Korea Electric Power Corporation (KEPCO) disclosed on the 13th that, on a consolidation basis, first-quarter revenue was 24.3985 trillion won and operating profit was 3.7842 trillion won. Compared with the same period a year earlier, revenue rose 0.7% and operating profit increased 0.8%.
Of revenue, electricity sales came to 23.2233 trillion won, up 0.1% from the first quarter last year. The effect reflects electricity sales volume and unit prices being similar to a year earlier. Other revenue was 1.1752 trillion won, up 16% over the same period.
Operating expenses, including fuel costs, power purchase costs, and other operating expenses, were 20.6143 trillion won, up 0.7% from a year earlier. Breaking down operating expenses, fuel costs at generation subsidiaries were 5.2177 trillion won, up 4.1% from the first quarter last year. Korea Electric Power Corporation said, "We replaced reduced nuclear generation due to preventive maintenance with increased coal generation, and with some rise in bituminous coal prices, fuel costs increased."
In contrast, power purchase costs from private generators were 8.7203 trillion won, down 0.4% from a year earlier. This was due to a decline in the system marginal price (SMP), the wholesale electricity price, despite higher purchases such as expanded coal generation. Other operating expenses, including depreciation, totaled 6.6763 trillion won, down 0.4% year over year.
However, despite posting a first-quarter surplus, KEPCO has 206.4 trillion won in liability and 128.2 trillion won in borrowing fund on a consolidation basis. This is down from the end of 2025 levels (205.6 trillion won in liability, 129.8 trillion won in borrowing fund), but daily interest expense alone is 11.4 billion won.
On a separate financial statement basis, KEPCO's first-quarter revenue was 23.7091 trillion won, operating profit was 2.0867 trillion won, and operating expenses were 21.6224 trillion won. Compared with a year earlier, revenue fell 0.6% while operating profit rose 9.8%. Operating expenses decreased 1.5%. Borrowing fund stands at 83.1 trillion won.
A KEPCO official said, "Despite the revenue decline, operating profit increased year over year because we saved 400 billion in expense through stringent management under an emergency management system and faithful execution of our fiscal soundness plan." To bolster fiscal soundness, KEPCO reduced power purchase costs by 300 billion won by expanding low-cost generation and easing transmission constraints. It also saved 100 billion won by improving efficiency in maintenance expenses through amendments to the Electric Utility Act to align with national and international standards (KS) and the voltage maintenance range, and by advancing the asset management system (AMS) using artificial intelligence (AI).
A KEPCO official said, "Based on our self-help efforts and improved results so far, KEPCO is striving to ensure that the financial burden, which worsened when fuel costs surged during the past Russia-Ukraine war, is not shifted to future generations." On a separate basis, the cumulative operating loss that reached 4.78 trillion won in 2023 fell 29.8% to 3.4 trillion won in the first quarter this year. Borrowing fund, which once swelled to 89.6 trillion won, decreased to 83.1 trillion won.
However, KEPCO still urgently needs to restore financial soundness, and there is concern that the impact of rising international fuel prices and exchange rates due to the Middle East war from the second quarter could slow the pace of financial normalization.
A KEPCO official said, "The impact of the sharp rise in international crude oil and LNG prices due to the Middle East war at the end of February has not yet been reflected in first-quarter results," adding, "The effects of the Middle East war are expected to affect results and funding with a time lag."