Korea Electric Power (NYSE:KEP) Posts Quarterly 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 business had revenue of $14.15 billion during the quarter, compared to analyst estimates 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 Trading Down 3.3%

Shares of KEP stock opened at $11.89 on Thursday. The company has a market capitalization of $15.27 billion, a PE ratio of 2.49, a price-to-earnings-growth ratio of 2.12 and a beta of 0.95. Korea Electric Power has a 52-week low of $11.25 and a 52-week high of $23.41. The business’s fifty day moving average is $12.22 and its 200 day moving average is $15.15. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.29 and a current ratio of 0.43.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Smartleaf Asset Management LLC lifted its holdings in shares of Korea Electric Power by 21.6% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,625 shares of the utilities provider’s stock worth $44,000 after acquiring an additional 466 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Korea Electric Power during the 4th quarter valued at $45,000. Barclays PLC bought a new position in shares of Korea Electric Power during the fourth quarter valued at about $45,000. Osaic Holdings Inc. lifted its holdings in Korea Electric Power by 1,144.4% in the 2nd quarter. Osaic Holdings Inc. now owns 3,447 shares of the utilities provider’s stock worth $49,000 after buying an additional 3,170 shares during the period. Finally, Wells Fargo & Company MN increased its position in Korea Electric Power by 155.3% during the 4th quarter. Wells Fargo & Company MN now owns 3,585 shares of the utilities provider’s stock valued at $59,000 after purchasing an additional 2,181 shares during the period.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Morgan Stanley cut shares of Korea Electric Power from an “equal weight” rating to an “underweight” rating in a research report on Tuesday, May 19th. Weiss Ratings lowered Korea Electric Power from a “buy (b)” rating to a “hold (c+)” rating in a research report on Wednesday, May 27th. Finally, Zacks Research upgraded shares of Korea Electric Power from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce”.

Korea Electric Power Company Profile

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.