KEPCO turned to a loss in the third quarter of this year due to the recent sharp rise in raw material prices. As additional costs such as climate and environmental charges are expected, the sluggish earnings are expected to continue.
According to Shinyoung Securities on the 15th, KEPCO's sales in the third quarter of this year rose 4.8% year-on-year to 16.4 trillion won and an operating loss of 936.6 billion won over the same period.
In terms of sales, it is more than 2.01% higher than the market outlook (Consensus), but its performance has been sluggish due to operating losses.
The operating loss was inevitable as international raw material prices rose. Fuel costs rose 40.7 percent on-year to 5.6 trillion won due to raw material prices.
In addition, as electricity demand increased, the cost of purchasing liquefied natural gas (LNG) and renewable energy supply certificates (REC) was KRW 5.7 trillion, up 46.8% from a year earlier.
KEPCO is expected to continue its poor performance in the future.
Shinyoung Securities maintained KEPCO's "buying"investment opinion, but lowered its target stock price to 29,000 won from the previous 32,000 won.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
