BOGOTA, Colombia, July 31, 2014 /PRNewswire/ -- Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited
financial results, both consolidated and unconsolidated, for the
second quarter of 2014. The financial results were prepared and
filed in Colombian pesos (COP$) in accordance with the Public
Accountancy Legal Framework (Regimen de Contabilidad
Publica, RCP) of Colombia's
General Accounting Office.
Some figures in this release are presented in U.S. dollars
(US$), as indicated. The financial results in the main body of this
report have been rounded to one decimal place. Figures presented in
COP$ billion are equivalent to COP$1 thousand million
(COP$1,000,000,000). Additionally, some 2013 figures have been
reclassified to be comparable to those of 2014.
Summary of Ecopetrol S.A.'s financial
results
Unconsolidated
|
(COP$
Billion)
|
2Q
2014*
|
1Q
2014*
|
Var.
%
|
2Q
2013*
|
Var. %
**
|
1H
2014*
|
1H
2013*
|
Var.
%
|
Total
sales
|
14,976.6
|
15,741.7
|
( 4.9%)
|
15,322.7
|
(2.3%)
|
30,718.3
|
30,094.6
|
2.1%
|
Operating
profit
|
4,161.0
|
4,552.6
|
( 8.6%)
|
4,907.1
|
(15.2%)
|
8,713.6
|
10,052.5
|
( 13.3%)
|
Net Income
|
2,847.8
|
3,225.9
|
( 11.7%)
|
3,253.8
|
(12.5%)
|
6,073.6
|
6,749.6
|
( 10.0%)
|
Earnings per share
(COP$)
|
69.26
|
78.46
|
( 11.7%)
|
79.14
|
(12.5%)
|
147.72
|
164.15
|
( 10.0%)
|
EBITDA
|
6,770.5
|
7,704.6
|
( 12.1%)
|
7,302.1
|
(7.3%)
|
14,475.1
|
15,048.0
|
( 3.8%)
|
EBITDA
Margin
|
45%
|
49%
|
|
48%
|
|
47%
|
50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
(COP$
Billion)
|
2Q
2014*
|
1Q
2014*
|
Var.
%
|
2Q
2013*
|
Var. %
**
|
1H
2014*
|
1H
2013*
|
Var.
%
|
Total
sales
|
17,749.3
|
18,262.0
|
( 2.8%)
|
17,595.6
|
0.9%
|
36,011.2
|
34,341.3
|
4.9%
|
Operating
profit
|
4,921.1
|
5,882.8
|
( 16.3%)
|
5,927.2
|
( 17.0%)
|
10,803.9
|
11,481.1
|
( 5.9%)
|
Net Income
|
2,787.5
|
3,287.4
|
( 15.2%)
|
3,407.5
|
( 18.2%)
|
6,074.9
|
6,819.2
|
( 10.9%)
|
EBITDA
|
6,681.6
|
7,793.0
|
( 14.3%)
|
7,516.1
|
( 11.1%)
|
14,474.6
|
15,112.6
|
( 4.2%)
|
EBITDA
Margin
|
38%
|
43%
|
|
43%
|
|
40%
|
44%
|
|
* Not
audited
** Between 2Q 2014
and 2Q 2013
Some 2013 figures were reclassified for the sake of
comparison with 2014 figures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the opinion of Ecopetrol S.A.'s CEO, Javier Gutierrez:
"The results of the second quarter of 2014 show the positive
effect of international crude prices that offset the strong impact
of the difficult operational environment (29 attacks to the
transport infrastructure during the quarter and 64 in the first
semester of the year) on production and sales.
Even though we produced an average of 714 thousand barrels in
June (Ecopetrol S.A. not including affiliates and subsidiaries),
mainly due to normality in the operation, the results of April and
May were hit by the forced shutdown of the Cano Limon - Covenas
pipeline during 40 days between March 25 and
June 3, as well as the shutdown of the Transandino pipeline
since June 10, and repeated
communities' blockades of production fields.
During the quarter, net income reached COP$2.85 trillion,
11.7% less than that of the first quarter of the year. EBITDA was
COP$6.77 trillion, with a margin of 45% and a decrease of 12.1%
compared to the previous quarter.
In this quarter, it is very important to highlight the
progress of our international exploration strategy with the
discovery in the Rydberg well on the U.S. Gulf of Mexico coast, and the acquisition of a
10% stake in blocks 38/11 and 39/11 in Angola. Subsidiaries keep delivering positive
financial results, where transport subsidiaries stand out. Finally,
9 plants of the new Cartagena
refinery had their mechanical completion and the overall progress
of the project stands at 92%.
Regarding the operation, two very important milestones were
reached and became effective on July
1. The first is the change in the organizational structure
with the creation of the General Operations Directorate and to
which the vice presidents of exploration, development and
production, transportation and downstream report directly.
This new structure will improve the coordination among the business
areas. The second milestone is the Regional model under which the
operation is grouped into four major regions: 1) Caribbean coast and Pacific coast, 2) Central,
3) Orinoquia and 4) Southern. Each will have with its own regional
vice-presidency, which will help provide greater agility in
decision making.
With respect to production, the progress of secondary
recovery pilot projects in the Magdalena valley and the 7% growth
in the production of companies in which Ecopetrol has a share
interest stand out.
In relation to financial results, I highlight the offering of
international bonds for US$2 billion
with a 31-year term and a favorable yield, and S&P left
unchanged our BBB/Stable rating in foreign currency. Both events
show the confidence of capital markets and financial strength of
our company.
Finally, this quarter was challenging for results and the
operation, but with important progress in the strategy that allows
us to be optimistic about the future of the company."
The complete report is available in www.ecopetrol.com.co
------------------------------------------
Ecopetrol is the largest company in Colombia and is integrated into the oil chain;
it is among the 40 major oil companies in the world and among the
four main ones in Latin America.
Besides Colombia - where it
generates over 60% of the national production - it is present in
exploration and production activities in Brazil, Peru
& US (Gulf of Mexico).
Ecopetrol owns the largest refinery in Colombia and most of the pipeline and
multi-product pipeline network in the country, and is significantly
increasing its participation in bio-fuels.
This report contains statements associated with the business
perspectives, estimates for operational and financial outcomes and
affirmations associated to Ecopetrol's growth. All the above are
projections, and as such are solely based on the expectations of
its directors with respect to the future of the company and its
ongoing access to capital to fund the company's commercial plan.
The realization of such estimates in the future depends on market
conditions, regulations, competitiveness, performance of
Colombia's economy and industry,
to mention a few; therefore, they are subject to changes without
previous notice.
For further information, please contact:
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: +571-234-4329
Fax: +571-234-4480
e-mail: mauricio.tellez@ecopetrol.com.co
Investor Relations Director
Alejandro Giraldo
Phone: +571-234-5190
Fax: +571-234-5628
e-mail: investors@ecopetrol.com.co
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SOURCE Ecopetrol S.A.