Utility sector had a rough ride in 2012. However, the segment seems to be on the path to recovery in the current year, despite a demand slump. The companies are looking to restructure their business in order to curtail costs and boost their margins. Korea Electric Power Corp. (NYSE: KEP) announced the appointment of the new CEO and the company is taking steps to counter the impact of an increase in input costs. On the other hand, TECO Energy Inc. (NYSE: TE) still seems to be struggling as it widened its loss and provided lower outlook. Overall, the sector looks to grow in 2013 with its bearish undertones intact.

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TECO Energy Inc.'s stock gained 4.83 percent in 2013. However, it tumbled after its quarterly earnings announcement. The company earned $45.1 million in net income for the fourth quarter of the year, down from $53.2 million it had reported for the corresponding quarter of the last year. On per share basis, TECO earned 21 cents per share. The company's annual results also followed the trend and its net income fell down to $212.7 million. The company also provided bleak outlook for FY 2013 as it expects to earn in the range of $0.90 and $1.00 in net income, lower than its 99 cents per share net income for FY 2012.

TECO Energy also seems to be losing favor with institutional investors. Moore Capital Management cut its stake in the company as shown in its 13F filing. However, the company is looking to boost its customer-base and may make a turnaround. Although, the electric utility company lost 2.2 percent of its value in the past 52 weeks, it sweetened the deal with 5.03 percent dividend yield. The company is expected to keep up its dividend payment despite disappointing results.

Elsewhere in the industry, Korea Electric Power Corp. recently appointed its new CEO. The appointment of Cho Hwan Eik, a former commerce Vice Minister, as its Chief Executive Officer also signifies new a direction for the company. Cho is expected to focus on a stable supply of electricity. The stock is up 34.41 percent up in the past 52 weeks. However, it performed rather poorly in 2013, losing 1.36 percent of its value.

Korea Electric is struggling with higher power purchase costs and posted net loss of $2.77 billion for FY2012. It had incurred $2.96 billion worth of net loss in the previous year. However, its FY 2012 operating revenue was 13.7 percent up to $44.46 billion. Korea Electric Power Corp. also improved its electricity sale revenue to $41.36 billion. The figure represents 13.5 percent increase.

Despite its weak results, the company still provides a good investment opportunity as it is well positioned in its business segment. Korea Electric is looking to neutralize the impact of rising costs and the efforts are expected to bring about positive results. It is also expanding its business overseas to counteract the local market trends.

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