SEOUL: The Company is subject to risks arising from commodity price fluctuations, while its transmission and distribution operations face operational risks. Recently, Korea Electric declared third-quarter 2016 adjusted net income of KRW 2,938 billion ($2,550.8 million), down 68.3% from the year-ago quarter’s equivalent. The company’s revenues, however, improved 3.1% year over year to KRW 15,944 billion ($13,842.6 million).
Yet, adverse decisions in pending regulatory cases, such as the automatic fuel cost pass-through mechanism, have the potential to dent Korea Electric’s earnings. Moreover, being a South Korean company, most of Korea Electric’s costs and expenses are denominated in the Korean won. Any devaluation of the currency could affect profitability in terms of U.S. dollars.
