-- The Group's production maintained its growth trend,
averaging 773.4 mboed in the first quarter of 2015. Production
operated by Ecopetrol S.A. increased by 12.6%.
-- Barrancabermeja's gross refining margin reached
US$18.2 per barrel, an 11.7% increase
as compared with the first quarter of 2014.
-- The Group's consolidated[1] net income reached
COP$160 billion in the first quarter of 2015.
BOGOTA, Colombia, May 12, 2015 /PRNewswire/ -- Ecopetrol S.A. (BVC:
ECOPETROL; NYSE: EC; TSX: ECP) announced today Ecopetrol
Group's financial results for the first quarter of 2015, prepared
and filed in Colombian pesos (COP$) and on the basis of
International Financial Reporting Standards (IFRS). According with
the article 3 of the Decree 2784 of December
28, 2012, the application date of the new technical
framework is December 31, 2015, so
the financial information presented prior to this date is subject
to adjustments.
As indicated in paragraphs 9 and 18 of the International
Accounting Standard 27 "Consolidated and Separated Financial
Statements" Ecopetrol and its Corporate Group must present their
financial information on a consolidated basis as if they were a
single entity, combining the financial statements of the parent
company and its subsidiaries line by line, adding assets,
liabilities, shareholder´s equity, revenues and expenses of similar
nature, removing the reciprocal items between the Corporate Group
and recognizing the non-controlling interest.
Our financial results for the first quarter of 2015 and results
for the comparable 2014 period were prepared on the basis of IFRS
and are not comparable with our previously issued financial results
for the first quarter of 2014 which were prepared in accordance
with the Public Accounting Regime (Regimen de Contabilidad
Publica) as adopted by the Colombian National Accounting Office
(Contaduria General de la Nacion).
Some figures in this release are presented in U.S. dollars
(US$), as indicated. The exhibits in the main body of this report
have been rounded to one decimal.
|
|
|
|
|
|
Summary of the
Group's Financial Results
|
|
|
|
|
|
|
(COP$
Billion)
|
1Q
2015*
|
1Q
2014*
|
∆
($)
|
∆
(%)
|
|
Total
sales
|
12,300.9
|
17,971.3
|
(5,670.4)
|
(31.6%)
|
|
Operating
profit
|
2,357.8
|
6,264.7
|
(3,906.9)
|
(62.4%)
|
|
Net Income
Consolidated
|
355.9
|
4,064.8
|
(3,708.9)
|
(91.2%)
|
|
Non-controlling
interest
|
195.9
|
176.7
|
19.2
|
10.9%
|
|
Equity holders of
Ecopetrol**
|
160.0
|
3,888.1
|
(3,728.1)
|
(95.9%)
|
|
Other comprehensive
income
|
1,124.1
|
(200.0)
|
1,324.1
|
(662.1%)
|
|
EBITDA
|
3,148.9
|
7,864.7
|
(4,715.8)
|
(60.0%)
|
|
EBITDA
Margin
|
25.6%
|
43.8%
|
|
|
|
|
|
|
|
|
* These figures are
included for illustration purposes only. Unaudited.
|
|
|
|
** According to
IAS-1, "Presentation of financial statements", paragraph 83, the
company must include in the statement of comprehensive results the
results attributable to non-controlling interest (minority
interest) and the results attributable to shareholders of the
controlling company.
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|
|
|
|
|
|
|
|
|
|
|
[1] Net income
attributable to Ecopetrol's shareholders under IFRS.
|
|
|
1Q
2015
|
1Q
2014
|
∆
(%)
|
∆
($)
|
|
Crude oil basket
(US$/Bl)
|
42.9
|
91.2
|
(53.0%)
|
(48.3)
|
|
Quarterly average
exchange rate COP$/US$
|
2,469
|
2,004
|
23.2%
|
465.0
|
|
|
|
|
|
In the opinion of Ecopetrol S.A.'s CEO, Juan Carlos Echeverry:
Despite the decline in oil prices, in the first quarter of
2015 the Group reached a positive financial result due to the good
performance of its different segments and favorable environment
conditions for the operation.
Thus, operating and financial results of the Group on the
first quarter of 2015 were better than those of the fourth quarter
of 2014. Particularly, March was the best month of the first
quarter of 2015.
With respect to our exploration activities, the first
geological success for the year was reported at the Bullerengue-1
well, drilled by Hocol, located in the Sinu-San Jacinto basin,
which is expected to support the natural gas supply on the Atlantic
Coast region. In addition, we advanced in the drilling activities
in the offshore wells Kronos and Calasu, located in the southern
Caribbean Sea in partnership with Anadarko as operator (50% -
50%).
Our production activities have recorded four consecutive
quarters of growth, reaching 773.4 mboed in the first
quarter 2015, a 1% increase as compared to the first and
last quarters of 2014. This increase was the result of the start-up
of new facilities and wells in the Castilla and Chichimene fields,
both of which set production records of 124 mbod and 85 mbod,
respectively.
Our affiliated companies increased their production to a
total 51.4 mboed, a 5.8% rise as compared to the first quarter of
2014. Highlighting Ecopetrol America's production alone reached 6.4
mboed.
Amid this low crude oil prices scenario, our refining margin
has continued to improve, reaching 18.2
US$ per barrel in the first quarter of 2015, a 12% gain
as compared to the first quarter of 2014 (16.3 US$ per barrel) and a 15% gain as compared
to the fourth quarter of 2014 (15.8
US$ per barrel). The main contributing factors to this
result were the operating stability of units and the improvements
designed to give value to residual streams.
In transportation, total volumes moved during the first
quarter of 2015 were 1,273.5 mbd, a 6% increase compared to 1,200.1
mbd transported during the first quarter of 2014, and 3.3% more
compared to the fourth quarter of 2014. This result was primarily
due to higher volumes transported in the Cano Limon-Covenas
and Oleoducto Transandino systems resulting from the decreased
number of attacks on transport infrastructure, which went from 35
attacks on the first quarter of 2014 to 2 attacks in the first
quarter of 2015.
International crude oil prices reached its lower level in 6
years during the first quarter of 2015 (Brent 46.6 US$ per barrel on January 13). As a result, our revenues were
deeply affected, decreasing from COP$18 trillion to COP$12.3
trillion in the first quarter of 2015, a COP$5.7 trillion decrease
(31.6%). The effect of lower sales oil prices (from 101 US$ per barrel to 56
US$ per barrel between the first quarter of 2014 and the
first quarter of 2015) caused a decreased of COP$8.2 trillion in
our revenue, that was partially offset for the positive exchange
rate effect, representing a higher income of COP$2 trillion,
COP$200 billion in higher sales volumes and COP$250 billion in
higher income from transportation services to third parties due to
the effect of the devaluation on the tariffs.
Our cost of sales declined to COP$8.5 trillion in the
first quarter of 2015, a 21% decrease as compared to
COP$10.8 trillion in the first quarter of 2014. This result
was primarily due to the effect of lower oil prices on our
purchase costs of crude, gas and refined products, as well as lower
fixed costs due to the optimization of maintenance plans and
contracted services achieved during the first quarter of
2015.
Operating costs increased by 53% during the first quarter of
2015 as compared to the first quarter of 2014, primarily as a
consequence of the recording of the wealth tax applicable for year
2015.
The Colombian peso-U.S. dollar exchange rate had significant
effects on the Group's financial expenses. The impact of the
depreciation of the Colombian peso over our net liability position
resulted in an expense of COP$1.4 trillion during the first quarter
of 2015.
Income before taxes for the first quarter of 2015 was COP$828
billion. With the income tax provision of COP$472 billion
(57%) resulted in a consolidated net income of COP$160
billion.
Considering the current scenario of low oil prices, we are
focused on making our operations more efficient. Our operations
will continue focusing on safety, profitability and delivering
positive results for our shareholders."
The complete report is available in www.ecopetrol.com.co
Ecopetrol is the largest company in Colombia and is an integrated oil and gas
company; it is among the top 40 oil companies in the world and
among the top four oil companies in Latin
America. Besides Colombia –
where it generates over 60% of the national production – it has
exploration and production activities in Brazil, Peru,
the US (Gulf of Mexico) and
Angola. Ecopetrol owns the largest
refinery in Colombia, most of the
pipeline and multi-product pipeline network in the country, and is
significantly increasing its participation in bio-fuels.
This release contains statements that may be considered
forward looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. All forward-looking statements, whether made
in this release or in future filings or press releases or orally,
address matters that involve risks and uncertainties, including in
respect of the Company's prospects for growth and its ongoing
access to capital to fund the Company's business plan, among
others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
and gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, Ecopetrol's
competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
Contacts:
Head of Corporate Finance and
Investor Relations (A)
Maria
Catalina Escobar
Phone: (+571) 234 5190
E-mail: claudia.trujillo@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.