Korea Electric Power Likely to Face Earnings Pressure in 2H

Dow Jones
09/18

0519 GMT - Korea Electric Power is expected to face earnings pressure from elevated fuel-purchase costs through 2H,Hyundai Motor Securities' Donghyun Shin says. The analyst expects the South Korean state utility operator's profit to decline sharply in 2H, with higher crude oil and liquefied natural gas prices weighing on its bottom line. Shin expects operating profit to fall 71% from a year earlier in 3Q and 76% in 4Q and net profit to slump 74% in 3Q and 82% in 4Q. Higher utilization of the company's nuclear reactors, some of which are currently undergoing maintenance, would be needed to improve earnings, he adds.

 

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