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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Shares of Korea Electric Power Corp. reversed recent gains after the company reported a sharp earnings miss for the fourth quarter.
According to the Korea Exchange, KEPCO closed at 58,500 won on Feb. 28, down 7.58% from the previous session, as institutional and foreign investors led heavy selling.
Fourth-quarter consolidated operating profit fell 18.0% year-on-year to 1.98 trillion won, missing the market consensus by more than 40%. Revenue edged up 0.7% to 23.69 trillion won. Although fuel and purchased power costs declined, a sharp rise in maintenance and other operating expenses weighed on profitability, partly due to higher overseas project costs at subsidiaries.
Outlook on the stock remains mixed. Optimists point to potential participation in U.S. nuclear power projects as artificial intelligence-driven electricity demand revives interest in nuclear energy. Analysts note that Korean firms could play a key role in construction and EPC work even if Westinghouse Electric Company supplies reactor designs such as the AP1000.
Several brokerages raised target prices on expectations of large-scale nuclear contracts and possible cost-plus agreements, which could help stabilize margins. However, cautious analysts argue that without a clear improvement in core earnings, nuclear-related optimism alone may not be enough to support sustained share price gains.
Rising oil prices are also cited as a risk, as higher energy costs typically pressure KEPCO’s profitability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
