Korea Electric Power Corporation ( KEP) Q3 2011 Earnings Call November 16, 2011 3:00 AM ET Executives Chang-Keun Shin – VP, Treasury Department Changyoung Ji – Senior Manager, IR Analysts Geoffrey Boyd – CLSA PresentationOperator
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 third 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 third quarter earnings results by KEPCO. Chang-Keun Shin Good morning and good afternoon everyone. My name is Chang-Keun Shin, Vice President of KEPCO’s Treasury Department. It is a pleasure to have this opportunity to announce KEPCO’s earnings results for the third quarter of 2011. On behalf of KEPCO, I would like to thank you all for participating in this conference call today. Today’s call 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 preliminary and is on consolidated basis. At this time, Mr. Changyoung Ji, Senior Manager of KEPCO’s IR team will provide you with an overview of our earnings results. Changyoung Ji Hello everyone, my name is Changyoung Ji and I am going to briefly run through the financial results for the third quarter of 2011, starting with operating income. In the third quarter of 2011, KEPCO recorded a net operating income of KRW177 billion, a year-on-year increase of KRW1.5 trillion compared to the net operating income of KRW1.6 trillion recorded in the same period last year. Despite the increase in power sales revenue, followed by a tariff hike in August 2010 and August 2011 as well as an increase in the volume of power sales, decrease in net operating income was primarily due to increased fuel costs and power purchase costs which went up 14.8% and 44.9% respectively compared to the third quarter of 2010.