KEP - Kepco shares on the go as Korean wholesale power price falls below retail price
2023-06-27 11:48:20 ET
Korea Electric Power ( NYSE: KEP ) +6% in Tuesday's trading as lower electricity purchase costs in South Korea raised hopes for an earnings recovery at the state-run utility.
Korea Power Exchange data showed South Korea's May wholesale power price, at which Kepco ( KEP ) purchases electricity from private power suppliers, fell below the retail price for the first time in 19 months.
The wholesale electricity price, known as the system marginal price in South Korea, was 143.6 won/kWh in May, lower than the country's estimated retail power price of 154.6 won/KWh.
Shinhan Securities analysts said Korea Electric Power's ( KEP ) operating loss should narrow for Q2 on recently increased tariffs and lower fuel purchase costs, and the market is now focusing on whether the company can swing to a profit in H2.
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Kepco shares on the go as Korean wholesale power price falls below retail price