BOGOTA, Colombia, Aug. 16, 2016 /PRNewswire/ -- Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") announced
today the Ecopetrol Group's financial results for the second
quarter and first half of 2016, prepared and filed in Colombian
pesos (COP$) in accordance with International Financial Reporting
Standards (IFRS) applicable in Colombia.
Some explanatory figures in this report are expressed in U.S.
dollars (US$) and thus indicated where applicable. Figures
expressed in billions of COP$ amount to COP$1 thousand million.
Table 1: Summary
of the Ecopetrol Group's Consolidated Financial
Results
|
|
A
|
B
|
C
|
D
|
E
|
F
|
G
|
H
|
I
|
J
|
(COP$
Billion)
|
2Q
2016*
|
2Q
2015*
|
∆
($)
|
∆
(%)
|
1Q
2016*
|
1H
2016*
|
1H
2015*
|
∆
($)
|
∆
(%)
|
Total
Sales
|
11,751
|
14,009
|
(2,258)
|
(16.1%)
|
10,485
|
22,236
|
26,310
|
(4,074)
|
(15.5%)
|
Operating
Profit
|
2,481
|
3,549
|
(1,068)
|
(30.1%)
|
1,599
|
4,080
|
5,907
|
(1,827)
|
(30.9%)
|
Net Income
Consolidated
|
989
|
1,696
|
(707)
|
(41.7%)
|
611
|
1,600
|
2,052
|
(452)
|
(22.0%)
|
Non-Controlling
Interests
|
(202)
|
(189)
|
(13)
|
6.9%
|
(248)
|
(450)
|
(385)
|
(65)
|
16.9%
|
Net Income
Attributable to Owners of Ecopetrol
|
787
|
1,507
|
(720)
|
(47.8%)
|
363
|
1,150
|
1,667
|
(517)
|
(31.0%)
|
EBITDA**
|
4,522
|
5,522
|
(1,000)
|
(18.1%)
|
4,137
|
8,659
|
10,304
|
(1,645)
|
(16.0%)
|
EBITDA
Margin
|
38.5%
|
39.4%
|
|
|
39.5%
|
38.9%
|
39.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
* These figures are
included for illustration purposes only. Unaudited.
|
** For comparative
purposes with the information of 2016, the EBITDA presented for the
second quarter and first half of 2015 were calculated pursuant to
the methodology adopted by the Company in September
2015.
|
In the view of Ecopetrol S.A.'s CEO, Juan Carlos Echeverry G.:
"April marked my first year leading Ecopetrol. A year
characterized by a sharp drop in oil prices, challenging the oil
and gas industry. We also witnessed a strong El Niño weather
phenomenon, the closure of the border with Venezuela and attacks on transport
infrastructure.
The renewal of the management team, the adjustment and
austerity measures, as well as the focus on profitable production
and the preservation of both cash flow and leverage metrics have
enabled Ecopetrol to navigate the price scenario and present
positive operating and financial results in the second quarter of
2016.
Net income attributable to Ecopetrol shareholders reached
COP$787 billion, 117% higher as compared to the first quarter of
2016, thanks to a 34% recovery in Brent crude price, a decrease in
our operational costs and structural savings efforts. Our EBITDA
margin remained solid at around 39%.
In the second quarter of 2016 the Company reported savings of
COP$392 billion pesos, for a cumulative COP$813 billion pesos for
the first semester. The savings target for 2016 is COP$1.6 trillion
pesos.
We raised COP$725 billion from the divestment of part of our
stake in Interconexión Eléctrica S.A.
E.S.P. (ISA) and Empresa de Energía de Bogotá S.A. E.S.P.
(EEB). Further, we launched "Ronda
Campos 2016", an initiative to offer our interest in 20
minor oil fields located in Catatumbo, Middle and Upper Magdalena
Valley, Llanos and Putumayo regions.
Ecopetrol received Rubiales and Cusiana fields and now
operates more than 500 thousand barrels per day. The Rubiales field
gave us 53 thousand barrels per day of additional production,
partially offsetting the impact of lower investments in other
assets and the temporary suspension of some fields.
The Company successfully completed the startup process of the
34 units that comprise the Cartagena Refinery.
In the last sixteen months we have comprehensively renewed
our management team, attracting people with broad experience and an
important record in major international oil and gas
companies.
It is the case of the Chief Operating Officer, Chief
Financial Officer, Chief Transformation Officer; as well as the
Vice-presidents of Refining, Social and Environmental
Sustainability, Legal Affairs, and most regional Vice Presidents;
additionally, new people will soon arrive to lead in Procurement
and in Transportation. Finally, two vice-presidencies were created:
Engineering and Projects, and Compliance.
The transformation plan has 500 ongoing tasks. These
initiatives have already begun to materialize in Ecopetrol's
results. For example, the dilution cost reduction initiative, which
is part of the efficiency front, has reduced Ecopetrol's diluent
purchases by almost 14 thousand barrels per day. The cumulative
savings in 2015 and the first half of 2016 amounted to COP$726
billion pesos. This initiative is crucial for viable production
projects in heavy crudes that represent 57% of the Corporate
Group's oil production.
The Company's priority has been the protection of the cash
flow. In the second quarter of 2016 the cash balance was
strengthened with resources from divestments and the international
loan with the Export Development Canada (EDC) for US$300 million as well as the reopening of the
international bond due to 2023 for US$500
million, a clear sign of the capital markets' confidence.
With these resources Ecopetrol has fulfilled close to 85% of its
financing needs for 2016. Moreover, Standard and Poor's and Fitch
Ratings reaffirmed the BBB investment grade rating for
Ecopetrol.
The Company's 2017-2020 business plan is being reviewed in
line with our forecasted price scenarios and our efficiency gains
achieved, these gains could be even greater in the future. We hope
to present our updated medium-term goals no later than October of
this year.
Ecopetrol continues its transformation in order to position
itself as a competitive player, strengthening its exploration and
production portfolio to capture opportunities arising from a
fundamental recovery in oil prices, and increasing structurally
efficiency in Refining and Transport to ensure financial
sustainability and creation of value for its shareholders."
The complete report is available in www.ecopetrol.com.co
Bogota, August 16, 2016
-----------------------------------------
Ecopetrol is the largest company in Colombia and is an integrated oil & gas
company; it is among the top 50 oil companies in the world and
among the four top ones in Latin
America. Besides Colombia -
where it generates over 60% of the national production - it has
exploration and production activities in Brazil, Peru
& the US (Gulf of Mexico).
Ecopetrol owns the largest refinery in Colombia and most of the pipeline and
multi-product pipeline network in the country, and is significantly
increasing its participation in bio-fuels.
This release contains statements that may be considered
forward looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. All forward-looking statements, whether made
in this release or in future filings or press releases or orally,
address matters that involve risks and uncertainties, including in
respect of the Company's prospects for growth and its ongoing
access to capital to fund the Company's business plan, among
others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
& gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, the
Company's competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
For further information, please contact:
Head of Corporate Finance and Investor
Relations (A)
Lina María Contreras Mora
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
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SOURCE Ecopetrol S.A.