Korea Electric Power Corp. (KEPCO) shares fell more than 6% during trading after the company reported second-quarter results that significantly missed market expectations.
As of 1:56 PM on August 13, KEPCO's stock was trading at 33,050 won, down 2,400 won (6.77%) from the previous trading day. The stock opened at 34,350 won and briefly dropped to 32,950 won during the session.
The decline in share price is attributed to weakened investor sentiment following the announcement of second-quarter results that fell short of market forecasts.
KEPCO reported a consolidated operating profit of 1.1286 trillion won for the second quarter of this year, a 47.2% decrease compared to the same period last year. This figure is 42.5% below market expectations. Revenue for the same period was 21.9189 trillion won, a slight decline of 0.1% year-on-year.
KB Securities downgraded its target price for KEPCO from 54,000 won to 48,000 won, a reduction of 11.1%.
Jung Hye-jung, a researcher at KB Securities, noted in a report that the target price adjustment reflects uncertainties regarding future electricity rates and increased fuel costs compared to previous estimates.
She added that KEPCO's operating profit is expected to decline in the second half of the year due to rising liquefied natural gas (LNG) prices, which will be reflected starting in the third quarter.
* This article has been translated by AI.
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