BOGOTA, Colombia, Aug. 8, 2017 /PRNewswire/ --
- Net income for the first semester of 2017 was COP 2.2 trillion, almost double than in the same
period of last year and higher than the net income of the whole
year 2016.
- The spread of our crude export basket versus Brent has
narrowed due to our renewed commercial strategy. From a maximum of
Brent minus USD 12/bl in 2015 it fell
to Brent minus USD 6.6/bl in the
second quarter of 2017.
- Group's nominal debt decreased by 12.9% during the second
quarter of 2017.
- Effective exploratory campaign with a success rate of 80% in
the first semester.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) today announced the
Ecopetrol Business Group's second-quarter and first half 2017
financial results, prepared and presented in billions of Colombian
pesos (COP) according to International Financial Reporting
Standards applicable in Colombia.
TABLE 1:
CONSOLIDATED FINANCIAL RESULTS –
ECOPETROL BUSINESS GROUP
|
|
|
|
|
|
|
|
|
|
|
|
A
|
|
B
|
C
|
D
|
E
|
|
F
|
G
|
H
|
I
|
|
|
|
|
|
|
|
|
|
|
|
COP$
Billion
|
|
2Q
2017
|
2Q
2016
|
∆
($)
|
∆
(%)
|
|
1H
2017
|
1H
2016
|
∆
($)
|
∆
(%)
|
Total
Sales
|
|
13,151
|
11,751
|
1,400
|
11.9%
|
|
26,522
|
22,236
|
4,286
|
19.3%
|
Operating
Profit
|
|
3,268
|
2,481
|
787
|
31.7%
|
|
6,567
|
4,080
|
2,487
|
61.0%
|
Net Income
Consolidated
|
|
1,483
|
989
|
494
|
49.9%
|
|
2,556
|
1,600
|
956
|
59.8%
|
Non-Controlling
Interests
|
|
(178)
|
(202)
|
24
|
(11.9%)
|
|
(365)
|
(450)
|
85
|
(18.9%)
|
Net Income
Attributable to Owners of Ecopetrol
|
|
1,305
|
787
|
518
|
65.8%
|
|
2,191
|
1,150
|
1,041
|
90.5%
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
5,612
|
4,522
|
1,090
|
24.1%
|
|
11,425
|
8,659
|
2,766
|
31.9%
|
EBITDA
Margin
|
|
42.7%
|
38.5%
|
|
|
|
43.1%
|
38.9%
|
|
|
The figures included in this report are unaudited, expressed in
billions of pesos (COP) or US dollars (USD), or in thousands of
barrels of petroleum equivalent per day (mboed) or tons, as
applicable. For presentation purposes, certain figures of this
report were rounded to the nearest decimal place.
In the opinion of Ecopetrol S.A. CEO Juan Carlos Echeverry G.:
"Ecopetrol is focusing on the next pillar of its 2020 strategy,
'profitable growth.' Over the past two years we have embarked upon
a profound transformation, and as a result have achieved financial
soundness with ratios that are among the highest in the global
industrial rankings.
The time has come to build on that financial soundness and
discipline, and to concentrate our efforts on Ecopetrol's
profitable growth. Profitable growth is supported on four basic
pillars: i) increased exploratory activity, ii) development of
improved recovery pilots and infill projects, iii) exploring
opportunities in Unconventionals, and iv) advancing in
opportunities for inorganic growth.
Operational and financial performance in the first half of the
year was outstanding. The EBITDA margin of 43% is one of the
highest in the industry and we closed out the period with a solid
cash position of COP 10.4 trillion.
During the quarter we distributed COP 945
billion in dividends to our shareholders on 2016 earnings,
and prepaid an international commercial banking loan of
USD 1,925 million (approximately
COP 6 trillion). The Ecopetrol
Group's nominal debt declined some 12.9% during the second quarter
of 2017. The risk rating agencies have recognized our achievements
and confirmed our investment-grade credit rating. For its part,
S&P upgraded our stand-alone rating from BB to BB+.
Excellent commercial management and the global scarcity of heavy
crude helped capture market opportunities in international sales.
Ecopetrol's export basket spread improved significantly, to
-USD 6.6/bl in the second
quarter.
In line with our commitment to profitable growth, we created the
Project Maturity Center with a view to ensure that projects
generate value, maintain the highest standards and are executed on
time and within budget.
During the quarter, the exploratory campaign continued to show
outstanding results. The Warrior-2 well, located in the
Gulf of Mexico, was declared
successful upon confirming the presence of light crude, making it
the second discovery in that area in the past eight months. This
discovery is consistent with Ecopetrol's goal of positioning itself
as a pan-American company. The Siluro well, in the Colombian
offshore, did not yield the expected results with the presence of
hydrocarbons. Thus, four discoveries were made in five wells, a
success rate of 80% for the half-year period. In line with the
search for growth opportunities, we participated in Round 2.1 in
Mexico and were awarded two blocks
in association with Pemex and Petronas.
In the second half of the year Ecopetrol will drill the Molusco
well in the Colombian offshore, a milestone for the Company since
it will be the first well of this kind operated directly by
Ecopetrol. The second half's exploratory campaign will focus more
on the Colombian onshore, with the drilling of 10 wells.
The Business Group's average production in the first half
totaled 715 thousand barrels of oil equivalent per day, in line
with the 2017 production goal. We succeeded in maintaining our
production rate despite public security situations and operational
events that have arisen. Pilot recovery programs are making
satisfactory progress; by year-end we will have four recovery
pilots that have completed the evaluation stage. One year after
regaining control over the Rubiales and Cusiana fields, we have
succeeded in maintaining stable and safe operations.
An important operational achievement has been sustaining stable
bi-directional operation on the Bicentenario oil pipeline to
extract crude from the Caño Limón field and thus, to a certain
extent, mitigate the closure of the Cano Limón - Coveñas oil
pipeline. Thanks to the bi-directional operation at Bicentenario,
we have succeeded in performing major maintenance work on the Caño
Limón oil pipeline without affecting production.
At Reficar we have completed performance testing on 28 plants,
82% of the refinery's 34 units. The alkylation unit is already in
operation after undergoing maintenance to correct problems of the
cooling water system. The Barrancabermeja refinery has built a
profitable and efficient operation, with a margin of USD 13.9/bl for the half-year period.
In the Midstream we note the first shipment of heavy crude with
viscosity greater than 500 centistokes (cst - viscosity
measurement). This helped demonstrate the commercial viability of
high-viscosity crude and encourages us to continue the transport
testing of heavy crude at 600 cst,
with a view to extending this capacity to other oil pipeline
systems. During the quarter, crude pumping was initiated for
operational stabilization of the San
Fernando - Monterey system, and progress was made on
commissioning and tests.
Structural savings for the half-year period totaled COP 516 billion, representing 70% of the year's
savings goal (COP 740 billion).
On May 31 Ecopetrol published its
annual 20-F report for fiscal year 2016. By publishing the 20-F,
the Company fulfilled its reporting obligation to the Securities
and Exchange Commission (SEC), the New York Stock Exchange (NYSE),
bondholders and other creditors. The joint work of the Board of
Directors, the 2014-2015 period auditors, the 2016 auditors and
Ecopetrol management successfully completed the due diligence
process to publish the 20-F.
Ecopetrol as a Company is committed with the country's
development, the environment and generating value for its
shareholders. Our commitment to financial soundness remains current
and will leverage the focus on profitable growth needed to deliver
outstanding results to the benefit of the Company's
sustainability."
The earnings release will be available on Ecopetrol's website:
www.ecopetrol.com.co
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 Capital Markets
María 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
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SOURCE Ecopetrol S.A.