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Tuesday, November 30, 2021

Korea Electrical Energy Corp. suffers over 1 trillion-won deficit : The DONG-A ILBO

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Korea Electrical Energy Corp. has incurred a deficit of greater than 1 trillion gained (about 848 million U.S. {dollars}) this 12 months as a result of a spike in gas value attributable to hovering worldwide oil value. If the corporate turns from a surplus final 12 months to a deficit subsequent 12 months, it is going to be below mounting stress to hike the ability utility value.

KEPCO mentioned it has posted an working revenue of minus 1.1298 trillion gained (about 960 million {dollars}) within the first 9 months of the 12 months, down 4.2824 trillion gained (3.63 billion {dollars}) throughout the identical interval of final 12 months. On a quarterly foundation, the ability monopoly incurred deficits for 2 consecutive quarters within the second quarter (minus 764.8 billion gained or minus 648 million {dollars}) and the third quarter (minus 936.6 billion gained or minus 794 million {dollars}).

KEPCO noticed its total electrical energy sale improve 4.6 p.c for the 9 months as a result of rising common working fee within the manufacturing sector. Nonetheless, income good points from electrical energy sale grew simply 1.9 p.c (808.2 billion gained or 685 million {dollars}) as a result of worldwide oil costs soared this 12 months, whereas the federal government froze the ability utility value to curb hovering inflation amongst different causes.

The rising portion of renewable power in its energy provide has additionally affected KEPCO’s deteriorating profitability. KEPCO lowered the provision of electrical energy from coal and elevated that from liquified pure gasoline, which is extra pricey, to assist obtain the “carbon neutrality by 2050” initiative. The corporate additionally elevated the portion of electrical energy that it’s obliged to produce from renewable power sources from 7 p.c to 9 p.c from this 12 months. It additionally elevated funding in amenities for renewable power technology and energy transmission, which helped elevated its gross sales prices.

KEPCO is poised to a submit huge deficit within the fourth quarter of the 12 months as properly. “KEPCO’s consolidated working revenue within the fourth quarter will probably be a deficit of greater than 3 trillion gained (2.54 billion {dollars}) as a result of hovering worldwide oil and coal costs,” Moon Gyeong-won, a researcher at Meritz Securities, mentioned in a analysis report. “If the worldwide crude costs stay between 80 and 85 {dollars} via the primary half of subsequent 12 months, KEPCO will inevitably incur a large deficit of greater than 6 trillion gained (5.087 billion {dollars}) in 2022.” The corporate noticed its working revenue turning from a deficit of 1.2765 trillion gained (1.08 billion {dollars}) in 2019 to 4.0862 trillion gained (3.46 billion {dollars}) final 12 months.

With KEPCO’s funds deteriorating, the corporate will probably be below growing stress to lift energy utility costs. “If there’s any trigger a hike (of energy utility value), we are going to seek the advice of with the federal government,” KEPCO CEO Chung Seung-il mentioned at a press assembly on Wednesday. “We might want to enhance coverage and establishments to make sure that the worth of energy utility is set by reflecting in phases the ability technology value and an acceptable stage of compensation.”

Teuk-Gyo Koo [email protected]

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