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(LEAD) Korea Electric Power shifts to red in Q4

All News 16:11 February 24, 2022

(ATTN: UPDATES throughout with more info; COMBINES story slugged Korea Electric Power-2021 earnings)

SEOUL, Feb. 24 (Yonhap) -- Korea Electric Power Corp. said Thursday it swung to the red in the fourth quarter of last year from a year earlier due to a rise in fuel and power purchase costs.

The state-run company posted a net loss of 3.67 trillion won (US$3.1 billion) in the October-December period, turning from a profit of 584.7 billion won a year earlier, it said in a regulatory filing.

It logged an operating loss of 4.73 trillion won, compared with a profit of 993.7 billion won in the same period. Revenue rose 5.6 percent to 15.51 trillion won.

The weaker bottom line is largely attributable to hikes in operating costs amid surging fuel prices, the company said in a release.

For all of 2021, it also shifted to the red with a net loss of 5.25 trillion won, from the 2.09 trillion won the previous year.

Operating loss reached a record high of 5.86 trillion won for the year, compared with a profit of 4.08 trillion won. Annual revenue rose 3.4 percent to 60.57 trillion won.

The annual revenue from electricity sales only grew 2.7 percent to 57.2 trillion won, as the unit selling price was adjusted to help ease people's financial burden amid the prolonged COVID-19 pandemic, KEPCO said.

The fuel and power purchase costs rose by 5.9 trillion won due to the significant rise in the prices of liquefied natural gas and coal, it added.

"As we expect to see growing financial risks from the outlook on fuel costs tipped for a further uptick, we are focusing on intense self-rescue efforts, including cost-cutting measures, improving the facility efficiency and possible sales of non-core assets," KEPCO said.

Shares in KEPCO closed at 22,300 won on the main Seoul bourse, down 0.45 percent from the previous session, while the broader KOSPI finished down 2.6 percent. The earnings result was released before the closing bell.

(LEAD) Korea Electric Power shifts to red in Q4 - 1


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