BOGOTÁ, Colombia, Nov. 7, 2017 /PRNewswire/ --
- YTD 2017 net profit totaled COP 3.2
trillion, more than twice the amount reported for all of
2016. 2017 third quarter net profit amounted to COP 1.0 trillion.
- The operational, net and EBITDA margins for the quarter and
YTD 2017 have been the highest in the past two years.
- In the third quarter, the spread of the export crude basket
versus BRENT improved to USD 6.0/bl.
This is 50% lower than the figure posted for the same period in
2015 and is the best of the past 7 years.
- The Cartagena Refinery's refining margin rose to
USD 10.3/bl in the third quarter, the
highest since the start of operations. In addition, 100% of
individual unit tests were completed.
Today, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced
third-quarter and year-to-date 2017 financial results for the
Business Group, prepared and presented in billions of Colombian
pesos (COP), in accordance with International Financial Reporting
Standards applicable in Colombia.
TABLE 1:
CONSOLIDATED FINANCIAL RESULTS -
ECOPETROL BUSINESS GROUP
|
|
|
|
|
|
|
|
|
|
|
|
A
|
|
B
|
C
|
D
|
E
|
|
F
|
G
|
H
|
I
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|
|
|
|
|
|
|
|
|
|
|
COP
Billion
|
|
3Q
2017
|
3Q
2016
|
∆
($)
|
∆
(%)
|
|
Jan-Sep
17
|
Jan-Sep
16
|
∆
($)
|
∆
(%)
|
Total
Sales
|
|
13,325
|
12,183
|
1,142
|
9.4%
|
|
39,847
|
34,419
|
5,428
|
15.8%
|
Operating
Profit
|
|
3,323
|
2,540
|
783
|
30.8%
|
|
9,889
|
6,620
|
3,269
|
49.4%
|
Net Income
Consolidated
|
|
1,224
|
446
|
778
|
174.4%
|
|
3,779
|
2,046
|
1,733
|
84.7%
|
Non-Controlling
Interests
|
|
(221)
|
(217)
|
(4)
|
1.8%
|
|
(585)
|
(667)
|
82
|
(12.3%)
|
Net Income
Attributable to Owners of Ecopetrol
|
|
1,003
|
229
|
774
|
338.0%
|
|
3,194
|
1,379
|
1,815
|
131.6%
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
5,852
|
4,886
|
966
|
19.8%
|
|
17,296
|
13,545
|
3,751
|
27.7%
|
EBITDA
Margin
|
|
43.9%
|
40.1%
|
|
|
|
43.4%
|
39.4%
|
|
|
The figures included in this report are unaudited, expressed in
billions of Colombian pesos (COP) or US dollars (USD), or thousands
of barrels of petroleum-equivalent per day (mboed) or tons, and are
so indicated where applicable. For presentation purposes, certain
figures in this report have been rounded to the nearest decimal
point.
In the opinion of Ecopetrol S.A. CEO Felipe Bayón
Pardo:
"Year to date 2017, Ecopetrol reported a much higher operating
and financial result than for the same period last year, we
highlight an EBITDA of COP 17.3
trillion and an EBITDA margin of 43.4%, the highest in the
past two years. Year-to-date net profit totaled COP 3.2 trillion, double the figure for all of
2016. These results reflect our soundness and our ongoing pursuit
of: i) improved operating and commercial capacity, ii) greater
efficiencies and cost reductions, iii) a focus on capital
discipline, as well as a better environment for crude prices.
The Business Group's average production year to date totaled 715
mboed, in line with the 2017 production target, despite the
challenges raised by a difficult environment in terms of security
and operational events. We note also that we achieved our activity
goals with a lower CAPEX, thanks to significant efficiencies in the
production segment. Water injection projects continue to show
positive results in fields such as Casabe, La Cira Infantas,
Chichimene and Castilla, among others, where investments in water
injection have yielded increased or stable production, along with
better operating responses. This quarter, the International Energy
Agency (IEA) invited Ecopetrol as a member of the technical
recovery group this organization leads.
It is worth noting that the export basket spread for the third
quarter totaled -USD 6.0/bl, the best
of the past seven years and around 50% below the figure from two
years ago. The basket's spread year to date as of September 2017 was -USD
6.9/bl, improved from the year-to-date figures for the same
period in 2016 (USD -9.6/bl), largely
due to: i) Changes in commercial strategy to reach directly end
clients, ii) production cuts by OPEC, especially in heavy crudes,
and iii) demand for heavy crudes in the Gulf of Mexico and Asia.
We closed out the quarter with a cash position of COP 12.8 trillion, confirming our financial
soundness and flexibility. For its part, Moody's recognized the
company's achievements and strategy, upgrading Ecopetrol's outlook
to "stable" and retaining its investment-grade rating (Baa3). In
October we completed the program to divest our equity stake in EEB,
selling the remaining shares for COP 56.930
million.
Drilling activities are currently underway at four exploratory
wells: Lunera, Molusco, Trogón and Coyote (re-entry to execute
tests and hydraulic stimulation). The Bonifacio well, operated by
our subsidiary HOCOL, has completed its drilling period and is now
in the evaluation stage. During the quarter, drilling activities
were completed at the Bullerengue and Brama wells, which were
unsuccessful, as no commercial accumulation of hydrocarbons was
found.
September 20 saw the start of
drilling of the Molusco well (Block RC-9) in the Colombian
Caribbean offshore, approximately 30 kilometers from Riohacha, in
La Guajira. Molusco represents one of the most important milestones
in Ecopetrol's history, as the first drilled offshore exploratory
well operated by the company, through its subsidiary Ecopetrol
Costa Afuera SAS - ECAS (50%), in joint venture with ONGC (50%).
For the close of 2017, we are committed to meeting the goal of
drilling 17 exploratory wells and adding contingent resources of
250 MBPE.
In the third quarter of 2017 crude was transported at
viscosities of 600 centistokes (cst - a measurement of viscosity)
through the systems of Cenit and its subsidiaries, which helped
demonstrate the commercial feasibility of high-viscosity crudes. We
exceeded operating milestones by transporting all the country´s
crude along a single corridor, thanks to the bi-directional
carrying ability of the Bicentenario oil pipeline and the capacity
of OCENSA.
The third quarter was the best of the year for the Cartagena
Refinery, as for the first time it posted double-digit operating
margins, of USD 10.3/bl, a result of
progress in unit stabilization and better market conditions for
refiners worldwide. The year-to-date refining margin as of the
third quarter totaled USD 8.3/bl, a
93% increase over the same period in 2016 (USD 4.3/bl). The third quarter also saw 100%
completion of the individual unit tests of the refinery. The
Barrancabermeja refinery posted profitable and efficient
operations, with a year-to-date refining margin of USD 14.1/bl.
Our purpose is to continue strengthening safety as a pillar of
our operations. The company's TRIF [Total Recordable Injury
Frequency] index improved 38% compared to the same period last
year, placing us among the top companies worldwide in terms health
and security. To align our HSE [Health, Safety and the Environment]
practices with high global standards and enhance our
competitiveness, the company obtained OHSAS 18001 (Occupational
Health and Safety) and ISO 14001 (Environmental Management)
certifications.
Ecopetrol remains committed to the country's growth and
development, the care of its workers, the environment and the
communities in which it operates, constantly seeking shared
prosperity and operational safety at all levels. Our focus will
continue to be on delivering outstanding results, with the aim of
maintaining a sustainable company that creates value for its
shareholders."
The earnings release will be available on Ecopetrol's
website:
http://www.ecopetrol.com.co/wps/portal/web_es/ecopetrol-web/investors/financial-information/quarterly-earnings
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.