This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Korea Electric Power Management Discusses Q1 2012 Results - Earnings Call Transcript

[Foreign Language – Korean]

[Interpreted] Now we will provide the overview in English starting with operating income. In the first quarter of 2012, KEPCO reported a net operating loss of KRW 105 billion, which improved KRW 370 billion compared to operating loss of KRW 476 billion in 2011.

Our continued operating loss was mainly due to increases in operating expenses, such as fuel cost and power purchase cost, which were not fully offset by increases in operating revenues related to increases in power sales revenues from tariff hikes, and increases in power sales volume.

Taking a closer look, operating revenue rose 23.2% to KRW 13.3 trillion, power sales revenue increased 20.9% totaling in KRW 12.5 trillion. This increase was attributable mainly to 12.2% increase in unit tariff, 2.5% power sales volume growth, driven by increase in demand from the industrial sector, as well as recognition of account receivables related to the fuel cost adjustment announced.

Moving on to main operating costs, COGS, selling and administrative expenses went up 18.8% to KRW 13.6 trillion, of which fuel costs jumped 16.6% to KRW 6.9 trillion, primarily due to 0.6% increase in power generation, affected by increased power demand or a 15.9% hike in unit cost of fuel such as coal and LNG. Meanwhile, purchased power cost surged 41% to KRW 2.9 trillion. Such rise is attributable to 21.7% increase in unit cost of purchased power and 15.9% hike in purchased power volume due to rising power demand.

Now let me explain KEPCO’s financial income and expenses in the non-operating segment. Our non-financial loss stood at KRW 428 billion in the first quarter of 2012, which is KRW 151 billion up, compared to KRW 277 billion in 2011. This was mainly due to the income expense, which went up 9.8% to KRW 551 billion in [inaudible], and increase in interest bearing debt, and a decrease in FX gain [ph] and pacified the present decline in FX rate in 2012.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs