Korea Electric Power (KEPCO) has seen a positive turnaround, reporting a net profit of 833.29 billion Korean won ($632.3 million) in the third quarter of 2022. This marks a significant achievement for the state utility company, as it ends a nine-quarter losing streak. The reported profit surpasses the consensus forecast of KRW685.80 billion compiled by FnGuide.
KEPCO attributes its successful performance to several factors. The implementation of electricity tariff increases since April 2022, coupled with lower fuel-purchase costs, has greatly contributed to the company's improved financial standing. In line with this, revenue for the September quarter increased by 24% year-on-year, reaching KRW24.470 trillion. Additionally, KEPCO's operating profit amounted to KRW1.997 trillion during the same period.
However, KEPCO acknowledges the potential challenges it may face going forward. The recent Israel-Hamas conflict and its impacts on oil prices introduce uncertainties that could potentially impact the sustainability of the company's profitability in the future.
In summary, Korea Electric Power's return to profit after a long period of losses demonstrates the effectiveness of tariff adjustments and cost management strategies. While future challenges may arise, KEPCO remains focused on maintaining its positive trajectory.