KEPCO's 2025 Earnings Call: Fuel Prices and Tariff System Uncertainty Raise Eyebrows

Revenue and Profit Trends:
- Korea Electric Power Corporation (KEPCO) reported a consolidated operating profit of KRW 889.5 billion for the first half of 2025, with revenue at KRW 46,174.1 trillion, up 5.5% year-over-year.
- The revenue growth was driven by a 5.9% increase in electricity sales revenue, but offset by a 2.1% decrease in other revenue, including publicly listed business income.

Electricity Sales and Market Trends:
- Electricity sales volume in the first half reached 28.4 terawatt hours, down 0.05% year-over-year, due to reduced industrial sales on the back of sluggish exports.
- For the full year 2025, sales are projected to go down slightly due to the impact of downward adjustments in the economic growth rate and a downturn in the manufacturing sector.

Fuel and Power Prices:
- In the first half of 2025, the bituminous coal price based on Australian oil was around $103.1 per ton, and LNG based on JKN was approximately KRW 1.05 million per tonne.
- The System Marginal Price (SMP) was around KRW 118.9 per kilowatt hour, influenced by summer demand and curtailment method changes.

Dividend Policy and Financial Health:
- KEPCO's dividend payout ratio was set at 15% for the previous year, with the Ministry of Economy and Finance playing a lead role in decision-making.
- The company is considering enhancing shareholder value in dividend payout ratios, while ensuring financial health for future investments.

Potential Overseas Expansion:
- KEPCO has taken an interest in the potential entry into the U.S. nuclear power market due to the U.S.'s policy to expand nuclear power generation capacity.
- The company is currently reviewing overall circumstances but remains open to exploring opportunities in the U.S. market.