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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 2018 KRWUSD
Revenue60,627.61B55,090.06M
Gross Profit2,657.01B2,414.32M
Operating income-231,324M-210.19M
Income before tax-2,000.81B-1,818.07M
Net income-1,314.56B-1,194.49M
EBITDA9,792.54B8,898.12M
Diluted EPS-2,047.72-1.86
Dividends Per Share00
Total Assets185,249.06B166,023.53M
Total liabilities114,150.48B102,303.70M
Total equity69,743.92B62,505.75M
Operating cash flow6,680.13B6,069.98M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 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 2014Dec 2015Dec 2016Dec 2017Dec 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%)
  • Eastspring Investments (Singapore) Ltd. (0.8%)
  • Invesco Asset Management Ltd. (0.6%)
  • Samsung Asset Management Co., Ltd. (0.5%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.5%)
  • Mirae Asset Global Investments Co., Ltd. (0.3%)

Contact Details

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Competitors

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