The Wall Street Journal-20080202-Korea Electric Power Corp-- Quarter-s Loss Widened Due to Higher Fuel Costs

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Korea Electric Power Corp.: Quarter's Loss Widened Due to Higher Fuel Costs

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State-run utility Korea Electric Power Corp. on Friday reported a sharply wider net loss for the fourth quarter, mainly due to higher fuel costs stemming from a surge in global oil and coal prices. Kepco incurred a net loss of 647 billion won ($685 million) in the quarter, compared with a loss of 27.5 billion won a year earlier. The company didn't provide other fourth-quarter figures. For 2007, net profit fell 25% to 1.557 trillion won from 2.071 trillion won in 2006. Revenue climbed 7.4% to 28.984 trillion won from 26.979 trillion won, but operating profit plunged 69% to 381.7 billion won from 1.232 trillion won, Kepco said in a regulatory filing. Last year, the company's power purchase costs rose 12% to 22.724 trillion won from 20.347 trillion won in 2006. SK Securities' analyst Ha Tae-Gi said that Kepco's poor results were largely expected by the market due to a surge in coal and global oil prices. "As coal prices are expected to continue to rise and tariff hikes are unlikely in the first half, Kepco's earnings will likely remain weak," the analyst said.