The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kyung-Won Moon - Meritz Securities Co., Ltd., Research Division - Analyst
: [Interpreted] The first question I'd like to ask is related to sales of assets. According to what was given as information ahead of time, it seems that
there are plans for sales of assets totaling up to about KRW 6 trillion, and so I'd like to ask about the timing related to these sales as well as how far
those plans have been implemented. The second question is related to interest costs, interest expenses. It seemed to be quite notable in the figures
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NOVEMBER 11, 2022 / 6:00AM, 015760.KS - Q3 2022 Korea Electric Power Corp Earnings Call (English, Korean)
that came out as result for this quarter. I would like to ask if the reason behind this increase is due to the increase in debt. Or were there any other
factors involved?
The last question I'd like to ask is about the increase of nuclear portion within the generation mix. Is this due to the entering into operation or
increase of operation of Shin-Hanul 1? Or is it any other factor that was involved? Then I'd like to ask for some plans moving forward about this
area as well.
Unidentified Company Representative
[Interpreted] Allow me to answer your first question. Indeed there are some mid-term plans that have been established quite recently in order to
improve our financial status given the current challenging environment. And among those plans are sales of noncore assets, including some
facilities overseas as well as real estate assets that we own. The plan has been set with a time line of up to 2026. However, we will be coming up
with more detailed shorter-term or mid-term plans, but once they become more concrete, we will share that information with you at that given
time.
And answering your third question ahead of time is related to the increase in the proportion of nuclear in the overall generation mix. Indeed, for
this third quarter, that ratio has been increased. And that is due to the utilization rate increase of nuclear power plants within KEPCO. If we look at
the figures for last year, that is to say for the third quarter of 2021, utilization rate of the nuclear power plant was 69.7%, whereas this year, for the
third quarter, it has rose. It has grown to [82.4%]. As for the Shin-Hanul 1 plant as you have asked about, indeed it is in the process of doing test
operations right now; and we expect commercial operations to launch within the year. We do not have an exact time line to share with you at this
point in time, but we will do so moving forward.
Unidentified Company Representative
[Interpreted] Allow me to answer the second question. For the increase of interest-related expenses for the third quarter, the main reason behind
that is the growth of borrowings.
Question: Kyung-Won Moon - Meritz Securities Co., Ltd., Research Division - Analyst
: [Interpreted] Since there doesn't seem to be any other questions from other entities at this moment, I'd like to ask one more question. Recently
we have read some articles related to financing options for KEPCO. And I believe that your plans are to raise capital during the winter period through
issuance of KEPCO bonds or borrowings from banks. So are these the main trends? Or do you have any other long-term options that you're looking
into for financing?
Unidentified Company Representative
[Interpreted] Indeed, as you have mentioned, we are seeing a, witnessing a growth of borrowings at KEPCO. And other measures that we are looking
into are striving to achieve the amendment of the KEPCO laws so that we can actually do more issuances and also increase borrowings from banks.
And we are looking into diversification of lending sources for these debts.
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NOVEMBER 11, 2022 / 6:00AM, 015760.KS - Q3 2022 Korea Electric Power Corp Earnings Call (English, Korean)
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