Korea Electric Power Corp. (015760), South Korea’s monopoly distributor, posted a quarterly profit that missed analyst estimates on higher costs from nuclear reactor shutdowns and foreign-exchange losses from a weaker won.
Net income based on controlling interests was 133.3 billion won ($121 million) in the three months ended March 31, compared with a 538.1 billion won loss a year ago, the Seoul-based company said in a filing today. The average of 11 analyst estimates compiled by Bloomberg was a profit of 531.3 billion won. Sales rose 6.6 percent to 13.8 trillion won.
The shutdown of some nuclear reactors because of scheduled maintenance and technical issues forced a switch to coal and gas-fired plants to meet power demand, the company said. The cost of nuclear-power generation is 3 won per kilowatt compared with 22 won at coal-fired plants and 89 won for gas, according to South Korea’s energy ministry.
Net income also fell because the weaker won led to about 393.2 billion won in foreign-exchange losses related to foreign-currency denominated debt, the state-run company said. The Korean won weakened 4.4 percent to 1,111.35 to the dollar in the first quarter.
Operating profit was 657.8 billion won in the three-month period, missing the 1.2 trillion won average of 13 analyst estimates compiled by Bloomberg.
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