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(LEAD) KEPCO turns to black in Q1 amid lower oil prices

All News 11:36 May 15, 2020

(ATTN: ADDS details throughout)

SEOUL, May 15 (Yonhap) -- State-run utility firm Korea Electric Power Corp. (KEPCO) on Friday reported a profit in the first quarter of the year, shifting from a loss a year earlier, on the back of decreased costs following deepening competition among oil producers during the pandemic.

Net profit came to 53.6 billion won (US$43.6 million) for the first quarter, turning from a loss of 761.2 billion won a year earlier, the company said in a regulatory filing.

Operating income for the January-March period was 430.6 billion, shifting from a loss of 629.9 billion won a year ago.

Sales fell 1 percent to 15.09 trillion won over the cited period.

(LEAD) KEPCO turns to black in Q1 amid lower oil prices - 1

The state-run utility firm said the robust performance came as it was able to save some 1.6 trillion won due to the sharp decline in prices of oil and gas amid the COVID-19 pandemic.

The company spent 9 trillion won in the first quarter on purchases of fuel, down from 10.6 trillion won last year.

The new coronavirus, which has infected at least 4.4 million people worldwide, has disrupted trade and halted production around the globe, with a rising number of countries shutting their borders.

As the pandemic also weighed down local business activities, its profits from energy sales decreased 133.1 billion won over the period.

"While low global oil prices are expected to lend hands to KEPCO, the uncertainties still linger due to the COVID-19 pandemic and competition among oil producers," the company said in a statement.

Shares of KEPCO were trading at 22,250 won as of 11:13 a.m. on the main bourse, down 3.89 percent. The first-quarter guidance was announced during the session.


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