BOGOTA, Colombia, Nov. 15, 2016 /PRNewswire/ -- Today,
Ecopetrol S.A. ("Ecopetrol" or the "Company") (BVC: ECOPETROL;
NYSE: EC) announced the Ecopetrol Group's financial results for the
third quarter and first nine months of 2016, prepared and expressed
in billions of Colombian pesos (COP) pursuant to International
Financial Reporting Standards (IFRS) applicable in Colombia.
Table 1: Ecopetrol
Group's Consolidated Financial Results
|
A
|
|
B
|
C
|
D
|
E
|
|
F
|
G
|
H
|
I
|
|
|
|
|
|
|
|
|
|
|
|
COP
Billion
|
|
3Q
2015*
|
3Q
2016*
|
∆
($)
|
∆
(%)
|
|
Jan-Sep
15*
|
Jan-Sep
16*
|
∆
($)
|
∆
(%)
|
Total
Sales
|
|
13,003
|
12,183
|
(820)
|
(6.3%)
|
|
39,314
|
34,419
|
(4,895)
|
(12.5%)
|
Operating
Profit
|
|
2,850
|
2,540
|
(310)
|
(10.9%)
|
|
8,757
|
6,620
|
(2,137)
|
(24.4%)
|
Net Income
Consolidated
|
|
887
|
446
|
(441)
|
(49.7%)
|
|
2,938
|
2,046
|
(892)
|
(30.4%)
|
Non-Controlling
Interests
|
|
(233)
|
(217)
|
16
|
(6.9%)
|
|
(617)
|
(667)
|
(50)
|
8.1%
|
Net Income
Attributable to Owners of Ecopetrol
|
|
654
|
229
|
(425)
|
-65.0%
|
|
2,321
|
1,379
|
(942)
|
-40.6%
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
4,698
|
4,886
|
188
|
4.0%
|
|
15,003
|
13,545
|
(1,458)
|
(9.7%)
|
EBITDA
Margin
|
|
36.1%
|
40.1%
|
|
|
|
38.2%
|
39.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* These figures are
included for illustration purposes only. Unaudited.
|
Certain explanatory figures in this report are stated in US
dollars (USD) and are indicated as such when applicable.
Juan Carlos Echeverry G., CEO
of Ecopetrol S.A., commented:
"Ecopetrol has attained a strong operating and financial
performance during the third quarter of 2016, reporting the highest
level of EBITDA and EBITDA margin in the last five
quarters, as a result of: i) the effectiveness of austerity
measures; ii) increased efficiency and cost savings; iii) focus on
capital discipline; iv) its proven capacity as an effective
operator; and, v) higher crude oil prices compared with the
beginning of the year.
The Company was able to operate the Rubiales and Cusiana
fields both efficiently and safely, and sustained steady production
levels in Castilla and Chichimene, despite lower investment.
Favorable price forecasts allowed the Company to develop projects
in order to gradually increase production of oil by 25 thousand
barrels per day in 2017 and to reactivate the Caño Sur field, that
help mitigate the declining of mature fields, a clear demonstration
of its swift ability to respond to environmental
conditions.
It is important to note that production grew by 3.9% during
this quarter compared to the prior quarter, reaching a level of 723
thousand equivalent barrels of oil per day. This increase is
explained, in part, by the reversion of the Rubiales field and the
start of production at Gunflint in the US Gulf of Mexico, where
we've started to reap the benefits of investments made in previous
years.
The Group has overcome the period of low oil prices and has
returned to the path of growth in production.
After the start-up of the 34 units at the Cartagena Refinery
complex, which was completed on July
11th, we initiated the stabilization and
performance testing period.
During the third quarter, the Ecopetrol Group reported an
EBITDA of COP 4.9 trillion and an EBITDA margin of 40%. This
good result demonstrates our commitment to operational excellence,
cost efficiency, and capital discipline.
The net profit attributable to Ecopetrol shareholders in the
third quarter rose to COP 229 billion. The decrease in
relation to the reported profit for the second quarter is explained
mainly by a higher income tax provision. This provision is the
result of an update in the estimated tax rate for the year-end
close, which reflects a higher tax charge as a consequence of the
increase in international oil prices.
Cumulative savings totaling COP 1.9 trillion for the
year exceed the target savings of COP 1.6 trillion set for
2016. Of these savings, the transformation plan managed to
consolidate cumulative structural savings of COP 1.6 trillion
within the first nine months of the year (COP 617 billion
during the third quarter); and the Group achieved COP 300
billion in non-structural reductions.
The most relevant cumulative savings for the year include
COP 563 billion from the heavy crude dilution initiative and
COP 203 billion from line maintenance in the Midstream
segment.
The savings achieved contributed to mitigate the impact on
the Company's costs from the reversion of the Rubiales field and
the start-up of the Cartagena refinery, as well as its seasonal
trend which consistently shows higher execution in the second
semester each year.
The third quarter ended with a solid cash position of
COP 7.7 trillion, which allowed Ecopetrol to prepay a
COP 990 billion loan that it had contracted with Bancolombia
at the beginning of this year.
The Company continues to strengthen its social and
environmental relations model, which aims to achieve sustainable
and shared growth with communities in the areas of operation and
the development of local governance. It also works to strengthen
managerial leadership, commitment to life and effective risk
management of people, facilities, and processes.
Ecopetrol has an optimistic view of the future. Its update to
the 2020 Business Plan is based on three core pillars: i) cash
focus and cost efficiency, ii) strict capital discipline, and iii)
reserve and production growth. These pillars will strengthen its
financial sustainability and allow it to leverage opportunities for
organic and inorganic growth, thereby generating value and profit
for shareholders."
The complete report is available
in www.ecopetrol.com.co
[1] Ranking based on production directly operated.
For further information, please contact:
Head of Corporate Finance and Investor Relations Maria Catalina
Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
E-mail: mauricio.tellez@ecopetrol.com.co
Logo - http://photos.prnewswire.com/prnh/20090209/ARM001LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ecopetrol-group-announces-third-quarter-and-ytd-results-for-2016-300363044.html
SOURCE Ecopetrol S.A.