BOGOTÁ, Colombia,
Aug. 14, 2018 /CNW/ -- Today,
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced the Business
Group's financial results for the second quarter and the first half
of 2018, prepared in accordance with International Financial
Reporting Standards applicable in Colombia.
TABLE
1:
|
CONSOLIDATED
FINANCIAL STATEMENTS
|
ECOPETROL BUSINESS
GROUP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A
|
|
|
B
|
C
|
D
|
E
|
|
F
|
G
|
H
|
I
|
|
|
|
|
|
|
|
|
|
|
|
|
COP
Billion
|
|
|
2Q
2018
|
2Q
2017
|
∆
($)
|
∆
(%)
|
|
1H
2018
|
1H
2017
|
∆
($)
|
∆
(%)
|
Total
Sales
|
|
|
16,987
|
13,151
|
3,836
|
29.2%
|
|
31,630
|
26,522
|
5,108
|
19.3%
|
Operating
Profit
|
|
|
6,384
|
3,268
|
3,116
|
95.3%
|
|
11,564
|
6,567
|
4,997
|
76.1%
|
Net Income
Consolidated
|
|
|
3,766
|
1,483
|
2,283
|
153.9%
|
|
6,584
|
2,556
|
4,028
|
157.6%
|
Non-Controlling
Interests
|
|
|
(247)
|
(178)
|
(69)
|
38.8%
|
|
(450)
|
(365)
|
(85)
|
23.3%
|
Net Income
Attributable to Owners of Ecopetrol
|
|
|
3,519
|
1,305
|
2,214
|
169.7%
|
|
6,134
|
2,191
|
3,943
|
180.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
8,609
|
5,632
|
2,977
|
52.9%
|
|
15,759
|
11,445
|
4,314
|
37.7%
|
EBITDA
Margin
|
|
|
50.7%
|
42.8%
|
7.9%
|
|
|
49.8%
|
43.2%
|
6.6%
|
|
The figures included in this report are unaudited. Financial
information is expressed in billions of Colombian pesos (COP), US
dollars (USD), thousands of barrels of oil equivalent per day
(mboed) or tons, as noted where applicable. For presentation
purposes, certain figures in this report have been rounded to the
nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"During the second quarter of 2018, we saw significant
operational and financial achievements for the Business Group. We
posted an EBITDA margin of 51%, the highest in the business group's
history, and had the highest production of the past seven quarters,
at 721,000 barrels of petroleum equivalent per day, up 2.8% from
the first quarter of 2018. We were able to take advantage of the
favorable environment for crude prices and at the same time confirm
our technical, operational and financial capacity and our
commitment to safe and environmentally responsible practices.
"Net profit in the first half of 2018 totaled 6.1 trillion pesos, with cumulative EBITDA of
15.8 trillion pesos. This achievement
was possible thanks to the optimal operation of the different
business segments and the financial discipline of the Group's
companies, combined with better crude prices during the period. At
the close of the quarter, we succeeded in maintaining a solid cash
position of 15.8 trillion pesos, even
after paying out 2 trillion pesos as
dividends on 2017 earnings. Risk rating agencies acknowledge our
successes and have confirmed our investment-grade credit rating.
Indeed, Moody's upgraded our baseline credit assessment from ba3 to
ba1.
"Our commercial strategy, announced in 2015, has succeeded in
yielding tangible benefits. In the first half of 2018, we succeeded
in maintaining levels close to those of the first half of 2017,
even with the 35% increase in the price of Brent crude and
challenging environment. For the first half of 2018, the spread on
the crude sales basket was -7.7
dollars per barrel, versus -7.5 for the same period in
2017.
"Average production for the quarter totaled 721,000 barrels of
oil equivalent per day, some 0.6% above the same period the
previous year and 2.8% over the first quarter of 2018. We succeeded
in recovering from the operational issues in the first quarter,
thanks to the results of the drilling campaign in fields such as La
Cira, Rubiales, Caño Sur, Dina, Quifa and Castilla. The increased
activity will lead us to the path of growth and ensure meeting our
annual production goal at a range of 715,000 to 725,000 barrels of
petroleum equivalent per day. On the other hand, the pilot recovery
programs are also advancing satisfactorily; currently 21 pilots are
in operation, 16 of which are still in the expansion phase.
"In the exploratory campaign, we scored a success during the
quarter by confirming the presence of dry gas and light crude at
the Bufalo-1 well, in the Valle Medio del Magdalena basin. We have
also completed drilling of the Coyote-2 and Coyote-3 appraisal
wells, located in the Valle Medio del Magdalena, as well as
Capachos Sur-2, located in the Piedemonte. These three wells are
undergoing assessment to determine their commercial feasibility. We
expect to drill at least 12 exploratory wells in 2018.
"As part of our Near Field Exploration strategy, in late May the
Infantas Oriente field in Barrancabermeja (Santander) was declared
commercial. This allowed us to incorporate in record time the
reserves associated with the Infantas Oriente-1 discovery, the
assessment of which was carried out at the start of the year.
"In the transport segment, I would like to note the resumption
of operations on the Caño Limón - Coveñas oil pipeline in June and
the stability of the transport system for heavy crudes with
viscosity greater than 600 centistokes (cst - a measure of
viscosity), thereby structurally reducing dilution
requirements.
"The reversal strategy implemented since 2017 on the
Bicentenario oil pipeline allowed for reducing the impact of the
attacks and illegal valves affecting the Caño Limón – Coveñas oil
pipeline, preventing deferred production in its surrounding fields.
In the first half of 2018, 30 reversal cycles were completed on the
Bicentenario oil pipeline.
"The Refining segment saw outstanding operational performance in
the second quarter, achieving stable throughput of 374,000 barrels
per day.
"In the second quarter of 2018, the Cartagena refinery continued
to demonstrate the consolidation and optimization of its operations
with average throughput of 153,000 barrels per day and throughput
composition of 79% domestic crude and 21% imported crude, thus
contributing significantly to reducing the Business Group's cost of
sales. In June, it achieved a record in the use of local crudes, at
83% of its diet. The gross refining margin for the Cartagena
refinery during the quarter was USD
11.1/bl, up 44% over the same period the previous year
(USD 7.7/bl), thus posting 10
consecutive months with gross margins in the double digits.
"Throughput and production at the Barrancabermeja refinery was
up over 9% for the quarter versus the same quarter of 2017, thanks
to the implementation of initiatives to segregate light and
intermediate crudes, thus increasing their availability. The
average refining margin for the quarter was USD 10.5/bl, affected primarily by the increase
in the price of the crude basket versus Brent.
"In line with the Business Group's Efficiencies strategy, in the
second quarter of the year we incorporated efficiencies
representing 429 billion pesos, up
17% over the second quarter of 2017. Thus, cumulative efficiencies
in the first half of 2018 totaled 892
billion pesos, for a total of 8
trillion pesos since the launching of the Transformation
Program in 2015.
"In addition to the above, we are particularly proud of our
success in implementing operational and logistics adjustments in
record time throughout the entire supply chain, in order for diesel
deliveries to Medellin and its
Metropolitan area to have a sulfur content of below 25 parts per
million. This is in line with our commitment to the environment,
thus contributing to the improvement of the city's air quality.
"We have also committed to the massive transportation system
Transmilenio S.A. to supply natural gas and B2 diesel with a
maximum sulfur content of 10 parts per million for the renovation
of the bus fleet of phases I and II, thus enabling the entry of
EURO VI technologies.
"Together with the national and local institutions, Ecopetrol
will continue to improve the quality of fuels for the whole country
as set in the enhancement path established in the CONPES document
for the improvement of air quality.
"In order to achieve a significant effect, it is not only
necessary to improve fuels, but it is also necessary to carry out
other actions such as improving the technology and age of the
vehicle fleet, as well as promoting other initiatives related to
road maintenance, mobility and the reduction of emissions in fixed
sources, among others.
"Ecopetrol remains focused on operational excellence, value
creation, a commitment to ethics and transparency, safety as a
pillar of its operations and care for the environment. We are
committed to profitable growth in production and reserves to
deliver results that benefit the company's sustainability and the
country's energy security."
To review the full report please visit the following
link:
https://www.ecopetrol.com.co/english/documentos/Ecopetrol%20-%20Reporte%202Q%202018%2013%2008%202018%20english%20VF.pdf
Statements on future projections:
This press release may contain statements of future projections
relating to business prospects, estimates of operating and
financial results, and Ecopetrol's growth prospects. These are
projections, and therefore are based solely on management's
expectations of the company's future and its continuous access to
capital to finance the Company's sales plan. Achieving these
estimates in the future depends on changes in market conditions,
government regulations, competitive pressures, the performance of
the Colombian economy and industry, and other factors; therefore,
they are subject to change without prior notice.
Contact Information:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329 - Email:
mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.