South Korean utility major Korea Electric Power Corporation KEP reported first-quarter 2016 net income of KRW2,163 billion ($1,730.4 million), up 76.8% from KRW1,223 billion in the year-ago quarter.During the quarter, the company’s revenues grew 3.7% year over year to KRW 15,685 billion ($12,548 million). The increase was primarily driven by 2.3% growth in power sales revenues and a 35.3% surge in sales at the overseas business.The company’s operating income surged 61% to KRW3,605 billion from KRW2,240 billion in the year-ago quarter.Cost of goods sold/selling, general and administrative expenses fell 6.2%. Fuel costs declined 19.9% primarily due to a 20.5% decrease in the unit cost of fuel and a 12.2% rise in nuclear generation, owing to higher nuclear generation capacity.Meanwhile, cost of purchased power tanked 15.3%. Purchased power volume climbed 9.6% due to the introduction of new, highly efficient independent power producer plants. However, the unit cost of purchased power decreased 24.8% as fuel price reduced. Depreciation costs rose 5.6% mainly due to the newly introduced power plant and transmission facilities. Maintenance costs were up 9.6% due to increased facility investment and scheduled overhaul.Total electricity sold during the quarter was 130,466 gigawatt-hours (“GWh”), up 1.8% year over year. The increase was driven by higher demand in the agricultural (4.4%), commercial (3.5%), street-lighting (3.4%), residential (2.2%), industrial (1.5%) and educational segments, partially offset by lower demand of overnight power (5%).Korea Electric Power is an integrated electric utility engaged in the generation, transmission and distribution of electricity in South Korea. The company is a dominant player in Korea’s electricity sector. It is poised to capitalize on the growth opportunities in this market and benefit from the industry restructuring initiatives of the Korean government.Zacks Rank & Key PicksKorea Electric Power has a Zacks Rank #3 (Hold). A few better-ranked players in the utility sector are Spark Energy, Inc. SPKE, Calpine Corp. CPN and Avista Corp. AVA. While Spark Energy sports a Zacks Rank #1 (Strong Buy), both Calpine Corp. and Avista Corp. carry a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KOREA ELEC PWR (KEP): Free Stock Analysis Report CALPINE CORP (CPN): Free Stock Analysis Report AVISTA CORP (AVA): Free Stock Analysis Report SPARK ENERGY (SPKE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research