Korea Electric Power Corp. said Friday that it recorded 430.6 billion won ($350.1 million) in operating profit in the first quarter this year, swinging back into the black in three years.

The state-run utility witnessed 430.6 billion won in operating profit, a 1-trillion-won increase on-year from an operating loss of 629.9 billion won thanks due to a sharp fall in oil prices.

“Thanks to the global fall in fuel prices, Kepco’s expenses spent for fuel and electricity purchases decreased 881.3 billion won and 719.2 billion on-year, respectively, saving the company a total of 1.6 trillion won,” a Kepco official said.

However, its performance was limited as it reduced its dependence on cheaper electricity generated by coal and nuclear power. The utilization rate of its coal and nuclear power plants, which stood at 72.5 percent and 75.8 percent dropped to 60.4 percent and 73.8 percent this year on-year, respectively.

“If low oil prices continue, it will be a positive factor for business management. However, the COVID-19 outbreak and the oil price war are shaking exchange rates and oil prices, adding uncertainties in management environment,” a Kepco official said.

By Kim Byung-wook (kbw@heraldcorp.com)