EX-99.1 2 exhibit1.htm EX-99.1

Exhibit  EX-99.1

Korea Electric Power Corporation (“KEPCO”) announces its un-audited and preliminary non-consolidated financial results for the six-month periods ended June 30, 2005 and 2004 as follows.

1. Preliminary KEPCO’s Non-consolidated Financial Results for the First Half of 2005 and 2004

						January 1, 2005 ~				January 1, 2004 ~				Year on Year
(Unit: in billions of Korean Won)						June 30, 2005				June 30, 2004				Change
Operating revenues:						11,849				11,179				6.0%
Sale of electric power							11,698				11,039				6.0	%
Other operating revenues							93				75				24.1	%
Revenues from other businesses							57				65				-11.6	%
Operating expenses:							11,163				10,242				9.0	%
Power purchased for resale							8,813				8,117				8.6	%
Labor							444				384				15.4	%
Retirement benefits							39				29				36.5	%
Maintenance							301				282				6.7	%
Depreciation							890				806				10.4	%
Commission							224				210				6.6	%
Fuel							13				9				39.6	%
Other							380				341				11.6	%
Other businesses							59				64				-6.5	%
Operating income							685				938				-26.9	%
Other income:							1,714				1,444				18.7	%
FX gain							169				242				-30.3	%
Investment income from affiliates							1,269				992				27.9	%
Other							277				211				31.4	%
Other expenses:							421				446				-5.6	%
Interest expenses							234				299				-21.6	%
FX loss							8				0.4				1800.0	%
Investment loss from affiliates							1				—				—
Other							178				147				21.4	%
Income before tax							1,979				1,936				2.2	%
Provision for income tax							409				472				-13.4	%
Net income							1,570				1,464				7.2	%

2. Preliminary KEPCO and GENCOs’ Financial Results for the First Half of 2005 and 2004

Disclaimer:
The financial numbers of KEPCO and its six generation subsidiaries (“GENCOs”) as presented below are not consolidated and made by simply adding the results of operations of KEPCO to the results of operations of GENCOs, after adjusting for major inter-company transactions. It must be noted that this information has been prepared by KEPCO for its internal purpose and for the convenience of KEPCO’s investors based upon the information that is available to KEPCO management at the time of preparation. This financial information has not been audited or reviewed by KEPCO’s independent accountants, Samjung & Co., or any other accountants and has not been prepared in accordance with the generally accepted accounting principles of any country. Accordingly, this financial statement may not necessarily be indicative of the results of operations of KEPCO and GENCOs and should not be relied upon, or form a basis of entering into any contract, for the purpose of trading any securities of KEPCO or any other investment decision in respect of KEPCO and GENCOs.

						January 1, 2005 ~				January 1, 2004 ~				Year on Year
(Unit: in billions of Korean Won)						June 30, 2005				June 30, 2004				Change
Operating revenues:						11,918				11,205				6.4%
Sale of electric power							11,669				11,022				5.9	%
Other operating revenues							192				119				62.0	%
Revenues from other businesses							57				65				-11.6	%
Operating expenses:							9,703				8,999				7.8	%
Fuel							3,833				3,603				6.4	%
Power purchased for resale							629				681				-7.7	%
Labor							816				687				18.7	%
Retirement benefits							76				53				41.9	%
Maintenance							705				739				-4.6	%
Depreciation							2,456				2,191				12.1	%
Commission							287				263				9.3	%
Other operating expenses							843				719				17.3	%
Expenses for other businesses							59				64				-6.5	%
Operating income							2,214				2,205				0.4	%
Other income:							782				735				6.5	%
FX gain							232				309				-24.7	%
Investment income from affiliates							168				165				1.8	%
Other							382				261				46.3	%
Other expenses:							607				636				-4.6	%
Interest expenses							310				375				-17.3	%
FX loss							18				5				287.0	%
Investment loss from affiliates							1				—				—
Other							278				257				8.3	%
Income before tax							2,390				2,304				3.7	%
Provision for income tax							820				840				-2.3	%
Net income							1,570				1,464				7.2	%