Korea Electric Power Corp.

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See more articles on 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 2018	KRW	USD
Revenue	60,627.61B	55,090.06M
Gross Profit	2,657.01B	2,414.32M
Operating income	-231,324M	-210.19M
Income before tax	-2,000.81B	-1,818.07M
Net income	-1,314.56B	-1,194.49M
EBITDA	9,792.54B	8,898.12M
Diluted EPS	-2,047.72	-1.86
Dividends Per Share	0	0
Total Assets	185,249.06B	166,023.53M
Total liabilities	114,150.48B	102,303.70M
Total equity	69,743.92B	62,505.75M
Operating cash flow	6,680.13B	6,069.98M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	57,474.88B	58,957.72B	60,190.38B	59,814.86B	60,627.61B
Gross Profit	7,987.32B	13,782.71B	14,950.24B	7,987.80B	2,657.01B
Operating income	5,820.86B	11,340.36B	12,065.85B	4,967.19B	-231,324M
Income before tax	3,988.29B	18,461.51B	10,532.39B	3,614.21B	-2,000.81B
Net income	2,686.87B	13,289.12B	7,048.58B	1,298.72B	-1,314.56B
EBITDA	13,693.49B	19,681.08B	21,026.16B	14,739.73B	9,792.54B
Diluted EPS	4,290	20,701	10,980	2,023	-2,047.72
Dividends Per Share	500	3,100	1,980	790	0
Total Assets	163,708.28B	175,257.35B	177,837.04B	181,788.91B	185,249.06B
Total liabilities	108,883.27B	107,314.88B	104,786.49B	108,824.27B	114,150.48B
Total equity	53,601.33B	66,634.46B	71,723.69B	71,681.44B	69,743.92B
Operating cash flow	12,045.69B	16,943.10B	16,520.55B	11,249.89B	6,680.13B

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	54,599.75M	52,091.83M	51,879.77M	52,909.61M	55,090.06M
Gross Profit	7,587.76M	12,177.65M	12,886.03M	7,065.66M	2,414.32M
Operating income	5,529.67M	10,019.72M	10,399.89M	4,393.76M	-210.19M
Income before tax	3,788.78M	16,311.58M	9,078.16M	3,196.97M	-1,818.07M
Net income	2,552.46M	11,741.54M	6,075.36M	1,148.79M	-1,194.49M
EBITDA	13,008.49M	17,389.13M	18,123.03M	13,038.12M	8,898.12M
Diluted EPS	4.07	18.29	9.46	1.78	-1.86
Dividends Per Share	0.47	2.73	1.70	0.69	0
Total Assets	148,940.80M	149,466.84M	147,240.46M	169,808.89M	166,023.53M
Total liabilities	99,061.34M	91,522.64M	86,758.14M	101,652.67M	102,303.70M
Total equity	48,766.16M	56,828.67M	59,383.74M	66,957.58M	62,505.75M
Operating cash flow	11,443.11M	14,970.00M	14,239.52M	9,951.16M	6,069.98M

Valuation Measures

Dec 2018
PER	--
ROA	-0.71%
ROE	-1.85%
Operating margin	-0.38%
Profit margin	-2.16%

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 (7.1%)
Orbis Investment Management Ltd. (1.3%)
BlackRock Fund Advisors (0.9%)
The Vanguard Group, Inc. (0.9%)
Samsung Asset Management Co., Ltd. (0.6%)
Invesco Asset Management Ltd. (0.5%)
Eastspring Investments (Singapore) Ltd. (0.4%)
JPMorgan Asset Management (Asia Pacific) Ltd. (0.3%)
Fidelity Management & Research Co. LLC (0.3%)

Contact Details

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

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Competitors

PS Tec. Co., Ltd.

Last Updated on 14 Feb, 2020