Good morning and good evening. First of all, thank you all for joining this conference call. Now we'll begin the conference of the FY 2022 Q2 Earnings Results by KEPCO. This conference will start with a presentation followed by a divisional Q&A session. If you have a question, please press asterisk one on your phone during the Q&A. Now we shall commence the presentation on the FY 2022 Q2 Earnings Results by KEPCO.
안녕하십니까? KEPCO 재무처 국제금융부장 전철수입니다. 바쁘신 중에도 KEPCO의 2022년 상반기 실적 발표 IR 컨퍼런스 콜에 참석해 주신 여러분들께 감사의 말씀을 드립니다. 오늘 컨퍼런스 콜은 한국어와 영어로 함께 진행되며, 먼저 간단한 실적 발표 후 질의응답을 받도록 하겠습니다. 오늘 발표할 실적 자료는 IFRS 연결기준 잠정 수치이며, 모든 비교는 전년 동기 대비입니다. 아울러 실적 발표 회의 내용 중 언급될 수 있는 경영 계획 및 목표, 추정 재무수치 등은 현 시점에서의 목표 또는 전망치이므로 불확실성 및 투자 위험 요소가 있음을 양지하시기 바랍니다. 그럼 지금부터 IR 담당 이윤주 차장이 2022년도 상반기 손익 증가 내역에 대해 우선 한국어로 말씀드린 다음 동일 내용을 영어로 설명하겠습니다.
Good afternoon, this is Charles Jun, Head of IR Team of KEPCO. On behalf of KEPCO, I would like to thank you all for participating in today's conference call to announce the earnings results for the first half of 2022. Today's call will be proceeded in both Korean and English.
We will begin with a brief presentation on the earnings results, which will be followed by the Q&A session. Please note that the financial information to be disclosed today is on a preliminary, unaudited, and consolidated basis in accordance with Korean International Financial Reporting Standards. Any comparison will be on a year-on-year basis between last year and this year. Business strategies, plans, financial assessments, and other forward-looking statements included in today's call are based on our current expectations and plans. Please be noted that such statements may involve certain risks and uncertainties. Now, Mr. Yoon ju Lee, Senior IR Manager, will begin with an overview of earnings results for the first half of 2020, first in Korean and repeated in English.
안녕하십니까? IR 담당 이윤주입니다. 먼저 영업손익부터 살펴보겠습니다. 2022년 상반기 영업손익은 14.3조 원 손실을 기록하였습니다. 구체적인 내역을 살펴보면, 매출액은 전년 대비 11.5% 증가한 32.0조 원을 기록하였습니다. 이 중 전기 판매 수익은 29.5조 원으로 전년 대비 9.3% 증가하였고, 해외사업 수입 등 기타 수입은 2.5조 원으로 46.9% 증가하였습니다. 매출원가와 판관비는 60.3% 증가한 46.3조 원이며, 이 중 연료비는 LNG, 석탄 등 연료 가격 급등 영향으로 전년 대비 86.3% 증가한 14.7조 원을 기록하였습니다. 한편, 구입전력비의 경우 민간발전사로부터의 LNG 구입량 증가 및 LNG 등 전력 구입단가 상승 영향으로 지난해보다 104.1% 증가한 15조 원을 기록하였습니다. 감가상각비는 취득한 신증설들에 따른 상각자산 증가로 지난해보다 4.8% 증가한 5.4조 원을 기록하였습니다. 다음은 영업외 손익 주요 증감 내역입니다. 금융손익은 1.3조 원 손실을 기록하였으며, 전년도 손실 0.9조 원 대비 손실폭이 0.4조 원 증가하였습니다. 지금까지 언급한 내용을 주요 원인으로 2022년도 상반기 연결 순손익은 전년도 당기순손실 0.5조 원 대비 10.2조 원 감소한 10.8조 원 손실을 기록하였습니다. 이어서 영어로 손익 실적을 설명드리겠습니다.
Now we will provide the overview in English, starting with operating income. In the first half of 2022, KEPCO recorded an operating loss of KRW 14.3 trillion. To take a closer look, operating revenues increased by 11.5% to KRW 32.0 trillion year-over-year. Power sales revenue rose by 9.3% to KRW 29.5 trillion, while revenues from overseas and other businesses increased by 46.9% to KRW 2.5 trillion. Moving on to main operating costs, cost of goods sold and selling, general, and administrative expenses surged by 60.3% to KRW 46 trillion. Fuel costs surged by 86.3% to KRW 14.3 trillion, due to rapid increase in coal and LNG prices. Next, purchase power costs surged by 104.1% to KRW 19.0 trillion.
This was due to larger purchased power volumes from the independent power producers and higher unit price of purchased power. Depreciation costs rose by 4.8% to KRW 5.4 trillion, due to the increase in depreciable assets resulting from the completion of electric facilities. Now let me explain KEPCO's non-operating segments. The financial loss was KRW 1.3 trillion, increased loss by KRW 0.4 trillion from last year. As a result of the foregoing, we recorded a consolidated net loss of KRW 10.8 trillion, which was a KRW 10.6 trillion decrease from KRW 0.5 trillion of consolidated net loss in the previous year.
실적과 관련한 몇 가지 항목들에 대하여 간략히 설명드리는 시간을 갖도록 하겠습니다.
Now I'd like to spend a little bit of time to briefly explain some key points related to our earnings results.
먼저 판매 전망부터 말씀드리겠습니다. 상반기의 경우 전력 판매는 국내 경기 회복과 수출 호조 등으로 1분기는 약 4.5%, 2분기는 약 3.4%의 판매량 증가가 있었습니다. 하반기에도 전년 대비해서 판매량 성장은 계속될 것으로 예상되나 증가폭은 다소 둔화될 것으로 보여 금년 연간 기준 전력 판매는 약 2에서 3% 증가할 것으로 전망하고 있습니다.
First, on sales outlook. In the first half of this year, power sales increased from recovery in domestic economy and robust exports. Sales volume grew by 3.4% in Q2 and 4.5% in Q1. In the second half, we expect sales volume to continue growing year-on-year. However, the growth rate may be slightly slower. For the full year, power sales are projected to grow by around 2% to 3%.
다음으로 연료원별 연료비 단가에 대해서 말씀드리겠습니다. 이번 분기의 경우 연료비 단가는 국제 연료 가격 변동을 반영해서 석탄의 경우 톤당 약 27만 원, LNG의 경우 톤당 약 119만 원을 기록하였습니다. 지금 국제 연료 가격 강세가 지속되는 상황을 볼 때 연간을 기준으로 연료비 단가는 석탄의 경우 하역 재방 비용을 제외하고 톤당 20만 원대 후반, LNG는 톤당 100만 원대 중반가량을 전망하고 있습니다. 다만 이와 같은 전망은 연료 가격 추이에 따라서 달라질 수 있음을 참고 부탁드리겠습니다.
Next, unit fuel price by source. In Q2, reflecting the changes in international fuel prices, unit fuel price for coal was KRW 270,000 per ton and for LNG it was KRW 1.19 million per ton. In light of the continued high global fuel prices, annual unit fuel price outlook is for coal, excluding unloading and other expenses, to be in the late KRW 200,000 per ton and LNG to be in the mid KRW 1 million range per ton. Please note that such outlook is subject to change based on fuel price trends.
다음으로 전력 그룹사 발전 믹스를 살펴보면 이번 분기에는 전년 동기 대비 원전 비중이 증가한 반면 석탄 비중은 감소하였습니다. 연간으로 봤을 때는 전년과 비교해서 원전 이용률 상승이 예상됨에 따라서 원전 비중은 늘어날 것으로 전망되고 있고, 석탄과 LNG 비중은 상대적으로 줄어들 것으로 예상하고 있습니다.
In regards to the generation mix in Q2 year-on-year basis, the share of nuclear generation increased while the share of coal-fired generation decreased. For the full year compared to the previous year, the use of nuclear generation is forecasted to increase. Thus, higher share of nuclear generation year-on-year is expected, while the shares of coal and LNG generation will relatively decrease.
다음으로 RPS와 ETS 관련 비용에 대해서 말씀드리겠습니다. 이번 분기 RPS 비용은 연결 기준으로 약 8,500억 원, 별도 기준 1조 2,000억 원을 기록하였고, ETS 관련 비용은 연결 기준 -550억 원, 별도 기준 -160억 원을 기록하였습니다.
Next on RPS and ETS related costs. In Q2, RPS cost was on a consolidated basis KRW 850 billion and standalone KRW 1.2 trillion. For ETS cost it was consolidated -KRW 55 billion and unconsolidated basis -KRW 60 billion.
네, 이것으로 실적 관련 추가 설명을 마치겠습니다.
This concludes the brief explanation on key business conditions.
이어서 질의응답 시간을 갖도록 하겠습니다. 지금 이 자리에는 회사 주요 분야 담당 IR 실무진들이 함께 참석하고 계시니 궁금하신 사항은 자유롭게 질문하시기 바랍니다. 구경은 순차 통역으로 진행되므로 질문과 답변을 간단하고 분명하게 해주시면 감사하겠습니다. 그럼 이제 질문을 시작해 주시기 바랍니다.
Now let us move on to Q&A session. Since we will proceed this session in both Korean and English, please make your questions and answers brief and clear. Thank you.
그럼 지금부터 질의응답을 시작하겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오. 신청하신 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다.
Now Q&A session will begin. Please press asterisk one if you have any question. For translation, please press asterisk two on your phone.
다음으로 질문하실 분은 메리츠증권의 문경원님입니다. 질문해 주십시오.
The first question will be given by Moon Kyung-won from Meritz Securities. Please go ahead.
안녕하세요. 메리츠증권 문경원 연구원입니다. 저 세 가지 정도 질문이 있는데요. 첫 번째로는 육조 원 자구책에 관련해서 진행 상황이 어떻게 되는지 궁금한데요. 이 육조 원의 자금 마련이 올해 내에 다 마무리될 수 있는 것인지 궁금하고요. 두 번째로는 저희가 3분기에 연료비 조정 단가 5원으로 올렸는데, 상한까지 올린 상황이지만 4분기에 추가 인상 가능성이 있는지, 관련해서 제도 변경 관련 논의가 정부와 이루어지고 있는지 궁금하고요. 세 번째로는 이번 분기 실적 중에 전력 판매 매출 말고 기타 매출이 다른 분기 대비해서 많이 올라온 것 같은데 어떤 부분이 작용했는지 궁금합니다.
Good afternoon. This is Moon Kyung-won from Meritz Securities, and I would like to ask three questions. The first question is related to the progress update on KEPCO's self-improvement effort, which is detailed to cost around KRW 6 trillion. I'm just wondering whether or not the funding of such amount will be successfully completed within this year. The second question is related to the possibility of additional fuel cost tariff adjustment that would be possible in the Q4. I'm very aware of the KRW 5.1 per KW price increase that was actually done previously. But is it possible that under the current circumstances, we can actually anticipate an additional tariff increase going forward? The third question is related to your earnings results for this Q2 .
I'm more interested in the other sales revenue because apart from the power sales revenue, I can note that there has been a considerable increase in the other sales revenue compared to the previous quarters. Can you please explain what contributed to this increase?
Let me answer the first question. As you may note, in May of this year, we KEPCO has announced its plan, along with the work that we will be doing with our affiliated gen co. There is going to be an effort to improve our financial structure by, with a target to improve this by KRW 6 trillion. This will include activities to, in respect to our equity investment, real estate, overseas business, and also various cost cutting efforts as well. In respect to the overall details, for some items, they are currently underway.
For some other items, we are still in the review process. Please understand that while the plan has announced the KRW 6 trillion, it doesn't necessarily mean that the KRW 6 trillion will be all completed and implemented within this year. It really depends on individual item and per individual item, the overall implementation and completion schedule may vary. In respect to your second question, which was related to the fuel cost adjustment and the ceiling that we put on the unit price. In respect to the current market situation, everyone recognizes that we are currently seeing an unprecedented volatility in terms of the international fuel prices. We have already previously announced that in the third quarter we'll be able to increase the ceiling from KRW 3.1 to KRW 5.1.
To finalize this, we are currently continuing our consultation with the government. In this process, I also believe that there will be discussions related to the possibility of anything we can do in the fourth quarter as well. The discussion is still ongoing with the government. In respect to the key contributors that delivered an increase in our performance for the other revenue, there are three notable examples. The first one is related to our business in Mexico, where we were able to see an increase in the prices as well as the power generation volume. We also saw a positive performance in the UAE business for the Korea Hydro & Nuclear Power. There has been an increase in the energy LNG sale prices and volume.
The following question is by Yoo Jae-hyun from Mirae Asset. Please go ahead.
네, 안녕하세요. 류재현입니다. 두 가지 질문 드렸는데, 먼저 아까 말씀하셨을 때 하반기 석탄 단가랑 LNG 단가 전망을 해주셨는데, 지금 좀 더 낮게 말씀해 주신 것 같아서요. 확인 한번 부탁드리고, 만약에 그렇다면 이유가 뭔지 좀 설명해 주시면 좋겠고요. 맞은 것 같은데 제가 잘못 들었는지 확인도 부탁드리고요. 그다음에 SMP 가격 상한제 현재 보고 철회한 것 같은데, 하반기나 내년에 추진 계획이나 이런 것들이 있으신지 말씀해 주시면 감사하겠습니다.
I have two questions. This is Yoo Jae-hyun from Mirae Asset. My first question is more of a confirmation related to your comments, related to your outlook for the coal and LNG prices. Because what you have said in respect to your forecast for the second half, these prices actually seem lower than what we expected. Could you actually elaborate why it is lower than the expectation? Just please confirm if my understanding is correct. Second question is related to the SMP price cap. Can you actually give us more color on your expectations for the second half of this year as well as if possible for your outlook for next year?
연료비 단가 부분부터 말씀드리겠습니다. 아까 말씀드렸던 연료비 단가 전망은 연간 기준 전망이고요. 석탄의 경우 톤당 20만 원대 후반, LNG의 경우는 톤당 100만 원대 중반가량을 전망하고 있습니다. 다만 최근에 특히 LNG 같은 경우에는 가격 변동성이 워낙에 큰 상황이기 때문에 추가적으로 변동의 여지가 있을 수는 있을 것 같습니다.
To answer your first question related to the unit fuel price outlook. The outlook that I have shared was for the full year basis. On a full year basis, our outlook for coal is to be in the late KRW 200,000 range per ton, and for LNG to be in the mid KRW 1,000,000 range per ton. For LNG, please note that we're currently experiencing very high price volatility. This outlook for LNG is subject to possible change in the future.
두 번째 긴급정산상한가격제도 관련 말씀드리겠습니다. 긴급정산상한가격제도는 현재 산업부에서 추진 중인 사안으로 전기사업법에 명시된 전력거래가격 상한에 관한 고시를 일부 개정하여 국제 연료 가격 급등으로부터 전기 소비자들을 보호하기 위한 제도입니다. 현재 행정예고 및 의견 수렴을 거쳐서 규제 심사 진행 중인 것으로 알고 있고요. 향후 규제 심사 일정 등을 전사 함께 지켜봐야 될 것으로 보입니다.
In respect to your second question related to the outlook for the SMP price cap. As you may know, this is currently headed by MOTIE, and it is governed by the Electric Utility Act. In the Electric Utility Act, the regulation actually requires disclosure and also setting of the ceiling for the tariff prices. This is aimed to protect the power consumers from the changes in the international fuel prices. There is an ongoing effort to make the necessary changes and to collect public opinion as well as to follow administrative procedures. The regulatory efforts are currently ongoing. We're monitoring the progress. As such, we also ask you to continue monitoring the development.
네, 다음 질문 부탁드리겠습니다.
현재 질문을 요청하고 계신 분은 없습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 일번을 눌러주십시오.
Currently, there are no participants with question. Please press asterisk one to give your question.
다시 한번 말씀드리겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오.
Once again, if you have a question, please press asterisk one.
다음으로 질문하실 분은 메리츠증권의 문경원님입니다. 질문해 주십시오.
The following question is by Moon Kyung-won from Meritz Securities. Please go ahead.
저 질문 하나만 더 드리겠습니다. 저희 그 전력채 발행 한도 관련해서 이전에 2021년 말 기준 자본으로 계산했을 때 한 90조 원 정도까지 가능하다, 이렇게 설명해 주신 적이 있는 것 같은데 만약에 올해 말 예산 기준으로 했을 때 저희가 전력채를 몇 조 원까지 발행할 수 있을지 여쭤보고 싶습니다.
This question is from Moon Kyung-won from Meritz Securities. I just have one more question on my side, and this is just a follow-up to what you have previously shared in the past where you have said that your current outstanding balance for issuing KEPCO bonds is around KRW 90 trillion compared to the outstanding capital as of 2021. In light of the possible balance that you may have for 2022, what would that be? What would that be?
네, 질문해 주신 거에 대해서 답변드리겠습니다. 먼저 말씀해 주신 대로 2021년 결산 기준으로 봤을 때 저희 사채 발행 한도는 약 92조 원 수준이고요. 이 분기 기준으로 잔액은 지금
As you have correctly noted, in 2021, based on the audited statement, our outstanding balance was KRW 92 trillion for KEPCO bond. In Q2, as we look at the current balance, it stands at KRW 52 trillion. However, in respect to your question, what the limit will be for the year end, this is actually tied to our earnings performance for this year as well. At this point in time, it's very difficult for us to comment on exactly what that balance will be for the year end. However, we are closely monitoring this, and we are making efforts to make sure that there is no impact to the overall funding endeavors that we have for this year.
Following question is by Yoo Jae-hyun from Mirae Asset. Please go ahead.
Yoo Jae-hyun from Mirae Asset, please.
This is Yoo Jae-hyun from Mirae Asset. I joined the call late so I may have missed your comment on the nuclear power plant utilization rate. I think you mentioned that it will increase. Can you actually share specific utilization rate, and if possible, your outlook for the price for the purchase of power as well?
First, to talk about the generation utilization rate, and I'm talking about 2022 full year basis. For the nuclear, it will be in the late 70%, whereas for the coal side it will be around 60%. In respect to the fact that the nuclear generation utilization rate is increasing, it also means that, as stated earlier, that the share of the nuclear generation portion is also higher than before.
In respect to the greater demand for power, which this is also going to be offset, and as such, we believe that the overall level of the consumer pricing volume will remain quite similar. In respect to the purchase power cost, this is very much tied to the overall fuel prices in the market. As such, we are not able to specifically give you an outlook on what the price of the purchase power will be.
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On this note, this concludes the Q&A session. KEPCO would like to continue making efforts to have self-improvement goals realized. At the same time, we will continue to have close dialogue with the government to be able to normalize electricity tariffs based on the costing basis. Thank you.
This concludes the FY 2022 Q2 Earnings Results by KEPCO. Thank you for your participation.