BOGOTA, Colombia, Oct. 31, 2014 /PRNewswire/ -- Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited
financial results, both consolidated and unconsolidated, for the
third 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)
|
3Q
2014*
|
2Q
2014*
|
Var.
%
|
3Q
2013*
|
Var. %
**
|
Jan-Sep.
14*
|
Jan-Sep.
13*
|
Var.
%
|
Total
sales
|
14,579.9
|
14,976.6
|
( 2.6%)
|
16,218.5
|
(10.1%)
|
45,298.3
|
46,312.9
|
( 2.2%)
|
Operating
profit
|
3,875.6
|
4,161.0
|
( 6.9%)
|
5,706.2
|
(32.1%)
|
12,589.3
|
15,758.6
|
( 20.1%)
|
Net Income
|
2,355.6
|
2,847.8
|
( 17.3%)
|
3,973.8
|
(40.7%)
|
8,429.3
|
10,723.3
|
( 21.4%)
|
Earnings per share
(COP$)
|
57.29
|
69.26
|
( 17.3%)
|
96.65
|
(40.7%)
|
205.01
|
260.80
|
( 21.4%)
|
EBITDA
|
5,471.9
|
6,770.5
|
( 19.2%)
|
8,166.3
|
(33.0%)
|
19,947.0
|
23,229.1
|
( 14.1%)
|
EBITDA
Margin
|
38%
|
45%
|
|
50%
|
|
44%
|
50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
(COP$
Billion)
|
3Q
2014*
|
2Q
2014*
|
Var.
%
|
3Q
2013*
|
Var. %
**
|
Jan-Sep.
14*
|
Jan-Sep.
13*
|
Var.
%
|
Total
sales
|
18,091.3
|
17,749.3
|
1.9%
|
18,127.2
|
( 0.2%)
|
54,102.6
|
52,468.5
|
3.1%
|
Operating
profit
|
4,670.0
|
4,921.2
|
( 5.1%)
|
6,144.0
|
( 24.0%)
|
15,473.9
|
17,625.1
|
( 12.2%)
|
Net Income
|
2,279.3
|
2,787.5
|
( 18.2%)
|
3,860.7
|
( 41.0%)
|
8,354.2
|
10,680.0
|
( 21.8%)
|
EBITDA
|
5,468.9
|
6,681.6
|
( 18.1%)
|
7,999.7
|
( 31.6%)
|
19,943.5
|
23,112.3
|
( 13.7%)
|
EBITDA
Margin
|
30%
|
38%
|
|
44%
|
|
37%
|
44%
|
|
|
|
|
|
|
|
|
|
|
* Not
audited
|
|
|
|
|
|
|
|
|
** Between 3Q 2014
and 3Q 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:
"Our quarterly production improved, reaching 754 thousand
barrels per day due to better operational conditions and progress
of key projects in our fields. However, the period's financial
results were clearly affected by the international situation, which
led to a US$9.4 per barrel
decline in crude export prices compared to the prior quarter, as
well as weakening of the currencies of emerging
countries.
As a result, our profit was lower because of the decline in
the sale prices of crude, products and gas, which decreased 9.5%,
4.4% and 2.9%, respectively, in comparison to the second quarter of
this year. We recorded a significant non-operating loss due to the
valuation of our dollar denominated liabilities, at a higher
exchange rate with increased COP 109
per dollar during September.
It is important to mention that a weakening of the
peso-dollar exchange rate has two effects in our financial
statements. A negative impact due to our dollar denominated debt,
and a positive effect given that most of our operational revenue is
dollar denominated while the operational costs are mainly peso
denominated.
There were many highlights in the quarter, among which I
would like to mention the following:
Production was up by 2.8% compared to the prior quarter, and
our Chichimene field reached a record production of 66 thousand
barrels a day.
In exploration, we announced a discovery in the U.S.
Gulf of Mexico (Leon well) and in
Colombia were awarded five blocks
in the ANH Round 2014.
The volume of crude and products transported was higher owing
to a decrease in number of attacks and the higher volumes
transported by the Bicentenario oil pipeline.
Barrancebermeja's refining gross margin rose 52% due to the
wider crude-product spread, driving a mayor increase in the
segment's Ebitda. The modernization of the Cartagena refinery reached a 94.7% total
progress.
We issued US$1.2 billion in
external debt bonds, and the agencies Moody's and Fitch confirmed
their Baa2 and BBB risk ratings in foreign currency, respectively,
for Ecopetrol.
We must also mention the signing of a four year collective
labor agreement with our unions.
As a closing, it is worth mentioning that several internal
processes will be concluded in the coming months which are very
important for our organization, including a review of our medium
and long-term strategies, the approval of next year's investment
plan and the preparation for adopting the International Financial
Reporting Standards (IFRS) starting January
1, 2015."
The complete report is available in www.ecopetrol.com.co
Contacts:
Investor Relations Department
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Website: www.ecopetrol.com.co
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SOURCE Ecopetrol S.A.