Korea Electric Power Corporation (KEP)
Q2 2011 Earnings Call
August 16, 2011 4:00 AM ET
Jung-in Kim – General Manager, IR
Jong-Hyun Park – Assistant Manager, IR
Cathy Chan – Citigroup
Geoffrey Boyd – CLSA
Vincent Chow – Morgan Stanley
Shannon – Merrill Lynch
Good morning and good evening. First of all, thank you all for joining this conference call. And now we’ll begin the conference of the fiscal year 2011 second quarter earnings results by KEPCO. This conference will start with a presentation followed by Q&A session. (Operator Instructions) Now we shall commence the presentation on the fiscal year 2011 second quarter earnings results by KEPCO.
Good afternoon everyone. My name is Jung-in Kim, General Manager of KEPCO’s IR team. It’s a pleasure to have this opportunity to announce KEPCO’s earnings results for the first half of 2011. On behalf of KEPCO, I’d like to thank you all for participating in this conference call today. Today’s call we will begin with a brief presentation on our earnings results after which an opportunity for Q&A will follow.
Please note that the financial information that we disclosed today is on a preliminary and consolidated basis. At this time, Jong-Hyun Park, Assistant Manager of KEPCO’s IR team will provide you with our formal view of our earnings results.
Hello everyone, my name is Jong-Hyun Park and I am going to briefly run through the first half financial results starting with operating income. In the first half of 2011, KEPCO recorded a net operating loss of KRW1.3 trillion, a year-on-year increase of KRW1.1 trillion compared to the net operating loss of KRW178 billion recorded in the same period last year. Despite the increase in power sales revenue, growth on (inaudible) in August 2010 as well as an increase in the volume of power sales, KEPCO’s net operating loss for the first half of 2011 was primarily due to increased fuel costs and power purchase costs which went up 18.5% and 44.8% respectively compared to the first half of 2010.