Korea Electric Power - ADR

Financial Performance: KEPCO reported a consolidated operating income of KRW 13,524.8 billion for Q4 2025, representing a Y-o-Y increase of 4.3%. However, net income of KRW 8,007.2 billion reflects a significant underperformance due to higher other costs, including increased provisions for carbon emissions and nuclear recovery costs, which impacted operating income by approximately KRW 1 trillion compared to expectations.

Power Sales and Economic Outlook: Total annual power sales volume decreased by 0.1% Y-o-Y to 549.4 terawatt hours due to an economic downturn affecting industrial demand. The forecast for 2026 indicates a slight recovery in power sales, driven by expected economic growth and an increase in operating days.

Nuclear Power Contribution: In Q4 2025, nuclear power's contribution to the generation mix decreased by 6% compared to the previous year, which is notable given its previous strong performance. The capacity factor for nuclear power is expected to improve in 2026 to mid-80% as plants resume operation after maintenance, indicating potential future stability and growth.