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Korea Electric (KEP) Q3 Net Income Fall, Revenues Up Y/Y

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South Korean utility major Korea Electric Power Corporation (KEP - Free Report) reported third-quarter 2016 net income of KRW 2,938 billion ($2,550.8 million), down 68.3% from KRW 9,276 billion in the year-ago quarter.

The company’s revenues, however, improved 3.1% year over year to KRW 15,944 billion ($13,842.6 million).

Quarterly operating income inched up 1.9% to KRW 4,424 billion ($3,840.9 million) from KRW 4,340 billion in the year-ago quarter.

KOREA ELEC PWR Price, Consensus and EPS Surprise

 

KOREA ELEC PWR Price, Consensus and EPS Surprise | KOREA ELEC PWR Quote

Year-to-Date Results

Korea Electric Power’s revenues in the first nine months of 2016 were up 1.4%. This was mainly driven by a 1.6% increase in power sales revenues and a 3.6% revenue improvement at the overseas business.

The company’s consolidated operating profits were up 23.8% to KRW 10,734 billion ($9,319.3 million) from KRW 8,668 billion in the year-ago period.

Cost of goods sold, and selling, general and administrative expenses fell 4% to KRW 34.17 trillion ($2.97 billion). Fuel cost declined 14.2% to KRW 10.07 trillion ($0.87 billion). This was mainly attributable to a 15.2% drop in unit cost and a 5.8% rise in nuclear generation.

Purchased power cost fell 10.9% to KRW 7.66 trillion ($0.67 billion). Depreciation costs increased 6.8% to KRW 5.72 trillion ($0.50 billion) mainly due to the newly introduced power plants and transmission facilities.

Maintenance costs increased 7.7% to KRW 1.29 trillion ($0.11 billion) driven by increased facility investment and schedule overhaul.

Peer Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%.

Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%.

Zacks Rank

Korea Electric Power has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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