Korea Electric Power (KEP) - 2024 Q4 - Annual Report

Financial Performance - Total sales for 2024 reached W 93,398,896 million, an increase of 5.4% compared to W 88,219,461 million in 2023[31]. - Operating profit for 2024 was W 8,364,710 million, a significant recovery from an operating loss of W 4,541,648 million in 2023[31]. - Profit for the year in 2024 was W 3,621,968 million, compared to a loss of W 4,716,144 million in 2023, marking a turnaround in financial performance[33]. - Gross profit for 2024 was W 11,434,736 million, a recovery from a gross loss of W 1,480,066 million in 2023[31]. - Finance income increased significantly to W 3,448,177 million in 2024, compared to W 1,425,031 million in 2023, reflecting a growth of 142.2%[31]. - Other comprehensive income for 2024 was W 629,001 million, compared to a loss of W 228,672 million in 2023, indicating a positive shift in comprehensive income[33]. - Basic and diluted earnings per share improved to W 5,439 in 2024 from a loss of W 7,512 in 2023[33]. - The profit for the period ended December 31, 2024, was W3,621,968 million, a significant recovery from a loss of W4,716,144 million in 2023[38]. Assets and Liabilities - Korea Electric Power Corporation's total assets increased to W246,807,795 million in 2024 from W239,714,965 million in 2023, representing a growth of approximately 2.3%[28]. - Total liabilities increased to W 205,444,962 million in 2024 from W 202,450,215 million in 2023, reflecting a rise of 1.5%[29]. - Total current assets slightly decreased to W29,255,205 million in 2024 from W29,536,215 million in 2023, a decline of about 1.0%[28]. - Current financial liabilities increased to W 44,465,866 million in 2024 from W 41,139,726 million in 2023, representing a rise of 5.7%[29]. - The Group's deferred tax assets amounted to W13,436,624 million in 2024, compared to W13,161,802 million in 2023, showing an increase of approximately 2.1%[28]. - The total liabilities decreased to W41,362,833 million as of December 31, 2024, from W37,264,750 million at the beginning of the year[36]. Cash Flow - Cash generated from operating activities increased to W20,962,957 million in 2024, compared to W5,978,734 million in 2023[39]. - The company reported a net cash flow provided by operating activities of W15,876,116 million for 2024, up from W1,522,162 million in 2023[39]. - The company’s cash and cash equivalents decreased to W2,382,979 million as of December 31, 2024, from W4,342,887 million at the beginning of the year[39]. Investments and Equity - The Group's investments in joint ventures increased to W4,581,340 million in 2024 from W3,485,699 million in 2023, representing a growth of approximately 31.5%[28]. - Total equity attributable to owners of the controlling company rose to W 39,915,236 million in 2024, up from W 35,845,043 million in 2023, indicating a growth of 11.6%[29]. - The Group's investments in associates and joint ventures as of December 31, 2024, totaled W 11,286,094 million, compared to W 9,662,588 million in 2023, reflecting a growth of approximately 16.8%[196]. Revenue Recognition and Accounting Policies - The Group recognizes revenue over time for construction contracts using the cost-based input method, which reflects the Group's progress towards completion[54]. - The Group recognizes revenue based on the percentage-of-completion for contracts such as EPC business and O&M[96]. - The Group's accounting policies require the measurement of fair values for both financial and non-financial assets and liabilities, with a control framework established for fair value measurement[50]. - The Group's accounting for business combinations follows the acquisition method, measuring the consideration transferred at fair value[67]. - The Group recognizes revenues from construction and operating services related to service concession arrangements in accordance with KIFRS 1115[178]. Impairment and Provisions - The impairment assessment of property, plant and equipment was identified as a key audit matter due to the significant difference between the Group's market capitalization and the carrying amount of net assets[14]. - Management assessed indications of impairment for the electricity transmission and distribution business as of December 31, 2024, based on the recoverable amount of cash-generating units[15]. - The Group conducts impairment assessments for cash-generating units (CGUs) related to electricity sales, estimating value-in-use based on discounted cash flow forecasts[155]. - Provisions for decommissioning costs of nuclear power plants, reflecting the fair value of estimated costs as a liability[161]. - Provisions for renewable energy generation under the Renewable Portfolio Standard (RPS) are recognized to meet governmental regulations[161]. Segment Information - For the year ended December 31, 2024, total segment revenue was W 93,398,896 million, an increase from W 88,219,461 million in 2023, representing a growth of approximately 5.5%[194]. - The operating profit for the Transmission and Distribution segment was W 3,166,658 million in 2024, compared to a loss of W 6,503,917 million in 2023, indicating a significant recovery[194]. - The Electric Power Generation (Nuclear) segment reported an operating profit of W 1,577,798 million in 2024, up from W 797,309 million in 2023, reflecting a growth of approximately 97.7%[194]. - Revenue from domestic customers for the year ended December 31, 2024, was W 92,107,468 million, up from W 86,985,859 million in 2023, marking an increase of approximately 5.5%[198].