Aug 12, 2026 earnings call — Earnings and fuel cost trends
Revenue increased by 0.3% to KRW 46,317.3 billion.
Revenue $16.4B (est $15.3B) · EPS $0.15 (est $0.45)
Key quotes
"As mentioned in the keynote, the capacity factor of nuclear power is being expected to be around early or mid-80% by KEPCO."
"In 2026 1st half for bituminous coal, Australian coal was around $128.2 per ton. JKM LNG was about KRW 939,000 per ton. SMP was approximately KRW 112.3 per kilowatt hour."
"We need to develop a mid-, long-term CapEx plan and calculate the total CapEx amount that may be necessary for these projects"
Analyst Q&A 5
nuclear power share in generation
Q (Jong Hwa Sung · LS): Will nuclear power contribution rise in H2 enough to offset H1 declines, or will you manage the numbers tightly for the full year?
A: They expect the nuclear capacity factor to be around early or mid-80%. They noted prolonged preventive maintenance weakened H1, are monitoring H2 closely, will add Saeul Unit 3, and plan more timely preventive maintenance to support full-year contribution.
"As mentioned in the keynote, the capacity factor of nuclear power is being expected to be around early or mid-80% by KEPCO." — Unknown Executive
drivers of higher operating costs
Q (UBS): What drove the rise in other operating costs in Q2? And what would be the financial impact if a differentiated tariff system is introduced?
A: They said prolonged preventive maintenance at KHNP generated around KRW 101.3 billion in other operating expense. They also cited KRW 70.3 billion higher material cost at Korea Southeastern Power from coal supply to private operators. On differentiated tariffs, it's too early to disclose impact; there will be a public hearing in H2 and they expect finalization and introduction by year-end alongside wholesale pricing reform.
"So we already talked about KHNP and that the preventive maintenance period has been prolonged, so this has generated around KRW 101.3 billion in other operating expense." — Unknown Executive
fuel costs, tariffs, bond issuance cap
Q (Pierre Lau · Citibank): Will fuel costs fall in Q3 versus Q2 given lower oil prices? Any tariff hikes this year or only in 2027? And can you get corporate bond issuance ratio below 2x by end-2027?
A: They noted SMP rose in July and August year-on-year, citing international fuel cost increases and a time lag that started to show in July and August; they gave July and August SMP comparisons. They said tariff increases would help cover losses and bond needs but depend on inflation and macro conditions and they will discuss with government. They will make utmost effort to meet the 2x requirement by end of 2027, focusing on increasing operating profits and working closely with government.
"I don't believe it's an issue of whether we can meet this 2x requirement by end of 2027." — Heung-Bok Oh
KHNP provisional liabilities amount
Q (Jaeseon Yoo · Hana): What was KHNP's other provisional liabilities for H1 this year?
A: They said the January-June number was KRW 307.8 billion, but after write-backs it is a negative cost of KRW 164.2 billion.
"So it's actually a minus cost, KRW 164.2 billion." — Unknown Executive
funding for large national projects
Q (Jong Hwa Sung · LS): How will KEPCO fund the government's 3 mega projects and the grid expansion given large CapEx needs and the bond issuance cap reduced to 2x?
A: They said the projects are mid- to long-term so the full amount is not needed upfront. They will develop a mid/long-term CapEx plan, spread spending across years, manage existing funds strictly, work closely with government and stakeholders, and ensure CapEx does not undermine overall business.
"The mega project and the grid expansion that you just mentioned are mid- to long-term projects, meaning that it does not necessarily mean we need the full amount upfront at once." — Heung-Bok Oh