UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of
May, 2016
Commission File Number 001-34175
|
ECOPETROL S.A.
|
|
(Exact name of registrant as specified in
its charter)
|
|
N.A.
|
|
(Translation of registrant’s name
into English)
|
|
COLOMBIA
|
|
(Jurisdiction of incorporation or organization)
|
|
Carrera 13 No. 36 – 24
|
|
BOGOTA D.C. – COLOMBIA
|
|
(Address of principal executive offices)
|
Indicate by check mark
whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F
x
Form
40-F
¨
Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes
¨
No
x
Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes
¨
No
x
Indicate by check mark
whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
¨
No
x
If “Yes”
is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
N/A
Ecopetrol
Group Announces Its Results for the First Quarter of 2016
1
|
|
·
|
Amid
the lowest Brent price of the last 12 years, in the first quarter of 2016 the Group achieved
a net income attributable to shareholders of Ecopetrol of COP$363 billion.
|
|
|
·
|
Net
income attributable to shareholders of Ecopetrol, increased 127% as compared to the first
quarter of 2015.
|
|
|
·
|
Solid
cash flow generation with an Ebitda margin of 39.5%, resulting in an Ebitda of COP$4.1
trillion for the first quarter of 2016.
|
|
|
·
|
Group’s
savings amounted COP$421 billion during the first quarter of 2016. The Company continues
to demonstrate its capacity to adapt under an adverse price scenario.
|
Bogota, May 3, 2016. Ecopetrol
S.A. (BVC: ECOPETROL; NYSE: EC) (“Ecopetrol” or the “Company”) announced today Ecopetrol Group’s
financial results for the first quarter of 2016, prepared and filed in Colombian pesos (COP$) and under International Financial
Reporting Standards (IFRS) applicable in Colombia.
Table 1: Summary
of the Group’s Consolidated Financial Results
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
(COP$ Billion)
|
|
1Q 2016*
|
|
|
1Q 2015*
|
|
|
∆ ($)
|
|
|
∆ (%)
|
|
|
Total sales
|
|
|
10,485
|
|
|
|
12,301
|
|
|
|
(1,816
|
)
|
|
|
(14.8
|
)%
|
|
Operating profit
|
|
|
1,599
|
|
|
|
2,357
|
|
|
|
(758
|
)
|
|
|
(32.2
|
)%
|
|
Net Income Consolidated
|
|
|
611
|
|
|
|
356
|
|
|
|
255
|
|
|
|
71.6
|
%
|
|
Non-controlling interest
|
|
|
(248
|
)
|
|
|
(196
|
)
|
|
|
(52
|
)
|
|
|
26.5
|
%
|
|
Net (loss) income attributable to Owners of Ecopetrol **
|
|
|
363
|
|
|
|
160
|
|
|
|
203
|
|
|
|
126.9
|
%
|
|
Other comprehensive income attributable to Owners of Ecopetrol **
|
|
|
(416
|
)
|
|
|
1,097
|
|
|
|
(1,513
|
)
|
|
|
(137.9
|
)%
|
|
EBITDA
|
|
|
4,137
|
|
|
|
4,782
|
|
|
|
(645
|
)
|
|
|
(13.5
|
)%
|
|
EBITDA Margin
|
|
|
39.5
|
%
|
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
* These figures are included for illustration
purposes only. Unaudited.
** According to IAS-1, “Presentation
of financial statements”, paragraph 83, the company must include in the statement of comprehensive results, the results
attributable to non-controlling interest (minority interest) and the results attributable to shareholders of the controlling company.
1
Some figures in this release are presented in U.S. dollars (US$) as indicated. The exhibits in the main body of this report
have been rounded to one decimal. Figures expressed in billions of COP$ are equal to COP$1 thousand million. All financial information
in this report is unaudited.
In the view of the President of Ecopetrol
S.A., Juan Carlos Echeverry G.:
"The price environment in the
first quarter of 2016 continued to defy the oil industry, which saw the value of crude reach US$28/barrel, a 12 year record low.
Ecopetrol, however, managed to generate profits amid this challenging environment, focusing its efforts on reducing costs, increasing
efficiency, producing profitable barrels and prioritizing cash generation.
During the first quarter of 2016 the
price of Ecopetrol´s crude basket fell 43% and its refining margin fell 24% in comparison to those of the same period of
2015. The actions undertaken to operate more efficiently and with lower costs, coupled with the positive impact of the devaluation
of the exchange rate over our revenues and the recording of a lower financial net loss allowed to register a growth of 127% in
net profit attributable to shareholders and to improve the EBITDA margin compared to those of the first quarter of 2015. Additionally,
the Company maintained its operating margins and EBITDA at approximately COP$4,000 billion compared to the same quarter.
Savings in costs and expenses contributed
to the obtained results, these amounted to COP$421 billion in the first quarter of the year, against a target of COP$1,600 billion
for all 2016. The efficiencies are mainly due to the optimization of purchasing and contracting plans, better procurement strategies
and renegotiation of contracts.
The reduction of the lifting cost,
cash cost of refining and transportation costs, reported in the first quarter of 2016, compared to the same period last year,
are a result of the progress made by the company pursuant to the Transformation Plan, the devaluation of the COP/USD exchange
rate and austerity and activity reduction measures implemented in all business segments. Ecopetrol is working so that the obtained
efficiencies become structural even in an environment of increasing prices in order to ensure profitable operations and financial
sustainability.
The adjustments in CAPEX and OPEX implemented
since 2015, in line with lower oil prices and the strategic prioritization of value over volume led to programmed lower activity
and lower production in the first quarter of 2016, which came to 737 thousand barrels equivalent per day, compared to 773 thousand
in the first quarter of 2015. This fall also reflects the natural decline and the temporary closure of some fields caused by low
profitability or judicial decisions. Once market conditions and cash availability improve, the Company expects to increase levels
of investment in exploration and production and give way to investments that have been postponed in this low crude oil price environment.
In exploration, the deep water appraisal
well Leon 2 in the Gulf of Mexico of the United States was completed. This one is operated by Repsol, which holds a 60% stake.
The remaining 40% belongs to Ecopetrol America Inc. The Company is awaiting the results of the evaluation of the information provided
by the well, located in one of the regions with the greatest potential for hydrocarbons in deep waters in the world.
Between the first quarter of 2015 and
2016 the gross margin of the refining segment decreased by US$4.5 per barrel mainly as a result of market conditions marked by
lower spreads between prices of middle distillates and the price of oil.
The Cartagena refinery continued its
boot and stabilization process, obtaining a regular operation of the delayed coking, catalytic cracking and diesel hydro-treaters
units. As of March 31, 28 units of a total of 34 were operational. It is expected that all units in the complex will be in full
operation by the second half of 2016. Additionally, loads of crude up to 140 thousand barrels of oil a day have been achieved.
Test of high viscosity crude transportation
were started in February 2016. Satisfactory results were obtained moving oil with a viscosity of 405 centistokes (cSt). This project,
along with the expansion of capacity in Ocensa (P-135) will reduce the cost of dilution which is key to the production of heavy
crudes, which today represent about 58% of the total production of the Group.
In December 2015 the Company imposed
a significant cut on its 2016 investments compared to the levels of previous years with the approval of a budget of US$4,800 million.
The need to preserve the financial sustainability of the Company with the low oil prices environment prompted a further cut in
the investment plan for 2016, which now will range between US$3,000 and US$3,400 million. The expected production was adjusted
to this new reality from 755 thousand barrels per day to approximately 715 thousand barrels of oil equivalent per day.
2016 is a transition year for the Ecopetrol
Group during which the cycle of investments in Midstream and Downstream will conclude with some transport projects and the startup
of the Cartagena refinery. From 2017 on the Company will devote a greater proportion of its investments to Upstream.
Financing needs for this year are in
the US$1,500 - US$1,900 million range, without taking into account the resources that may be obtained from the Company´s
divestment plan. To date, US$475 million has already been obtained through credit facilities with local and international banks.
Cash flow was also leveraged by the
results of the auction of Ecopetrol´s stake in ISA held in April 2016, which allowed allotting shares in the amount of COP$377
billion.
Shareholders also contributed to the
financial strengthening of the Company with the decision not to distribute dividends in 2016, which was made during the last general
meeting of shareholders.
Operational excellence, focus on capital
discipline, rationalization of investments and rotation of the portfolio of assets to generate cash flow have enabled Ecopetrol
to successfully navigate the current price environment.
Ecopetrol continues to position itself
for the future by strengthening its portfolio of exploration and production in order to seize opportunities that may be generated
in the next cycle of higher crude oil prices. In this way we can ensure growth in the long term, financial sustainability and
value creation for Ecopetrol."
Ecopetrol
Group Announces Its Results for
the
First Quarter of 2016
Table of Contents
|
|
I.
|
Consolidated Financial Results
|
The following table summarizes sales volume
for the periods indicated:
Table 2: Sales
Volume
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
Local sales volume (mboed)
|
|
IQ 2016
|
|
|
IQ2015
|
|
|
∆ (%)
|
|
|
Crude Oil
|
|
|
15.8
|
|
|
|
20.1
|
|
|
|
(21.6
|
)%
|
|
Natural Gas
|
|
|
86.8
|
|
|
|
81.4
|
|
|
|
6.6
|
%
|
|
Gasoline
|
|
|
106.5
|
|
|
|
92.4
|
|
|
|
15.2
|
%
|
|
Medium Distillates
|
|
|
139.7
|
|
|
|
142.0
|
|
|
|
(1.6
|
)%
|
|
LPG and Propane
|
|
|
16.8
|
|
|
|
15.5
|
|
|
|
8.8
|
%
|
|
Fuel Oil
|
|
|
6.9
|
|
|
|
5.2
|
|
|
|
31.5
|
%
|
|
Industrial and Petrochemical
|
|
|
19.7
|
|
|
|
21.4
|
|
|
|
(8.0
|
)%
|
|
Total Local Sales
|
|
|
392.2
|
|
|
|
378.0
|
|
|
|
3.7
|
%
|
|
Export sales volume (mboed)
|
|
IQ 2016
|
|
|
IQ2015
|
|
|
∆ (%)
|
|
|
Crude Oil
|
|
|
463.5
|
|
|
|
570.4
|
|
|
|
(18.7
|
)%
|
|
Products
|
|
|
131.4
|
|
|
|
72.7
|
|
|
|
80.6
|
%
|
|
Natural Gas
|
|
|
1.6
|
|
|
|
16.2
|
|
|
|
(89.9
|
)%
|
|
Total Export Sales
|
|
|
596.5
|
|
|
|
659.3
|
|
|
|
(9.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales Volume
|
|
|
988.7
|
|
|
|
1,037.3
|
|
|
|
(4.7
|
)%
|
a.1) Market in Colombia (39.7% of total
sales in the first quarter of 2016):
Local sales in the first quarter of 2016
increased compared to the same period of last year, due to:
|
|
·
|
Greater
demand for gasoline driven by: 1) growth of the automotive fleet, 2) suspension of the
blending of ethanol in the country’s northern zone, and 3) the effect of the Venezuelan
border closing of.
|
|
|
·
|
An
increase in sales of natural gas for thermal power generation due primarily to the intensification
of the El Niño phenomenon and the availability of natural gas resulting from the
decline in exports.
|
|
|
·
|
Lower
sales of crude to Equion because of the evacuation of its crude by alternate transport
systems.
|
|
|
·
|
Lower
sales of diesel due to lower demand in Colombia.
|
a.2) International market (60.3% of
total sales in the first quarter of 2016):
Volume exported decreased 9.5% in the
first quarter of 2016 with respect to the same period of last year, mainly explained by the net effect of:
|
|
·
|
Lower
exports of crude due to: 1) delivery of crude to the Cartagena refinery, 2) lower production
by the Ecopetrol Group and 3) lower operating availability of transport systems.
|
|
|
·
|
Lower
gas exports as a result of the expiration of the gas supply contract with Venezuela on
June 30, 2015.
|
|
|
·
|
Greater
exports of products due to start-up of operations of the Cartagena refinery (diesel,
naphtha, jet fuel and fuel oil).
|
Export Markets:
Table 3: Export Markets
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
E
|
|
|
F
|
|
|
Export Destinations - Crudes (mbod)
|
|
Export Destinations - Products (mboed)
|
|
Destination
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Destination
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Asia
|
|
|
77.9
|
|
|
|
153.7
|
|
|
Asia
|
|
|
8.4
|
|
|
|
14.8
|
|
|
U.S. Gulf Coast
|
|
|
202.1
|
|
|
|
151.2
|
|
|
U.S. Gulf Coast
|
|
|
27.0
|
|
|
|
18.1
|
|
|
U.S. West Coast
|
|
|
55.2
|
|
|
|
51.5
|
|
|
U.S. West Coast
|
|
|
19.8
|
|
|
|
12.1
|
|
|
U.S. East Coast
|
|
|
16.4
|
|
|
|
5.5
|
|
|
U.S. East Coast
|
|
|
21.3
|
|
|
|
0.1
|
|
|
Europe
|
|
|
59.9
|
|
|
|
87.2
|
|
|
Europe
|
|
|
0.4
|
|
|
|
4.9
|
|
|
Central America / Caribbean
|
|
|
29.1
|
|
|
|
107.2
|
|
|
Central America / Caribbean
|
|
|
34.9
|
|
|
|
16.6
|
|
|
South America
|
|
|
11.9
|
|
|
|
8.5
|
|
|
South America
|
|
|
5.8
|
|
|
|
6.1
|
|
|
Other
|
|
|
11.0
|
|
|
|
5.6
|
|
|
Other
|
|
|
13.8
|
|
|
|
0.0
|
|
|
Total
|
|
|
463.5
|
|
|
|
570.4
|
|
|
Total
|
|
|
131.4
|
|
|
|
72.7
|
|
|
|
·
|
Crude:
Seeking to obtain higher sales margins for Ecopetrol crudes, an increase of sales
in the United States market was achieved due to the signing of contracts with East Coast
refineries, taking advantage of greater competitiveness of imported as opposed to domestic
crudes (closing of WTI – Brent differential) as a result of the announcement of
the release of exports and lower production in the United States.
|
|
|
|
Sales to the Asian market fell because
of the increase in supply from Iraq and Iran, which have focused their strategy on recovering
their market share in Asia, by selling their crude at lower prices than those of Latin
American crudes.
|
|
|
|
Finally, during the first quarter, lower
volumes were allocated to Central America and the Caribbean, in view of reduced incentives
for storage in these regions, which in turn resulted from lower expectations for recovering
prices in the near-term.
|
|
|
·
|
Products:
The volume of fuel oil delivered to Asia dropped as a consequence of the decline
in the demand of small refineries (which can use crude oil instead of fuel oil) and large
inventories in Singapore. Similarly, a decline was observed in sales of fuel oil to Europe
due to oversupply resulting from higher runs of simple conversion refineries in this
region. These volumes were exported to the East Coast of the U.S. where the product is
used for the preparation of bunker fuels.
|
Noteworthy among other products
exported are diesel, naphtha and high sulfur diesel, which were placed on the markets of the United States´ Gulf Coast and
Atlantic Coast and Africa, respectively.
|
|
b.
|
Crude, Refined Products, and Gas Prices
|
The following table shows the average prices of Brent, Maya
and West Texas Intermediate (WTI) crude.
Table 4: Price of Crude References
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
Prices of Crude References
(Average, US$/Bl)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ ($)
|
|
|
Brent
|
|
|
35.2
|
|
|
|
55.1
|
|
|
|
(36.1
|
)%
|
|
|
(19.9
|
)
|
|
MAYA
|
|
|
23.1
|
|
|
|
43.9
|
|
|
|
(47.4
|
)%
|
|
|
(20.8
|
)
|
|
WTI
|
|
|
33.6
|
|
|
|
48.6
|
|
|
|
(30.9
|
)%
|
|
|
(15.0
|
)
|
The following table shows the average sales price of the crude
oil basket, refined products basket and natural gas basket.
Table 5: Average Sales Price
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
F
|
|
Sales Price
(US$/Bl)
|
|
1Q 2016
|
|
|
1Q 2015*
|
|
|
∆ (%)
|
|
|
∆ $
|
|
|
Sales Volume
(mboed)
1Q 2016
|
|
|
Crude oil basket
|
|
|
25.1
|
|
|
|
44.3
|
|
|
|
(43.3
|
)%
|
|
|
(19.2
|
)
|
|
|
479.3
|
|
|
Products basket
|
|
|
41.6
|
|
|
|
68.1
|
|
|
|
(38.9
|
)%
|
|
|
(26.5
|
)
|
|
|
421.0
|
|
|
Natural gas basket
|
|
|
25.0
|
|
|
|
23.7
|
|
|
|
5.5
|
%
|
|
|
1.3
|
|
|
|
88.4
|
|
* Some amounts exhibit changes or reclassifications
for purposes of comparison
Crude:
The crude sale basket declined by US$19.2/Bl
between the first quarter of 2016 and the same period of 2015, reflecting the drop in benchmark indicators (Brent decreased by
US$19.9/Bl) mainly as a result of the continuing imbalance between supply and demand for crude at the global market and diminished
growth projections for the leading global economies.
The differential of the crude basket versus
Brent improved by US$0.7/Bl (1Q-2016: -US$10.1/Bl vs 1Q-2015: -US$10.8/Bl) due to the re-composition of export destinations allowing
a better valuation of our crudes due to the capture of higher demand and the growing interest of refiners in the U.S. for imported
crude oil.
Factors such as the accumulation of crude
inventories, the strengthening of the dollar and the persistent oversupply in the first quarter of 2016, are maintaining differentials
at levels of the first quarter of 2015, despite the drop of Brent.
The Ecopetrol Group’s crude export
basket was referenced to the following indicators: Brent (78.4%), Maya (21.1%) and Other (0.5%); which shows a reduction to the
Maya index and an increase in the Brent index, as compared to the first quarter of 2015 ( Brent: 69.4%, Maya: 29.2% and others
1.4%).
Refined Products:
During the first quarter of 2016, the
refined products sales basket price decreased by US$26.5 per barrel, as compared to the first quarter of 2015, due to the drop
in international benchmark prices for gasoline, diesel and jet fuel.
Natural Gas:
During the first quarter of 2016, natural
gas prices increased by US$1.3 per barrel equivalent in comparison to the same quarter of 2015, attributable to higher prices
in force since December 2015 as a result of the commercialization process made in 2015.
The first quarter of 2016 had the lowest
oil prices in the last 12 years. The Company has confronted this situation with optimization plans that are reflected in lower
costs for maintenance, contracted services and agreements, among other factors. At the close of this period profit for shareholders
have been registered for COP$363 billion, with a positive EBITDA margin of 39.5%, both figures being higher than those presented
for the same period last year.
The table below shows a detailed analysis
of the Income Statement results:
Table 6: Consolidated Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
Consolidated Income Statement
COP$ Billion
|
|
1Q 2016*
|
|
|
1Q 2015*
|
|
|
∆ ($)
|
|
|
∆ (%)
|
|
|
Local Sales
|
|
|
6,032
|
|
|
|
5,827
|
|
|
|
205
|
|
|
|
3.5
|
%
|
|
Export Sales
|
|
|
4,453
|
|
|
|
6,474
|
|
|
|
(2,021
|
)
|
|
|
(31.2
|
)%
|
|
Total Sales
|
|
|
10,485
|
|
|
|
12,301
|
|
|
|
(1,816
|
)
|
|
|
(14.8
|
)%
|
|
Variable Costs
|
|
|
5,495
|
|
|
|
6,437
|
|
|
|
(942
|
)
|
|
|
(14.6
|
)%
|
|
Fixed Costs
|
|
|
1,951
|
|
|
|
2,118
|
|
|
|
(167
|
)
|
|
|
(7.9
|
)%
|
|
Cost of Sales
|
|
|
7,446
|
|
|
|
8,555
|
|
|
|
(1,109
|
)
|
|
|
(13.0
|
)%
|
|
Gross Profits
|
|
|
3,039
|
|
|
|
3,746
|
|
|
|
(707
|
)
|
|
|
(18.9
|
)%
|
|
Operating Expenses
|
|
|
1,440
|
|
|
|
1,389
|
|
|
|
51
|
|
|
|
3.7
|
%
|
|
Operating Income/Loss
|
|
|
1,599
|
|
|
|
2,357
|
|
|
|
(758
|
)
|
|
|
(32.2
|
)%
|
|
Financial Income/Loss
|
|
|
(136
|
)
|
|
|
(1,530
|
)
|
|
|
1,394
|
|
|
|
(91.1
|
)%
|
|
Results from Subsidiaries
|
|
|
(27
|
)
|
|
|
1
|
|
|
|
(28
|
)
|
|
|
(2,800.0
|
)%
|
|
Provision for Income Tax
|
|
|
(825
|
)
|
|
|
(472
|
)
|
|
|
(353
|
)
|
|
|
74.8
|
%
|
|
Net Income Consolidated
|
|
|
611
|
|
|
|
356
|
|
|
|
255
|
|
|
|
71.6
|
%
|
|
Non-Controlling Interests
|
|
|
(248
|
)
|
|
|
(196
|
)
|
|
|
(52
|
)
|
|
|
26.5
|
%
|
|
Net income attributable to Owners of Ecopetrol **
|
|
|
363
|
|
|
|
160
|
|
|
|
203
|
|
|
|
126.9
|
%
|
|
Other Comprehensive Income Attributable to Owners of Ecopetrol
|
|
|
(416
|
)
|
|
|
1,097
|
|
|
|
(1,513
|
)
|
|
|
(137.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
4,137
|
|
|
|
4,782
|
|
|
|
(645
|
)
|
|
|
(13.5
|
)%
|
|
EBITDA Margin
|
|
|
39.5
|
%
|
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
* These figures are unaudited and are
included for illustration purposes only. Some lines might have been reclassified by the sake of comparison.
** 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.
Sales Revenues
for the first quarter
of 2016, with respect to the same period last year, decreased 15% (-COP$1.816 billion), as a combined result of:
|
|
·
|
Lower
average price for the Ecopetrol Group’s basket of crude and products (-US$18.6/Barrel):
-COP$3,961 billion.
|
|
|
·
|
Effect
of sales volume +COP$106 billion, resulting primarily from:
|
|
|
o
|
Higher volumes sold of refined
products and petrochemicals (+72 mboed) by +COP$1,086 billion, principally because of
the startup of operations at the Cartagena Refinery, growth in demand due to the increase
of vehicles in Colombia, and provision of supply in the border zone with Venezuela; primarily
offset by:
|
|
|
o
|
Lower volumes in crude sales (-111
mboed) by –COP$922, due to lower production, fewer purchases by third parties in
the southern part of the country because of closing of the wells of certain producers,
and because of the provision of crude to load the Cartagena Refinery.
|
|
|
o
|
Lower volumes in gas sales (-9
mboed) by –COP$58 billion, principally due to lower exports, given the termination
of the gas supply contract with Venezuela.
|
|
|
·
|
Devaluation
of the COP/USD Exchange rate, which on average went from COP$2,469/US$ in the first quarter
of 2015 to COP$3,249/US$ in the first quarter of 2016, improving total revenues by COP$1,966
billion.
|
|
|
·
|
Other
minor revenues by +COP$73 billion.
|
The
cost of sales
for the first
quarter of 2016 fell 13% (-COP$1,109 billion) as a result of:
|
|
·
|
Variable
costs:
declined by 15% (-COP$942 billion), mainly as a result of:
|
|
|
a)
|
Lower costs in purchases of crude, gas and products (-COP$844
billion) due to the net effect of:
|
|
|
o
|
Lower average purchase price given
international reference prices by -COP$1,676 billion.
|
|
|
o
|
Increase in volumes purchased
(+4 mboed) by +COP$75 billion, primarily due to: 1) crude imports for the startup of
operations at the Cartagena Refinery, offset by, 2) lower purchases of crude due to the
closing of wells of certain third parties in the southern part of the country, and 3)
lower imports of fuels given the startup of operations at the Cartagena Refinery.
|
|
|
o
|
Devaluation of the average COP/USD
exchange rate: +COP$757 billion.
|
|
|
b)
|
Lower transport costs –COP$86
billion, mainly because of optimizations in transport by tank trucks and fewer capacity
purchases given greater transport system availability.
|
|
|
c)
|
Other minor variable categories:
-COP$12 billion.
|
|
|
·
|
Fixed
costs:
decline by 8% (-COP$167 billion) mainly as a result of:
|
|
|
a)
|
A decline in maintenance and
services contracted (-COP$168 billion), mainly due to: 1) optimizations achieved in the
execution of our Transformation plan, 2) lower operating costs for partnership contracts
in the Rubiales and Quifa fields, mainly because of the downsizing of personnel entailing
lower costs for canteen and facilities, catering, hotels, air and ground transportation
of staff, 3) cutting costs at the Casanare field by closing six wells and optimizing
contracts; and 4) restructuring of services and quantities, and renegotiation of rates
for framework maintenance contracts at the fields.
|
|
|
b)
|
Drop in labor costs of –COP$94
billion, principally because of the reduction in variable compensation.
|
|
|
c)
|
An increase in depreciation of
+COP$91 billion, principally at Reficar because of the startup of operations at the Refinery
as well as capitalization of higher maintenance at the Barrancabermeja Refinery.
|
|
|
d)
|
Other minor categories +COP$4
billion.
|
In 2016, results were impacted in an amount
of COP$21 billion because of attacks on infrastructure. This includes repair of transport systems, removal of illegal hookups,
renewal of pipeline operation and decontamination of areas.
Gross margin for the first quarter of
2016 stood at 29%, as compared to 30% for the same quarter last year.
Operating expenses,
including exploration
expenses, grew by 4% (COP$51 billion), mainly due to project expenses associated with updating environmental allowances.
The
net financial (non-operational)
result exhibited lower expenditures of +COP$1,394 billion, as a net result of:
|
|
a)
|
Variation of the result of exchange
rate difference of +COP$1,799 billion, resulting in profits of COP$625 billion in the
first quarter of 2016, as compared to a loss of -COP$1,174 billion in the same period
last year, taking into account the fact that, in 2016, for exchange rates at the close
of the period there was a 4% revaluation of the Colombian peso against the dollar, as
opposed to a devaluation of 7.7% in the first quarter of 2015.
|
As a result of the application,
by Ecopetrol S.A., of Hedge Accounting for future exports, which makes it possible to recognize the effect of exchange rate variations
in long- term foreign currency debt as equity, in the first quarter of 2016 a revenue of COP$679 billion was recorded as Other
Comprehensive Income (OCI – Equity).
|
|
b)
|
Higher financial expense, mainly
due to the (net) increase in interest deriving from debt contracted during the previous
year, from increases in interest rates on floating rate credits, and the effect of an
exchange rate devaluation of -COP$405 billion.
|
Participation in companies
incurred
a loss of -COP$27 billion, as compared to profits in the same period of 2015 of COP$1 billion, primarily due to losses generated
at companies in the exploration and production segment that are not consolidated, due to the low crude oil price conditions.
As a consequence of the factors mentioned
above,
the net result
for
the quarter, attributable to Company shareholders, came to COP$363 billion, 127% higher
than net profits for the first quarter of 2015.
EBITDA
fell 13%, despite a drop
of more than 30% in the price of crude, going from COP$4,782 billion in the first quarter of 2015, to COP$4,137 billion in the
same period of 2016.
EBITDA
margin
went from 38.9% in the first quarter of 2015 to 39.5% in the same period of 2016.
Table 7: Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
∆ ($)
|
|
|
∆ (%)
|
|
|
Current Assets
|
|
|
20,456
|
|
|
|
20,113
|
|
|
|
343
|
|
|
|
1.7
|
%
|
|
Non Current Assets
|
|
|
101,292
|
|
|
|
102,883
|
|
|
|
(1,591
|
)
|
|
|
(1.5
|
)%
|
|
Total Assets
|
|
|
121,748
|
|
|
|
122,996
|
|
|
|
(1,248
|
)
|
|
|
(1.0
|
)%
|
|
Current Liabilities
|
|
|
16,273
|
|
|
|
17,443
|
|
|
|
(1,170
|
)
|
|
|
(6.7
|
)%
|
|
Long Term Liabilities
|
|
|
60,468
|
|
|
|
60,321
|
|
|
|
147
|
|
|
|
0.2
|
%
|
|
Total Liabilities
|
|
|
76,741
|
|
|
|
77,764
|
|
|
|
(1,023
|
)
|
|
|
(1.3
|
)%
|
|
Equity
|
|
|
45,007
|
|
|
|
45,232
|
|
|
|
(225
|
)
|
|
|
(0.5
|
)%
|
|
Non Controlling Interest
|
|
|
1,725
|
|
|
|
1,875
|
|
|
|
(150
|
)
|
|
|
(8.0
|
)%
|
|
Total Liabilities and Shareholders' Equity
|
|
|
121,748
|
|
|
|
122,996
|
|
|
|
(1,248
|
)
|
|
|
(1.0
|
)%
|
The main variations in the balance sheet
during the first quarter of 2016 compared to the close of 2015 can be explained by the following factors:
|
|
·
|
Current
assets
increased by COP$343 billion, mainly at Ecopetrol S.A. under the line item
cash and cash equivalents, reflecting funds resulting from the new incurrence of debt
in the first quarter of 2016, partially offset by a decline in commercial accounts receivable,
which in turn was a consequence of lower sales due to low oil prices registered during
the period, and inventory consumption.
|
|
|
·
|
Non-current
assets
fell by -COP$1,591 billion, mainly as a result of:
|
|
|
o
|
Property, Plant and equipment
-COP$1,741 billion, largely as a result of depreciation registered during the period
and the effect on conversion to the asset closing rate by companies with the dollar as
their functional currency.
|
|
|
o
|
Deferred income tax
rate
of
+COP$320 billion, generated primarily at Ecopetrol S.A., taking into account
the effect of temporary differences between fiscal and accounting factors in clearance
of the income allowance at the close of the quarter.
|
|
|
o
|
Other minor variations in non-current
assets in the amount of -COP$170 billion.
|
|
|
·
|
Current
liabilities
decreased COP$1,170 billion in relation to December of 2015, mainly because
of payment of the last share of dividends for 2014 to the majority shareholder, fulfillment
of obligations to third parties and fewer purchases during the period.
|
|
|
·
|
Long-term
liabilities
rose COP$147 billion, mainly due to the combined effect of 1) incurrence
of new debt, with the following banks: Bancolombia in pesos (COP$990 billion) and Bank
of Tokyo Mitsubishi UFJ, Ltd (USD$175 million), offset by, 2) the effect of 4% revaluation
for the period on debts in foreign currency.
|
|
|
·
|
Total
Shareholder´s Equity,
at the close of the first quarter of 2016, came to COP$45,007
billion, of which COP$43,282 billion is attributable to Ecopetrol shareholders, down
-COP$75 billion with respect to the close of December of 2015. This decrease is primarily
due to the combined effect of profits for the quarter and other comprehensive income,
associated with the conversion adjustment for affiliates with a functional currency other
than the Colombian peso.
|
The ratings in effect as of March 31,
2016 were as follows:
|
|
·
|
Moody’s
Investors Service: Baa3 with outlook under revision.
|
|
|
·
|
Standard
and Poor’s: BBB with negative outlook.
|
|
|
·
|
Fitch
Ratings: international rating BBB, local BBB+, both ratings with a stable outlook.
|
Ecopetrol obtained the following loans
in the first quarter of 2016:
|
|
·
|
An
international credit agreement for US$175 million with The Bank of Tokyo-Mitsubushi UFJ,
Ltd (approximately COP$578 billion). The credit agreement has a term of 5 years, repayable
with a 2.5 year grace period on principal and interest, payable semi-annually at a rate
of Libor + 145 basis points. These terms are similar to those obtained by Ecopetrol in
the international syndicated loan closed in February 2015.
|
|
|
·
|
A
bilateral commercial loan agreement with Bancolombia S.A. for COP$990 billion (approximately
USD$300 million). This loan agreement has a term of 8 years and a 2-year grace period
on principal, with interest payable semiannually at a rate of DTF TA + 560 basis points.
|
The terms achieved demonstrate the confidence
of investors and the appetite for Ecopetrol´s credit. The Company continues to have access to sources of funding both locally
and internationally.
The resources from the loan will be used
for the 2016 investment plan and other general corporate purposes.
|
|
g.
|
Results by Business Segment
|
The following table presents business segment results for the
periods indicated:
Table 8: Quarterly Results by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A
|
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
F
|
|
|
G
|
|
|
H
|
|
|
I
|
|
|
J
|
|
|
K
|
|
|
|
|
|
E&P
|
|
|
Refining
& Petrochem.
|
|
|
Transportation
and Logistics
|
|
|
Eliminations
|
|
|
Ecopetrol
Consolidated
|
|
|
COP$ Billion
|
|
|
1Q
2016
|
|
|
1Q
2015
|
|
|
1Q
2016
|
|
|
1Q
2015
|
|
|
1Q
2016
|
|
|
1Q
2015
|
|
|
1Q
2016
|
|
|
1Q
2015
|
|
|
1Q
2016
|
|
|
1Q
2015
|
|
|
Local Sales
|
|
|
|
1,834
|
|
|
|
1,911
|
|
|
|
4,087
|
|
|
|
4,217
|
|
|
|
3,130
|
|
|
|
2,492
|
|
|
|
(3,019
|
)
|
|
|
(2,793
|
)
|
|
|
6,032
|
|
|
|
5,827
|
|
|
Export Sales
|
|
|
|
3,784
|
|
|
|
5,644
|
|
|
|
1,204
|
|
|
|
890
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(534
|
)
|
|
|
(60
|
)
|
|
|
4,453
|
|
|
|
6,474
|
|
|
Total Sales
|
|
|
|
5,618
|
|
|
|
7,555
|
|
|
|
5,291
|
|
|
|
5,107
|
|
|
|
3,129
|
|
|
|
2,492
|
|
|
|
(3,553
|
)
|
|
|
(2,853
|
)
|
|
|
10,485
|
|
|
|
12,301
|
|
|
Variable Costs
|
|
|
|
3,753
|
|
|
|
4,233
|
|
|
|
4,089
|
|
|
|
4,179
|
|
|
|
182
|
|
|
|
261
|
|
|
|
(2,529
|
)
|
|
|
(2,236
|
)
|
|
|
5,495
|
|
|
|
6,437
|
|
|
Fixed Costs
|
|
|
|
1,701
|
|
|
|
1,623
|
|
|
|
542
|
|
|
|
468
|
|
|
|
645
|
|
|
|
637
|
|
|
|
(937
|
)
|
|
|
(610
|
)
|
|
|
1,951
|
|
|
|
2,118
|
|
|
Cost of Sales
|
|
|
|
5,454
|
|
|
|
5,856
|
|
|
|
4,631
|
|
|
|
4,647
|
|
|
|
827
|
|
|
|
898
|
|
|
|
(3,466
|
)
|
|
|
(2,846
|
)
|
|
|
7,446
|
|
|
|
8,555
|
|
|
Gross Profit
|
|
|
|
164
|
|
|
|
1,699
|
|
|
|
660
|
|
|
|
460
|
|
|
|
2,302
|
|
|
|
1,594
|
|
|
|
(87
|
)
|
|
|
(7
|
)
|
|
|
3,039
|
|
|
|
3,746
|
|
|
Operating Expenses
|
|
|
|
801
|
|
|
|
731
|
|
|
|
565
|
|
|
|
442
|
|
|
|
248
|
|
|
|
281
|
|
|
|
(174
|
)
|
|
|
(65
|
)
|
|
|
1,440
|
|
|
|
1,389
|
|
|
Operating Profit
|
|
|
|
(637
|
)
|
|
|
968
|
|
|
|
95
|
|
|
|
18
|
|
|
|
2,054
|
|
|
|
1,313
|
|
|
|
87
|
|
|
|
58
|
|
|
|
1,599
|
|
|
|
2,357
|
|
|
Financial Income - Loss
|
|
|
|
123
|
|
|
|
(1,203
|
)
|
|
|
(21
|
)
|
|
|
(369
|
)
|
|
|
(135
|
)
|
|
|
147
|
|
|
|
(103
|
)
|
|
|
(105
|
)
|
|
|
(136
|
)
|
|
|
(1,530
|
)
|
|
Results from Subsidiaries
|
|
|
|
(29
|
)
|
|
|
1
|
|
|
|
4
|
|
|
|
0
|
|
|
|
(2
|
)
|
|
|
0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
1
|
|
|
Income Tax Benefits (expense)
|
|
|
|
149
|
|
|
|
69
|
|
|
|
(211
|
)
|
|
|
51
|
|
|
|
(763
|
)
|
|
|
(592
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(825
|
)
|
|
|
(472
|
)
|
|
Net Income Consolidated
|
|
|
|
(394
|
)
|
|
|
(165
|
)
|
|
|
(133
|
)
|
|
|
(300
|
)
|
|
|
1,154
|
|
|
|
868
|
|
|
|
(16
|
)
|
|
|
(47
|
)
|
|
|
611
|
|
|
|
356
|
|
|
(Minus) Non-Controlling Interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
2
|
|
|
|
(251
|
)
|
|
|
(198
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(248
|
)
|
|
|
(196
|
)
|
|
Net Income Attributable to Owners of Ecopetrol
|
|
|
|
(394
|
)
|
|
|
(165
|
)
|
|
|
(130
|
)
|
|
|
(298
|
)
|
|
|
903
|
|
|
|
670
|
|
|
|
(16
|
)
|
|
|
(47
|
)
|
|
|
363
|
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
971
|
|
|
|
2,602
|
|
|
|
580
|
|
|
|
395
|
|
|
|
2,499
|
|
|
|
1,727
|
|
|
|
87
|
|
|
|
58
|
|
|
|
4,137
|
|
|
|
4,782
|
|
|
EBITDA Margin
|
|
|
|
17.3
|
%
|
|
|
34.4
|
%
|
|
|
11.0
|
%
|
|
|
7.7
|
%
|
|
|
79.9
|
%
|
|
|
69.3
|
%
|
|
|
(2.4
|
)%
|
|
|
(2.0
|
)%
|
|
|
39.5
|
%
|
|
|
38.9
|
%
|
Exploration and production
Revenues for the first quarter of 2016
decreased by 26% (-COP$1,937 billion) compared to the first quarter of 2015, mainly due to:
|
|
·
|
Reduction
of prices in Ecopetrol’s crude export basket by 43%
|
|
|
·
|
A
reduction in volume exported, primarily caused by the lower production in Colombia partially
offset by the positive impact of the 32% devaluation of the average COP/USD exchange
rate over the revenues.
|
The cost of sales for the segment decreased
compared to the first quarter of the previous year, exhibiting a variation of 7% (-COP$402 billion), as a result of: 1) efforts
to optimize costs, managing to renegotiate rates for contracts, 2) implementation of strategies for optimization of dilution,
and 3) cost reduction for purchasing of crude oil owing to the drop in international prices. However, these have been offset by
the effect of the devaluation of the average exchange rate over the pipeline fees that are denominated in U.S. dollars.
Operating expenses increased 10% (+COP$70
billion) chiefly in project expenses due to the recognition of higher environmental provisions and the increase in the cost of
freights in U.S. dollars as a result of the devaluation of the exchange rate.
The net financial result reflects an income
of COP$123 billion in the first quarter of 2016 as compared with an expense of COP$1,203 billion in the same period of the year
before. This result primarily reflects the revaluation of the closing COP/USD exchange rate in the first quarter of 2016.
As a net result, the segment showed a
loss attributable to Ecopetrol´s shareholders of COP$394 billion in the first quarter of 2016 compared to a loss of COP$165
billion for the same period in 2015.
Refining and petrochemicals
In spite of the drop in the benchmark
product prices, the revenues of this segment for the first quarter of 2016 increased by 4% (COP$184 billion) compared to the same
period of the previous year, owing mainly to the entry into service of the Cartagena refinery which made it possible to increase
exports of products such as fuel oil, naphtha, diesel and coke.
Cost of sales for this segment remained
relatively steady with a reduction of COP$16 billion, the net effect of: 1) reduced imports of fuels; 2) lower operating costs
for contracted services, materials and supplies, as a result of optimization strategies carried forward by the Barrancabermeja
refinery and 3) higher processing cost due to the entry into service of the Cartagena refinery.
Gross sales margin was 12% versus 9% in
the first quarter of 2015.
Operating expenses rose by 28% (+COP$123
billion) compared with the same quarter of the year before, mainly due to larger expenses related with the start-up of the Cartagena
refinery.
Net financial expenses fell by 94% (-COP$348
billion) caused by revaluation of the closing exchange rates presented in the first quarter of 2016.
The consolidated segment showed a loss
attributable to Ecopetrol´ s shareholders of COP$130 billion in the first quarter of 2016 compared to a loss of COP$298
billion for the same period in 2015.
Transport and Logistics
Revenues for the first quarter of 2016
increased 26% (+COP$637 billion), mainly due to the effect of the devaluation of the average exchange rate for charges denominated
in dollars and higher volumes of refined products transported.
Cost of sales for this segment fell 8%
(-COP$71 billion), primarily as a result of lower costs of maintenance generated within the Group’s transformation program
and reduced variable cost owing to the decrease in transported volumes through pipelines.
Operating expenses went down by 12% (-COP$33
billion) compared to the same period of the year before, which is explained principally by the decline in the value of wealth
tax as well as lower expenses associated with reparations for theft and attacks.
The net financial (non-operating) result
reflects an increase in expenses of COP$282 billion mostly caused by interest expenses and the effect of the
revaluation
of the closing exchange rate in the first quarter of 2016 over the net active position of the segment.
As a final result, the segment reported
net profits
attributable to Ecopetrol´ s shareholders of
COP$903 billion, compared
to COP$670 billion for the same period of 2015.
|
|
h.
|
Results of Cost and Expense Reduction
Initiatives
|
Since the second half of 2014, Ecopetrol
has intensified its austerity measures and optimization of costs and expenses initiatives. These efforts have enabled Ecopetrol
to mitigate the impact of lower crude oil prices on the Company´s revenues.
In February of 2016, Ecopetrol set an
additional budget optimization goal for 2016 of COP$1.6 trillion. The savings made during the first quarter of 2016 are as follows:
Table 9: Optimizations
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
P&L (COP$ Billion)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ ($)
|
|
|
Fixed Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Association Services
|
|
|
312
|
|
|
|
355
|
|
|
|
(42
|
)
|
|
Maintenance
|
|
|
128
|
|
|
|
222
|
|
|
|
(94
|
)
|
|
Contracted Services
|
|
|
186
|
|
|
|
281
|
|
|
|
(95
|
)
|
|
Labor Cost
|
|
|
262
|
|
|
|
355
|
|
|
|
(93
|
)
|
|
Non-Capitalized Cost of Projects
|
|
|
-
|
|
|
|
7
|
|
|
|
(7
|
)
|
|
Variable Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Association Services
|
|
|
133
|
|
|
|
149
|
|
|
|
(16
|
)
|
|
Process' Materials
|
|
|
52
|
|
|
|
54
|
|
|
|
(1
|
)
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, Fees and Serv.
|
|
|
47
|
|
|
|
55
|
|
|
|
(7
|
)
|
|
Support to Military Forces and Agreements
|
|
|
23
|
|
|
|
40
|
|
|
|
(17
|
)
|
|
Other General Expenses
|
|
|
80
|
|
|
|
81
|
|
|
|
(1
|
)
|
|
Labor
|
|
|
97
|
|
|
|
143
|
|
|
|
(46
|
)
|
|
Total Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
(421
|
)
|
These efficiencies are attributable mainly
to the optimization of procurement and contracting plans, renegotiation of contracts and better procurement strategies.
Table 10: Investments* by Ecopetrol’s
Corporate Group
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
1Q 2016 (US$ million) **
|
|
|
Segment
|
|
Ecopetrol S.A.
|
|
|
Affiliates and
Subsidiaries***
|
|
|
Total
|
|
|
Allocation by
segment
|
|
|
Production
|
|
|
365.4
|
|
|
|
68.5
|
|
|
|
433.9
|
|
|
|
48.9
|
%
|
|
Refining, Petrochemicals and Biofuels
|
|
|
21.7
|
|
|
|
244.2
|
|
|
|
265.9
|
|
|
|
29.9
|
%
|
|
Exploration
|
|
|
10.0
|
|
|
|
60.9
|
|
|
|
70.9
|
|
|
|
8.0
|
%
|
|
Midstream
|
|
|
1.8
|
|
|
|
104.4
|
|
|
|
106.2
|
|
|
|
12.0
|
%
|
|
Corporate
|
|
|
9.6
|
|
|
|
0.0
|
|
|
|
9.6
|
|
|
|
1.1
|
%
|
|
New Businesses
|
|
|
1.1
|
|
|
|
0.0
|
|
|
|
1.1
|
|
|
|
0.1
|
%
|
|
Supply and Marketing
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
0.3
|
|
|
|
0.0
|
%
|
|
Total
|
|
|
409.9
|
|
|
|
478.0
|
|
|
|
887.9
|
|
|
|
100.0
|
%
|
*Figures on this table differ from the
capital expenditure figures presented in the Consolidated Statement of Cash Flows on page 32 because the figures on this table
include both operating expenditures and capital expenditure outflows of investment projects, while the investment line of the
Consolidated Statement of Cash Flows only includes capital expenditures.
** Investments were converted using the
average representative Market Exchange Rate from January to March of 2016: COP$3,249/US$
***Prorated according to Ecopetrol’s
stake.
Investments during the first quarter of
2016 were US$888 million (Ecopetrol S.A. itself accounting for 46% of that amount while affiliates and subsidiaries accounted
for 54%). These investments were distributed as follows:
|
|
·
|
Production
(48.9%): Development plans, mostly the drilling campaign in the Castilla and Chichimene
fields and well workovers.
|
|
|
·
|
Refining,
Petrochemicals and Biofuels (29.9%): Cartagena refinery, Bioenergy and the concession
of port at the Cartagena refinery.
|
|
|
·
|
Transport
(12.0%): the Ocensa P135 and San Fernando-Monterrey projects, the initiative to transport
higher viscosity crudes and investments for the operational continuity of the segment.
|
|
|
·
|
Exploration
(8%): Drilling of the appraisal well Leon 2 located in the U.S. Gulf Coast and the development
of activities aimed to assure the social and environmental viability of wells scheduled
to be drilled in the second half of the year.
|
|
|
·
|
Other
(Corporate, New Businesses and Supply and Marketing, 1.2%): technological renovation
and information systems.
|
In light of the current low crude oil
price environment, on April 26, 2016, Ecopetrol announced a reduction of its investment plan for 2016, seeking to ensure capital
discipline and focus on cash generation and financial sustainability of the Ecopetrol Group.
The 2016 Investment Plan went from US$4.8
billion, as approved on December 2015, to a range between US$3.0 and US$3.4 billion. With this level of investment, the Ecopetrol
Group expects to produce approximately 715 thousand barrels of petroleum equivalent per day during 2016.
2016 is a year of transition, during which
investments will be made to finish transportation and refining projects, primarily the start up the new Cartagena refinery. Starting
in 2017, the Company will dedicate a larger portion of its investments to the exploration and production segments.
In exploration and production, resources
will be allocated to the assessment of exploratory findings and the development of principal fields. 93% of funds will be invested
in Colombia and the rest overseas.
Table 11 - 2016 Investments by Segment
|
A
|
|
B
|
|
2016 Investment Plan of Ecopetrol S.A.,
Affiliates and Subsidiaries
(US$ millions)
|
|
|
Business areas
|
|
|
2,966
|
|
|
Exploration
|
|
|
282
|
|
|
Production
|
|
|
1,116
|
|
|
Transportation
|
|
|
433
|
|
|
Refining and Petrochemicals
|
|
|
1,135
|
|
|
Other
|
|
|
34
|
|
|
Total
|
|
|
3,000
|
|
The resources required for the investment
plan will be obtained from internal cash generation, divestment of non-strategic assets and financing. Financing needs for 2016
remain within the range of US$1.5 billion to US$1.9 billion for the Ecopetrol Group.
Exploration in Colombia:
At the end of the first quarter of 2016,
the exploratory well Payero-1 in the Niscota block, which is located in the Piedemonte Llanero basin, was being drilled by Equion
(operator). Hocol holds 20%, Total 50% and Repsol 30% of the working interest.
International Exploration:
During the first quarter of 2016, the
drilling of the appraisal well Leon 2, located in deep waters of the U.S. Gulf of Mexico (operated by Repsol, which holds a participation
of 60% while Ecopetrol America, Inc. holds the remaining 40%) was completed. The results of the well are currently under evaluation.
Furthermore, we acquired 832 square kilometers
of seismic in the POT-M-567 block where Ecopetrol Brasil holds 100% working interest.
As a result of the low crude oil price
environment and the strategy of emphasizing value generation over volumetric growth, Ecopetrol has been moving towards a rationalization
of its investments. The lower production in the first quarter on 2016 is a consequence of the decreased activity. Nevertheless,
as soon as market conditions improve, a robust and profitable production portfolio will allow Ecopetrol to increase its investment
levels, and ultimately activities at its fields.
In the first quarter of 2016, Ecopetrol
Group’s production was 736.6 mboed, a decrease of 36.8 mboed, 4.8% lower than in the first quarter of 2015. This result
is explained by: 1) rationalization of activity, 2) the natural decline of production in the fields and, 3) temporary closing
of some fields due to low profitability and judicial decisions. Production levels seen in the first quarter of 2016 are in line
with the goals set by the Company at the new CAPEX level between US$3.0 and US$3.4 billion.
The following table summarizes the results
of our oil and gas production activities for the periods indicated:
Table 12: Ecopetrol Group’s Gross*
Oil and Gas Production**
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
Ecopetrol S.A. (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
565.3
|
|
|
|
598.0
|
|
|
|
(5.5
|
)%
|
|
|
(32.7
|
)
|
|
Natural Gas***
|
|
|
124.3
|
|
|
|
124.0
|
|
|
|
0.2
|
%
|
|
|
0.3
|
|
|
Total
|
|
|
689.6
|
|
|
|
722.0
|
|
|
|
(4.5
|
)%
|
|
|
(32.4
|
)
|
|
Hocol (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
16.1
|
|
|
|
20.0
|
|
|
|
(19.5
|
)%
|
|
|
(3.9
|
)
|
|
Natural Gas
|
|
|
0.6
|
|
|
|
0.1
|
|
|
|
500.0
|
%
|
|
|
0.5
|
|
|
Total
|
|
|
16.7
|
|
|
|
20.1
|
|
|
|
(16.9
|
)%
|
|
|
(3.4
|
)
|
|
Savia (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
4.3
|
|
|
|
5.1
|
|
|
|
(15.7
|
)%
|
|
|
(0.8
|
)
|
|
Natural Gas
|
|
|
1.2
|
|
|
|
1.1
|
|
|
|
9.1
|
%
|
|
|
0.1
|
|
|
Total
|
|
|
5.5
|
|
|
|
6.2
|
|
|
|
(11.3
|
)%
|
|
|
(0.7
|
)
|
|
Equion (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
12.6
|
|
|
|
10.0
|
|
|
|
26.0
|
%
|
|
|
2.6
|
|
|
Natural Gas
|
|
|
8.6
|
|
|
|
8.7
|
|
|
|
(1.1
|
)%
|
|
|
(0.1
|
)
|
|
Total
|
|
|
21.2
|
|
|
|
18.7
|
|
|
|
13.4
|
%
|
|
|
2.5
|
|
|
Ecopetrol America-K2 (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
2.8
|
|
|
|
3.3
|
|
|
|
(15.2
|
)%
|
|
|
(0.5
|
)
|
|
Natural Gas
|
|
|
0.8
|
|
|
|
3.1
|
|
|
|
(74.2
|
)%
|
|
|
(2.3
|
)
|
|
Total
|
|
|
3.6
|
|
|
|
6.4
|
|
|
|
(43.8
|
)%
|
|
|
(2.8
|
)
|
Ecopetrol Corporate Group
(mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
601.1
|
|
|
|
636.4
|
|
|
|
(5.5
|
)%
|
|
|
(35.3
|
)
|
|
Natural Gas
|
|
|
135.5
|
|
|
|
137.0
|
|
|
|
(1.1
|
)%
|
|
|
(1.5
|
)
|
|
Total Group's Production
|
|
|
736.6
|
|
|
|
773.4
|
|
|
|
(4.8
|
)%
|
|
|
(36.8
|
)
|
* Gross production includes royalties and prorated
according to Ecopetrol´s stake in each company.
** Figures for Equion and Savia are not consolidated
within the Ecopetrol Group.
*** Gas production includes white products.
Table 13: Net* Oil and Gas Production**
– Ecopetrol’s Net Interest
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
E
|
|
|
Ecopetrol Group (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
∆ (bls)
|
|
|
Crude Oil
|
|
|
518.3
|
|
|
|
548.9
|
|
|
|
(5.6
|
)%
|
|
|
(30.6
|
)
|
|
Natural Gas***
|
|
|
115.0
|
|
|
|
115.2
|
|
|
|
(0.1
|
)%
|
|
|
(0.2
|
)
|
|
Total Group's Production
|
|
|
633.3
|
|
|
|
664.1
|
|
|
|
(4.6
|
)%
|
|
|
(30.8
|
)
|
* Net production does not includes royalties and
prorated according to Ecopetrol´s stake in
each company.
** Equion and Savia do not consolidate within the
Group.
*** Gas production includes white products.
Projects to Increase the Recovery Factor:
In the first quarter of 2016, a pilot
project was started to increase the recovery factor for steam injection technology at the Teca Cocorná field, which will
allow for evaluation of the reservoir’s properties and determine the response to steam injection in the sands of this field.
In addition, the air injection pilot project
in Chichimene field reached 98% completion on construction of surface facilities, thereby completing the project’s main
works. The start of air injection is planned for the fourth quarter of 2016.
Including the pilot projects started in
2015, the Company currently has 30 recovery pilots underway, of which 23 have shown positive results in increasing pressure and
16 have shown an increase in crude production in the areas impacted by the pilots.
Production of Main Fields:
The following table summarizes the average
production of our main fields by region for the periods indicated:
Table 14: Gross Average Production Main
Fields by Region (mboed) – Ecopetrol’s Net Interest
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Central Region
|
|
|
92.5
|
|
|
|
100.3
|
|
|
|
(7.8
|
)%
|
|
1) La Cira-Infantas
|
|
|
19.2
|
|
|
|
24.8
|
|
|
|
(22.6
|
)%
|
|
2) Casabe
|
|
|
19.2
|
|
|
|
23.9
|
|
|
|
(19.7
|
)%
|
|
3) Yarigui
|
|
|
18.5
|
|
|
|
16.9
|
|
|
|
9.5
|
%
|
|
4) Other
|
|
|
35.6
|
|
|
|
34.7
|
|
|
|
2.5
|
%
|
|
Orinoquia Region
|
|
|
270.6
|
|
|
|
258.5
|
|
|
|
4.7
|
%
|
|
1) Castilla
|
|
|
128.4
|
|
|
|
118.0
|
|
|
|
8.8
|
%
|
|
2) Chichimene
|
|
|
77.9
|
|
|
|
80.1
|
|
|
|
(2.7
|
)%
|
|
3) Cupiagua
|
|
|
44.9
|
|
|
|
34.9
|
|
|
|
28.7
|
%
|
|
4) Other
|
|
|
19.4
|
|
|
|
25.5
|
|
|
|
(24.0
|
)%
|
|
South Region
|
|
|
30.2
|
|
|
|
34.6
|
|
|
|
(12.7
|
)%
|
|
1) Huila Area
|
|
|
8.7
|
|
|
|
9.2
|
|
|
|
(5.4
|
)%
|
|
2) San Francisco Area
|
|
|
7.2
|
|
|
|
8.5
|
|
|
|
(15.3
|
)%
|
|
3) Tello Area
|
|
|
4.8
|
|
|
|
4.9
|
|
|
|
(2.0
|
)%
|
|
4) Other
|
|
|
9.5
|
|
|
|
12.0
|
|
|
|
(20.8
|
)%
|
|
Associated Operations*
|
|
|
296.3
|
|
|
|
328.6
|
|
|
|
(9.8
|
)%
|
|
1) Rubiales
|
|
|
86.6
|
|
|
|
93.5
|
|
|
|
(7.4
|
)%
|
|
2) Guajira
|
|
|
39.6
|
|
|
|
47.2
|
|
|
|
(16.1
|
)%
|
|
3) Caño Limón
|
|
|
27.2
|
|
|
|
32.0
|
|
|
|
(15.0
|
)%
|
|
4) Cusiana
|
|
|
30.3
|
|
|
|
32.9
|
|
|
|
(7.9
|
)%
|
|
5) Quifa
|
|
|
21.6
|
|
|
|
25.8
|
|
|
|
(16.3
|
)%
|
|
6) Other
|
|
|
91.0
|
|
|
|
97.2
|
|
|
|
(6.4
|
)%
|
|
Total Ecopetrol S.A.
|
|
|
689.6
|
|
|
|
722.0
|
|
|
|
(4.5
|
)%
|
|
Direct Operation
|
|
|
396.5
|
|
|
|
398.0
|
|
|
|
(0.4
|
)%
|
|
Associated Operation
|
|
|
293.1
|
|
|
|
324.0
|
|
|
|
(9.5
|
)%
|
|
Hocol
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Ocelote
|
|
|
9.9
|
|
|
|
13.6
|
|
|
|
(27.2
|
)%
|
|
2) Other
|
|
|
6.8
|
|
|
|
6.5
|
|
|
|
4.6
|
%
|
|
Equion**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Piedemonte
|
|
|
15.7
|
|
|
|
12.9
|
|
|
|
21.7
|
%
|
|
2) Tauramena / Chitamena
|
|
|
4.2
|
|
|
|
4.6
|
|
|
|
(8.7
|
)%
|
|
3) Other
|
|
|
1.3
|
|
|
|
1.2
|
|
|
|
8.3
|
%
|
|
Savia**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Lobitos
|
|
|
2.1
|
|
|
|
2.3
|
|
|
|
(8.7
|
)%
|
|
2) Peña Negra
|
|
|
2.3
|
|
|
|
1.8
|
|
|
|
27.8
|
%
|
|
3) Other
|
|
|
1.1
|
|
|
|
2.1
|
|
|
|
(47.6
|
)%
|
|
Ecopetrol America Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Dalmatian
|
|
|
1.8
|
|
|
|
5.1
|
|
|
|
(64.7
|
)%
|
|
2) k2
|
|
|
1.8
|
|
|
|
1.3
|
|
|
|
38.5
|
%
|
* Fields previously classified as minor fields belong
to the Associated Operation Vicepresidency regardless the type of operation.
** Figures for Equion and Savia are not consolidated
within the Ecopetrol Group.
The following table summarizes the results of our crude oil
production by type of crude for the periods indicated:
Table 15: Gross Ecopetrol Group Production
per Type of Crude (mbod)
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Light
|
|
|
65.4
|
|
|
|
56.9
|
|
|
|
14.9
|
%
|
|
Medium
|
|
|
190.0
|
|
|
|
224.0
|
|
|
|
(15.2
|
)%
|
|
Heavy
|
|
|
345.7
|
|
|
|
355.5
|
|
|
|
(2.8
|
)%
|
|
Total
|
|
|
601.1
|
|
|
|
636.4
|
|
|
|
(5.5
|
)%
|
Lifting Cost
The lifting cost per barrel produced by
the Ecopetrol Group, excluding production corresponding to royalties, was US$4.87 per barrel for the period January - March 2016,
representing a reduction of US$2.7 per barrel (-37.5%), as compared to US$7.57 for the first quarter of 2015. This reduction was
primarily due to:
|
|
·
|
TRM
Effect: A decrease of US$1.54 per barrel in lifting costs caused by the conversion of
peso-denominated cost in U.S. dollars at a higher exchange rate, which increased in COP$780
per dollar as compared to the first quarter of 2015 (COP$3,249/US in the first quarter
of 2016 versus COP$2,469/US in the first quarter of 2015).
|
|
|
·
|
Cost
effect: A US$1.34 per barrel decrease due to the following cost optimization strategies:
1) fewer number of well interventions, prioritizing interventions in wells with high
production volumes, due to subsoil strategies, 2) improvements in maintenance routines
and equipment reliability, 3) reduction of energy costs by optimizing electrical systems,
4) lower costs resulting from contract renegotiations, 5) lower chemical consumption
as a result of an increase in process efficiency and 6) lower activity during the period.
|
|
|
·
|
Volume
effect: a US$0.18 per barrel increase in lifting costs due to lower production volumes.
|
The portion of the lifting cost in U.S.
dollars is 14%.
For purposes of comparison, the lifting
cost of the first quarter 2015 has been re-stated, excluding the affiliates Equion and Savia (given they do not consolidate with
the Ecopetrol Group under IFRS), going from US$7.78 per barrel to US$7.57 per barrel.
The following table summarizes our volumes transported for
the periods indicated:
Table 16: Volumes Transported (mbod)
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
Transported Volumes (mbod)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Crude
|
|
|
952.0
|
|
|
|
1,020.5
|
|
|
|
(6.7
|
)%
|
|
Refined Products
|
|
|
264.4
|
|
|
|
253.0
|
|
|
|
4.5
|
%
|
|
Total
|
|
|
1,216.4
|
|
|
|
1,273.5
|
|
|
|
(4.5
|
)%
|
Note: figures correspond to volumes transported to
the Ecopetrol Group and to third parties.
The volume of crude oil transported using
the main systems of Cenit S.A.S. and its affiliates during the first quarter of 2016, decreased 6.7% over the first quarter of
2015, due mainly to the following: 1) operating restrictions on the transport systems associated with repairs due to illegal valves
and attacks on the infrastructure in the Caño Limón–Coveñas and Transandino systems; and 2) a decrease
in the request for capacity in the transport systems by the users. Of the total volume of crude oil transported through oil pipelines,
approximately 71% was crude owned by Ecopetrol.
The volume of refined products transported
by Cenit S.A.S. during the first quarter of 2016 increased 4.5% over the first quarter of 2015 as a result of: 1) heavier use
of the Cartagena - Barranquilla system to supply fuel to the country’s interior and to the area that borders Venezuela;
2) greater use of the refinery evacuation systems to supply the country, and the increased transport of diluents to the area of
Llanos Orientales. The increase in refined products volume was supported by increased capacity in the Pozos Colorados - Galan
system, which rose to 130 mbod. Of the total volume of products transported by multi-purpose pipelines, approximately 20% is for
products owned by Ecopetrol.
Projects:
|
|
·
|
SAN
FERNANDO – MONTERREY
|
Transport capacity between
the Castilla field and Apiay station increased by 40,000 barrels per day, reaching total capacity of 300,000 barrels per day.
Construction on the San Fernando Station continues. The station is projected to enter into operation in the last quarter of 2016.
The Ocensa P135 project has
advanced 84.1%. Additional capacity of 135 mbod is expected to be attained in the third quarter of 2016. This project will ensure
the capacity to transport crude oil from Llanos Orientales to the ports for export.
|
|
·
|
INITIATIVE
TO TRANSPORT HIGHER-VISCOSITY CRUDE OIL
|
In February 2016, an extended
test began to transport 405 cSt, with satisfactory results to date. This project, in addition to the expanded capacity at Ocensa
(P-135), will allow more viscous crude to be transported, reducing dilution costs.
Cost Per Barrel Transported
2
The cost per barrel transported for the
Ecopetrol Group during the first quarter of 2016 was US$3.43 per barrel, representing a US$1.70 per barrel decrease as compared
to US$5.13 per barrel for the first quarter of 2015. This result was primarily due to the following factors:
|
|
·
|
TRM
effect: -US$1.08 cost per barrel decrease resulting from the devaluation of the Colombian
peso of COP$780 per dollar compared to the first quarter of 2015 (COP$3,249/US in the
first quarter of 2016 vs COP$2,469/US in the first quarter of 2015).
|
2
In 2014, Ecopetrol S.A. reported its results individually and it calculated its transportation cost by taking into account
all payments made to affiliates for crude transport, transport by truck, and all costs incurred by Ecopetrol S.A. in the operation
and maintenance of some of its own crude systems. These costs were divided by the crude barrels sold by Ecopetrol S.A.
In 2015, all financial information and
volumes for the Ecopetrol Group is reported under IFRS, eliminating all transactions between Ecopetrol S.A. and its transport
affiliates; hence, the cost is calculated as follows: total costs and expenses of each transport company from the group, plus
Ecopetrol S.A. costs in the operation and maintenance of some of its own systems; divided by the total volumes transported by
all the affiliates (crude and refined products).
|
|
·
|
Cost
effect: -US$ 0.90, product of the efficiencies achieved in operating costs primarily
in the areas of maintenance materials, renegotiation of contracts, lower costs in accrued
financial expenses and lower activity during the period.
|
|
|
·
|
Volume
effect: +US$0.28 per barrel given the lower volume transported during the first quarter
of 2016.
|
The portion in U.S. dollars of the cost
per barrel transported to the Ecopetrol Group is 8.8%.
e.1)
Reficar (Cartagena
refinery):
The new Cartagena refinery has continued
with the start-up process at the different units, exporting 5.5 million barrels of refined products in the first quarter of 2016.
As of March 31, 2016, 28 of the 34 units
that comprise the complex were in operation. Among the largest not yet on line are the catalytic hydro-cracking units, and the
alkylation facility. Achievements include loads of crude oil of up to 140 kpbd being processed, as well as stable operation of
the delayed coking units, catalytic cracker, and the diesel hydrotreaters. In those units in which diesel with low sulfur content
has been produced, specific values of up to 6 ppm of sulfur have been attained. The Company expects to have the refinery stabilized
in the second half of 2016.
One matter to highlight is the production
of Petcoke, or Petroleum Coke, with the beginning of operations of the Delayed Coking Unit on February 24, 2016. The coke is a
solid fuel used mainly by the cement industry. From April 2016 to date, 100,000 tons of Petcoke have been exported.
e.2)
Barrancabermeja
Refinery:
The following table summarizes the results
of our refining activities for the periods indicated:
Table 17: Refinery Runs, Utilization
Factor and Production
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Refinery Runs* (mbod)
|
|
|
216.3
|
|
|
|
224.8
|
|
|
|
(3.8
|
)%
|
|
Utilization Factor (%)
|
|
|
80.1
|
%
|
|
|
80.3
|
%
|
|
|
(0.2
|
)%
|
|
Production (mboed)
|
|
|
217.3
|
|
|
|
226.5
|
|
|
|
(4.1
|
)%
|
* Includes volumes loaded in
the refinery, not total volumes received.
In the first quarter on 2016 the crude
load decreased compared with the first quarter of 2015 due to the high levels of fuel oil inventories accrued due to the limitations
on transporting this product through the Magdalene river, whose navigability was reduced by el Niño phenomenon, and lower
availability of light crudes.
Costs and Margins
of the Refining Segment
The cash operating cost for the refining
segment (includes the operation of the Barrancabermeja refinery and Propilco) in the first quarter of 2016 was US$3.54/Bl, US$1.17/Bl
lower compared to the first quarter of 2015 (US$4.71/Bl) due to:
|
|
·
|
TRM
effect: -US$1.12 cost per barrel decrease resulting from the devaluation of the Colombian
peso from COP$780 per dollar compared to the same quarter of 2015 (COP$3,249/US in the
first quarter of 2016 vs COP$2,469/US in the first quarter of 2015).
|
|
|
·
|
Cost
effect: -US$0.11/Bl: due to the net effects of:
|
|
|
o
|
A -US$1.89/Bl: lower fixed costs
associated with strategies for optimization in maintenance, operational costs, support
services and lower activity during the period.
|
|
|
o
|
A +US$1.78/Bl: higher operating
costs of Propilco associated with a larger volume sold.
|
|
|
·
|
Volume
effect: +US$ 0.06 per barrel due to higher costs associated with a lower load.
|
The portion in U.S. dollars corresponding
to the refining cost is 19%.
The following table summarizes the results
of the refining margin for the periods indicated:
Table 18: Refining Margin
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Refining Margin (USD/bl)
|
|
|
14.1
|
|
|
|
18.6
|
|
|
|
(24.2
|
)%
|
The decline in gross refining margin at
Barrancabermeja refinery in the first quarter of 2016 versus the first quarter of 2015 is explained primarily by: 1) lower spreads
of products versus crude oil, 2) heavier feedstock and, 3) lower exports of fuel oil as a consequence of limitations to transport
this product through the Magdalene River.
|
|
III.
|
Organizational Consolidation, Corporate Responsibility and Corporate
Governance (Ecopetrol S.A.)
|
|
|
a.
|
Organizational Consolidation
|
Health, Safety and the Environment
(HSE):
The following table summarizes our HSE
record for the periods indicated:
Table 19: Health, Safety and Environment
(HSE)
|
A
|
|
B
|
|
|
C
|
|
|
HSE*
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Accident Frequency Index
|
|
|
0.59
|
|
|
|
0.32
|
|
(Accidents per million labor hours)
Environmental Incidents (operational cause)
|
|
|
0
|
|
|
|
3
|
|
*Results are subject to revision due to the fact that
some figures may be reclassified, depending on the final results of the respective investigations.
Key milestones
The Company is currently running the process
to take over the Cusiana and Rubiales fields to ensure continuity and healthy, clean and safe operation once Ecopetrol takes the
control of these fields in middle 2016.
Science and Technology:
During the first quarter of 2016, two
patents were granted to the Company, one in Colombia and the other in Malaysia, each with duration of 20 years:
|
|
·
|
Colombia:
Additives for processing of hydrocarbons of high molecular weight including alkyl
phenol sulfonic and amino alkyl phenol acids, as well as hydrogen donor compounds and
the process for obtaining them.
|
|
|
·
|
Malaysia:
Process for obtaining Diesel from vegetable or animal oils through hydro treatment
with reduced residency times, and products obtained from this same process.
|
With these patents, Ecopetrol had a total
of 71 active patents, thus maintaining its status as the national Company that holds most patents in Colombia.
|
|
2.
|
Tax benefits for projects in Science,
Technology and Innovation
|
As a result of discussions with
Colciencias
(Departamento Administrativo de Ciencias, Tecnologia e Innovacion of Colombia)
on the presentation and certification of projects
classified as scientific research, technological development and innovation, certified benefits were obtained in the amount of
COP$31,142 million.
Awards:
In February 2016, Ecopetrol was awarded
with the prize “Accenture to Innovation” in the category of Energy Resources for its technological initiative to dehydrate
heavy crude oil by applying more energy-efficient processes. Ecopetrol is the only Colombian company that has received an award
in the three award cycles.
|
|
b.
|
Corporate Social Responsibility
|
Social Investment:
During the first quarter of 2016, the
Company invested COP$2,908 million as follows: 1) COP$2,491 million for education and culture and, 2) COP$417 million for regional
competitiveness.
General Shareholder´s Meeting
On March 31, 2016, the Shareholders’
General Assembly was held in which more than 2,000 shareholders participated. Among the topics approved by the Assembly were:
1) reports of the management, 2) unconsolidated and consolidated financial statements as of December 31, 2015, 3) external auditor’s
report, 4) approval of the earnings distribution plan (given that the 2015 fiscal year resulted in a net loss for the Company,
there will not be distribution of profits to Ecopetrol’s shareholders), 5) appointment of Ernst & Young as external
auditor for year 2016 and, 6) election of the Board of Directors for the period 2016–2017.
|
|
IV.
|
Presentation of First Quarter 2016 Results
|
Ecopetrol’s management will host
two conference calls to review our results for the first quarter of 2016:
|
English
|
Spanish
|
|
May 4, 2016
|
May 4, 2016
|
|
7:30 a.m. Bogota
|
8:45 a.m. Bogota
|
|
8:30 a.m. New York
|
9:45 a.m. New York
|
The webcast will be available
on Ecopetrol’s website:
www.ecopetrol.com.co
Please log on in advance to download the
necessary software and check the proper operation of the webcast in your browser. We recommend using the latest versions of Internet
Explorer, Google Chrome or Mozilla Firefox.
About Ecopetrol S.A.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE:
EC) (“Ecopetrol” or the “Company”) is the largest company in Colombia based on revenue, assets and net
worth. Ecopetrol is the only vertically integrated Colombian oil and gas company with stakes in operations in Colombia, Brazil,
Peru and the United States (Gulf of Mexico).
Its subsidiaries include the following
companies: Andean Chemicals Limited, Bioenergy S.A., Bionergy Zona Franca S.A.S., Black Gold Re Ltd, Cenit Transporte y Logística
de Hidrocarburos S.A.S., Ecopetrol America, Inc., Ecopetrol del Perú S.A., Ecopetrol Oleo e Gas do Brasil Ltda, Ecopetrol
Germany GmbH, Ecopetrol Capital AG, Ecopetrol Global Energy S.L.U., Ecopetrol Global Capital S.L.U., Equion Energía Limited,
Hocol Petroleum Limited, Hocol S.A., Oleoducto de los Llanos Orientales S.A., Propilco S.A., Compounding and Masterbatching Industry
Ltda - COMAI, Oleoducto Bicentenario de Colombia S.A.S., Oleoducto Central S.A. - OCENSA, Oleoducto de Colombia S.A. - ODC, Refinería
de Cartagena S.A., Santiago Oil Company, Colombia Pipelines Limited, SENTO S.A.S. y PROYECTOS ODC N1 S.A.S.
Ecopetrol S.A. is one of the 50 largest
oil companies in the world and one of the four main oil companies in Latin America. Ecopetrol is majority-owned by the Republic
of Colombia (88.5%) and its shares are traded on the Colombian Stock Exchange (Bolsa de Valores de Colombia S.A.) under the ticker
symbol ECOPETROL, and on the New York Stock Exchange under the ticker symbol EC. Ecopetrol has three business segments: 1) exploration
and production, 2) transport and logistics and 3) refining, petrochemicals and biofuels.
Forward-looking Statements
This release may contain forward-looking
statements related to the prospects of the business, estimates of operating and financial results, and growth forecasts for Ecopetrol.
These are projections, and, as such, are based solely on the expectations of management with regard to the future of the company
and its continuous access to capital to finance the company’s business plan. Such forward-looking statements depend essentially
on changes in market conditions, government regulations, competitive pressures, and the performance of the Colombian economy and
industry, among other factors. Therefore, they are subject to change without prior notice.
Contacts:
Director of Corporate Finance and Investor Relations
Maria Catalina Escobar
Telephone: +571-234-5190
E-mail:
investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
E-mail:
mauricio.tellez@ecopetrol.com.co
|
|
V.
|
Ecopetrol Group Exhibits
|
Table 1 – Local Purchases and
Imports
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
1) Local Purchases (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
∆ (%)
|
|
|
Crude Oil (1)
|
|
|
167.5
|
|
|
|
192.3
|
|
|
|
(12.9
|
)%
|
|
Natural Gas (2)
|
|
|
1.7
|
|
|
|
2.2
|
|
|
|
(21.9
|
)%
|
|
Refined Products
|
|
|
5.5
|
|
|
|
5.4
|
|
|
|
2.1
|
%
|
|
Diluent (3)
|
|
|
1.4
|
|
|
|
1.2
|
|
|
|
17.9
|
%
|
|
Total
|
|
|
176.1
|
|
|
|
201.1
|
|
|
|
(12.4
|
)%
|
|
2) Imports (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Cambio %
|
|
|
Crude Oil
|
|
|
36.5
|
|
|
|
-
|
|
|
|
|
|
|
Refined Products
|
|
|
114.5
|
|
|
|
122.4
|
|
|
|
(6.5
|
)%
|
|
Diluent
|
|
|
62.9
|
|
|
|
62.2
|
|
|
|
1.1
|
%
|
|
Total
|
|
|
213.9
|
|
|
|
184.6
|
|
|
|
15.9
|
%
|
(1) Includes purchases of royalties and purchases from third
parties.
(2) Does not include purchases of royalties due to a regulatory
change.
(3) Includes products used as diluent and diluent own production.
Table 2 – Consolidated Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1Q 2016*
|
|
|
1Q 2015*
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Local Sales
|
|
|
6,032
|
|
|
|
5,827
|
|
|
Export Sales
|
|
|
4,453
|
|
|
|
6,474
|
|
|
Total Revenue
|
|
|
10,485
|
|
|
|
12,301
|
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
Variable Costs
|
|
|
|
|
|
|
|
|
|
Imported products
|
|
|
2,220
|
|
|
|
2,765
|
|
|
Purchase of Hydrocarbons
|
|
|
1,262
|
|
|
|
1,561
|
|
|
Depreciation, Amortization and Depletion
|
|
|
1,189
|
|
|
|
1,180
|
|
|
Hydrocarbon Transportation Services
|
|
|
234
|
|
|
|
320
|
|
|
Inventories and other
|
|
|
590
|
|
|
|
611
|
|
|
Fixed Costs
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
453
|
|
|
|
362
|
|
|
Contracted Services
|
|
|
585
|
|
|
|
660
|
|
|
Maintenance
|
|
|
308
|
|
|
|
401
|
|
|
Labor Costs
|
|
|
282
|
|
|
|
376
|
|
|
Other
|
|
|
323
|
|
|
|
319
|
|
|
Total Cost of Sales
|
|
|
7,446
|
|
|
|
8,555
|
|
|
Gross Income
|
|
|
3,039
|
|
|
|
3,746
|
|
|
Operating Expenses
|
|
|
-
|
|
|
|
-
|
|
|
Operating Expenses
|
|
|
1,356
|
|
|
|
1,305
|
|
|
Exploration and Projects
|
|
|
84
|
|
|
|
84
|
|
|
Operating Income/Loss
|
|
|
1,599
|
|
|
|
2,357
|
|
|
Financial results, net **
|
|
|
(136
|
)
|
|
|
(1,530
|
)
|
|
Share of profit of associates
|
|
|
(27
|
)
|
|
|
1
|
|
|
Income before income tax
|
|
|
1,436
|
|
|
|
828
|
|
|
Income Tax
|
|
|
(825
|
)
|
|
|
(472
|
)
|
|
Net Income Consolidated
|
|
|
611
|
|
|
|
356
|
|
|
Non-controlling interests
|
|
|
(248
|
)
|
|
|
(196
|
)
|
|
Net income attributable to Owners of Ecopetrol
|
|
|
363
|
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income attributable to Owners of Ecopetrol
|
|
|
(416
|
)
|
|
|
1,097
|
|
|
Total Comprehensive income attributable to Owners of Ecopetrol
|
|
|
(53
|
)
|
|
|
1,257
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
4,137
|
|
|
|
4,782
|
|
|
EBITDA MARGIN
|
|
|
39.5
|
%
|
|
|
38.9
|
%
|
Notes
* The quarterly figures in this report are not audited.
** Includes exchange difference.
Table 3 – Consolidated Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
7,636
|
|
|
|
6,551
|
|
|
Trade and other receivables
|
|
|
3,100
|
|
|
|
3,427
|
|
|
Inventories
|
|
|
2,861
|
|
|
|
3,058
|
|
|
Current tax assets
|
|
|
4,334
|
|
|
|
4,502
|
|
|
Financial assets held for sale
|
|
|
1,038
|
|
|
|
914
|
|
|
Other assets
|
|
|
1,215
|
|
|
|
1,419
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale
|
|
|
272
|
|
|
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
|
20,456
|
|
|
|
20,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Current Assets
|
|
|
|
|
|
|
|
|
|
Investments in associates and joint ventures
|
|
|
1,865
|
|
|
|
1,932
|
|
|
Trade and other receivables
|
|
|
627
|
|
|
|
585
|
|
|
Property, plant and equipment
|
|
|
63,290
|
|
|
|
65,031
|
|
|
Natural and environmental resources
|
|
|
23,969
|
|
|
|
24,044
|
|
|
Intangibles
|
|
|
389
|
|
|
|
388
|
|
|
Deferred tax assets
|
|
|
8,282
|
|
|
|
7,962
|
|
|
Other non-current assets
|
|
|
2,870
|
|
|
|
2,941
|
|
|
Total Non Current Assets
|
|
|
101,292
|
|
|
|
102,883
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
121,748
|
|
|
|
122,996
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
|
5,101
|
|
|
|
4,574
|
|
|
Trade and other payables
|
|
|
5,090
|
|
|
|
7,757
|
|
|
Labor and pension plan obligations
|
|
|
1,276
|
|
|
|
1,392
|
|
|
Current tax liabilities
|
|
|
3,775
|
|
|
|
2,804
|
|
|
Accrued liabilities and provisions
|
|
|
655
|
|
|
|
653
|
|
|
Derivates
|
|
|
7
|
|
|
|
101
|
|
|
Other liabilities
|
|
|
352
|
|
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities related to Non-current assets held for sale
|
|
|
17
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
16,273
|
|
|
|
17,443
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Term Liabilities
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
|
48,039
|
|
|
|
48,650
|
|
|
Trade and other payables
|
|
|
2
|
|
|
|
-
|
|
|
Labor and pension plan obligations
|
|
|
2,667
|
|
|
|
2,460
|
|
|
Deferred tax liabilities
|
|
|
3,822
|
|
|
|
3,303
|
|
|
Accrued liabilities and provisions
|
|
|
5,506
|
|
|
|
5,424
|
|
|
Other long-term liabilities
|
|
|
432
|
|
|
|
484
|
|
|
Total non-current liabilities
|
|
|
60,468
|
|
|
|
60,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
76,741
|
|
|
|
77,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the Company
|
|
|
43,282
|
|
|
|
43,357
|
|
|
Non-controlling interests
|
|
|
1,725
|
|
|
|
1,875
|
|
|
Total Equity
|
|
|
45,007
|
|
|
|
45,232
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
121,748
|
|
|
|
122,996
|
|
Table 4 – Comprehensive income – Ecopetrol Consolidated
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Net income (loss) consolidated
|
|
|
611
|
|
|
|
356
|
|
|
Components of other comprehensive income, net of taxes
|
|
|
|
|
|
|
|
|
|
Accumulated foreign currency translation
|
|
|
(1,003
|
)
|
|
|
1,148
|
|
|
Net fair value gain (Loss) on available-for-sale financial assets
|
|
|
125
|
|
|
|
(118
|
)
|
|
Cash flow hedges for future exports
|
|
|
511
|
|
|
|
-
|
|
|
Cash flow hedges - derivative financial instruments
|
|
|
45
|
|
|
|
-
|
|
|
Remeasurement of defined benefit obligation
|
|
|
(125
|
)
|
|
|
86
|
|
|
Others
|
|
|
(5
|
)
|
|
|
-
|
|
|
Total other comprehensive income
|
|
|
(452
|
)
|
|
|
1,116
|
|
|
Total Comprehensive income
|
|
|
159
|
|
|
|
1,472
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
|
(53
|
)
|
|
|
1,257
|
|
|
Non-controlling interests
|
|
|
212
|
|
|
|
215
|
|
|
|
|
|
159
|
|
|
|
1,472
|
|
Table 5 – Consolidated Cash Flow Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss) Equity holders of Ecopetrol
|
|
|
363
|
|
|
|
160
|
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
248
|
|
|
|
196
|
|
|
Income tax
|
|
|
825
|
|
|
|
472
|
|
|
Depreciation, depletion and amortization
|
|
|
1,713
|
|
|
|
1,587
|
|
|
Foreign exchange (gain) loss
|
|
|
(625
|
)
|
|
|
1,175
|
|
|
Finance costs recognised in profit or loss
|
|
|
813
|
|
|
|
426
|
|
|
Gain on disponsal of non-current assets
|
|
|
23
|
|
|
|
-
|
|
|
Impairment of assets
|
|
|
92
|
|
|
|
42
|
|
|
Fair value gain on financial assets valuation
|
|
|
26
|
|
|
|
61
|
|
|
Share or profit os associates and joint ventures
|
|
|
27
|
|
|
|
(1
|
)
|
|
Gain on sale of equity instruments measured at fair value
|
|
|
1
|
|
|
|
-
|
|
|
Realized foreign exchange cash flow hedges
|
|
|
134
|
|
|
|
-
|
|
|
Net changes in operating assets and liabilities
|
|
|
85
|
|
|
|
(818
|
)
|
|
Cash provided by operating activities
|
|
|
3,725
|
|
|
|
3,300
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Investment in natural and environmental resources
|
|
|
(843
|
)
|
|
|
(2,089
|
)
|
|
Payments for intangibles
|
|
|
(569
|
)
|
|
|
(891
|
)
|
|
Proceeds from sales of equity instruments measured at fair value
|
|
|
(10
|
)
|
|
|
(7
|
)
|
|
(Purchases) sales of other financial assets
|
|
|
(47
|
)
|
|
|
(1,472
|
)
|
|
Interest received
|
|
|
69
|
|
|
|
74
|
|
|
Dividends received
|
|
|
-
|
|
|
|
-
|
|
|
Proceeds from sales of property, plant and equipment
|
|
|
85
|
|
|
|
15
|
|
|
Net cash used in investing activities
|
|
|
(1,315
|
)
|
|
|
(4,370
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds (repayment of) from borrowings
|
|
|
788
|
|
|
|
4,495
|
|
|
Interest paid
|
|
|
(596
|
)
|
|
|
(403
|
)
|
|
Capitalizations
|
|
|
-
|
|
|
|
-
|
|
|
Dividends paid
|
|
|
(1,058
|
)
|
|
|
(182
|
)
|
|
Net cash used in financing activities
|
|
|
(866
|
)
|
|
|
3,910
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange difference in cash and cash equivalents
|
|
|
(458
|
)
|
|
|
483
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
1,086
|
|
|
|
3,323
|
|
|
Cash and cash equivalents at the beginning of the year
|
|
|
6,550
|
|
|
|
7,618
|
|
|
Cash and cash equivalents at the end of the year
|
|
|
7,636
|
|
|
|
10,941
|
|
Table 6 – Reconciliation of EBITDA, Ecopetrol Consolidated
|
A
|
|
B
|
|
|
C
|
|
|
D
|
|
|
COP$ Billions
|
|
1 Q 2016
|
|
|
1 Q 2015 *
|
|
|
4 Q 2015
|
|
|
RECONCILIATION NET INCOME TO EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Ecopetrol's owners
|
|
|
363
|
|
|
|
160
|
|
|
|
(6,308
|
)
|
|
+ Depreciation, depletion and amortization
|
|
|
1,713
|
|
|
|
1,587
|
|
|
|
1,849
|
|
|
+/- Impairment of non-current assets
|
|
|
56
|
|
|
|
6
|
|
|
|
8,267
|
|
|
+/- Finance results, net
|
|
|
136
|
|
|
|
1,530
|
|
|
|
965
|
|
|
+ Income tax
|
|
|
825
|
|
|
|
472
|
|
|
|
(2,221
|
)
|
|
+ Other taxes
|
|
|
796
|
|
|
|
831
|
|
|
|
244
|
|
|
(+) Non-controlling interest
|
|
|
248
|
|
|
|
196
|
|
|
|
288
|
|
|
CONSOLIDATED EBITDA
|
|
|
4,137
|
|
|
|
4,782
|
|
|
|
3,084
|
|
* Ebitda calculated base on the new methodology adopted by
the Company in September, 2015.
Table 7 – Sensitization of net income 1Q 2015
The following table shows what the net
income attributable to the owners of Ecopetrol for the first quarter of 2015 would be if including head accounting since January
first. The head accounting policy was approved and recorded during the third quarter of 2015.
|
A
|
|
B
|
|
|
COP$ Billion
|
|
1Q 2015
|
|
|
Net income reported
|
|
|
160
|
|
|
|
|
|
|
|
|
Impact on:
|
|
|
|
|
|
(-) Financial results (a)
|
|
|
984
|
|
|
(-) Revenue (b)
|
|
|
(12
|
)
|
|
(-) Deferred Income tax ( c)
|
|
|
(395
|
)
|
|
Total impacts
|
|
|
577
|
|
|
|
|
|
|
|
|
Net income under Local IFRS restated
|
|
|
737
|
|
(a) The effect of the hedge accounting over the portion of
debt used as hedging instrument (US$5,440 million) reclassified to the account Other Comprehensive Income of Shareholder Equity
in 2Q and 3Q 2015.
(b) Recognition in the period’s result of the exchange
differences of debt and revenues once crude export earnings are realized.
(c) The impact on deferred income tax is the result of the
recognition of temporary differences in the exchange difference treatment in terms of accounting and taxation.
|
|
VI.
|
Exhibits of Subsidiary Results and Shareholder Interest
|
Exploration and Production
Table 8 – Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1 Q 2016
|
|
|
1 Q 2015*
|
|
|
Local Sales
|
|
|
103
|
|
|
|
74
|
|
|
Export Sales
|
|
|
152
|
|
|
|
207
|
|
|
Total Sales
|
|
|
255
|
|
|
|
281
|
|
|
Variable Costs
|
|
|
194
|
|
|
|
147
|
|
|
Fixed Costs
|
|
|
67
|
|
|
|
84
|
|
|
Cost of Sales
|
|
|
261
|
|
|
|
231
|
|
|
Gross Profits
|
|
|
(6
|
)
|
|
|
50
|
|
|
Operating Expenses
|
|
|
29
|
|
|
|
51
|
|
|
Operating Income/Loss
|
|
|
(35
|
)
|
|
|
(1
|
)
|
|
Financial Income/Loss
|
|
|
6
|
|
|
|
(6
|
)
|
|
Share of profit of investments
|
|
|
17
|
|
|
|
13
|
|
|
Profit/(Loss) before taxes
|
|
|
(12
|
)
|
|
|
6
|
|
|
Provision for Income Tax
|
|
|
(11
|
)
|
|
|
(37
|
)
|
|
Net Income
|
|
|
(23
|
)
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
47
|
|
|
|
120
|
|
|
EBITDA Margin
|
|
|
18.4
|
%
|
|
|
42.7
|
%
|
* For comparative purposes in the financial statement is included
the calculating of the Equity Method whose implementation took effect from December 2015 with the decree of Dic.23 2496 / 2015.
Table 9 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
1,145
|
|
|
|
1,371
|
|
|
Non Current Assets
|
|
|
2,176
|
|
|
|
2,246
|
|
|
Total Assets
|
|
|
3,321
|
|
|
|
3,617
|
|
|
Current Liabilities
|
|
|
718
|
|
|
|
931
|
|
|
Long Term Liabilities
|
|
|
180
|
|
|
|
174
|
|
|
Total Liabilities
|
|
|
898
|
|
|
|
1,105
|
|
|
Equity
|
|
|
2,423
|
|
|
|
2,512
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
3,321
|
|
|
|
3,617
|
|
Table 10 – Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
US$ Billion
|
|
1Q 2016*
|
|
|
1Q 2015*
|
|
|
Local Sales
|
|
|
14.7
|
|
|
|
26.9
|
|
|
Export Sales
|
|
|
-
|
|
|
|
-
|
|
|
Sale of services
|
|
|
-
|
|
|
|
-
|
|
|
Total Sales
|
|
|
14.7
|
|
|
|
26.9
|
|
|
Variable Costs
|
|
|
11.7
|
|
|
|
18.2
|
|
|
Fixed Costs
|
|
|
10.5
|
|
|
|
13.2
|
|
|
Cost of Sales
|
|
|
22.2
|
|
|
|
31.4
|
|
|
Gross Profits
|
|
|
(7.5
|
)
|
|
|
(4.5
|
)
|
|
Operating Expenses
|
|
|
(6.2
|
)
|
|
|
(9.5
|
)
|
|
Operating Income/Loss
|
|
|
(13.7
|
)
|
|
|
(14.0
|
)
|
|
Financial Income/Loss
|
|
|
(0.8
|
)
|
|
|
(0.3
|
)
|
|
Profit/(Loss) before taxes
|
|
|
(14.5
|
)
|
|
|
(14.3
|
)
|
|
Provision for Income Tax
|
|
|
2.7
|
|
|
|
0.9
|
|
|
Net Income
|
|
|
(11.8
|
)
|
|
|
(13.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(1.4
|
)
|
|
|
3.7
|
|
|
EBITDA Margin
|
|
|
-9.5
|
%
|
|
|
14.1
|
%
|
* The figures cover the period between January 01
and February 28 for each of the years
Table 11 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
US$ million
|
|
Febrary 29, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
102.4
|
|
|
|
98.6
|
|
|
Non Current Assets
|
|
|
649.2
|
|
|
|
663.6
|
|
|
Total Assets
|
|
|
751.6
|
|
|
|
762.2
|
|
|
Current Liabilities
|
|
|
156.6
|
|
|
|
151.6
|
|
|
Long Term Liabilities
|
|
|
126.4
|
|
|
|
130.2
|
|
|
Total Liabilities
|
|
|
283.0
|
|
|
|
281.8
|
|
|
Equity
|
|
|
468.6
|
|
|
|
480.4
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
751.6
|
|
|
|
762.2
|
|
Table 12 – Income Statement*
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Local Sales
|
|
|
85
|
|
|
|
74
|
|
|
Export Sales
|
|
|
181
|
|
|
|
168
|
|
|
Sale of services
|
|
|
-
|
|
|
|
-
|
|
|
Total Sales
|
|
|
266
|
|
|
|
242
|
|
|
Variable Costs
|
|
|
236
|
|
|
|
154
|
|
|
Fixed Costs
|
|
|
36
|
|
|
|
33
|
|
|
Cost of Sales
|
|
|
272
|
|
|
|
187
|
|
|
Gross Profits
|
|
|
(6
|
)
|
|
|
55
|
|
|
Operating Expenses
|
|
|
(21
|
)
|
|
|
(37
|
)
|
|
Operating Income/Loss
|
|
|
(27
|
)
|
|
|
18
|
|
|
Financial Income/Loss
|
|
|
20
|
|
|
|
19
|
|
|
Profit/(Loss) before taxes
|
|
|
(7
|
)
|
|
|
37
|
|
|
Provision for Income Tax
|
|
|
(17
|
)
|
|
|
(16
|
)
|
|
Net Income
|
|
|
(24
|
)
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
193
|
|
|
|
177
|
|
|
EBITDA Margin
|
|
|
73
|
%
|
|
|
73
|
%
|
* Includes adjustment and reclassifications for the
approval of accounting policies Business Group .
Table 13 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
959
|
|
|
|
854
|
|
|
Non Current Assets
|
|
|
2,051
|
|
|
|
2,261
|
|
|
Total Assets
|
|
|
3,010
|
|
|
|
3,115
|
|
|
Current Liabilities
|
|
|
535
|
|
|
|
549
|
|
|
Long Term Liabilities
|
|
|
110
|
|
|
|
110
|
|
|
Total Liabilities
|
|
|
645
|
|
|
|
659
|
|
|
Equity
|
|
|
2,365
|
|
|
|
2,456
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
3,010
|
|
|
|
3,115
|
|
Refining and Petrochemical
Table 14 – Sales Volumes
|
A
|
|
B
|
|
|
C
|
|
|
Sales volumes (tons)
|
|
1 Q 2016
|
|
|
1 Q 2015
|
|
|
Polypropylene
|
|
|
118,856
|
|
|
|
101,014
|
|
|
Masterbatch
|
|
|
4,427
|
|
|
|
3,378
|
|
|
Polyethylene
|
|
|
6,026
|
|
|
|
7,844
|
|
|
Total
|
|
|
129,310
|
|
|
|
112,236
|
|
Table 15 – Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1 Q 2016
|
|
|
1 Q 2015*
|
|
|
Local Sales
|
|
|
195
|
|
|
|
166
|
|
|
Export Sales
|
|
|
319
|
|
|
|
261
|
|
|
Total Sales
|
|
|
514
|
|
|
|
427
|
|
|
Variable Costs
|
|
|
357
|
|
|
|
369
|
|
|
Fixed Costs
|
|
|
26
|
|
|
|
24
|
|
|
Cost of Sales
|
|
|
383
|
|
|
|
393
|
|
|
Gross Profits
|
|
|
131
|
|
|
|
34
|
|
|
Operating Expenses
|
|
|
43
|
|
|
|
39
|
|
|
Operating Income/Loss
|
|
|
88
|
|
|
|
(5
|
)
|
|
Financial Income/Loss
|
|
|
(1
|
)
|
|
|
22
|
|
|
Share of profit of investments
|
|
|
19
|
|
|
|
14
|
|
|
Profit/(Loss) before taxes
|
|
|
106
|
|
|
|
31
|
|
|
Provision for Income Tax
|
|
|
(33
|
)
|
|
|
7
|
|
|
Net Income
|
|
|
73
|
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
101
|
|
|
|
8
|
|
|
EBITDA Margin
|
|
|
19.6
|
%
|
|
|
1.9
|
%
|
* For comparative purposes in the financial statement
is included the calculating of the Equity Method whose implementation took effect from December 2015 with the decree of Dic.23
2496 / 2015.
Table 16 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
895
|
|
|
|
794
|
|
|
Non Current Assets
|
|
|
1,002
|
|
|
|
1,009
|
|
|
Total Assets
|
|
|
1,897
|
|
|
|
1,803
|
|
|
Current Liabilities
|
|
|
456
|
|
|
|
386
|
|
|
Long Term Liabilities
|
|
|
95
|
|
|
|
94
|
|
|
Total Liabilities
|
|
|
551
|
|
|
|
480
|
|
|
Equity
|
|
|
1,346
|
|
|
|
1,323
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
1,897
|
|
|
|
1,803
|
|
Table 17 –
Sales Volume
|
A
|
|
B
|
|
|
C
|
|
|
Local Sales Volume (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Total Local Sales
|
|
|
47.3
|
|
|
|
38.4
|
|
|
Total Export Sales
|
|
|
66.3
|
|
|
|
0.0
|
|
|
Total Sales Volume
|
|
|
113.6
|
|
|
|
38.4
|
|
Table 18 –
Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1 Q 2016
|
|
|
1 Q 2015
|
|
|
Local Sales
|
|
|
666
|
|
|
|
628
|
|
|
Export Sales
|
|
|
574
|
|
|
|
-
|
|
|
Total Sales
|
|
|
1,240
|
|
|
|
628
|
|
|
Variable Costs
|
|
|
1,190
|
|
|
|
567
|
|
|
Fixed Costs
|
|
|
133
|
|
|
|
47
|
|
|
Cost of Sales
|
|
|
1,323
|
|
|
|
614
|
|
|
Gross Profits
|
|
|
(83
|
)
|
|
|
14
|
|
|
Operating Expenses
|
|
|
289
|
|
|
|
197
|
|
|
Operating Income/Loss
|
|
|
(372
|
)
|
|
|
(183
|
)
|
|
Financial Income/Loss
|
|
|
(112
|
)
|
|
|
(1
|
)
|
|
Share of profit of investments
|
|
|
-
|
|
|
|
-
|
|
|
Profit/(Loss) before taxes
|
|
|
(484
|
)
|
|
|
(184
|
)
|
|
Provision for Income Tax
|
|
|
18
|
|
|
|
26
|
|
|
Net Income
|
|
|
(466
|
)
|
|
|
(158
|
)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(175
|
)
|
|
|
(71
|
)
|
|
EBITDA Margin
|
|
|
-14.1
|
%
|
|
|
-11.3
|
%
|
Table 19 –
Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
1,520
|
|
|
|
1,284
|
|
|
Non Current Assets
|
|
|
25,351
|
|
|
|
25,398
|
|
|
Total Assets
|
|
|
26,871
|
|
|
|
26,682
|
|
|
Current Liabilities
|
|
|
2,179
|
|
|
|
1,940
|
|
|
Long Term Liabilities
|
|
|
15,727
|
|
|
|
15,562
|
|
|
Total Liabilities
|
|
|
17,906
|
|
|
|
17,502
|
|
|
Equity
|
|
|
8,965
|
|
|
|
9,180
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
26,871
|
|
|
|
26,682
|
|
Transportation
Table 20 – Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1 Q 2016
|
|
|
1 Q 2015*
|
|
|
Local Sales
|
|
|
1,097
|
|
|
|
902
|
|
|
Export Sales
|
|
|
-
|
|
|
|
-
|
|
|
Total Sales
|
|
|
1,097
|
|
|
|
902
|
|
|
Variable Costs
|
|
|
26
|
|
|
|
92
|
|
|
Fixed Costs
|
|
|
350
|
|
|
|
354
|
|
|
Cost of Sales
|
|
|
376
|
|
|
|
446
|
|
|
Gross Profits
|
|
|
721
|
|
|
|
456
|
|
|
Operating Expenses
|
|
|
142
|
|
|
|
121
|
|
|
Operating Income/Loss
|
|
|
579
|
|
|
|
335
|
|
|
Financial Income/Loss
|
|
|
(36
|
)
|
|
|
162
|
|
|
Share of profit of investments
|
|
|
532
|
|
|
|
442
|
|
|
Profit/(Loss) before taxes
|
|
|
1,075
|
|
|
|
939
|
|
|
Provision for Income Tax
|
|
|
(202
|
)
|
|
|
(203
|
)
|
|
Net Income
|
|
|
873
|
|
|
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
789
|
|
|
|
533
|
|
|
EBITDA Margin
|
|
|
71.9
|
%
|
|
|
59.1
|
%
|
* For comparative purposes in the financial statement
is included the calculating of the Equity Method whose implementation took effect from December 2015 with the decree of Dic.23
2496 / 2015.
Table 21 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
(COP$ Billion)
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
2,267
|
|
|
|
1,391
|
|
|
Non Current Assets
|
|
|
12,189
|
|
|
|
12,525
|
|
|
Total Assets
|
|
|
14,456
|
|
|
|
13,916
|
|
|
Current Liabilities
|
|
|
2,160
|
|
|
|
1,516
|
|
|
Long Term Liabilities
|
|
|
833
|
|
|
|
814
|
|
|
Total Liabilities
|
|
|
2,993
|
|
|
|
2,330
|
|
|
Equity
|
|
|
11,463
|
|
|
|
11,586
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
14,456
|
|
|
|
13,916
|
|
Biofuels
Table 22 – Sales Volume
|
A
|
|
B
|
|
|
C
|
|
|
Local Sales Volume (mboed)
|
|
1Q 2016
|
|
|
1Q 2015
|
|
|
Fuel Oil
|
|
|
2.3
|
|
|
|
2.3
|
|
|
Industrial and Petrochemical
|
|
|
0.2
|
|
|
|
0.2
|
|
|
Total Local Sales
|
|
|
2.5
|
|
|
|
2.5
|
|
Table 23 – Income Statement
|
A
|
|
B
|
|
|
C
|
|
|
COP$ Billion
|
|
1Q 2016*
|
|
|
1Q 2015*
|
|
|
Local Sales
|
|
|
67.48
|
|
|
|
58.08
|
|
|
Total Sales
|
|
|
67.48
|
|
|
|
58.08
|
|
|
Variable Costs
|
|
|
57.30
|
|
|
|
50.67
|
|
|
Cost of Sales
|
|
|
57.30
|
|
|
|
50.67
|
|
|
Gross Profits
|
|
|
10.18
|
|
|
|
7.41
|
|
|
Operating Expenses
|
|
|
2.67
|
|
|
|
1.88
|
|
|
Operating Income/Loss
|
|
|
7.51
|
|
|
|
5.53
|
|
|
Financial Income/Loss
|
|
|
(0.26
|
)
|
|
|
(0.48
|
)
|
|
Profit/(Loss) before taxes
|
|
|
7.25
|
|
|
|
5.05
|
|
|
Provision for Income Tax
|
|
|
(1.10
|
)
|
|
|
(1.08
|
)
|
|
Net Income
|
|
|
6.15
|
|
|
|
3.97
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
EBITDA
|
|
|
8.54
|
|
|
|
6.57
|
|
|
EBITDA Margin
|
|
|
12.7
|
%
|
|
|
11.3
|
%
|
* The figures cover the period between January 01
and February 28 for each of the years
Table 24 – Balance Sheet
|
A
|
|
B
|
|
|
C
|
|
|
Consolidated Balance Sheet
|
|
|
|
|
|
|
|
(COP$ Billion)
|
|
Febrary 29, 2016
|
|
|
December 31, 2015
|
|
|
Current Assets
|
|
|
73.01
|
|
|
|
73.25
|
|
|
Non Current Assets
|
|
|
67.82
|
|
|
|
68.66
|
|
|
Total Assets
|
|
|
140.83
|
|
|
|
141.91
|
|
|
Current Liabilities
|
|
|
48.34
|
|
|
|
57.09
|
|
|
Long Term Liabilities
|
|
|
11.95
|
|
|
|
10.50
|
|
|
Total Liabilities
|
|
|
60.29
|
|
|
|
67.59
|
|
|
Equity
|
|
|
80.54
|
|
|
|
74.32
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
140.83
|
|
|
|
141.91
|
|
|
|
VII.
|
Corporate Group´s Financial Indebtedness
|
Table 25 – Long Term Indebtedness
by Entity*
|
Company
|
|
Denominated in
U.S. Dollars
|
|
|
Denominated in
Colombian Pesos **
|
|
|
Total
|
|
|
Ecopetrol
|
|
|
11.101
|
|
|
|
1.533
|
|
|
|
12.634
|
|
|
Reficar
|
|
|
3.065
|
|
|
|
0
|
|
|
|
3.065
|
|
|
Bicentario
|
|
|
0
|
|
|
|
555
|
|
|
|
555
|
|
|
ODL
|
|
|
0
|
|
|
|
324
|
|
|
|
324
|
***
|
|
Bioenergy
|
|
|
0
|
|
|
|
160
|
|
|
|
160
|
|
|
Ocensa
|
|
|
500
|
|
|
|
0
|
|
|
|
500
|
|
|
Propilco
|
|
|
3
|
|
|
|
0
|
|
|
|
3
|
|
|
Total
|
|
|
14.670
|
|
|
|
2.571
|
|
|
|
17.241
|
|
*Nominal value of debt as of March 31, 2016, excluding accrued
interests.
**Figures expressed in thousands of U.S. dollars converted
using the Representative Market Exchange Rate as of March 31, 2016.
*** Includes an operating leasing, for which the nominal value
is calculated using a theoretical amortizations and interest model.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
Ecopetrol S.A.
|
|
|
|
|
|
|
|
By:
|
/s/
María Fernanda Suárez
|
|
|
|
|
Name:
|
María Fernanda Suárez
|
|
|
|
|
Title:
|
Chief Financial Officer
|
|
Date: May 4, 2016
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