1. What Happened in KEPCO’s H1 2025?
KEPCO reported consolidated revenue of KRW 46.17 trillion, operating profit of KRW 2.14 trillion, and net income of KRW 1.18 trillion. While robust electricity sales drove significant revenue growth, high interest expenses and debt burden remain key challenges.
2. What Drove the Performance?
- Positives: Increased electricity sales driven by economic recovery, strong performance in nuclear power generation, and expanding investments in renewable energy.
- Negatives: A massive debt of KRW 206 trillion and a high debt-to-equity ratio of 475.6%, coupled with substantial interest expenses of KRW 2.47 trillion for the half-year and investment burden from large-scale assets under construction.
3. What’s the Outlook for KEPCO?
In the short term, high debt and the possibility of rising interest rates could constrain KEPCO’s profitability. However, in the long term, nuclear power plant exports and the expansion of renewable energy projects are expected to provide positive growth momentum.
4. What Should Investors Do?
KEPCO presents a complex investment proposition with both growth potential and inherent risks. Investors should carefully consider the company’s efforts to improve its financial structure, the performance of its new businesses, and changes in government policies before making investment decisions. The current investment recommendation is ‘Neutral’, and it’s crucial to closely monitor KEPCO’s progress in strengthening its financial health and achieving tangible results in its new ventures.