Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  KOREA EXCHANGE  >  Korea Electric Power Corporation    015760   KR7015760002

KOREA ELECTRIC POWER CORPORATION

(015760)
My previous session
Most popular
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Toshiba sheds more assets, cuts jobs to regain investor trust

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/08/2018 | 05:27am EDT
The logo of Toshiba Corp is seen behind cherry blossoms at the company's headquarters in Tokyo

TOKYO (Reuters) - Toshiba Corp announced on Thursday it is shedding assets, cutting jobs and buying back its stock starting this week, sending its shares up 13 percent, as the once-mighty Japanese conglomerate aims to regain investor confidence.

The company announced it is liquidating its British nuclear power unit and selling its U.S. liquefied natural gas (LNG) business to China's ENN Group as part of a new five-year business strategy, which also includes 7,000 job cuts, or 5 percent of its workforce, over five years.

Toshiba's shares surged 12.7 percent to close near two-year highs after the announcement, helped also by a much anticipated move to repurchase up to 40 percent of its own shares starting Friday.

The 143-year-old company has been trying to win back the market's trust after a 2015 accounting scandal uncovered widespread irregularities at the laptops-to-nuclear conglomerate for years.

The scandal forced it to recognize huge cost overruns at now-bankrupt U.S. nuclear unit Westinghouse, prompting it to sell its prized memory chip unit earlier this year to a consortium led by U.S. private equity firm Bain Capital and leaving it with few growth businesses.

"There had been reports about a possibility of selling non-performing business and job cuts so such moves had been expected at some point. But investors are taking heart," said Hiroyuki Fukunaga, chief executive of Investrust, a financial advice firm.

"The share buyback announcement worth up to 40 percent of outstanding shares is definitely positive, too."

Toshiba had already promised a share buyback of 700 billion yen earlier this year, but the timing had been undecided. Its announcement on Thursday appeared to outweigh a weaker profit forecast - the company said it now expects a full-year operating profit of 60 billion yen rather than a previous estimate of 70 billion yen.

STEMMING LOSSES

Toshiba had been trying to shed the troubled assets that could have exposed the Japanese company to future losses.

The decision to liquidate NuGen, however, would be a blow to Britain's plans to build a nuclear plant that was meant to provide 7 percent of the country's electricity.

NuGen said 18 months of negotiations with a range of potential owners had failed to yield any deal, and that it was now up to the British government and the Nuclear Decommissioning Authority to determine the future of the Moorside site in Cumbria.

South Korea's state-run Korea Electric Power Corp (KEPCO) had been in talks with Toshiba to buy a stake in NuGen. South Korea's energy ministry said on Thursday it will coordinate with the British government and monitor the liquidation process with KEPCO.

Toshiba said it will sell the LNG business to ENN Ecological Holdings, a unit of Chinese gas company ENN Group.

It has spent years trying to either sell the gas to power customers or offload the business after signing a 20-year contract to buy LNG from Freeport in a venture announced in 2013. Asian LNG prices <LNG-AS> have plunged 42 percent in the past five years, raising fears of future losses.

Toshiba will be paying the buyer $821 million to assume its commitment to purchase 2.2 million tonnes per year of the fuel from Freeport LNG in Texas - a cost booked as a charge for the current financial year.

The company said its exit from the troubled businesses, along with the job cuts and other restructuring moves, will help it bolster its profitability in the longer run. It forecast an operating profit of 240 billion yen in fiscal 2021 compared to 60 billion yen in the current year.

(Reporting by Makiko Yamazaki; Additional reporting by Ayai Tomisawa; Meng Meng in BEIJING and Jane Chung in SEOUL; Writing by Ritsuko Ando; Editing by Muralikumar Anantharaman)

By Makiko Yamazaki

Stocks mentioned in the article
ChangeLast1st jan.
ENN ECOLOGICAL HOLDINGS CO LTD -0.73% 12.2 End-of-day quote.22.74%
ENN ENERGY HOLDINGS LTD -3.14% 77.1 End-of-day quote.10.30%
KOREA ELECTRIC POWER CORPORATION End-of-day quote.
TOSHIBA CORP -0.14% 3600 End-of-day quote.18.81%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KOREA ELECTRIC POWER CORPO
03/18KOREA ELECTRIC POWER : NPS, KNOC at bottom in 'mutual growth' rating
AQ
03/14KOREA ELECTRIC POWER : Investor Presentation (March 2019)
PU
03/11Hyundai Motor seeks outside investment for new headquarters
AQ
03/09HYUNDAI MOTOR : in talks with investors to develop headquarters project
RE
03/02KOREA ELECTRIC POWER : ENEC Celebrates 50 Million Safe Work Hours at Barakah Nuc..
AQ
02/26KOREA ELECTRIC POWER : UAE-South Korea strategic partnership set to deepen
AQ
02/26MOHAMMAD BIN ZAYED IN SOUTH KOREA : The latest developments
AQ
02/26KOREA ELECTRIC POWER : Mohammad Bin Zayed lands in South Korea
AQ
02/07KOREA ELECTRIC POWER : Kepco plans to build new 1 GW coal-fired project in the P..
AQ
01/30KOREA ELECTRIC POWER : KEPCO-run university faces feasibility questions
AQ
More news
Financials (KRW)
Sales 2019 62 043 B
EBIT 2019 3 109 B
Net income 2019 1 282 B
Debt 2019 57 290 B
Yield 2019 1,51%
P/E ratio 2019 17,19
P/E ratio 2020 10,71
EV / Sales 2019 1,25x
EV / Sales 2020 1,24x
Capitalization 20 511 B
Chart KOREA ELECTRIC POWER CORPORATION
Duration : Period :
Korea Electric Power Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 39 256  KRW
Spread / Average Target 23%
EPS Revisions
Managers
NameTitle
Jong-Kap Kim Chief Executive Officer & Director
Hwan-Eik Cho President & Director
Jeong-soo Kim Head of Finance & IR Team
Kang-Hee Lee Outside Director
Jeon-Hyuk Cho Outside Director
Sector and Competitors
1st jan.Capitalization (M$)
KOREA ELECTRIC POWER CORPORATION18 070
NEXTERA ENERGY INC11.57%92 731
DUKE ENERGY CORP5.10%65 940
ENEL11.70%64 725
DOMINION ENERGY INC.5.68%60 364
IBERDROLA10.12%56 941