Earnings Results (Q3 2025) - Sales increased by KRW 39.2 billion (+11.1%) from KRW 354.5 billion in 3Q 2024 to KRW 393.7 billion in 3Q 2025 [5, 7] - Operating profit increased by KRW 5.5 billion (+13.1%) from KRW 42.0 billion in 3Q 2024 to KRW 47.5 billion in 3Q 2025 [5] - Net profit increased by KRW 8.8 billion (+26.0%) from KRW 33.9 billion in 3Q 2024 to KRW 42.7 billion in 3Q 2025 [5] Sales Review (Q3 2025) - Thermal sales increased by KRW 6.8 billion (+6.7%) year-over-year (YOY) due to an increase in planned outage [7] - Nuclear Hydro sales increased by KRW 18.6 billion (+11.7%) YOY due to an increase in planned outage [7] - Overseas sales increased by KRW 10.6 billion (+30.4%) YOY, driven by an increase in overseas thermal retrofit projects [7] - Domestic Non-KEPCO sales increased by KRW 1.9 billion (+6.0%) YOY, due to an increase in life extension construction [7] Operating Expenses Review (Q3 2025) - Material costs decreased by KRW 2.5 billion (-10.4%) YOY [8] - Labor costs increased by KRW 7.9 billion (+5.9%) YOY, primarily due to an increase in planned outage outsourcing costs [8] - Other costs increased by KRW 28.3 billion (+18.4%) YOY [8] Consolidated Income Statement (Q3 2025) - Accumulated sales increased by KRW 9.8 billion (+0.9%) YOY from KRW 1,125.9 billion to KRW 1,135.7 billion [10] - Accumulated net income decreased by KRW 32.2 billion (-23.5%) YOY from KRW 137.0 billion to KRW 104.8 billion [10] Consolidated Financial Position (Sep. 2025 vs Dec. 2024) - Current assets decreased by KRW 43.5 billion (-4.1%) due to a decrease in accounts receivable [12] - Non-current liabilities increased by KRW 46.7 billion (+326.6%) due to an increase in defined benefit obligation [12]

Core Insights - Saudi Power Procurement Co. has awarded five renewable energy projects with a total capacity of 4,500 MW and investments exceeding SAR 9 billion ($2.4 billion) [2] - The projects are part of the sixth phase of the National Renewable Energy Program, overseen by the Ministry of Energy [2] Wind Power Project - The Dawadmi wind energy project has a capacity of 1,500 MW and achieved a production cost of 5.01760 halalas/kWh ($1.33803/kWh), setting a new world record for the lowest levelized cost of energy (LCOE) for wind power [3][7] Solar Energy Projects - The Najran solar energy project has a capacity of 1,400 MW and an LCOE of 4.11307 halalas/kWh ($1.09682/kWh), marking the second-lowest global cost for solar power generation [4][7] - The Ad Darb solar PV IPP plant has a capacity of 600 MW and an LCOE of $1.36070/kWh (5.10262 halalas/kWh) [5] - The Samtah solar PV IPP has a capacity of 600 MW with a production cost of 5.57544 halalas/kWh ($1.48678/kWh) [5] - The As Sufun Solar PV IPP plant has a capacity of 400 MW and a production cost of 5.65074 halalas/kWh ($1.50686/kWh) [6] Future Projections - By the end of 2025, the total renewable energy capacity tendered is expected to reach 64 GW, with 43.2 GW of power purchase agreements already signed, including 12.3 GW that are commissioned and connected to the national grid [8]

Core Insights - The article emphasizes the investment opportunities in the Clean Energy economy, particularly focusing on nuclear energy as a key area for growth [1]. Group 1: Company and Industry Overview - The investment group Green Growth Giants is led by Manika Premsingh, a macroeconomist with over 20 years of experience in investment management, stock broking, and investment banking [2]. - The subscription service offers access to a Nuclear Energy Portfolio and regular updates on portfolio stocks, highlighting the potential for high performance in this sector [1]. Group 2: Market Positioning - The coverage includes rare stocks within the nuclear energy sector and rankings of ETFs based on proprietary methodologies, indicating a comprehensive approach to identifying investment opportunities [1].

Core Insights - The Pulau Indah Power Plant is a significant advancement in Malaysia's energy sector, showcasing collaboration between federal and state levels to achieve energy security and sustainable growth [1][2][3] - The project is part of Malaysia's National Energy Transition Roadmap, emphasizing the shift from coal to cleaner energy sources [2][3] - The plant, with a capacity of 1,200 megawatts, utilizes advanced turbine technology to lower emissions and supports future expansions in solar, hydro, and hydrogen energy [3][5] Project Details - The Pulau Indah Power Plant is a combined-cycle gas turbine facility located in Pulau Indah, owned by a joint venture between Worldwide Holdings Berhad and Korea Electric Power Corporation [5][6] - The plant commenced commercial operations on March 1 under a 21-year Power Purchase Agreement with Tenaga Nasional Berhad, creating over 2,500 job opportunities during its development [5] - The project is situated on a 60-acre reclaimed site and is classified as a High-Impact Project under the First Selangor Plan [6] Future Directions - The Deputy Prime Minister encouraged further exploration of opportunities in hydrogen and floating solar technologies, as well as green power purchase agreements to enhance sustainability [4] - The project is seen as a foundation for developing an energy ecosystem that aligns with global sustainability standards [4]

Group 1 - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - Korea Electric Power Corporation (NYSE: KEP) is currently rated as a "Buy," with anticipated triggers for re-rating including an increase in electricity prices and a new nuclear-related joint venture [1]

Financial Performance - KEPCO's total sales for the first half of 2025 reached 46,174 billion Won, an increase of 2,408 billion Won or 5.5% compared to the same period in 2024[15]. - Operating profit for the first half of 2025 was 5,889 billion Won, up 130.9% from 2,550 billion Won in the first half of 2024[15]. - Net income for the first half of 2025 increased to 3,538 billion Won, a rise of 398.3% compared to 710 billion Won in the same period last year[15]. - Electricity sales increased from 42,995 billion Won in the first half of 2024 to 45,462 billion Won in 2025, reflecting a growth of 5.7%[10]. - Nuclear generation sales surged from 6,094 billion Won to 8,206 billion Won, marking a significant increase of 34.6%[10]. - The company reported a significant increase in revenue, achieving $1.5 billion in Q1 2025, representing a 20% year-over-year growth[24]. - User data showed a 15% increase in active users, reaching 10 million by the end of Q1 2025[24]. - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 25%[24]. - New product launches are expected to contribute an additional $200 million in revenue by Q2 2025[24]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of 2025[24]. Financial Management and Governance - The company plans to enhance its mid-to-long-term financial management plan for 2025-2029, which was approved by the board of directors[22]. - Approval of forming Director Nomination Committee and evaluation standards for non-standing director candidates was unanimously supported[23]. - Approval of the revised relocation plan for the Gyeonggi Materials Management Center received full support from directors[23]. - The safety management plan for 2025 was approved with unanimous consent from all directors[23]. - The annual management report for commercial papers in 2024 was presented as an agenda item[23]. - The headquarters organizational enhancement plan was reported as an agenda item[23]. - The annual general meeting of shareholders for fiscal year 2024 was called for approval[23]. - Consolidated and separate financial statements for fiscal year 2024 were approved, with some directors absent during the vote[23]. - The maximum aggregate amount of remuneration for directors in 2025 was approved with unanimous support[23]. - Reports on internal control over financial reporting for fiscal year 2024 were presented as agenda items[23]. - Audit results for 2024 were reported as an agenda item[23]. Assets and Liabilities - KEPCO's total assets as of June 30, 2025, were 249,900 billion Won, up 3,092 billion Won from 246,808 billion Won at the end of 2024[15]. - Current assets as of June 30, 2025, totaled W 29,255,205 million, compared to W 28,950,092 million at the end of 2024, showing a slight increase of about 1.1%[61]. - Total liabilities as of June 30, 2025, were W 206,232,333 million, a marginal increase from W 205,444,962 million at the end of 2024[62]. - Total equity as of June 30, 2025, was W 43,667,339 million, up from W 41,362,833 million at the end of 2024, reflecting an increase of approximately 5.6%[62]. - The company reported finance income of W 2,150,192 million for the six-month period ended June 30, 2025, compared to W 1,698,386 million in 2024, marking an increase of about 26.6%[63]. - The cost of sales for the six-month period ended June 30, 2025, was W 38,776,486 million, a decrease from W 39,763,950 million in 2024, indicating a reduction of approximately 2.5%[63]. - The company’s retained earnings increased to W 21,195,909 million as of June 30, 2025, compared to W 18,523,337 million at the end of 2024, representing a growth of about 14.4%[62]. - The company’s cash and cash equivalents as of June 30, 2025, were W 2,382,979 million, an increase from W 1,925,749 million at the end of 2024, reflecting a growth of approximately 23.7%[61]. Investments and Acquisitions - The company reported a total of 9,925 intellectual property rights, including 5,315 patents as of June 30, 2025[13]. - The company is expanding its market presence in Saudi Arabia, with plans to invest $300 million in local infrastructure[24]. - A strategic acquisition of a competitor is anticipated to enhance market share by 10%[24]. - The company is focusing on R&D for new technologies, allocating $50 million for innovation in renewable energy solutions[24]. - The company has a 100% ownership in several subsidiaries involved in power generation, indicating a strong control over its core operations[159]. - KEPCO's commitment to renewable energy is reflected in its various power generation subsidiaries, including the 100% owned Yeong Yang Corporation Co., Ltd.[161]. - The Group acquired a 14.3% equity interest in Commerce and Industry Energy Co., Ltd. during the reporting period[163]. - The company has a 100% ownership in Korea Power Exchange, with a book value of W 270,924 million and an acquisition cost of W 127,839 million[181]. Legal and Regulatory Matters - KEPCO and its subsidiaries are engaged in 724 lawsuits as defendants, claiming 1,064 billion Won[41]. - The Government of the Republic of Korea holds 18.20% of shares, while Korea Development Bank holds 32.90%[35]. - The company plans to file the Form 20-F for the fiscal year 2024 with the U.S. Securities and Exchange Commission[33]. - Significant restrictions on subsidiaries include limitations on capital expenditures and dividend payments, requiring prior consent from financial institutions[176]. Employee and Director Information - Attendance rate for standing directors was 75% for the six-month period ended June 30, 2025[26]. - Total remuneration for standing directors amounted to 433,286 thousand Won, averaging 72,214 thousand Won per person[37]. - Total number of employees is 22,653, with average salaries of 44,391 thousand Won per person[39]. - The average service year for employees is 14.9 years[39]. Sustainability and Corporate Responsibility - The company is committed to sustainability, with plans to reduce carbon emissions by 40% by 2025[24].

Group 1 - Two stocks in the utilities sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating overbought conditions [2] - Major overbought stocks identified in the sector include Korea Electric Power Corp and Genie Energy Ltd [3] Group 2 - Korea Electric Power Corp has frozen electricity rates for Q3, resulting in a 20% stock increase over the past five days, with a 52-week high of $12.68 and an RSI value of 82.7 [6] - Genie Energy reported a first-quarter adjusted EPS of 42 cents, up from 33 cents a year ago, with a stock gain of around 30% over the past month and a 52-week high of $28.00, having an RSI value of 91.2 [6]

[FORM 6-K Report of Foreign Private Issuer](index=1&type=section&id=FORM%206-K%20Report%20of%20Foreign%20Private%20Issuer) [Signatures](index=2&type=section&id=Signatures) The report was signed by Joo, Hwa-Sik, Vice President, on June 17, 2025, under the Securities Exchange Act of 1934 - The report was signed by **Joo, Hwa-Sik, Vice President**, on **June 17, 2025**[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) [Independent Auditors' Review Report](index=5&type=section&id=Independent%20Auditors'%20Review%20Report) Auditors reviewed Q1 2025 interim financial statements under K-IFRS 1034, concluding fair presentation without an audit opinion - The condensed consolidated interim financial statements for the three-month period ended March 31, 2025, were reviewed in accordance with **K-IFRS No. 1034, 'Interim Financial Reporting'**[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk) - The auditors did not express an audit opinion, as the scope of a review is substantially less than an audit[12](index=12&type=chunk) - Comparative financial statements for March 31, 2024, were reviewed by another auditor, and the consolidated statement of financial position as of December 31, 2024, was audited by another auditor with an unmodified opinion[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Interim Statements of Financial Position](index=7&type=section&id=Consolidated%20Interim%20Statements%20of%20Financial%20Position) Total assets, liabilities, and equity increased as of March 31, 2025, with assets at **W249,913,097 million** and equity at **W43,111,122 million** Consolidated Interim Statements of Financial Position (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions of won) | December 31, 2024 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | **Assets** | | | | | | Total current assets | 30,029,891 | 29,255,205 | 774,686 | 2.65% | | Total non-current assets | 219,883,206 | 217,552,590 | 2,330,616 | 1.07% | | **Total assets** | **249,913,097** | **246,807,795** | **3,105,302** | **1.26%** | | **Liabilities** | | | | | | Total current liabilities | 63,424,570 | 63,968,789 | (544,219) | -0.85% | | Total non-current liabilities | 143,377,405 | 141,476,173 | 1,901,232 | 1.34% | | **Total liabilities** | **206,801,975** | **205,444,962** | **1,357,013** | **0.66%** | | **Equity** | | | | | | Total equity | **43,111,122** | **41,362,833** | **1,748,289** | **4.23%** | - Current financial assets, net, increased significantly from **W3,494,717 million** to **W5,104,546 million** (**46.06% increase**)[19](index=19&type=chunk) - Property, plant and equipment, net, increased from **W182,982,763 million** to **W183,845,454 million** (**0.47% increase**)[19](index=19&type=chunk) - Non-current financial liabilities increased from **W88,352,359 million** to **W89,994,826 million** (**1.86% increase**)[20](index=20&type=chunk) [Consolidated Interim Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Interim%20Statements%20of%20Comprehensive%20Income) Profit for the period surged to **W2,361,708 million** for Q1 2025, driven by higher sales, gross profit, and lower finance expenses, with basic EPS rising to **W3,627** Consolidated Interim Statements of Comprehensive Income (March 31, 2025 vs. March 31, 2024) | Indicator | March 31, 2025 (millions of won) | March 31, 2024 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | Sales | 24,223,984 | 23,292,743 | 931,241 | 4.00% | | Cost of sales | (19,756,944) | (21,303,187) | 1,546,243 | -7.26% | | Gross profit | 4,467,040 | 1,989,556 | 2,477,484 | 124.53% | | Operating profit | 3,753,607 | 1,299,343 | 2,454,264 | 188.89% | | Finance income | 413,301 | 987,226 | (573,925) | -58.14% | | Finance expenses | (1,231,655) | (2,001,253) | 769,598 | -38.46% | | Profit before income tax | 3,231,874 | 737,785 | 2,494,089 | 338.06% | | Income tax expense | (870,166) | (141,850) | (728,316) | 513.45% | | **Profit for the period** | **2,361,708** | **595,935** | **1,765,773** | **296.30%** | | Total comprehensive income for the period | 2,204,170 | 915,202 | 1,288,968 | 140.84% | | Basic and diluted earnings per share (won) | 3,627 | 875 | 2,752 | 314.51% | - Sales of goods increased by **W958,701 million** (**4.20%**) from **W22,850,748 million** to **W23,809,449 million**[22](index=22&type=chunk) - Cost of sales of goods decreased by **W1,850,310 million** (**-8.79%**) from **W21,045,353 million** to **W19,195,043 million**[22](index=22&type=chunk) [Consolidated Interim Statements of Changes in Equity](index=11&type=section&id=Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity increased from **W41,362,833 million** to **W43,111,122 million** as of March 31, 2025, primarily due to profit for the period Consolidated Interim Statements of Changes in Equity (March 31, 2025 vs. January 1, 2025) | Indicator | January 1, 2025 (millions of won) | March 31, 2025 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | Equity attributable to owners of the controlling company | 39,915,236 | 41,956,591 | 2,041,355 | 5.11% | | Non-controlling interests | 1,447,597 | 1,154,531 | (293,066) | -20.25% | | **Total equity** | **41,362,833** | **43,111,122** | **1,748,289** | **4.23%** | | Profit for the period attributable to owners of the controlling company | - | 2,328,246 | - | - | | Remeasurement of defined benefit plans, net of tax (attributable to owners) | - | (94,441) | - | - | | Dividends paid (attributable to owners) | - | (136,738) | - | - | | Repayment of hybrid bond (non-controlling interests) | - | (230,000) | - | - | - Profit for the period attributable to owners of the controlling company was **W2,328,246 million** for the three-month period ended March 31, 2025[26](index=26&type=chunk) - Remeasurement of defined benefit plans, net of tax, resulted in a loss of **W94,441

Core Viewpoint - Korea Electric Power Corporation (KEPCO) has filed its annual report for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission, indicating a commitment to transparency and regulatory compliance [1]. Group 1 - The annual report includes audited consolidated financial statements, which are essential for investors to assess the company's financial health [1]. - The report is accessible on KEPCO's official website and the U.S. Securities and Exchange Commission's website, providing easy access for investors [2]. - Investors can request a hard copy of the 2024 Annual Report on Form 20-F free of charge, demonstrating the company's willingness to facilitate investor engagement [2].

Fuel Costs and Pricing - In 2024, fuel costs constituted 27.5% of the company's cost of sales, with the ratio of fuel costs to sales at 24.3%[33] - The company implemented a new cost pass-through tariff system on January 1, 2021, linking incurred costs to tariffs charged to customers[37] - The maximum adjustment for the Fuel Cost Adjusted Charge is limited to Won ±5 per kilowatt-hour from the Base Fuel Cost[38] - The company increased the Usage Charge by Won 11.4 and Won 8.0 per kilowatt-hour in January and May 2023, respectively, to reflect increases in the Base Fuel Cost[43] - Starting from October 24, 2024, the company will increase electricity tariffs on industrial consumers by an average of Won 16.1 per kilowatt-hour, representing an average increase of 9.7%[43] Energy Market and Supply - Approximately 97.2% of the bituminous coal requirements were purchased under long-term contracts in 2024, with the remaining 2.8% from the spot market[33] - The average weekly spot price of Newcastle coal decreased from $106.38 per ton in 2023 to $90.79 per ton in 2024, and further decreased to $70.50 per ton as of March 31, 2025[33] - The average daily spot price of Dubai crude oil decreased from $81.93 per barrel in 2023 to $79.67 per barrel in 2024, and further decreased to $73.38 per barrel as of April 3, 2025[36] Regulatory and Compliance Risks - The company is subject to various risks, including fluctuations in fuel prices and government regulations affecting electricity tariffs[30] - The government has discretion to not adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, which may impact profit margins[40] - The company may face significant compliance costs and operational liabilities due to various environmental regulations and initiatives[60] - The company intends to fully comply with environmental obligations, which may result in increased operating costs and liquidity requirements[61] - The company is exposed to potential claims for unpaid wages under the expanded scope of ordinary wages, which could lead to increased labor costs[119] Financial Performance and Losses - From 2021 to 2023, the company experienced substantial operating and net losses due to rapidly increasing fuel prices[44] - The company experienced net losses from 2021 to 2023 due to rising global energy prices and increased power purchase costs, leading to higher debt issuance[76] - The company’s debt ceiling was increased to five times the sum of share capital and reserves, effective until December 31, 2027, allowing for more debt securities to cover losses and finance capital expenditures[76] Energy Transition and Future Plans - The Eleventh Basic Plan announced in February 2025 aims to increase nuclear power capacity from 24.7 gigawatts in 2023 to 35.2 gigawatts by 2038[52] - Coal power capacity is expected to decrease from 39.2 gigawatts in 2023 to 22.2 gigawatts by 2038, while LNG power capacity is projected to increase from 43.2 gigawatts in 2023 to 69.2 gigawatts by 2038[53] - Renewable energy generation capacity is expected to increase from 30.0 gigawatts in 2023 to 121.9 gigawatts by 2038 as part of the Eleventh Basic Plan[53] - The company plans to establish an Eleventh Long-Term Transmission and Substation Facilities Plan in 2025 to meet increasing demand and achieve carbon neutrality[54] - KEPCO aims to achieve carbon neutrality by 2050 and plans to enhance grid capability for connecting renewable energy units through proactive construction of power facilities[169] Labor and Employment Issues - Approximately 73.5% of the company's employees are members of labor unions, which may pose risks of labor unrest affecting operations[95] - The company is transitioning non-permanent workers to permanent positions, which may increase costs and impact financial conditions[96] Cybersecurity and Operational Risks - The company is subject to increased risks from cybersecurity threats, including potential breaches that could materially impact operations and financial condition[126] - The company carries insurance for its nuclear generation units, but coverage is limited and may not cover all potential losses from serious accidents[115] Market and Economic Influences - The company is significantly dependent on the Korean economy, with most income generated from Korean consumers' demand for electricity, which is influenced by global economic conditions[135] - Political instability in Korea, including the impeachment of President Yoon Suk Yeol, may disrupt the economic landscape and adversely affect business operations[136] - Factors such as inflation, interest rate increases, and geopolitical conflicts could negatively impact the Korean economy and, consequently, the company's financial performance[138] Electricity Generation and Pricing - The price of electricity in Korea is determined by a cost-based pool system, with the system marginal price reflecting the variable cost of generating electricity[193] - The capacity price, which compensates for fixed costs, is determined by factors including reference capacity price and reserve capacity factor, with the current reference capacity price ranging from Won 11.00 to 14.41 per kilowatt-hour[203] - The performance capacity factor was introduced in June 2022 to incentivize operational flexibility of generation units, replacing the previous fuel switching factor[206] Corporate Governance and Ownership - The Government maintains a 51.1% ownership stake in KEPCO, ensuring control over significant corporate matters, including dividend approvals[162] - Foreign investment in the company is subject to a 40% ceiling, with a 3% limit on single investor acquisitions, potentially restricting capital inflow[149][150]