Korea Electric Power (KEP) - 2024 Q1 - Quarterly Report

Financial Performance - Total sales for 2023 reached W 88,219,461 million, a significant increase of 24% compared to W 71,257,863 million in 2022[31] - The gross loss for 2023 was W 1,480,066 million, improving from a gross loss of W 29,645,731 million in 2022[31] - Operating loss decreased to W 4,541,648 million in 2023 from W 32,655,153 million in 2022, indicating a positive trend in operational efficiency[31] - The net loss for the year was W 4,716,144 million, a reduction from W 24,429,108 million in 2022, reflecting improved financial performance[32] - The total comprehensive loss for the period was W 4,716,144 million, compared to a loss of W 24,429,108 million in the previous year[35] - The company reported a basic and diluted loss per share of W 7,512 in 2023, compared to W 38,112 in 2022, indicating a reduction in loss per share[32] - Other comprehensive loss for the year amounted to W 228,672 million in 2023, contrasting with a comprehensive income of W 1,246,869 million in 2022[32] Assets and Liabilities - KEPCO's total assets as of December 31, 2023, amounted to 239,714,965 million won, a decrease from 234,804,994 million won in 2022[28] - Current assets decreased slightly to 29,536,215 million won in 2023 from 29,750,545 million won in 2022[28] - Non-current assets totaled 210,178,750 million won in 2023, compared to 205,054,449 million won in 2022, marking an increase of approximately 2.3%[28] - Total liabilities increased to W 202,450,215 million in 2023 from W 192,804,738 million in 2022, primarily driven by current financial liabilities[29] - The company’s current liabilities totaled W 61,248,421 million in 2023, up from W 44,518,577 million in 2022, reflecting increased short-term obligations[29] - Non-current financial liabilities decreased to W 92,944,338 million in 2023 from W 98,334,120 million in 2022, indicating a reduction in long-term debt[29] Cash Flow - Cash flows from operating activities showed a loss of W 5,141,681 million, an increase in loss compared to W 3,512,610 million in the previous year[37] - Cash generated from operating activities for 2023 was W 5,978,734 million, a significant recovery from a cash outflow of W (20,760,295) million in 2022[38] - Net cash provided by (used in) operating activities improved to W 1,522,162 million in 2023 from a net cash outflow of W (23,477,500) million in 2022[38] - Net cash used in investing activities decreased to W (13,073,757) million in 2023 from W (14,953,753) million in 2022, indicating a reduction in investment outflows[38] - Net cash provided by financing activities was W 12,661,882 million in 2023, down from W 38,997,899 million in 2022, reflecting a decrease in financing activities[38] Equity and Retained Earnings - Total equity attributable to owners of the controlling company decreased to W 35,845,043 million in 2023 from W 40,545,396 million in 2022[29] - The company's retained earnings decreased to W 16,338,262 million from W 21,431,300 million, reflecting a decline of approximately 23.8%[35] - The balance of equity attributable to owners of the controlling company decreased to W 35,845,043 million from W 40,545,396 million, a decline of approximately 11.6%[35] Revenue Recognition and Accounting Policies - Electricity sales revenue accounted for 94.03% of consolidated revenue for the year ended December 31, 2023[98] - The Group recognizes revenue based on the percentage-of-completion for contracts such as EPC business and O&M[100] - The Group applies a cost pass-through tariff system for electricity rates, effective from January 1, 2021[100] - The Group recognizes current tax based on expected tax payable or receivable on taxable profit or loss for the year[124] - Deferred tax assets are recognized for deductible temporary differences to the extent that it is probable taxable profit will be available[127] Impairment and Audit Matters - The impairment assessment of property, plant, and equipment was identified as a key audit matter due to the significant carrying value and complexity involved[14] - Management's assessment indicated signs of impairment for the Group's electricity transmission and distribution business as of December 31, 2023[15] - The company recognized a loss on impairment of property, plant, and equipment amounting to W 17,031 million, compared to a reversal of loss of W 97,425 million in the previous year[37] Segment Information - The Group's operating segments include Transmission and Distribution, Electric Power Generation (Nuclear and Non-nuclear), and Plant Maintenance & Engineering Service, with segment performance assessed regularly[195] - Segment operating profit is determined similarly to consolidated operating profit under KIFRS, without adjustments for corporate allocations[196] - Segment assets for transmission and distribution increased to W 138,838,342 million in 2023 from W 131,023,727 million in 2022, reflecting a growth of about 5.5%[199] - The total segment liabilities rose to W 202,450,215 million in 2023, up from W 192,804,738 million in 2022, marking an increase of approximately 5.9%[200] - The electric power generation (Non-nuclear) segment reported a revenue of W 35,159,641 million in 2023, compared to W 41,944,339 million in 2022, reflecting a decrease of approximately 16.3%[198]