Korea Electric Power Corp.

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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	KRW	USD
Revenue	60,574.81B	52,896.41M
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
EBITDA	6,056.37B	5,288.67M
Diluted EPS	-8,279.36	-7.22
Dividends Per Share	0	0
Total Assets	211,108.87B	177,588.95M
Total liabilities	145,797.02B	122,647.33M
Total equity	63,769.01B	53,643.75M
Operating cash flow	4,473.18B	3,906.16M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 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 2017	Dec 2018	Dec 2019	Dec 2020	Dec 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. (0.9%)
BlackRock Fund Advisors (0.7%)
Korea Electric Power Corp. Employee Stock OwnershipAssn (0.7%)
Kopernik Global Investors LLC (0.6%)
Samsung Asset Management Co., Ltd. (0.4%)
Geode Capital Management LLC (0.3%)
BlackRock Advisors (UK) Ltd. (0.2%)
Charles Schwab Investment Management, Inc. (0.2%)

Contact Details

Website:http://www.kepco.co.kr
Phone: +82.61.345.3114

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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 25 Nov, 2022