ID :
207904
Mon, 09/19/2011 - 05:54
Auther :
Shortlink :
https://oananews.org//node/207904
The shortlink copeid
Public power firms see debt spike on higher production costs: report
SEOUL, Sept. 19 (Yonhap) -- South Korea's state-run energy companies saw their debt grow sharply over the past five years as rising raw material prices drove up overall production costs, a report showed Monday.
According to the report submitted by the Ministry of Knowledge Economy for a parliamentary audit, Korea Electric Power Co., the nation's sole power supplier, posted 33.4 trillion won (US$29.9 billion) in debt last year, up from 20.6 trillion won tallied in 2006.
Its debt ratio jumped from 47.9 percent to 81.3 percent over the cited period, the report showed.
The spike comes as the company was forced by the government to delay raising electricity rates despite rising crude oil and other raw material prices in the international markets, a move aimed at helping ease mounting inflationary pressure.
Other public energy companies faced similar debt problems fueled by rising production costs and compounded by investment in overseas energy development projects.
Korea National Oil Corp. saw its debt surge from 3.5 trillion won to 12.3 trillion won over the past five years, with its debt ratio rising from 72 percent to 123.0 percent, according to the report.
Korea Gas Corp. and Korea District Heating Corp. also logged 19 trillion won and 2.3 trillion won in debt, respectively, up from 8.7 trillion won and 1 trillion won tallied five years ago, the report showed.
South Korea depends mostly on imports of raw materials for its energy generation and it is the world's fifth-largest crude oil importer. Most of energy companies here are owned by the state, with all price hikes needing prior approval by the government.
According to the report submitted by the Ministry of Knowledge Economy for a parliamentary audit, Korea Electric Power Co., the nation's sole power supplier, posted 33.4 trillion won (US$29.9 billion) in debt last year, up from 20.6 trillion won tallied in 2006.
Its debt ratio jumped from 47.9 percent to 81.3 percent over the cited period, the report showed.
The spike comes as the company was forced by the government to delay raising electricity rates despite rising crude oil and other raw material prices in the international markets, a move aimed at helping ease mounting inflationary pressure.
Other public energy companies faced similar debt problems fueled by rising production costs and compounded by investment in overseas energy development projects.
Korea National Oil Corp. saw its debt surge from 3.5 trillion won to 12.3 trillion won over the past five years, with its debt ratio rising from 72 percent to 123.0 percent, according to the report.
Korea Gas Corp. and Korea District Heating Corp. also logged 19 trillion won and 2.3 trillion won in debt, respectively, up from 8.7 trillion won and 1 trillion won tallied five years ago, the report showed.
South Korea depends mostly on imports of raw materials for its energy generation and it is the world's fifth-largest crude oil importer. Most of energy companies here are owned by the state, with all price hikes needing prior approval by the government.
