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State-run Korea Electric Power Corp. (KEPCO) announced on Friday that its earnings remained in the red during the second quarter, due to increased production costs caused by the Russia-Ukraine war.
Net losses totaled 1.9 trillion (US$1.43 billion) won during the April-June period, a decrease from the 4.83 trillion-won deficit recorded in the same period the previous year, as stated in a regulatory filing.
Operating losses were 2.27 trillion won, a reduction from the 6.51 trillion-won loss experienced a year ago. However, this marks nine consecutive quarters of operating losses for KEPCO.
Sales revenue rose by 26.4 percent to 19.62 trillion won, in line with Yonhap Infomax’s estimate of 2.1 trillion won.
“Adjusted rates and stabilized fuel costs led to the decrease in operating losses from the first quarter,” the company said in a statement.
KEPCO reported 41.2 trillion won in electricity sales over the first half of the year, up 28.8 percent from the prior year. The company spent 15.1 trillion won on resources and 21 trillion won on purchasing electricity from private power generation companies.
“We will work with the government to establish an electricity pricing system based on production costs and reduce financial risks,” the statement added.
In May, KEPCO said it would sell a major building in Seoul and freeze wages of ranking employees in order to save more than 25 trillion won by 2026.
The government raised electricity rates by 5.3 percent for the second quarter, or 8 won per kWh, following a 13.1 won increase per kWh in the first quarter due to high global energy costs and mounting losses. This rate was frozen for the July-September period.
KEPCO’s stock price closed at 18,960 won on the main bourse, a decrease of 0.37 percent from the previous session. The earnings results were released during the market hour.
This photo taken on Aug. 7, 2023, shows the situation room at a branch of Korea Electric Power Corp. in Suwon, just south of Seoul. (Pool photo) (Yonhap)