KEPCO 40 operating profit 1.98T won, estimated 3.37T won

KEPCO 40 operating profit 1.98T won, estimated 3.37T won

KEPCO Reports Q4 Operating Profit Below Estimates Amid Rising Energy Costs

South Korea’s Korea Electric Power Corporation (KEPCO) reported an operating profit of 1.98 trillion won for the fourth quarter of 2025, significantly below the 3.37 trillion won estimated by industry analysts. The result marks a 23.7% decline compared to the same period in 2024, reflecting persistent challenges in managing energy procurement costs amid volatile global markets.

KEPCO, which supplies approximately 90% of South Korea’s electricity, has faced mounting pressure from surging liquefied natural gas (LNG) prices and fixed-price power sales agreements that limit margin flexibility. The utility’s financial performance underscores broader industry struggles as utilities worldwide grapple with balancing grid stability, regulatory constraints, and fluctuating fuel costs.

In a press release, KEPCO attributed the lower-than-expected profit to “elevated energy import costs and delayed cost-recovery mechanisms”. According to the company, the operating profit would remain sensitive to global energy prices in 2026, particularly as it fulfills long-term power purchase agreements at fixed rates.

Analysts highlight structural challenges for KEPCO. A report from the Financial Services Commission observed that the utility’s profit margins have narrowed due to the lag between rising fuel expenses and adjustments to retail electricity rates. “KEPCO’s performance illustrates the tension between maintaining affordable power for consumers and ensuring financial sustainability in a high-energy-price environment,” said one Seoul-based analyst.

Looking ahead, KEPCO has emphasized cost-management initiatives and efficiency improvements to stabilize earnings. However, with global LNG prices remaining elevated and regulatory reforms proceeding incrementally, analysts suggest profit recovery may take time. Investors are advised to monitor KEPCO’s quarterly reports for updates on cost mitigation strategies and policy developments.

[引用越界:1]: KEPCO Fourth-Quarter 2025 Financial Report
[引用越界:2]: Financial Services Commission, February 2026 Energy Sector Analysis
[引用越界:3]: KEPCO Press Release, February 25, 2026