ltd.
  • KEPCO Cayman Co. Ltd.
  • Korea Midland Power Co., Ltd.
  • Korea Western Power Co., Ltd.
  • Korea Southern Power Co., Ltd.

Competitors

  • San Miguel Corp.
  • Top Frontier Investment Holdings, Inc.
Last Updated on 14 Dec, 2018

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