Korea Electric Power Corp Q1 2020 Earnings Call (English, Korean) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Minjae Lee - NH Investment & Securities Co., Ltd., Research Division - Analyst : [Interpreted] Now I have 3 questions. Now first, in the month of March, we see that the coal generation utilization rate was about 50%, which appears to be quite low, even considering the various factors. So for example, the outdated coal-fired power plants and also the suspension of the utilization of these outdated facilities as well as the scheduled maintenance. So even if we take into account these factors, it appears as if the coal generation utilization rate is quite low. So do you foresee this to be a temporary phenomenon, so that the number is going to pick up after the scheduled maintenance? Or do you expect this number to continue into the second quarter and on, so for example, into April and May? And the second question is about the staffing plan. So what is the plan to recruit more human resources, including the -- each of the GENCOs? And the third question is about the capacity -- reserve capacity, which stands at about 7% -- which stood at about 7% in August. And now this year, they say that this summer is going to be one of the hottest ever. So this would also bring into question the reserve capacity because when we think about -- even when we look into the, for example, the coal-fired generation and also the nuclear power plant and utilization rate, so given the current circumstances, it seems as if there is not much room to increase the supply capacity. So then you have already announced the plan to start the operation of the Shin Hanul No. 1 plant in October this year. So perhaps the starting schedule for the Shin Hanul plant can be pulled up. Could this be one of the considerations? Unidentified Company Representative [Interpreted] With regards to the first question about the coal generation utilization rate in the first quarter of this year being lower Y-o-Y. Now looking back to last year, the -- because of the fine dust, the constraint on the usage of the coal-fired generation was concentrated in the springtime, which was from March to June. But then in this case, the high concentration period of fine dust was more concentrated in the wintertime. So we see that there has been a drop in the utilization rate of the coal-fired generation because of the different season of the fine dust. And also, in terms of the usage suspension of the outdated coal-fired generation, that again was concentrated in between March to June last year, whereas for this year, it was between December to March. So again, there was a difference in the season. And given this, now -- because in the second quarter, the usage constraint, because of the fine dust high concentration, is going to be eased in the second quarter. We do believe that this factor is going to partially improve; meaning, that the coal-fired generation would also partially go up. Unidentified Company Representative [Interpreted] And to your second question about staffing. So yes, it is true that at KEPCO as well as the GENCOs, recruitment is underway. But then in terms of the specific size or the number, we do not have the information at this point, so we will have to get back to you. And to your third question about the power demand. Now the power demand is hard to predict because it largely depends on the economy as well as the temperature. Now for the Shin Hanul No. 1 plant, it is scheduled to go into commercial operation at the end of October this year, and that is the current plan. And as for the reserve capacity or the preparation for the expected heat in the summer this year, we would make utmost preparation so that we will be able to handle the demand. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 15, 2020 / 5:00AM, 015760.KS - Q1 2020 Korea Electric Power Corp Earnings Call (English, Korean)