Korea Electric Power (NYSE:KEP) Issues Earnings Results, Misses Estimates By $0.40 EPS

Korea Electric Power (NYSE:KEP) announced its quarterly earnings data on Wednesday. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.40), FiscalAI reports. Korea Electric Power had a net margin of 8.95% and a return on equity of 18.25%. The company had revenue of $14.15 billion for the quarter, compared to analysts’ expectations of $14.88 billion.

Here are the key takeaways from Korea Electric Power’s conference call:

• KEPCO reported KRW 4.9 trillion in first-half operating profit and KRW 2.8 trillion in net income. Revenue rose 0.3% year over year, while lower purchased-power costs and reduced interest expense helped offset higher fuel and operating costs.
• Power sales volume declined 0.6% to 266.7 TWh in the first half as industrial demand weakened amid an economic slowdown. KEPCO expects full-year sales to increase slightly as economic growth and operating days improve.
• Nuclear generation remained weak because of prolonged preventive maintenance, while higher LNG prices linked to the Middle East conflict contributed to greater coal generation. Rising SMP in July and August also suggests continued fuel-cost pressure in the third quarter.
• KEPCO said tariff increases would help address accumulated losses and meet the goal of bringing the bond-to-capital ratio below two times by the end of 2027, but no timing was provided. A regional electricity-pricing system is expected to be finalized and introduced by year-end, with financial impacts still undisclosed.

Korea Electric Power Stock Performance

KEP stock traded down $0.53 on Wednesday, hitting $11.77. The company had a trading volume of 1,012,286 shares, compared to its average volume of 904,818. Korea Electric Power has a 12-month low of $11.25 and a 12-month high of $23.41. The company has a current ratio of 0.43, a quick ratio of 0.29 and a debt-to-equity ratio of 1.56. The stock’s 50-day simple moving average is $12.24 and its 200 day simple moving average is $15.22. The stock has a market cap of $15.11 billion, a price-to-earnings ratio of 2.46, a P/E/G ratio of 2.11 and a beta of 0.95.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on KEP. Zacks Research downgraded shares of Korea Electric Power from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. Morgan Stanley lowered shares of Korea Electric Power from an “equal weight” rating to an “underweight” rating in a report on Tuesday, May 19th. Finally, Weiss Ratings downgraded Korea Electric Power from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday, May 27th. Two investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Korea Electric Power presently has a consensus rating of “Reduce”.

Institutional Investors Weigh In On Korea Electric Power

A number of hedge funds have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership boosted its stake in shares of Korea Electric Power by 26.0% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,514,228 shares of the utilities provider’s stock worth $19,761,000 after buying an additional 312,680 shares during the last quarter. State Street Corp grew its holdings in shares of Korea Electric Power by 5.3% in the fourth quarter. State Street Corp now owns 883,266 shares of the utilities provider’s stock worth $14,574,000 after acquiring an additional 44,617 shares during the period. Goldman Sachs Group Inc. increased its position in Korea Electric Power by 9.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 847,902 shares of the utilities provider’s stock valued at $13,990,000 after acquiring an additional 70,943 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Korea Electric Power by 1.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 703,998 shares of the utilities provider’s stock valued at $11,624,000 after acquiring an additional 8,882 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in Korea Electric Power by 47,424.3% in the third quarter. JPMorgan Chase & Co. now owns 375,442 shares of the utilities provider’s stock valued at $4,900,000 after acquiring an additional 374,652 shares during the period.

About Korea Electric Power

Korea Electric Power (KEP) is a South Korea–based integrated electric utility engaged in the generation, transmission and distribution of electricity. The company’s activities span power plant operation and maintenance, grid management, fuel procurement and power trading, as well as engineering, procurement and construction (EPC) services for large-scale power projects. Its asset base includes a mix of thermal, nuclear, hydro and renewable generation capacity, and the company supports system planning and reliability functions for the national electricity network.

In addition to core utility operations, KEP provides a range of technical and consulting services tied to power infrastructure, including plant construction, refurbishment and decommissioning support.