April 25, 2024

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[THE INVESTOR] Korea Electric Power Corp. will turn to black next year, said Eugene Investment and Securities on Nov. 30 raising the target price to 38,000 won (US$34) from 30,000 won.

Its earnings is poised to rebound in 2019 even without raising the electricity fares. Its revenue will increase 3.5 percent to 62.8 trillion won with operating profit of 2.9 trillion won. The recent decline in oil prices will bring down fuel costs, while reduction in special consumption tax for liquefied natural gas will result in 600 billion won cost cutting, said analyst Hwang Seong-hyeon.

Utilization rate of nuclear power plants will rise to 80 percent from the current 67 percent, which will push its operating profit up 203.2 billion won. If coal prices continue to slid, the firm’s annual earnings and target price could be raised further, he added. 

By Hwang You-mee (glamazon@heraldcorp.com)