Korea Electric Power Corp 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- KEPCO reported consolidated operating income of KRW 4.9127 trillion for the first half of 2026, with revenue increasing 0.3% year over year to KRW 46.3173 trillion.
- Power sales revenue decreased by 0.4% to KRW 43.9641 trillion, while other revenue including overseas business increased by 16.7% to KRW 2.3532 trillion.
- Cost of goods sold and SG&A rose by 2.8% to KRW 41.4046 trillion, with fuel costs increasing 8.8% to KRW 10.1429 trillion and purchase power costs decreasing 0.9% to KRW 17.2069 trillion.
- Depreciation expense increased 1.3% to KRW 9.9515 trillion, and interest expense decreased by KRW 132.2 billion year over year to KRW 2.0791 trillion.
- Net income for the first half of 2026 was KRW 2.7965 trillion.
- Power sales volume decreased 0.6% year over year to 266.7 TWh in the first half due to reduced industrial demand from economic slowdown, but is expected to slightly increase for the full year due to higher economic growth and more operating days.
- Fuel prices in the first half of 2026 were $128.2 per ton for Australian coal and KRW 939,000 per ton for LNG (JKM basis).
- System Marginal Price (SMP) was approximately KRW 112.3 per kWh in the first half of 2026.
- The generation mix saw a decline in nuclear power contribution due to lower capacity factors, while coal and LNG contributions increased slightly in the first half.
- For the full year 2026, nuclear power contribution is expected to slightly increase, coal to decrease, and LNG to remain stable.
- Capacity factors for 2026 are projected at low to mid 80% for nuclear, low to mid 50% for coal, and low to mid 20% for LNG.
- RPS costs were KRW 2.533 trillion on a consolidated basis and KRW 2.9389 trillion on a standalone basis in the first half of 2026.
- Total borrowings stood at KRW 133.3 trillion consolidated and KRW 84.8 trillion standalone as of the first half of 2026.
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Transcript
Preview the first fifteen paragraphs, organized by speaker.
Good morning and good evening. First of all, thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2026 second quarter earnings resulted by KEPCO. This conference will start with a presentation, followed by a divisional Q&A session. If you have a question, please press asterisk one on your phone during the Q&A. Now we shall commence the presentation.
Results by KEPCO. 안녕하십니까. 한국전력공사 금융실장 윤정인입니다. 바쁘신 와중에도 한국전력의 2026년도 상반기 실적 발표 IR 컨퍼런스 콜에 참석해 주신 여러분들께 감사의 말씀을 드립니다. 오늘 컨퍼런스 콜은 국, 영문 병행으로 진행될 예정이며, 먼저 간단한 실적 발표 후 질의응답을 받도록 하겠습니다. 오늘 발표할 실적 자료는 IFRS 연결 기준 잠정 수치이며, 모든 비교는 별도의 언급이 없는 한 전년 동기 대비입니다. 아울러 실적 발표 회의 내용 중 언급될 수 있는 경영 계획 및 목표, 추정 재무수치 등은 현시점에서의 목표 또는 전망치이므로 불확실성 및 투자 위험 요소가 있음을 양지하시기 바랍니다.
Good afternoon, this is Jung Ahn, Head of Finance at KEPCO. I'd like to thank you all for participating in today's conference call for the business results for the second quarter of 2026, despite your busy schedule. Today's call will be conducted in both. We will end with a brief presentation. This will be followed by a Q&A. Please note, financial information to be disclosed today is preliminary consolidated IFRS figures, and all comparison is on a year-over-year basis unless stated otherwise. Also, business plans, targets, financial estimates and other forward-look statements mentioned today are based on our current targets and forecasts. Please be noted that such statements may involve investment risks and uncertainties.
지금부터 2026년도 상반기 손익 증감 내역에 대해 우선 한국어로 말씀드린 다음 동일 내용을 영어로 설명하겠습니다.
Now, we will begin with an overview of the earnings results for the first half of 2026 in Korean, which will be then consecutively translated into English.
먼저 영업손익부터 살펴보겠습니다. 2026년 상반기 연결 영업이익은 4조 9,127억 원을 기록하였습니다. 구체적인 내용을 살펴보면, 매출액은 0.3% 증가한 46조 3,173억 원을 기록하였습니다. 이 중 전기 판매 수익은 0.4% 감소한 43조 9,641억 원, 해외 사업 등 기타 수익은 16.7% 증가한 2조 3,532억 원을 기록하였습니다. 매출원가 판관비는 2.8% 증가한 41조 4,046억 원입니다. 이 중 연료비는 8.8% 증가한 10조 1,429억 원, 구입전력비는 0.9% 감소한 17조 2,069억 원을 기록하였습니다. 감가상각비는 1.3% 증가한 9조 9,515억 원을 기록하였습니다. 주요 영업외 손익 중 이자비용은 전년 동기 대비 1,322억 원 감소한 2조 791억 원을 기록하였습니다. 지금까지 언급한 내용을 주요 원인으로 2026년도 상반기 연결 영업이익은 4조 9,127억 원, 당기순이익은 2조 7,965억 원을 기록하였습니다. 이어서 영어로 손익 실적을 설명드리겠습니다.
First, I will go over the operating performance. The consolidated operating income in 2026 first half stood at KRW 4 trillion, 912.7 billion. Revenue increased by 0.3% to KRW 46 trillion, 317.3 billion. Power sales decreased by 0.4% to KRW 43 trillion, 964.1 billion. Other revenue, including overseas business revenue, increased by 16.7% to KRW 2 trillion, 353.2 billion. Cost of goods sold and SG&A rose by 2.8% to KRW 41 trillion, 404.6 billion. Fuel cost increased by 8.8% to KRW 10 trillion, 142.9 billion. Purchase power cost decreased by 0.9% to KRW 17 trillion, 206.9 billion. Depreciation expense increased by 1.3% to KRW 5 trillion, 951.5 billion. Of the non-operating items, interest expense decreased by KRW 132.2 billion YOY to KRW 2 trillion, 79.1 billion.
As a result of the foregoing, the 2026 first half consolidated operating income stood at KRW 4 trillion, 912.7 billion, and net income at KRW 2 trillion, 796.5 billion.
안녕하십니까? IR 담당 엄태섭입니다. 이어서 주요 관심 사항 설명드리겠습니다. 먼저 전력 판매 및 실적 전망에 대해 말씀드리겠습니다.
2026년 상반기 전력 판매량은 경기 둔화 등의 영향으로 산업용 수요가 감소하여 총 판매량 266.7TWh를 기록하며 전년 동기 대비 0.6% 감소하였습니다. 2026년 연간으로는 경제 성장률 상승과 조업일수 증가 등의 영향으로 판매량이 소폭 증가할 것으로 전망하고 있습니다.
Good afternoon. I am Tessa Bong, senior IR manager. I will now go over the main areas of interest, starting with power sales performance and outlook. 2026 1st half power sales volume decreased by 0.6% YOY to 266.7 TWh due to a decrease in industrial demand caused by economic slowdown. For the full year, a higher economic growth rate and number of operating days are expected to slightly increase sales volume.
다음으로 연료원별 연료 가격 및 SMP 추이에 대해 말씀드리겠습니다. 2026년 상반기 연료 가격은 유연탄은 호주탄 기준으로 톤당 128.2달러, LNG는 JKM 기준으로 톤당 93.9만 원을 기록하였습니다. 또한 SMP는 약 112.3원 per kWh를 기록하였습니다.
Next, I will go over the fuel price by fuel source and SMP trends. In 2026 first half for the two-minute quote, Australian coal was around $128.2 per ton. JKM LNG was about KRW 939,000 per ton. SMP was approximately KRW 112.3 per kWh.
전력 그룹사 발전 믹스를 살펴보면, 2026년 상반기 발전 비중의 경우 원전은 이용률 하락으로 발전 비중이 감소하였습니다. 석탄의 경우 원전 이용률 하락으로 인한 이용률 상승으로 발전 비중이 증가하였습니다. LNG는 전체적인 기저 발전량 감소로 발전 비중이 소폭 증가하였습니다. 2026년 연간으로는 원전 발전 비중은 소폭 증가, 석탄 비중은 감소, LNG 비중은 유지할 것으로 예상됩니다. 2026년 연간 발전원별 이용률 전망은 원전은 80% 초중반, 석탄은 50% 초중반, LNG는 20% 초중반을 전망하고 있습니다.
Looking at the subsidiaries generation mix in the first half, the capacity factor of nuclear power decreased and contribution to the generation mix declined. While for coal utilization and contribution to the generation mix both increased due to the decrease of the capacity factor of nuclear power. In case of LNG, contribution to the generation mix increased as the overall volume of base load generation decreased. In 2026, the contribution of nuclear power should slightly increase, coal should slightly decrease, and LNG should largely be maintained. Also in 2026, the capacity factor of each power source is projected to be low to mid 80% for nuclear power, low to mid 50% for coal, and low to mid 20% for LNG.
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