Korea Electric Power (KEP) - 2023 Q1 - Quarterly Report

Financial Performance - Total sales for 2022 reached W71,257,863 million, an increase of 17.3% compared to W60,673,587 million in 2021[31]. - The gross loss for 2022 was W29,645,731 million, compared to a gross loss of W2,970,703 million in 2021, indicating a significant decline in profitability[31]. - Operating loss for 2022 was W32,655,153 million, up from W5,846,499 million in 2021, reflecting increased operational challenges[31]. - The net loss for the year 2022 was W24,429,108 million, compared to a net loss of W5,215,581 million in 2021, representing a substantial increase in losses[32]. - The company reported finance income of W1,833,312 million in 2022, an increase from W1,402,614 million in 2021, showing improved financial management[31]. - Other comprehensive income for the year was W1,246,869 million, compared to W599,614 million in 2021, indicating a positive shift in overall financial health despite operational losses[32]. - Basic and diluted loss per share for 2022 was W38,112, compared to W8,263 in 2021, highlighting the increased financial burden on shareholders[32]. - The company reported a loss of W24,466,853 million for the period, significantly impacting retained earnings which decreased to W21,431,300 million[35]. - The total comprehensive income for the period included a remeasurement of defined benefit liability, net of tax, amounting to W626,769 million[35]. - The company reported a significant increase in proceeds from disposals of financial assets, reaching W14,182,348 million in 2022, compared to W7,023,674 million in 2021[38]. Assets and Liabilities - Korea Electric Power Corporation (KEPCO) reported total assets of 234,804,994 million won as of December 31, 2022, an increase from 211,123,727 million won in 2021, reflecting a growth of approximately 11%[28]. - Current assets rose to 29,750,545 million won in 2022, up from 22,050,845 million won in 2021, indicating a growth of about 35%[28]. - Non-current assets totaled 205,054,449 million won in 2022, compared to 189,072,882 million won in 2021, reflecting an increase of approximately 8.5%[28]. - Total liabilities as of December 31, 2022, amounted to W192,804,738 million, an increase of 32.2% from W145,797,021 million in 2021[29]. - Non-current financial liabilities increased to W98,334,120 million in 2022, up from W66,570,419 million in 2021, indicating higher long-term debt obligations[29]. - Total equity attributable to owners of the controlling company decreased to W40,545,396 million in 2022 from W63,780,272 million in 2021, reflecting a decline in shareholder value[29]. - The balance of non-controlling interests as of December 31, 2022, was W1,454,860 million, reflecting changes in consolidation scope and transactions between consolidated entities[35]. Cash Flow - In 2022, Korea Electric Power Corporation (KEPCO) reported a net cash outflow from operating activities of W(23,477,500) million, a significant decline compared to a net inflow of W4,491,378 million in 2021[38]. - The company experienced a net cash outflow from investing activities of W(14,953,753) million in 2022, compared to W(12,372,520) million in 2021[38]. - KEPCO's net cash provided by financing activities increased to W38,997,899 million in 2022, up from W8,435,077 million in 2021[38]. - The total cash and cash equivalents at December 31, 2022, amounted to W3,234,780 million, up from W2,635,238 million at the end of 2021[38]. Operational Efficiency and Strategy - The company is focused on enhancing its financial position and operational efficiency through strategic assessments and management of its assets[15]. - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency and drive future growth[37]. - Future guidance indicates a focus on improving cash flow management and reducing operational costs to achieve profitability in the upcoming fiscal year[37]. Segment Performance - Total segment revenue for 2022 was W71,257,863 million, an increase from W60,673,587 million in 2021, representing a growth of approximately 17.5%[200]. - The operating profit for the Transmission and Distribution segment in 2022 was W1,922,354 million, compared to a loss of W7,425,576 million in 2021, indicating a significant turnaround[200]. - Electric power generation (Nuclear) segment reported an operating profit of W653,839 million in 2022, up from W116,875 million in 2021, reflecting a substantial increase of 460%[200]. - The Electric power generation (Non-nuclear) segment generated an operating profit of W316,908 million in 2022, compared to W351,824 million in 2021, showing a slight decrease of 9.9%[200]. - Plant maintenance & engineering service segment achieved an operating profit of W236,310 million in 2022, up from W434,885 million in 2021, indicating a decrease of 45.6%[200]. - The Others segment reported an operating profit of W297,116 million in 2022, compared to W203,121 million in 2021, marking an increase of 46.2%[200]. Accounting Policies and Standards - The Group applies a cost pass-through tariff system for electricity rates effective from January 1, 2021, which is expected to not affect existing accounting policies[103]. - The Group recognizes revenue based on the percentage-of-completion for contracts such as EPC business and O&M[102]. - The Group's accounting policies include recognizing deferred tax assets and liabilities in accordance with KIFRS 1012 and KIFRS 1019[16]. - The Group assesses impairment losses at the end of each reporting period, recognizing losses if the carrying amount exceeds the recoverable amount[97]. - The Group's property, plant, and equipment are depreciated on a straight-line basis over estimated useful lives ranging from 2 to 65 years, depending on the asset type[139].