KEP Q4 2025 Earnings Call Summary

Consolidated Operating Income: KRW 13,524.8 billion.
Revenue: Increased by 4.3% year-over-year to KRW 97,434.5 billion.
Power Sales: Rose by 4.6% to an undisclosed figure; however, total sales volume decreased by 0.1% to 549.4 terawatt hours due to economic downturn.
Cost of Goods Sold and SG&A: Decreased by 1.3% to KRW 83,909.7 billion.
Fuel Costs: Decreased by 13.8% to KRW 19,036.4 billion.
Net Income: Reached KRW 8,007.2 billion.
Interest Expense: Decreased by KRW 325.6 billion year-over-year to KRW 4,339.5 billion.

KEPCO is focusing on increasing the contribution of nuclear power in its generation mix, which is expected to rise in 2026 due to the completion of maintenance processes and the addition of new plants.
The company is developing new pricing schemes for industrial power to reflect changing load patterns and regional demand, in collaboration with the government.
KEPCO is actively pursuing a strategy for exporting Korean nuclear power plants, with ongoing research projects supported by the Ministry of Industry.

2026 Expectations: A slight increase in total power sales volume is anticipated due to improved economic conditions and operational days.
The capacity factor for nuclear power is projected to be in the mid- to high 80% range for 2026, with expectations for coal to decrease and LNG to remain stable.
The adjustment coefficient for Q1 2026 is expected to be slightly higher than in 2025.

Operating income underperformed expectations by approximately KRW 1 trillion, attributed to higher-than-expected other costs, particularly related to nuclear site recovery and carbon emissions.
The contribution of nuclear power generation decreased by 6% year-over-year in Q4, which is concerning given the previous three quarters' performance.
KEPCO faces uncertainties regarding the impact of rising fuel prices and the end of a grace period for individual consumption tax, which may increase costs.

Questions from analysts highlighted concerns about the volatility of other costs and the timing of provisions related to nuclear power generation.
Discussions on potential differentiated pricing schemes for industrial power raised questions about their impact on average unit prices and implementation timelines.
The management acknowledged ongoing negotiations regarding a dispute over additional construction costs related to the BNPP project, indicating potential financial implications if resolved favorably.
KEPCO confirmed that while dividends decreased as a percentage of net income, the absolute amount paid out increased, with future dividend strategies subject to government discussions.

This summary encapsulates KEPCO's financial performance, strategic initiatives, outlook, and challenges as discussed in the Q4 2025 earnings call.

KEP — Korea Electric Power Corporation