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 newsTweetsMarketScreener Strategies

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 | 10:27am CET
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 -1.66% 11.87 End-of-day quote.-19.64%
ENN ENERGY HOLDINGS LTD -2.29% 68.25 End-of-day quote.21.88%
KOREA ELECTRIC POWER CORPORATION --End-of-day quote.
TOSHIBA CORP 3.65% 3975 End-of-day quote.1,126.85%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KOREA ELECTRIC POWER CORPO
11/08Toshiba sheds more assets, cuts jobs to regain investor trust
RE
11/08Toshiba sheds more assets, cuts jobs to regain investor trust
RE
11/08Toshiba sheds more assets, cuts jobs to regain investor trust
RE
11/08KOREA ELECTRIC POWER : South Korea to closely coordinate with British government..
AQ
11/05KOREA ELECTRIC POWER : KEPCO keeps an eye on Saudi Arabia's nuclear power prospe..
AQ
11/02KOREA ELECTRIC POWER : Korean Govt to Push Ahead with Construction of Worlds Lar..
AQ
10/26KOREA ELECTRIC POWER : KEPCO to Cooperate with Vietnam
PU
10/25EXCLUSIVE : Toshiba considers liquidating UK nuke unit NuGen as sale talks drag
RE
10/15Rivals ARM and Intel make peace to secure Internet of Things
RE
10/04KOREA ELECTRIC POWER : Korean firm bids for operation of Malaya thermal power pl..
AQ
More news
News from SeekingAlpha
11/15KEPCO : Easing Of Raw Material Prices And Regulatory Risks 
09/18FT : Toshiba in talks with Brookfield on U.K. nuclear plant 
09/04POLARIS INFRASTRUCTURE : Don't Get Crushed By This Falling Knife 
08/16Assessing The Korean Automobile Sector 
05/15Korea Electric Power Corporation 2018 Q1 - Results - Earnings Call Slides 
Financials (KRW)
Sales 2018 60 653 B
EBIT 2018 240 B
Net income 2018 -1 049 B
Debt 2018 55 204 B
Yield 2018 2,31%
P/E ratio 2018 -
P/E ratio 2019 15,78
EV / Sales 2018 1,20x
EV / Sales 2019 1,21x
Capitalization 17 879 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 24
Average target price 34 422  KRW
Spread / Average Target 24%
EPS Revisions
Managers
NameTitle
Jong-Kap Kim Chief Executive Officer & Director
Hwan-Eik Cho President & Director
Kang-Hee Lee Outside Director
Jeon-Hyuk Cho Outside Director
Ki-Ryeon Choi Director
Sector and Competitors
1st jan.Capitalization (M$)
KOREA ELECTRIC POWER CORPORATION15 858
DUKE ENERGY CORP2.41%61 407
IBERDROLA3.93%48 703
SOUTHERN COMPANY-1.43%48 543
DOMINION ENERGY-9.14%48 116
EXELON CORPORATION15.58%44 047