Coal news and updates

KEPCO to up coal use to return to profit in ’23 after estimated loss of $20 bn this year

Korea Electric Power Corporation (KEPCO) aims to swing back to an operating profit of 2.5 trillion won ($1.8 billion) in 2023 from an estimated record loss of 27.2 trillion won for this year through increased employment of coal fuel to generate power to reduce cost during emergency times of skyrocketing international oil and gas prices.

According to Rep.Yang Kum-hee of the governing People Power Party who on Sunday shared the 2022~2026 restructuring outline KEPCO submitted to the Ministry of Economy and Finance, the state monopoly proposes to up employment of coal fuel to generate power during high imported fuel prices.

The action can be possible when the government temporarily puts off the cap on coal fuel in power generation.

KEPCO hopes to reduce 2 trillion won in power purchase cost for the next five years through flexible power sourcing.

It estimated operating loss to reach 27.2 trillion won this year, which is slightly below the market consensus of 28.8 trillion won.

It promised a turnaround next year through an operating income of 2.5 trillion won next year against the market estimate of a loss in more than 11 trillion won.

For the goal, it will carry out 14.25 trillion won in self-rescue efforts over the next five years.

It will bolster capital by 7.04 trillion won, raise 2.5 trillion won through business realignment, 2.2 trillion won through management efficiency, 1.4 trillion won through asset sale, and 956.1 billion won through increased profit.

“KEPCO would inevitably have to raise employment of coal for power sourcing due to spike in LNG prices from gas shortage in Europe,” said Cho Hong-chong, economics professor at Dankook University.