KEPCO Posts Lowest Q3 Profits in 8 Years

Power monopoly KEPCO on Wednesday posted third-quarter operating profit of W1.24 trillion, a turnaround from three quarters of losses but the worst for the quarter in eight years and down 11.2 percent on-year (US$1=W1,169).

The third quarter is usually the most lucrative period of the year for KEPCO due to rising air-conditioner use, but cooler-than-usual temperatures caused earnings to decline from last year.

The falling operation rate of nuclear power stations due to the government's nuclear phase-out made electricity generation more expensive.

The operation rate stood at 65.2 percent in the quarter, compared to 73.2 percent a year ago. Every one percentage point decline in the rate results in a decline in operating profit of W190 billion.

Brokerages forecast another operating loss in the fourth quarter, resulting in full-year profits shifting into the red.