Korea Electric Power Corp Q3 2023 Earnings Call (English, Korean) Transcript

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

Question: Kyeong Won Moon - Meritz Securities Co., Ltd., Research Division - Analyst : [Interpreted] This is Kyeong Won Moon from Meritz Securities. I have 2 questions. First is on your other cost. On a consolidated basis, your other miscellaneous cost is down year-on-year basis and what is the reason behind this? Second question, looking out to the fourth quarter, on the repair cost, do you have any additional repair costs that we have to be mindful of and also in terms of wages and labor costs, in terms of implementing your turnaround plan, do you foresee any additional incremental wage or labor cost that is associated with the plan? Unidentified Company Representative [Interpreted] Regarding the other cost, we have seen the decrease in the fuel price regarding Mexico's Norte project. Hence, the materials cost also went down accordingly. And also in terms of KDN's [ADN] deployment plan, we have also seen decrease in costs associated with the deployment plan. Unidentified Company Representative [Interpreted] To answer your question on Q4 repair cost and wage and labor cost, is something that we can only foresee after some time. But in accordance with our press report on November 8, we released a turnaround plan that includes the overall turnaround of the organization, which REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2023 / 6:00AM, 015760.KS - Q3 2023 Korea Electric Power Corp Earnings Call (English, Korean) includes reduction of manpower within our headquarter as well as reduction of our operation and administrative resources and also accommodating and getting early retirement plan in place. So please do refer to our press reporting. But for us to gauge an impact on our P&L, it's something that we have to wait to see how it will be further reflected on our P&L.

Question: Dong Jin Kang - Hyundai Motor Securities Co. Ltd, Research Division - Analyst : [Interpreted] I have about 2 questions. First is on your CapEx guidance. What is your consolidated placed CapEx level for this year and next year? And also regarding the financial cost, what are your expected financial cost for next year as well as if you can mention this year on a consolidated and stand-alone basis? And if you can also mention some interest costs associated with it would be great. Unidentified Company Representative [Interpreted] To answer your question on CapEx, for 2023, we have -- our CapEx guidance is KRW 17 trillion and KRW 18.4 trillion for 2024 for our KEPCO and also our GENCOs put together for directly investing into the Korean market. We have a cumulative of KRW 10.7 trillion of CapEx executed as of Q3 of 2023, which is the execution level of 87% versus plan. Going forward, we're going to execute CapEx related to our essential -- an essential supply of electricity. And also, we're going to deprioritize those nonessential items and consider delaying those CapEx execution as we move on with our turnaround plan. Unidentified Company Representative [Interpreted] So for the financial cost, on a consolidated basis for Q3 has been KRW 1.67 trillion but the level of the debt going forward is -- will depend -- financial costs going forward will depend on the size of borrowing as well as interest rate going forward. Unidentified Company Representative [Interpreted] To elaborate further to talk about interest cost. When you look at the accumulated interest cost during January to September 2022, it was KRW 1.9 trillion. And for 2023 January to September, it was KRW 3.3 trillion. On a stand-alone basis, interest costs during the 2022 from January to September has been KRW 894.9 billion, whereas for January to September 2023, it has been KRW 2.073 trillion.