UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2015
Commission File Number 001-34175
ECOPETROL S.A. |
(Exact name of registrant as specified in
its charter)
|
N.A. |
(Translation of registrant’s name
into English)
|
COLOMBIA |
(Jurisdiction of incorporation or organization)
|
Carrera 13 No. 36 – 24 |
BOGOTA D.C. – COLOMBIA |
(Address of principal executive offices) |
Indicate by check mark
whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes ¨
No x
Indicate by check mark
if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes ¨
No x
Ecopetrol
Group Announces Its Results for
the Third
Quarter of 20151
| · | Ecopetrol
Corporate Group’s results for the third quarter of 2015 registered an EBITDA of
COP$4.7 trillion pesos and earnings of COP$654 billion pesos. |
| · | Ecopetrol
S.A. achieves COP$1.6 trillion pesos in savings against the 2015 guidance of COP$1.4
trillion. |
| · | The
Corporate Group’s production during the first nine months of the year reached 761
mboed, an increase of 9 mboed versus the same period of 2014. |
Bogota, November 17, 2015. Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today Ecopetrol Group’s financial results for the third quarter of 2015 and
the nine first months of the year, prepared and filed in Colombian pesos (COP$) and under International Financial Reporting Standards
(IFRS) applicable in Colombia.
Table 1: Summary of the Group’s
Consolidated Financial Results
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | | |
J | |
(COP$ Billion) | |
3Q
2015* | | |
3Q
2014* | | |
∆
($) | | |
∆
(%) | | |
2Q
2015* | | |
Jan-Sep
15* | | |
Jan-Sep
14* | | |
∆
($) | | |
∆
(%) | |
Total Sales | |
| 13,003.4 | | |
| 16,813.7 | | |
| (3,810.3 | ) | |
| (22.7 | )% | |
| 14,009.6 | | |
| 39,313.8 | | |
| 51,717.2 | | |
| (12,403.4 | ) | |
| (24.0 | )% |
Operating Profit | |
| 2,850.1 | | |
| 4,443.5 | | |
| (1,593.4 | ) | |
| (35.9 | )% | |
| 3,549.2 | | |
| 8,757.2 | | |
| 15,620.5 | | |
| (6,863.3 | ) | |
| (43.9 | )% |
Consolidated Net Income | |
| 886.5 | | |
| 1,885.0 | | |
| (998.5 | ) | |
| (53.0 | )% | |
| 1,695.5 | | |
| 2,938.0 | | |
| 8,708.8 | | |
| (5,770.8 | ) | |
| (66.3 | )% |
Non-Controlling Interest | |
| (232.4 | ) | |
| (154.0 | ) | |
| (78.4 | ) | |
| 50.9 | % | |
| (188.9 | ) | |
| (617.3 | ) | |
| (492.6 | ) | |
| (124.7 | ) | |
| 25.3 | % |
Ecopetrol Equity Holders** | |
| 654.1 | | |
| 1,731.0 | | |
| (1,076.9 | ) | |
| (62.2 | )% | |
| 1,506.6 | | |
| 2,320.7 | | |
| 8,216.2 | | |
| (5,895.5 | ) | |
| (71.8 | )% |
Other Comprehensive Income | |
| 2,203.0 | | |
| 1,209.7 | | |
| 993.3 | | |
| 82.1 | % | |
| 459.1 | | |
| 3,374.5 | | |
| 920.8 | | |
| 2,453.7 | | |
| 266.5 | % |
EBITDA | |
| 4,698.4 | | |
| 6,344.3 | | |
| (1,645.9 | ) | |
| (25.9 | )% | |
| 5,521.9 | | |
| 15,003.0 | | |
| 21,241.7 | | |
| (6,238.7 | ) | |
| (29.4 | )% |
EBITDA Margin | |
| 36.1 | % | |
| 37.7 | % | |
| | | |
| | | |
| 39.4 | % | |
| 38.2 | % | |
| 41.1 | % | |
| | | |
| | |
* These figures are included for illustration purposes only.
Unaudited.
** According to IAS-1, “Presentation
of financial statements”, paragraph 83, the company must include in the statement of comprehensive results the results attributable
to non-controlling interest (minority interest) and the results attributable to shareholders of the controlling company.
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
1
According to Article 3 of Decree 2784 of December 28, 2012, the application date of the new technical framework is December
31, 2015. Therefore, the financial information presented prior to this date is preliminary and subject to adjustments. The information
presented in this report is not audited.
As indicated in paragraphs 9 and 18 of
International Accounting Standard 27 “Consolidated and Separated Financial Statements,” Ecopetrol and its corporate
group must present their financial information on a consolidated basis, combining the financial statements of the parent company
and its subsidiaries line by line, adding assets, liabilities, shareholder equity, revenues and expenses of a similar nature, removing
the reciprocal items between the corporate group and recognizing the non-controlling interest.
The financial results in this report are
not comparable line by line with the previously issued financial results in the report for the third quarter of 2014, which were
prepared in accordance with the Public Accounting Regime (Régimen de Contabilidad Pública) as adopted by the Colombian
National Accounting Office. For the sake of comparison, the previously issued financial results for the third quarter of 2014 are
presented in this report under IFRS.
The Company modified its EBITDA calculation
methodology, for more information please refer to the page number 10.
Some figures in this release are presented
in U.S. dollars (US$) as indicated. The exhibits in the main body of this report have been rounded to one decimal. Figures expressed
in billions of COP$ are equal to COP$1 thousand million. All financial information in this report is unaudited.
In the opinion of Ecopetrol’s CEO
Juan Carlos Echeverry G.:
“The industry continued to operate
in a complex environment given low crude prices and the consequent adjustments in investments, costs and expenses observed in
oil and gas companies. Ecopetrol, additionally, has responded to the challenges posed by attacks on oil infrastructure, El Niño
Phenomenon, closing of the border with Venezuela and devaluation of the exchange rate. In order to face this new reality, the
company has been reinventing itself by means of the transformation program contained in the 2015-2020 strategy. The implementation
of the transformation program increases efficiency from a structural standpoint and strengthens an organizational culture based
on the principles of: integrity, collaboration and creativity.
The transformation plan also includes
a comprehensive program for improving oil recovery that seeks to maximize the potential of existing fields and aims to strengthen
our position in the Americas as a reference for this type of activity.
Up to September, Ecopetrol achieved budgetary
savings of COP$1.6 trillion pesos, exceeding the initial goal of COP$1.4 trillion pesos set for 2015. This figure reflects both
structural savings, as well as the streamlining of certain activities. This effort can be observed in the reduction of the company’s
production/barrel costs: lifting cost per barrel in 3Q 2015 was US$6.89/barrel, compared to US$7.47/barrel in 2Q 2015 and US$10.70/barrel
in 3Q 2014. During January and September 2015, lifting cost per barrel was US$7.29/barrel, compared to US$10.91/barrel in the
same period of 2014, reflecting a US$1.03/barrel reduction attributable to efficiency and cost reduction strategies and -US$2.61
attributable to the exchange rate.
The company has set a new challenge to
achieve budgetary savings of COP$2.2 trillion pesos in 2015, in an effort to mitigate some of the effect of a lower international
price of crude through efficiencies and lower cost of services, purchases, and oil and maintenance services, among others.
In the third quarter, Ecopetrol also generated
value for its shareholders through the rotation of its asset portfolio, completing the first stage of divestment of its share
interest in Empresa de Energía de Bogotá, from which it obtained COP$614 billion pesos. The company also opened
the first round in the process of selling off Interconexión Eléctrica S.A.
Other business opportunities have arisen
in the Middle Magdalena region with Occidental Andina LLC (OXY) for the development of a pilot project. If successful, it could
increase the company’s reserves by up to 100 million barrels of crude at the field La Cira-Infantas. Another pilot will
be developed with the Canadian company Parex Resources, at the field Aguas Blancas, designed to recover 55 million barrels of
light crude.
In the production segment, enhanced recovery
was strengthened with 28 recovery pilot projects underway, of which 16 show positive results in increasing pressure and 14 in
increasing the production of crude. Over the past 5 years, Ecopetrol has added 187 million barrels of proven reserves by means
of enhanced recovery, in which it is a pioneer, and has yielded proven results such as the one in La Cira-Infantas field. Through
steam injection, production increased from 5 thousand barrels/day in 2005 to 40 thousand barrels/day in 2015. Processes are becoming
increasingly more efficient: between 2014 and 2015 the number of drilling days per well decreased from 34 to 26 at Castilla field
and from 36 to 20 at Chichimene.
In the first 9 months of 2015, the Corporate
Group’s year-to-date production was 761 mboed, 9 thousand barrels more than in the previous year. This result was achieved
despite the nearly 2% drop in production in 3Q 2015 versus 3Q 2014 because of the attacks on the oil pipeline Caño Limón-Coveñas,
the decline of certain fields, and the lower price level affecting some fields with high price contract clauses. The increase
in activity at the fields Castilla and Chichimene has mitigated the impact of these events. Currently, and with an improvement
in the public order situation, production has recovered to reach the goal of 760 thousand barrels equivalent/day for 2015.
In exploration, in the past year, Orca
and Kronos were discovered offshore in the Colombian Caribbean. The exploratory campaign also included drilling of the well Calasú
in the Caribbean and two wells onshore: Muérgana Sur, located in the Llanos Orientales, and Champeta, located in the lower
Magdalena valley. Furthermore, blocks were added in basins of interest such as those awarded to Ecopetrol (50%) and Anadarko (operator,
50%) and another one 100% Ecopetrol in Lease Sale 426 by the U.S. BOEM (Bureau of Ocean Energy Management) in the Gulf of Mexico.
In refining, on October 21st,
the new Cartagena Refinery reached a key milestone in the start-up process and commissioning with the introduction of hydrocarbons
in the Crude Unit. The first shipment of refined products will take place in November. This is the first step in the commissioning
of 31 sequential plants making up the new Cartagena Refinery, capable of producing clean fuels that meet international markets´
highest environmental standards. All of the plants will be operating by the second quarter of 2016.
The new refinery, considered the most
modern in Latin America, will increase its capacity in 2016 from 80 thousand to 165 thousand barrels/day, and its conversion factor
from 74% to 97%, with greater flexibility in processing heavier crudes. Ecopetrol concludes investments over a 9-year period in
this refinery, which required significant infusion of cash, which now can be used to focus on the exploration and production segments.
At the Barrancabermeja Refinery, gross
margin was US$16.7/ barrel in 3Q 2015 versus US$15.5/barrel in 3Q 2014, due to the implementation of initiatives to transform
streams such as LPG and vacuum bottoms into diluent for heavy crude, and the performance of international prices of refined products
compared to crude.
In transportation, infrastructure was
strengthened to ensure Coveñas’ crude storage reliability, with the addition of two tanks with 420 thousand barrels
of capacity each that will be available in 4Q 2015. In order to verify the performance of transport systems with crude of heavier
viscosity, a test was conducted in September of oil pipelines that transport heavy crude for export (ODL and Ocensa). The results
were successful; this will help reduce diluent consumption in 2016. This is an important step in efficiency, it is the realization
of a strategy to reduce the cost of dilution, especially important for the production and profitability of heavy crudes.
Despite the drop in production (-4%) and
price of the crude basket (-26%) between 2Q and 3Q of 2015, the Corporate Group had an EBITDA margin of 36% and generated EBITDA
of COP$4.7 trillion in the third quarter of 2015, compared to COP$5.5 trillion in the second quarter of 2015. This was made possible
as a result of the continuous effort of all segments to obtain greater savings in their operations and to the strength derived
from being an integrated company.
The financial result of COP$654 billion
pesos in third quarter 2015 reflects the adoption of the Hedge Accounting policy as established by the international accounting
standard IAS 39. The adoption of this standard makes it possible for the effect of the “Exchange Difference” on part
of the dollar-denominated debt portfolio to be reclassified in shareholder equity, taking into account the natural hedge that
Ecopetrol’s crude export revenues generate for it. Ecopetrol has thus made use of an instrument that allows it to show in
its financial statements management of exchange rate risk based on the nature of its business.
The company has responded to the important
challenges posed by the low price environment, attacks on infrastructure, El Niño phenomenon and closing of the border
with Venezuela. It has managed its performance based on financial discipline, operating efficiencies and investment management.
It remains focused on generating value for stakeholders and ensuring profitable growth based on the guidelines of its new strategy
and its sustainability and financial soundness in the long run.”
Ecopetrol
Group Announces Its Results for
the Third
Quarter of 2015
Table of Contents
| I. | Consolidated Financial Results |
The following table summarizes sales volume
for the periods indicated:
Table 2: Sales Volume
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
Ecopetrol S.A. (consolidated) | |
| | |
| | |
| | |
| | |
| | |
| |
Local Sales Volume (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Crude Oil | |
| 4.2 | | |
| 24.8 | | |
| (83.1 | )% | |
| 12.3 | | |
| 26.4 | | |
| (53.4 | )% |
Natural Gas | |
| 79.6 | | |
| 83.7 | | |
| (4.9 | )% | |
| 82.9 | | |
| 81.8 | | |
| 1.3 | % |
Gasoline | |
| 97.0 | | |
| 82.7 | | |
| 17.3 | % | |
| 94.0 | | |
| 84.3 | | |
| 11.5 | % |
Medium Distillates | |
| 147.3 | | |
| 143.3 | | |
| 2.8 | % | |
| 143.8 | | |
| 141.6 | | |
| 1.6 | % |
LPG and Propane | |
| 17.5 | | |
| 15.1 | | |
| 15.9 | % | |
| 16.2 | | |
| 14.8 | | |
| 9.5 | % |
Fuel Oil | |
| 4.5 | | |
| 1.8 | | |
| 150.0 | % | |
| 5.2 | | |
| 2.7 | | |
| 92.6 | % |
Industrial and Petrochemical | |
| 21.5 | | |
| 19.2 | | |
| 12.0 | % | |
| 21.0 | | |
| 20.2 | | |
| 4.0 | % |
Total Local Sales | |
| 371.6 | | |
| 370.6 | | |
| 0.3 | % | |
| 375.4 | | |
| 371.8 | | |
| 1.0 | % |
Export Sales Volume (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆(%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆(%) | |
Crude Oil | |
| 497.5 | | |
| 560.1 | | |
| (11.2 | )% | |
| 548.0 | | |
| 528.2 | | |
| 3.7 | % |
Products | |
| 63.9 | | |
| 82.3 | | |
| (22.4 | )% | |
| 65.9 | | |
| 86.8 | | |
| (24.1 | )% |
Natural Gas | |
| 6.0 | | |
| 14.9 | | |
| (59.7 | )% | |
| 10.4 | | |
| 18.8 | | |
| (44.7 | )% |
Total Export Sales | |
| 567.4 | | |
| 657.3 | | |
| (13.7 | )% | |
| 624.3 | | |
| 633.8 | | |
| (1.5 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total Sales Volume | |
| 939.0 | | |
| 1,027.9 | | |
| (8.6 | )% | |
| 999.7 | | |
| 1,005.6 | | |
| (0.6 | )% |
a.1) Colombian Market
(39% of total sales in the third quarter of 2015):
Local sales remained relatively stable
in third quarter of 2015 compared to the same period of last year, owing primarily to:
| · | Increased
gasoline sales, caused by: 1) an increase in sales of gasoline-powered vehicles, because
of the lower price difference between gasoline and diesel and absence of a vehicle replacement
program; 2) increased demand in areas along the Venezuelan border, due to Venezuela’s
decision to temporarily close its border with Colombia |
| · | Lower
sales of local crude oil, resulting from the evolution of the marine fuels business and
the substitution of fuel oil for this segment. |
a.2) International Market
(61% of total sales in the third quarter of 2015):
Export volumes decreased 14% in the third
quarter of 2015 as compared to the third quarter of 2014, mainly as a result of:
| · | Lower
crude exports, attributable to decreased export capacity in transportation systems, especially
in the southern part of the country and in the Caño Limón-Coveñas
oil pipeline. |
| · | Lower
exports of refined products, especially fuel oil, as a result of the difficulties encountered
in transporting these products to port by means of the Magdalena River, due to the reduced
river flow. |
| · | Decreased
natural gas exports, owing to the termination of the Venezuela sale contract since June
30, 2015. |
Export Markets:
Table 3: Export Markets
A | |
B | | |
C | | |
D | | |
E | | |
F | |
G | | |
H | | |
I | | |
J | |
Export Destinations - Crudes (mbod) | | |
Export Destinations - Products (mboed) | |
Destination | |
3Q
2015 | | |
3Q
2014 | | |
Jan-Sep
15 | | |
Jan-Sep
14 | | |
Destination | |
3Q
2015 | | |
3Q
2014 | | |
Jan-Sep
15 | | |
Jan-Sep
14 | |
Asia | |
| 167.5 | | |
| 186.4 | | |
| 161.4 | | |
| 199.3 | | |
Asia | |
| 11.5 | | |
| 16.7 | | |
| 17.2 | | |
| 16.3 | |
U.S. Gulf Coast | |
| 115.1 | | |
| 179.7 | | |
| 131.7 | | |
| 143.6 | | |
U.S. Gulf Coast | |
| 5.5 | | |
| 22.0 | | |
| 9.4 | | |
| 13.8 | |
U.S. West Coast | |
| 56.6 | | |
| 17.8 | | |
| 50.1 | | |
| 32.9 | | |
U.S. West Coast | |
| 0.0 | | |
| 0.2 | | |
| 1.5 | | |
| 1.2 | |
U.S. East Coast | |
| 30.6 | | |
| 5.2 | | |
| 26.1 | | |
| 3.4 | | |
U.S. East Coast | |
| 21.5 | | |
| 4.5 | | |
| 0.6 | | |
| 12.4 | |
Europe | |
| 60.3 | | |
| 108.3 | | |
| 74.6 | | |
| 92.3 | | |
Europe | |
| 0.6 | | |
| 0.4 | | |
| 16.9 | | |
| 0.1 | |
Central America / Caribbean | |
| 66.0 | | |
| 48.5 | | |
| 90.1 | | |
| 45.9 | | |
Central America / Caribbean | |
| 19.5 | | |
| 31.4 | | |
| 2.8 | | |
| 37.0 | |
South America | |
| 0.0 | | |
| 3.9 | | |
| 7.0 | | |
| 7.5 | | |
South America | |
| 5.3 | | |
| 6.8 | | |
| 17.5 | | |
| 5.9 | |
Other | |
| 1.4 | | |
| 10.3 | | |
| 7.0 | | |
| 3.3 | | |
Other | |
| 0.0 | | |
| 0.3 | | |
| 0.0 | | |
| 0.1 | |
Total | |
| 497.5 | | |
| 560.1 | | |
| 548.0 | | |
| 528.2 | | |
Total | |
| 63.9 | | |
| 82.3 | | |
| 65.9 | | |
| 86.8 | |
| · | Crude
oil: In line with the strategy to diversify Ecopetrol´s crude export markets, Asia
continues to be the main destination of exports, given their investments in refining,
the quality of our crude and the development of the market. |
In the U.S., the company profited
from opportunities in the East and West coasts, due to favorable refining margins and increased interest of refiners for imported
crude resulting from the loss of competitiveness of American and Canadian crudes.
During the third quarter of
2015, the crude export basket was indexed as follows: Brent (63.7%), Maya (33.7%) and others (2.6%).
| · | Refined
Products: The increased participation of the U.S. East Coast can be explained by increased
demand for fuel oil in that region, cause by an increase in vessel traffic associated
with increased gasoline imports in the third quarter of 2015. This increase explains
the lower exports to the U.S. Gulf Coast. In particular, exports to Central America and
the Caribbean from where they are then distributed to other markets. |
| b. | Crude, Refined Products, and Gas Prices |
The following table shows the average prices of Brent, Maya
and West Texas Intermediate (WTI) crude.
Table 4: Price of Crude References
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
Prices of Crude References (Average, US$/Bl) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Brent | |
| 51.2 | | |
| 103.5 | | |
| (50.5 | )% | |
| 56.5 | | |
| 107.0 | | |
| (47.2 | )% |
MAYA | |
| 39.8 | | |
| 92.0 | | |
| (56.7 | )% | |
| 44.0 | | |
| 93.5 | | |
| (52.9 | )% |
WTI | |
| 46.4 | | |
| 97.3 | | |
| (52.3 | )% | |
| 50.9 | | |
| 99.6 | | |
| (48.9 | )% |
The following table shows the average sales price of the crude
oil basket, refined products basket and natural gas basket.
Table 5: Average Sales Price
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | |
Average
Sales Price (US$/Bl) | |
3Q
2015 | | |
3Q
2014 | | |
∆
(%) | | |
Sales
Volume
(mboed) 3Q
2015 | | |
Jan-Sep
15 | | |
Jan-Sep
14 | | |
∆
(%) | | |
Sales
Volume
(mboed) Jan-Sep
15 | |
Crude Oil Basket | |
| 39.1 | | |
| 84.7 | | |
| (53.8 | )% | |
| 501.7 | | |
| 45.1 | | |
| 90.7 | | |
| (50.3 | )% | |
| 560.3 | |
Products Basket | |
| 62.9 | | |
| 108.8 | | |
| (42.2 | )% | |
| 351.7 | | |
| 65.9 | | |
| 115.5 | | |
| (42.9 | )% | |
| 346.1 | |
Natural Gas Basket | |
| 21.4 | | |
| 23.7 | | |
| (9.7 | )% | |
| 85.6 | | |
| 22.1 | | |
| 24.2 | | |
| (8.7 | )% | |
| 93.3 | |
Crude:
The crude sales basket decreased by US$45.6
per barrel between the third quarter of 2015 and the same period of 2014, reflecting the drop in the benchmark indicators over
the same period (Brent: -US$52.3 per barrel, Maya: -US$52.2 per barrel and WTI: -US$50.9 per barrel) as a result primarily, of
the continuous imbalance between demand and supply of crudes, high levels of crude inventories worldwide, and a lower growth outlook
in the leading economies.
The differential between the crude oil
basket and Brent crude oil prices narrowed by US$6.7 per barrel (3Q 2015: US$12.1 per barrel vs 3Q 2014: US$18.8 per barrel).
Due to the presence of low absolute prices, the differential of light/ heavy crudes (Brent/ Castilla) narrows. Additionally, these
results reflected market factors such as: 1) high refining margins in the summer months of 2015 that increased crude oil demand
mainly in the United States, 2) increased purchases by India and China for strategic storage purposes, and 3) forward contracts
that mitigated sale price decreases despite a heavier crude basket.
Refined Products:
The refined products sales basket price
decreased by US$45.9 per barrel during the third quarter of 2015 as compared to the third quarter of 2014, caused by the drop
in international benchmark prices: gasoline (-US$45.9/Bl), diesel (-US$54.9/Bl) and jet fuel (-US$57.7/Bl), consistent with changes
in Brent prices during the same period.
Natural Gas:
During the third quarter of 2015, natural
gas prices decreased, owing to: 1) a decrease in the price of the Guajira gas (3Q 2015: US$4.56/MBTU versus 3Q 2014: US$4.68/MBTU),
mainly from the expiration of the contract with Venezuela, and the results of the commercialization process of the available Guajira
gas, carried in October 2014. With regards to the price of the Cusiana-Cupiagua gas, the drop in price (3Q 2015: US$2.93/MBTU
versus 3Q 2014: US$3.32/MBTU) is explained mainly by the application of the regulation to index prices and the result of the renovation
of contracts that expired in 2015.
Table 6: Consolidated Income Statement
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | |
COP$ Billion | |
3Q
2015* | | |
3Q
2014* | | |
∆
($) | | |
∆
(%) | | |
Jan-Sep
15* | | |
Jan-Sep
14* | | |
∆
($) | | |
∆
(%) | |
Local Sales | |
| 5,643.8 | | |
| 5,859.1 | | |
| (215.3 | ) | |
| (3.7 | )% | |
| 15,765.3 | | |
| 18,551.7 | | |
| (2,786.4 | ) | |
| (15.0 | )% |
Export Sales | |
| 6,161.3 | | |
| 9,890.8 | | |
| (3,729.5 | ) | |
| (37.7 | )% | |
| 20,371.0 | | |
| 30,389.9 | | |
| (10,018.9 | ) | |
| (33.0 | )% |
Sale of Services | |
| 1,198.3 | | |
| 1,063.8 | | |
| 134.5 | | |
| 12.6 | % | |
| 3,177.5 | | |
| 2,775.6 | | |
| 401.9 | | |
| 14.5 | % |
Total Sales | |
| 13,003.4 | | |
| 16,813.7 | | |
| (3,810.3 | ) | |
| (22.7 | )% | |
| 39,313.8 | | |
| 51,717.2 | | |
| (12,403.4 | ) | |
| (24.0 | )% |
Variable Costs | |
| 6,698.3 | | |
| 8,225.9 | | |
| (1,527.6 | ) | |
| (18.6 | )% | |
| 20,212.2 | | |
| 24,896.7 | | |
| (4,684.5 | ) | |
| (18.8 | )% |
Fixed Costs | |
| 2,364.2 | | |
| 2,695.6 | | |
| (331.4 | ) | |
| (12.3 | )% | |
| 6,826.2 | | |
| 7,392.1 | | |
| (565.9 | ) | |
| (7.7 | )% |
Cost of Sales | |
| 9,062.5 | | |
| 10,921.5 | | |
| (1,859.0 | ) | |
| (17.0 | )% | |
| 27,038.4 | | |
| 32,288.8 | | |
| (5,250.4 | ) | |
| (16.3 | )% |
Gross Profits | |
| 3,940.9 | | |
| 5,892.2 | | |
| (1,951.3 | ) | |
| (33.1 | )% | |
| 12,275.4 | | |
| 19,428.4 | | |
| (7,153.0 | ) | |
| (36.8 | )% |
Operating Expenses | |
| 1,090.8 | | |
| 1,448.7 | | |
| (357.9 | ) | |
| (24.7 | )% | |
| 3,518.2 | | |
| 3,807.9 | | |
| (289.7 | ) | |
| (7.6 | )% |
Operating Income/Loss | |
| 2,850.1 | | |
| 4,443.5 | | |
| (1,593.4 | ) | |
| (35.9 | )% | |
| 8,757.2 | | |
| 15,620.5 | | |
| (6,863.3 | ) | |
| (43.9 | )% |
Financial Income/Loss | |
| (693.0 | ) | |
| (834.4 | ) | |
| 141.4 | | |
| (16.9 | )% | |
| (3,002.3 | ) | |
| (1,042.3 | ) | |
| (1,960.0 | ) | |
| 188.0 | % |
Results from Subsidiaries | |
| (36.7 | ) | |
| 57.6 | | |
| (94.3 | ) | |
| (163.7 | )% | |
| 10.7 | | |
| 200.4 | | |
| (189.7 | ) | |
| (94.7 | )% |
Provision for Income Tax | |
| (1,233.9 | ) | |
| (1,781.7 | ) | |
| 547.8 | | |
| (30.7 | )% | |
| (2,827.6 | ) | |
| (6,069.8 | ) | |
| 3,242.2 | | |
| (53.4 | )% |
Consolidated Net Income | |
| 886.5 | | |
| 1,885.0 | | |
| (998.5 | ) | |
| (53.0 | )% | |
| 2,938.0 | | |
| 8,708.8 | | |
| (5,770.8 | ) | |
| (66.3 | )% |
Non-Controlling Interests | |
| (232.4 | ) | |
| (154.0 | ) | |
| (78.4 | ) | |
| 50.9 | % | |
| (617.3 | ) | |
| (492.6 | ) | |
| (124.7 | ) | |
| 25.3 | % |
Ecopetrol Equity holders** | |
| 654.1 | | |
| 1,731.0 | | |
| (1,076.9 | ) | |
| (62.2 | )% | |
| 2,320.7 | | |
| 8,216.2 | | |
| (5,895.5 | ) | |
| (71.8 | )% |
Other Comprehensive Income | |
| 2,203.0 | | |
| 1,209.7 | | |
| 993.3 | | |
| 82.1 | % | |
| 3,374.5 | | |
| 920.8 | | |
| 2,453.7 | | |
| 266.5 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 4,698.4 | | |
| 6,344.3 | | |
| (1,645.9 | ) | |
| (25.9 | )% | |
| 15,003.0 | | |
| 21,241.7 | | |
| (6,238.7 | ) | |
| (29.4 | )% |
EBITDA Margin | |
| 36.1 | % | |
| 37.7 | % | |
| | | |
| | | |
| 38.2 | % | |
| 41.1 | % | |
| | | |
| | |
* These figures are included for illustration
purposes only. Unaudited.
** According to IAS-1, “Presentation
of financial statements”, paragraph 83, the company must include in the statement of comprehensive results the results attributable
to non-controlling interest (minority interest) and the results attributable to shareholders of the controlling company.
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
Total Sales decreased by COP$3,810 billion, or 22.7%,
during the third quarter of 2015 as compared to the same period of 2014, as a combined result of:
| · | A
US$41.4 per barrel reduction in the price of our crude and refined products basket, resulting
in a decrease of COP$7,222 billion. |
| · | A
89.0 mboed decrease in sales volumes, principally corresponding to reduced export sales
volumes, due to the impact of public order problems on the availability of transport
systems during the third quarter of 2015, resulting in a decrease of COP$991 billion. |
| · | A
COP$167 billion decrease, caused by the recognition of exchange rate effect as Other
Comprehensive Income by the application of hedge accounting, which did not apply in 2014.
|
| · | The
effects of the devaluation of the Colombian peso against the U.S. dollar from an average
of COP$1,909.1/US in the third quarter of 2014 to COP$2,935.6/US in the third quarter
of 2015, resulting in a COP$4,368 billion increase in income. |
| · | A
COP$202 billion increase from transport services, due to the positive effect of the devaluation
on service fees to third parties. |
Cost of Sales decreased by 17%
(-COP$1,859 billion) in the third quarter of 2015 as a result of:
| · | Variable
Costs: 18.6% (-COP$1,528 billion) decrease resulting from: |
a) A COP$1,264 billion reduction
in the purchase prices of crude, gas and refined products due to the net effect of:
| o | Reduced average purchase price
given international benchmark prices: -COP$2,322 billion. |
| o | A COP$694 billion reduction in
purchased volumes (-75 mboed), primarily due to the net effect of: 1) reduced purchases
of crude oil from third parties (COP$1,026 billion), as a result of lower availability
of transport system owing to attacks on infrastructure during the third quarter of 2015,
2) lower purchases of diluents (–COP$517 billion), attributable to: a) optimization
strategies implemented at Ecopetrol S.A, b) non- availability of import facilities at
Puerto Bahía and c) lower transportation of Naphtha by pipeline given the higher
demand of gasoline and diesel, 3) increased gasoline imports (+COP$804 billion) due to
higher local demand and 4) other minor variations (+COP$45 billion). |
| o | Devaluation of the Colombian peso
against the U.S. dollar: +COP$1,752 billion. |
| b) | Inventories decreased by COP$351
billion, caused by the accumulation of inventories as follows: |
| o | Reficar, given the preparation for
the start-up of the refinery’s operations: –COP$178 billion. |
| o | Lower sales of Ecopetrol in the
quarter: –COP$143 billion. |
| o | Propilco,
owing to the shutting down of the Splitter plant: –COP$30 billion. |
| c) | A COP$92 billion increase in transport
costs, especially due to the greater number of tanker trucks in service, the impact of
public order problems on transport systems and the higher costs of logistical, transfer,
loading and unloading services. |
| d) | Other minor variable items: -COP$5
billion. |
| · | Fixed
Costs: a 12.3% (-COP$331 billion) decrease as a result of: |
| a) | A COP$293 billion decline in contracted
services, mainly due to cost optimizations in Ecopetrol S.A. and Hocol S.A. achieved
in carrying out the business transformation plan, operating cost optimizations in partnership
contracts in the Rubiales, Nare and Quifa fields, and lower costs in the Cravo Norte
field, whose portion was lower in 2014, owing to the application of the high price clause. |
| b) | A COP$149 billion reduction in
maintenance costs, led mainly by Ecopetrol S.A. as a result of cost optimization of its
maintenance plan carried out in 2015, notably: restructuring of maintenance services,
quantities, and renegotiation of fees in field maintenance framework contracts. |
| c) | A COP$85 billion increase in depreciation,
primarily from higher asset capitalizations of the transport segment and increased maintenance
at the Barrancabermeja refinery. |
| d) | Other minor items: +COP$26 billion. |
Attacks to our infrastructure negatively
impacted our results during 2015 in the amount of COP$54 billion, including costs associated with repairs of the South and Caño
Limon systems, dismantling of illicit connections, resumption of pipeline operations, and area decontamination.
Gross margin in third quarter of 2015
was 30.3% compared to 35.0% for the same period last year.
Operating Expenses: a 24.7% (-COP$358
billion) decrease as a combined result of:
| a) | A COP$404 billion decrease in exploratory
expenditures due to decreased seismic activity and fewer dry wells reported in the period. |
| b) | COP$35 billion in recovery of operating
provisions in Cenit in the third quarter of 2014. |
| c) | Increase in other minor expenditures:
+COP$11 billion. |
Financial Income/Loss: a COP$141
billion decrease in net financial losses in the third quarter of 2015 as compared to the same period of 2014, as a net result
of:
| a) | A COP$524 billion loss on exchange
rate difference, caused by the adoption of a new accounting policy (hedge accounting)
allowing for hedge of future exports, with effect as of January 1st 2015 (See
Consolidated Financial Results—Cash Flow Hedge for Future Company Exports below). |
| b) | A COP$72 billion increase in revenues
resulting from the sale of shares in Empresa de Energía de Bogotá. |
| c) | A COP$383 billion increase in financial
expenditures from increased indebtedness. |
| d) | A COP$72 billion decrease in financial
expenditures due to valuation of assets and financial liabilities. |
Affiliated company income decreased by
COP$94 billion in the third quarter of 2015, primarily due to a decrease in net income by Equión and Savia, as a consequence
of decreased international crude oil prices.
Income Tax expense decreased by
31% (-COP$548 billion), largely because of lower profits in the period.
As a result, the quarter’s Net
Income attributable to Ecopetrol´s shareholders was a profit of COP$654 billion, 62% lower than the corresponding net
result of the third quarter of 2014.
EBITDA decreased by 26% to COP$4,698
billion in the third quarter of 2015 compared to COP$6,344 billion in the same period of 2014, and the EBITDA Margin
was 36% in the third quarter of 2015 as compared to 38% in the third quarter of 2014.
Starting in the third quarter of 2015,
the Company modified its EBITDA calculation methodology to depurate the total effect of the financial results and the impairment
of long term fixed assets, as well as to align it with best practices for calculating this indicator. Up until the second quarter
of 2015, EBITDA was calculated using the following formula:
EBITDA = Net income +/- Net Interest,
+ Taxes + Depreciations + Amortizations +/- Minority Interest.
As of the third quarter of 2015, the following
formula is used:
EBITDA = Net Income +/- Total Financial
Income + Taxes + Depreciations + Amortizations +/- Impairment of Long-Term Fixed Assets
Figures for the 2014 and 2015 periods
have been recalculated for comparison purposes.
EBITDA is not an indicator defined by
International Financial Reporting Standards (IFRS) and our EBITDA figures may not be comparable to those of other companies.
Table 7: Balance Sheet
A | |
B | | |
C | | |
D | | |
E | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | | |
∆ ($) | | |
∆ (%) | |
Current Assets | |
| 28,027.4 | | |
| 27,410.6 | | |
| 616.8 | | |
| 2.3 | % |
Non Current Assets | |
| 109,387.0 | | |
| 98,760.0 | | |
| 10,627.0 | | |
| 10.8 | % |
Total Assets | |
| 137,414.4 | | |
| 126,170.6 | | |
| 11,243.8 | | |
| 8.9 | % |
Current Liabilities | |
| 21,547.9 | | |
| 21,381.5 | | |
| 166.4 | | |
| 0.8 | % |
Long Term Liabilities | |
| 64,762.3 | | |
| 55,651.5 | | |
| 9,110.8 | | |
| 16.4 | % |
Total Liabilities | |
| 86,310.2 | | |
| 77,033.0 | | |
| 9,277.2 | | |
| 12.0 | % |
Shareholders´Equity | |
| 51,104.2 | | |
| 49,137.6 | | |
| 1,966.6 | | |
| 4.0 | % |
Non Controlling Interest | |
| 1,624.7 | | |
| 1,710.0 | | |
| (85.3 | ) | |
| (5.0 | )% |
Total Liabilities and Shareholders' Equity | |
| 137,414.4 | | |
| 126,170.6 | | |
| 11,243.8 | | |
| 8.9 | % |
The main variations in the balance sheet
during the third quarter of 2015 compared to the end of June 2015 can be explained by:
| · | A
COP$617 billion increase in Current Assets, primarily in Ecopetrol S.A., due to
the net effect of: |
| o | A COP$1,056 billion increase in
Current Tax Assets, owing to income tax and CREE allowances and balances in favor
of VAT declarations. |
| o | A COP$531 billion decrease in Assets
Maintained for Sale mainly due to the sale of shares in Empresa de Energía
de Bogotá S.A. E.S.P. during the first divestment stage in July 2015. |
| o | Other minor variations for +COP$92
billion |
| · | Non-Current
Assets increased by COP$10,627 billion, mainly due to increases in: |
| o | Property, Plant and Equipment
increased by COP$6,501 billion, due principally to exchange rate effect on affiliated
companies with a functional currency that is different from the Colombian peso (+COP$5,522
billion), asset capitalizations, primarily in Reficar for assets associated with the
refinery project (+COP$1,960 billion), the effects of which were partially offset by
depreciations in the third quarter of 2015 and other minor items (-COP$981 billion). |
| o | Deferred Income Tax increased
by COP$2,793 billion, generated mainly by Ecopetrol S.A., taking into account the differences
in the determination of the tax provision among fiscal and accounting items. |
| o | Natural Resources increased
by COP$1,025 billion, principally due to the effects of the devaluation of the Colombian
peso on assets of affiliated companies with a functional currency that is different from
the Colombian peso, especially Ecopetrol América Inc. (+COP$544 billion) and Hocol
(+COP$245 billion); and a COP$230 billion increase in the costs of carrying out the Gunflint
and Dalmatian South projects in Ecopetrol America Inc. and in other affiliates for +COP$6
billion. |
| o | Other minor variations of +COP$308
billion. |
| · | Current
Liabilities increased by COP$166 billion since June 2015, mainly due to the net effect
of: a COP$606 billion increase in income tax provisions in our transport subsidiaries,
given the increased profits of their operations. |
In addition, a COP$125 billion increase
in other current liabilities, mainly in Ocensa, resulting from an increased valuation of liabilities under hedging instruments,
a COP$718 billion decrease in provider and creditor accounts payable due to the fulfillment of obligations with third parties
and lower purchases in the period, a COP$124 billion increase in financial obligations stemming from the effect of the devaluation
of the Colombian peso, and COP$29 billion in other minor variations.
| · | Long-term
Liabilities increased by COP$9,111 billion, primarily due to the effect of the devaluation
of the Colombian peso on U.S. dollar-denominated debt and an increase in the deferred
tax liability. |
| · | Shareholders’
Equity was COP$51,104 billion, a COP$1,967 billion
increase since June 30 2015, mainly due to a COP$4,607 billion increase in valuations
at affiliates with functional currencies other than the Colombian peso, attributable
to the effects of the devaluation of the Colombian peso. This effect was partially offset
by a COP$2,238 billion increase in Ecopetrol’s dollar-denominated debt due to the
devaluation of the Colombian peso, designated as hedge instrument for future crude exports,
and COP$402 billion in other minor changes. |
The opening balance and financial statements
as of December 31, 2014, under IFRS, may undergo changes due to the modification of the standards and interpretations issued by
the International Accounting Standards Board (“IASB”) and subsequently adopted by Colombia. Therefore, until Ecopetrol
and its affiliates prepare their first complete sets of financial statements under IFRS as of December 31, 2015, there is a possibility
that the comparative consolidated statements for these periods could be adjusted. The company expects that there will be no material
changes in the information presented in its opening and transition balances.
| e. | Results by Business Segment |
The following table presents our business
segment results for the periods indicated:
Table 8: Quarterly Results by Segment
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | | |
J | | |
K | |
| |
E&P | | |
Refining &
Petrochem. | | |
Transportation &
Logistics | | |
Eliminations | | |
Ecopetrol Consolidated | |
COP$
Billion | |
3Q
2015 | | |
3Q
2014 | | |
3Q
2015 | | |
3Q
2014 | | |
3Q
2015 | | |
3Q
2014 | | |
3Q
2015 | | |
3Q
2014 | | |
3Q
2015 | | |
3Q
2014 | |
Local Sales | |
| 1,833 | | |
| 2,999 | | |
| 5,250 | | |
| 5,407 | | |
| 72 | | |
| 43 | | |
| (1,511 | ) | |
| (2,590 | ) | |
| 5,644 | | |
| 5,859 | |
Export Sales | |
| 5,338 | | |
| 8,515 | | |
| 850 | | |
| 1,353 | | |
| - | | |
| - | | |
| (27 | ) | |
| 23 | | |
| 6,161 | | |
| 9,891 | |
Sales of Services | |
| 42 | | |
| 147 | | |
| 56 | | |
| 50 | | |
| 2,791 | | |
| 1,966 | | |
| (1,691 | ) | |
| (1,099 | ) | |
| 1,198 | | |
| 1,064 | |
Total Sales | |
| 7,213 | | |
| 11,661 | | |
| 6,156 | | |
| 6,810 | | |
| 2,863 | | |
| 2,009 | | |
| (3,229 | ) | |
| (3,666 | ) | |
| 13,003 | | |
| 16,814 | |
Variable Costs | |
| 4,412 | | |
| 5,458 | | |
| 4,624 | | |
| 5,872 | | |
| 54 | | |
| 31 | | |
| (2,391 | ) | |
| (3,135 | ) | |
| 6,698 | | |
| 8,226 | |
Fixed Costs | |
| 1,809 | | |
| 1,769 | | |
| 454 | | |
| 472 | | |
| 809 | | |
| 917 | | |
| (708 | ) | |
| (462 | ) | |
| 2,364 | | |
| 2,696 | |
Cost of Sales | |
| 6,221 | | |
| 7,227 | | |
| 5,078 | | |
| 6,344 | | |
| 863 | | |
| 948 | | |
| (3,099 | ) | |
| (3,597 | ) | |
| 9,062 | | |
| 10,922 | |
Gross profit | |
| 992 | | |
| 4,434 | | |
| 1,078 | | |
| 466 | | |
| 2,000 | | |
| 1,061 | | |
| (130 | ) | |
| (69 | ) | |
| 3,941 | | |
| 5,892 | |
Operating Expenses | |
| 603 | | |
| 1,114 | | |
| 414 | | |
| 258 | | |
| 142 | | |
| 130 | | |
| (68 | ) | |
| (54 | ) | |
| 1,091 | | |
| 1,448 | |
Operating Profit | |
| 389 | | |
| 3,320 | | |
| 664 | | |
| 208 | | |
| 1,858 | | |
| 931 | | |
| (62 | ) | |
| (15 | ) | |
| 2,850 | | |
| 4,444 | |
Financial Income/Loss | |
| (331 | ) | |
| (652 | ) | |
| (282 | ) | |
| (226 | ) | |
| (54 | ) | |
| 44 | | |
| (26 | ) | |
| (1 | ) | |
| (693 | ) | |
| (835 | ) |
Results from Subsidiaries | |
| (52 | ) | |
| 58 | | |
| 4 | | |
| (1 | ) | |
| 11 | | |
| 1 | | |
| - | | |
| - | | |
| (37 | ) | |
| 58 | |
Income tax benefits (expense) | |
| (247 | ) | |
| (1,389 | ) | |
| (239 | ) | |
| (86 | ) | |
| (748 | ) | |
| (307 | ) | |
| - | | |
| - | | |
| (1,234 | ) | |
| (1,782 | ) |
Net Income Consolidated | |
| (241 | ) | |
| 1,337 | | |
| 147 | | |
| (105 | ) | |
| 1,067 | | |
| 669 | | |
| (88 | ) | |
| (16 | ) | |
| 886 | | |
| 1,885 | |
(Minus) Non-controlling interests | |
| - | | |
| - | | |
| - | | |
| (1 | ) | |
| 232 | | |
| 155 | | |
| - | | |
| - | | |
| 232 | | |
| 154 | |
Equity Holders of Ecopetrol | |
| (241 | ) | |
| 1,337 | | |
| 147 | | |
| (104 | ) | |
| 835 | | |
| 514 | | |
| (88 | ) | |
| (16 | ) | |
| 654 | | |
| 1,731 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 1,745 | | |
| 4,707 | | |
| 888 | | |
| 526 | | |
| 2,125 | | |
| 1,127 | | |
| (60 | ) | |
| (16 | ) | |
| 4,698 | | |
| 6,344 | |
EBITDA Margin | |
| 24.2 | % | |
| 40.4 | % | |
| 14.4 | % | |
| 7.7 | % | |
| 74.2 | % | |
| 56.1 | % | |
| 1.9 | % | |
| 0.4 | % | |
| 36.1 | % | |
| 37.7 | % |
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
Table 9: Accumulated Results by Segment
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | | |
J | | |
K | |
| |
E&P | | |
Refining &
Petrochem. | | |
Transportation &
Logistics | | |
Eliminations | | |
Ecopetrol Consolidated | |
COP$ Billion | |
Jan
-
Sep 15 | | |
Jan
-
Sep 14 | | |
Jan
-
Sep 15 | | |
Jan
-
Sep 14 | | |
Jan
-
Sep 15 | | |
Jan
-
Sep 14 | | |
Jan
-
Sep 15 | | |
Jan
-
Sep 14 | | |
Jan
-
Sep 15 | | |
Jan
-
Sep 14 | |
Local Sales | |
| 6,065 | | |
| 9,335 | | |
| 14,409 | | |
| 16,593 | | |
| 225 | | |
| 108 | | |
| (4,934 | ) | |
| (7,484 | ) | |
| 15,765 | | |
| 18,552 | |
Export Sales | |
| 17,872 | | |
| 26,575 | | |
| 2,527 | | |
| 4,462 | | |
| - | | |
| - | | |
| (28 | ) | |
| (647 | ) | |
| 20,371 | | |
| 30,390 | |
Sales of Services | |
| 76 | | |
| 198 | | |
| 128 | | |
| 154 | | |
| 7,597 | | |
| 5,776 | | |
| (4,623 | ) | |
| (3,353 | ) | |
| 3,178 | | |
| 2,775 | |
Total Sales | |
| 24,013 | | |
| 36,108 | | |
| 17,064 | | |
| 21,209 | | |
| 7,822 | | |
| 5,884 | | |
| (9,585 | ) | |
| (11,484 | ) | |
| 39,314 | | |
| 51,717 | |
Variable Costs | |
| 13,744 | | |
| 16,098 | | |
| 13,471 | | |
| 18,439 | | |
| 300 | | |
| 230 | | |
| (7,303 | ) | |
| (9,870 | ) | |
| 20,212 | | |
| 24,897 | |
Fixed Costs | |
| 5,145 | | |
| 5,019 | | |
| 1,350 | | |
| 1,381 | | |
| 2,270 | | |
| 2,374 | | |
| (1,939 | ) | |
| (1,382 | ) | |
| 6,826 | | |
| 7,392 | |
Cost of Sales | |
| 18,889 | | |
| 21,117 | | |
| 14,821 | | |
| 19,820 | | |
| 2,570 | | |
| 2,604 | | |
| (9,242 | ) | |
| (11,252 | ) | |
| 27,038 | | |
| 32,289 | |
Gross profit | |
| 5,124 | | |
| 14,991 | | |
| 2,243 | | |
| 1,389 | | |
| 5,252 | | |
| 3,280 | | |
| (343 | ) | |
| (232 | ) | |
| 12,276 | | |
| 19,428 | |
Operating Expenses | |
| 2,062 | | |
| 2,671 | | |
| 1,141 | | |
| 898 | | |
| 512 | | |
| 398 | | |
| (196 | ) | |
| (159 | ) | |
| 3,519 | | |
| 3,808 | |
Operating Profit | |
| 3,062 | | |
| 12,320 | | |
| 1,102 | | |
| 491 | | |
| 4,740 | | |
| 2,882 | | |
| (147 | ) | |
| (73 | ) | |
| 8,757 | | |
| 15,620 | |
Financial Income/Loss | |
| (2,143 | ) | |
| (657 | ) | |
| (623 | ) | |
| (299 | ) | |
| (194 | ) | |
| (73 | ) | |
| (42 | ) | |
| (12 | ) | |
| (3,002 | ) | |
| (1,041 | ) |
Results from Subsidiaries | |
| (13 | ) | |
| 190 | | |
| 13 | | |
| 9 | | |
| 11 | | |
| 1 | | |
| - | | |
| - | | |
| 11 | | |
| 200 | |
Income tax benefits (expense) | |
| (673 | ) | |
| (4,905 | ) | |
| (351 | ) | |
| (210 | ) | |
| (1,804 | ) | |
| (955 | ) | |
| - | | |
| - | | |
| (2,828 | ) | |
| (6,070 | ) |
Net Income Consolidated | |
| 233 | | |
| 6,948 | | |
| 141 | | |
| (9 | ) | |
| 2,753 | | |
| 1,855 | | |
| (189 | ) | |
| (85 | ) | |
| 2,938 | | |
| 8,709 | |
(Minus) Non-controlling interests | |
| - | | |
| - | | |
| (2 | ) | |
| (4 | ) | |
| 619 | | |
| 497 | | |
| - | | |
| - | | |
| 617 | | |
| 493 | |
Equity Holders of Ecopetrol | |
| 233 | | |
| 6,948 | | |
| 143 | | |
| (5 | ) | |
| 2,134 | | |
| 1,358 | | |
| (189 | ) | |
| (85 | ) | |
| 2,321 | | |
| 8,216 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 7,589 | | |
| 16,559 | | |
| 1,898 | | |
| 1,311 | | |
| 5,662 | | |
| 3,446 | | |
| (146 | ) | |
| (74 | ) | |
| 15,003 | | |
| 21,242 | |
EBITDA Margin | |
| 31.6 | % | |
| 45.9 | % | |
| 11.1 | % | |
| 6.2 | % | |
| 72.4 | % | |
| 58.6 | % | |
| 1.5 | % | |
| 0.6 | % | |
| 38.2 | % | |
| 41.1 | % |
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
Exploration and Production
Third quarter 2015 revenues fell 38% (-COP$4,448
billion) compared to the third quarter 2014, mainly as a result of:
| o | An 11% drop (-62.5 mboed) in volume
exported, caused by the attacks on oil infrastructure. |
| o | A 54% decrease in Ecopetrol’s
crude export basket, offset by: |
| o | A 54% devaluation of the Colombian
peso against the U.S. dollar. |
The segment’s cost of sales decreased
14% (-COP$1,006 billion) during the third quarter of 2015 compared to the same period of 2014, mainly due to a COP$437 billion
decrease in naphtha imports (13 thousand barrels) because of dilution optimization strategies and the use of diluent inventory;
a COP$197 billion decrease in contracted services as a result of cost optimization efforts resulting in the renegotiation of contract
fees; and a COP$1,016 billion reduction in crude purchasing costs to the ANH and third parties due to the drop in international
prices. The positive impact on the cost of sales was partially offset by a COP$536 billion increase in the costs of hydrocarbon
transport services, given the net effect of the devaluation in the exchange rate for dollar-denominated transport rates, greater
use of tanker trucks in the third quarter of 2015 because of the attacks on the Caño Limón-Coveñas oil pipelines,
and other minor costs of +COP$36 billion.
Operating expenditures were down by 46%
(-COP$511 billion) during the third quarter of 2015 as compared to the same period of 2014, mainly due to a COP$404 billion decline
in exploration expenditures given lower seismic activity and reduced drilling activity.
As of October 2015, and applied retroactively
from January 1, 2015, the Company designated a portion of its debt as a hedge instrument against its future crude export revenues
by virtue of the adoption of a new accounting policy (hedge accounting). The aforementioned accounting election resulted in a
COP$321 billion decrease in segment net income as compared to the third quarter 2014. For more information, see Consolidated Financial
Results—Cash Flow Hedge for Future Company Exports below.
Net income for the segment showed a COP$241
billion loss in the third quarter of 2015 compared to a gain of COP$1,337 billion in the same period of 2014.
Refining and Petrochemicals
Third quarter of 2015 revenues declined
10% (-COP$654 billion) compared to the same period last year, mainly due to decreased international prices of refined products.
This effect was partially offset by a 4% increase in sales volume, caused by higher national demand for fuel and the devaluation
of the Colombian peso against the U.S. dollar.
The segment’s cost of sales declined
20% (-COP$1,266 billion) as a consequence of decreased costs of raw materials, in line with lower international prices of crude
oil and lower operating costs resulting from optimization strategies implemented by the Company.
As a result of the above, gross sales
margin improved compared to the same period of last year, increasing from 7% to 18%, also reflecting a smaller drop in the sale
prices of products as compared to the cost of raw materials.
Operating expenditures increased 60% (+COP$156
billion) compared to the same period last year, mainly due to higher expenditures at the Cartagena Refinery: 1) a payment provision
to the nation due the expanded reach of the contract granted Reficar in 2010 as guarantee of legal stability2 (primarily
in regards to taxes) for a period of 15 years extendable to 20 years, 2) increase in project expenditures relating to the start-up
and stabilization of the new refinery and 3) depletion of inventory for the Coveñas blend following higher additions of
imported crude in stock during the third quarter of 2015 and lower prices in the market versus inventory costs.
As a result of the improved sales margin,
the consolidated segment’s operating revenues increased by COP$456 billion compared to the same period of last year.
The segment recorded net income of COP$147
billion as compared to a COP$104 billion loss in the same period of last year. With these results, the total accumulated net income
for 2015 is COP$ 143 billion versus a loss of COP$ 5 billion cumulative in 2014, notwithstanding the significant negative effect
of the exchange rate difference on financial expenses.
Transport and Logistics
Net income for the third quarter of 2015
increased 43% (+COP$854 billion), primarily due to the effects of the devaluation of the exchange rate on dollar-denominated transport
rates.
The segment’s cost of sales declined
by 9% (-COP$85 billion), primarily due to lower maintenance costs resulting from cost savings under the Company’s austerity
and cost optimization strategy.
Operating expenses increased by 9% (+COP$12
billion) compared to the same period last year, primarily due to expenses related to the security agreements for the protection
of infrastructure and lower provision reversal versus the same quarter of 2014.
2 By legal stability is understood the guarantee
that the nation extends to Reficar that it will continue applying the standard identified for investments for the duration of
the contract.
The net financial result (non-operating)
decreased by COP$ 98 billion, compared to the third quarter of last year, mainly as a result of the conversion of the dollar_denominated
debt and interest expense, associated with a higher debt of Ecopetrol assigned to the segment.
As a result of the above the segment recorded
net income of COP$835 billion as compared to COP$514 billion in the same period of 2014.
| f. | Results of Cost and Expense Reduction
Initiatives |
In line with steps taken by the oil and
gas industry worldwide to address the drop in crude prices that began in the second half of 2014, Ecopetrol has undertaken austerity
and cost optimization measures that have allowed it to partially mitigate the impact of lower crude prices.
For this purpose, the company set an initial
budget optimization goal for 2015 of COP$1.4 trillion. By September 30, 2015, the Company surpassed the goal, reaching COP$1.6
trillion in budgetary optimizations, which are expected to have a COP$955 billion impact on our profit and loss statements, COP$160
billion on investments and COP$519 billion on cash. The company revised its goal to COP$ 2.2 trillion to look for additional budgetary
optimizations mainly related to: advisory services, construction and assembly, oil services, maintenance, other services, purchases,
among others.
Graph 1: Savings in Cost and Expenditures
of Ecopetrol S.A.
At the close of the third quarter of 2015,
we see the realization of COP$516 billion in controllable savings as compared to the same period of 2014, COP$272 billion of which
corresponds to the fixed costs line item and COP$244 billion correspond to the variable costs line item. The optimization of these
costs is as follows:
Table 10: Savings in Cost and Expenditures
of Ecopetrol S.A.
A | |
B | | |
C | |
D | |
Manageable
Fixed Costs
Perfomance | |
Jan
- Sep 15 vs Jan - Sep 14 ($COP
Billion) | | |
Manageable
Variable Costs Performance
| |
Jan
- Sep 15 vs Jan - Sep 14 ($COP
Billion) | |
Associated Services Employed | |
| -182 | | |
Trucks | |
| -198 | |
Maintenance | |
| -124 | | |
Association Contract Services | |
| -27 | |
Cost of Projects | |
| -63 | | |
Energy | |
| -24 | |
Others | |
| ´+97 | | |
Others | |
| ´+5 | |
The reduction of naphtha consumption by
7.1 thousand barrels per day as a result to the strategy of increased viscosity of crudes to be transported by pipelines, between
the third quarter of 2015 and the same period of 2014. This is just the beginning of the dilution efficiencies, one of the key
levers in efficiency given our heavy crude oil production.
With these measures, the goal is to make
the company’s business operation not only more profitable, but also to generate more cash flow to finance the company’s
organic investments, seeking financing that will have a minimal impact on the Company’s financial and credit rating metrics.
In line with the new corporate strategy
focused on ensuring the company’s long-term sustainability, prioritizing value generation by means of the production of
efficient barrels, and a focus on shareholder return, the following initiatives have been undertaken by Ecopetrol during the third
quarter of 2015:
Ecopetrol’s divestment of
its ownership interest in Empresa de Energía de Bogotá S.A. E.S.P.
Since the beginning of 2015, the first
two stages of Ecopetrol’s divestment of its share interest in Empresa de Energía de Bogotá (EEB) have taken
place.
On August 6, the first stage of the equity
divestment program, aimed a certain special conditions beneficiaries3, was completed, generating a total of COP$613,998,000,360
in revenues for Ecopetrol, as shown below:
Table 11 – Adjudication Results
A | |
B | |
Offering Price per Share (COP$) | |
| 1,740 | |
Number of Shares Offered | |
| 631,098,000 | |
Number of Shares Subscribed | |
| 352,872,414 | |
Total Amount Subscribed (COP$) | |
| 613,998,000,360 | |
Number of Shares Sold | |
| 352,872,414 | |
Gross Proceeds (COP$) | |
| 613,998,000,360 | |
Trade Date | |
| July
27 de 2015 | |
Settlement Date | |
| July
31 de 2015 | |
On October 9, 2015, an auction for the
second stage of the equity divestment program was held for the remaining 278,225,586 shares owned by Ecopetrol. The shares were
offered at a price of COP$1,815 per share. The auction was declared void.
3 The beneficiaries of the Special Conditions for
the purposes of the Program and in exclusivity are the following persons:
| (i) | Active workers, retirees, and
former workers who have not been separated by the employer with just cause, as long as
they are nationals or Colombian residents of the EEB and of the companies in which the
latter holds a majority stake, which are related to the regulation. |
| (ii) | Employee or former employee associations
of the EEB |
| (iii) | Worker unions duly created in
accordance with the law. |
| (iv) | Worker union federations and
worker union confederations duly created in accordance with the law |
| (v) | Employee funds duly created in
accordance with the law |
| (vi) | Mutual investment funds duly
created in accordance with the law |
| (vii) | Severance and pension funds
duly created in accordance with the law |
| (viii) | Cooperative entities defined
by cooperative legislation duly created in accordance with the law |
| (ix) | Family compensation funds duly
created in accordance with the law |
In order to continue with the sale process,
Ecopetrol is entitled to hold up to three additional auctions, at a time and in a fashion indicated in the notice of initiation
of the second stage.
Divestment of Ecopetrol’s
ownership interest in Empresa Interconexión Eléctrica S.A E.S.P.
On September 29, 2015, began the first
stage of the equity divestment program of Interconexión Eléctrica S.A. E.S.P. (ISA) shares owned by Ecopetrol. This
offering, aimed at certain special conditions beneficiaries, will run until November 30, 2015.
Ecopetrol and JX Nippon establish
an alliance for the exploration of a Brazilian offshore block
Through its affiliate in Brazil (Ecopetrol
Óleo e Gás), Ecopetrol established an alliance with the Japanese company JX Nippon Oil & Gas Exploration for
exploration of the FZA-M-320 block, located in shallow waters off the Foz do Brasil basin, in the Equatorial rim of the Amazon.
Ecopetrol held exclusive rights to the
basin, as adjudicated in Round 11 by Brazil’s National Oil, Gas and Biofuel Agency (ANP) in May of 2013.
The joint venture agreement, currently
in the process of being approved by the ANP, established that JX Nippon would join exploration in the area with a 30% stake, not
only in exploratory investments but also any resources that might be discovered. Ecopetrol will maintain the remaining 70% stake
and continue as operator.
Ecopetrol and Parex sign agreement
for development of the field Aguas Blancas
Ecopetrol signed an agreement with the
Canadian company Parex Resources to increase the reserves and production of the Aguas Blancas field, located in Magdalena Medio.
The agreement, if successful, could potentially recover additional 55 million barrels of light crude and increase the field’s
production to up to 10 thousand barrels per day by 2020.
Estimated investments in the first stage
(three years) of US$61 million will be undertaken by Parex and will be allocated for the drilling of wells and development of
a secondary recovery pilot. If successful, total investments could reach US$700 million and would be assumed 60% by Parex and
40% by Ecopetrol. The share of production will be distributed in equal parts between the two companies, after royalties.
Ecopetrol and Oxy seal deal to increase
the reserves and production of La Cira-Infantas
Ecopetrol and Occidental Andina, LLC (Oxy)
reached an agreement to carry out a project that could incorporate more than 100 million additional barrels of crude in reserves
for Ecopetrol, if successful, in the field La Cira-Infantas, located in the Santander Magdalena Medio region.
The initiative seeks to increase the field’s
recovery factor from the current 17% to an estimated 30% and continue increasing production, with the goal of reaching more than
50 thousand barrels a day. If the initial stage of the project is successful, the amount of required estimated investments could
reach US$2,000 million, which would be executed gradually over a period of 10 years.
| b. | Cash Flow Hedge for Future Company
Exports |
Ecopetrol S.A. is exposed to foreign exchange
risk given that a high percentage of its crude export revenues are denominated in U.S. dollars.
Also, in recent years, the company has
acquired long-term debt for investment activities in U.S. dollars. This situation creates a natural hedge relationship due to
the fact that the risks generated by the foreign exchange difference of export revenues are naturally hedged with the foreign
exchange valuation risks of the long-term debt in U.S. dollars.
Aligned with the company’s risk
management strategy and with the objective of presenting in the Financial Statements the effect of the mentioned natural hedge
between exports and debt, on September 30, 2015, the Board of Directors designated US$5,440 million of Ecopetrol S.A’s debt
(49% of the debt in dollars) as hedge instrument of its future export sales for the period 2015-2023, in accordance with IAS 39
– Financial instruments: recognition and measurement.
With adoption of this standard, the volatility
of foreign exchange rate’s effect on the hedged portion of the debt is recognized directly in the Equity, as part of the
Other Comprehensive Income, removing the volatility from the income statement. The foreign exchange effect will be reflected periodically
in the P&L settlement as foreign sales are realized, understanding that the foreign exchange risk materializes as exports
are realized.
The effects of the adoption of hedge accounting
policy are entirely recognized in 3Q 2015, causing an impact on net income in an amount of COP$2.2 trillion, resulting from a
positive effect of COP$3.9 trillion on the financial results minus COP$1.7 trillion of deferred income tax and the effect on export
revenues realized during the period.
In accordance with Resolution 509 of 2015
of the Colombian National Accounting Office, the accounting policy adopted will be applied to the entire 2015 accounting period,
starting on January 1st.
For comparison purposes, the following
table shows re-stated net income for the first, second and third quarters of 2015, for local purposes, reflecting the impact of
application of the previously described hedge policy:
Table 12 – Sensitization of Net
Income 2015
COP$ Millions | |
1Q 2015 | | |
2Q 2015 | | |
3Q 2015 | | |
Jan-Sep 2015 | |
Net Income Reported | |
| 160,030 | | |
| 1,506,556 | | |
| 654,117 | | |
| 2,320,703 | |
| |
| | | |
| | | |
| | | |
| | |
Impact on: | |
| | | |
| | | |
| | | |
| | |
(-) Financial Results (a) | |
| 984,627 | | |
| 38,701 | | |
| 2,868,821 | | |
| 3,892,149 | |
(-) Revenue (b) | |
| (12,001 | ) | |
| (29,860 | ) | |
| (125,242 | ) | |
| (167,103 | ) |
(-) Deferred Income Tax ( c) | |
| (395,163 | ) | |
| (9,358 | ) | |
| (1,081,778 | ) | |
| (1,486,299 | ) |
Total Impacts | |
| (407,164 | ) | |
| (39,218 | ) | |
| (1,207,020 | ) | |
| (1,653,402 | ) |
Net Income Under Local IFRS Restated | |
| 737,493 | | |
| 1,506,039 | | |
| 77,171 | | |
| 2,320,703 | |
Notes:
| (a) | The effect of the hedge accounting
over the portion of debt used as hedging instrument (US$5,440 million) reclassified to
the account Other Comprehensive Income of Shareholder Equity in 2Q and 3Q 2015. |
| (b) | Recognition in the period’s
result of the exchange differences of debt and revenues once crude export earnings are
realized. |
| (c) | The impact on deferred income
tax is the result of the recognition of temporary differences in the exchange difference
treatment in terms of accounting and taxation. |
Table 13: Investments* by Ecopetrol´
s Corporate Group
A | |
B | | |
C | | |
D | | |
E | |
January - September 2015 (US$ million)** |
Segment | |
Ecopetrol S.A. | | |
Affiliates and
Subsidiaries*** | | |
Total | | |
Allocation by
segment | |
Production | |
| 2,026.0 | | |
| 378.5 | | |
| 2,404.5 | | |
| 50.9 | % |
Refining, Petrochemicals and Biofuels | |
| 107.4 | | |
| 1,254.2 | | |
| 1,361.6 | | |
| 28.8 | % |
Exploration | |
| 192.7 | | |
| 153.7 | | |
| 346.3 | | |
| 7.3 | % |
Transportation | |
| 27.8 | | |
| 528.9 | | |
| 556.7 | | |
| 11.8 | % |
Corporate | |
| 49.6 | | |
| 0.0 | | |
| 49.6 | | |
| 1.0 | % |
New Business**** | |
| 3.8 | | |
| 0.0 | | |
| 3.8 | | |
| 0.1 | % |
Supply and Marketing | |
| 1.0 | | |
| 0.0 | | |
| 1.0 | | |
| 0.0 | % |
Total | |
| 2,408.4 | | |
| 2,315.3 | | |
| 4,723.6 | | |
| 100.0 | % |
*Figures in this table differ from the
capital expenditure figures presented in the Consolidated Statement of Cash Flows on page 33 because the figures in this table
include both operating expenditures and capital expenditure outflows of investment projects, while the investment line of the
Consolidated Statement of Cash Flows includes capital expenditures only.
** Investments were converted using the
average representative Market Exchange Rate for the period of analysis.
**Prorated according to Ecopetrol’
s stake.
*** Corresponds to the new organizational
structure and refers to investments approved for the New Business segment. These assets were part of the Corporate segment until
2014.
Investments in the period January - September
of 2015 were US$4,723.6 million (Ecopetrol S.A. itself accounting for 51% of that amount while affiliates and subsidiaries accounted
for 49%). These investments were distributed as follows:
| · | Production
(50.9%): The drilling campaign, especially in the Castilla, Chichimene and Rubiales fields. |
| · | Refining,
Petrochemicals and Biofuels (28.8%): the Industrial Services Master Plan of the Barrancabermeja
refinery and the Cartagena refinery modernization project. |
| · | Transport
(11.8%): the Reficar logistics project, which was aimed at ensuring the supply of crude
and liquid products for the Cartagena Refinery, and the San Fernando – Monterrey,
Ocensa P135 and Costa Norte – Galán projects. |
| · | Exploration
(7.3%): higher costs in drilling the Kronos and Calasú wells. |
Exploration in Colombia:
The following table summarizes the results
of the exploration activities in Colombia for the periods indicated:
Table 14: Wildcats in Colombia
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | |
| |
3Q 2015 | | |
Jan-Sep 2015 | |
Company | |
Drilled | | |
Hydrocarbon
Presence* | | |
Under
Evaluation | | |
Dry | | |
Drilled | | |
Hydrocarbon Presence* | | |
Under Evaluation | | |
Dry | |
Ecopetrol S.A. | |
| 1 | | |
| 1 | | |
| 0 | | |
| 0 | | |
| 1 | | |
| 1 | | |
| 0 | | |
| 0 | |
Hocol S.A. | |
| 0 | | |
| 0 | | |
| 0 | | |
| 0 | | |
| 1 | | |
| 1 | | |
| 0 | | |
| 0 | |
Total | |
| 1 | | |
| 1 | | |
| 0 | | |
| 0 | | |
| 2 | | |
| 2 | | |
| 0 | | |
| 0 | |
*Geological Success.
Drilling at the Kronos-1 exploratory well
encountered 130 - 230 net feet of natural gas pay in the upper objective, proving the presence of a working petroleum system and
confirming the geologic and seismic analyses. Anadarko and Ecopetrol are evaluating the data and results obtained to determine
the next steps.
As the
quarter closed, drilling was being done on the exploratory wells Calasú, located in deep waters of the Colombian Caribbean
and operated by Anadarko who holds 50%, Muérgana Sur, located in the Llanos Orientales and operated by Ecopetrol
S.A., and Champeta, located in the Interior Magdalena Valley and operated by Hocol S.A. The Nogal Est-1 stratigraphic test well,
located on the Nogal Block in the Putumayo basin was being drilled.
International Exploration:
During the third quarter of 2015, Ecopetrol
America, Inc. continued drilling the Sea Eagle exploratory well in deep waters off the Gulf of Mexico (operated 35% by Murphy,
15% by PetroVietnam, and the other 50% by Ecopetrol America Inc). The well was declared dry. Drilling began on the appraisal well
Leon 2 in deep waters off the Gulf of Mexico (operated 60% by Repsol and 40% by Ecopetrol America, Inc.).
In addition, and as a result of Ecopetrol
America, Inc.’s participation in the Lease Sale 426, in September 2015, the U.S. Bureau of Ocean Energy Management (BOEM)
awarded the GB494, GB495 and GB539 blocks. These blocks will be operated by Anadarko who holds a participation of 50% and Ecopetrol
America, Inc the remaining 50%. In addition in November the BOEM awarded the East Breaks 685 block to Ecopetrol America, Inc,
who holds a participation of 100%.
The following table summarizes the results of our oil and gas
production activities for the periods indicated:
Table 15: Group´s Gross* Oil and
Gas Production**
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | |
Ecopetrol S.A. (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 570.2 | | |
| 580.0 | | |
| (1.7 | )% | |
| (9.8 | ) | |
| 587.0 | | |
| 576.5 | | |
| 1.8 | % | |
| 10.5 | |
Natural Gas*** | |
| 115.8 | | |
| 124.0 | | |
| (6.6 | )% | |
| (8.2 | ) | |
| 120.3 | | |
| 125.7 | | |
| (4.3 | )% | |
| (5.4 | ) |
Total | |
| 686.0 | | |
| 704.0 | | |
| (2.6 | )% | |
| (18.0 | ) | |
| 707.3 | | |
| 702.2 | | |
| 0.7 | % | |
| 5.1 | |
Hocol (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 22.2 | | |
| 20.2 | | |
| 9.9 | % | |
| 2.0 | | |
| 21.1 | | |
| 21.6 | | |
| (2.3 | )% | |
| (0.5 | ) |
Natural Gas | |
| 0.1 | | |
| 0.1 | | |
| 0.0 | % | |
| 0.0 | | |
| 0.1 | | |
| 0.2 | | |
| (50.0 | )% | |
| (0.1 | ) |
Total | |
| 22.3 | | |
| 20.3 | | |
| 9.9 | % | |
| 2.0 | | |
| 21.2 | | |
| 21.8 | | |
| (2.8 | )% | |
| (0.6 | ) |
Savia (mboed)**** | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 4.7 | | |
| 5.3 | | |
| (11.3 | )% | |
| (0.6 | ) | |
| 4.9 | | |
| 5.4 | | |
| (9.3 | )% | |
| (0.5 | ) |
Natural Gas | |
| 1.2 | | |
| 1.4 | | |
| (14.3 | )% | |
| (0.2 | ) | |
| 1.2 | | |
| 1.1 | | |
| 9.1 | % | |
| 0.1 | |
Total | |
| 5.9 | | |
| 6.7 | | |
| (11.9 | )% | |
| (0.8 | ) | |
| 6.1 | | |
| 6.5 | | |
| (6.2 | )% | |
| (0.4 | ) |
Equion (mboed)**** | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 12.2 | | |
| 9.0 | | |
| 35.6 | % | |
| 3.2 | | |
| 11.2 | | |
| 9.2 | | |
| 21.7 | % | |
| 2.0 | |
Natural Gas | |
| 9.0 | | |
| 8.6 | | |
| 4.7 | % | |
| 0.4 | | |
| 8.9 | | |
| 8.5 | | |
| 4.7 | % | |
| 0.4 | |
Total | |
| 21.2 | | |
| 17.6 | | |
| 20.5 | % | |
| 3.6 | | |
| 20.1 | | |
| 17.7 | | |
| 13.6 | % | |
| 2.4 | |
Ecopetrol America-K2
(mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 2.7 | | |
| 3.2 | | |
| (15.6 | )% | |
| (0.5 | ) | |
| 2.9 | | |
| 2.0 | | |
| 45.0 | % | |
| 0.9 | |
Natural Gas | |
| 2.8 | | |
| 3.0 | | |
| (6.7 | )% | |
| (0.2 | ) | |
| 2.9 | | |
| 1.7 | | |
| 70.6 | % | |
| 1.2 | |
Total | |
| 5.5 | | |
| 6.2 | | |
| (11.3 | )% | |
| (0.7 | ) | |
| 5.8 | | |
| 3.7 | | |
| 56.8 | % | |
| 2.1 | |
Ecopetrol Corporate
Group (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 612.0 | | |
| 617.7 | | |
| (0.9 | )% | |
| (5.7 | ) | |
| 627.1 | | |
| 614.7 | | |
| 2.0 | % | |
| 12.4 | |
Natural Gas | |
| 128.9 | | |
| 137.1 | | |
| (6.0 | )% | |
| (8.2 | ) | |
| 133.4 | | |
| 137.2 | | |
| (2.8 | )% | |
| (3.8 | ) |
Total Group's Production | |
| 740.9 | | |
| 754.8 | | |
| (1.8 | )% | |
| (13.9 | ) | |
| 760.5 | | |
| 751.9 | | |
| 1.1 | % | |
| 8.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
* Gross production includes royalties and prorated according
to Ecopetrol´s stake in each company.
** Figures for Equion and Savia are not consolidated within
the Ecopetrol Group.
*** Gas production includes white products.
**** The production breakdown of crude oil and gas for 2014
was modified in order to reflect the production of white products in the production of gas.
Table 16: Net* Oil and Gas Production**
– Ecopetrol´s Net Interest
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | | |
H | | |
I | |
Ecopetrol Group (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
∆ (bls) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | | |
∆ (bls) | |
Crude Oil | |
| 528.5 | | |
| 529.7 | | |
| (0.2 | )% | |
| (1.2 | ) | |
| 541.0 | | |
| 527.9 | | |
| 2.5 | % | |
| 13.1 | |
Natural Gas*** | |
| 108.6 | | |
| 113.7 | | |
| (4.5 | )% | |
| (5.1 | ) | |
| 112.3 | | |
| 113.5 | | |
| (1.1 | )% | |
| (1.2 | ) |
Total Group's Production | |
| 637.1 | | |
| 643.4 | | |
| (1.0 | )% | |
| (6.3 | ) | |
| 653.3 | | |
| 641.4 | | |
| 1.9 | % | |
| 11.9 | |
* Net production does not includes royalties and prorated according
to Ecopetrol´s stake in each company.
** Equion and Savia do not consolidate within the Group.
*** Gas production includes white products.
In comparison with the third quarter of
2014, Ecopetrol Group’s production decreased by 13.9 mboed (-1.8%), mainly due to the temporary closing of the Caño
Limón and Gibraltar fields during most of July and August following the attacks on the Caño Limón-Coveñas
oil pipeline in the third quarter of 2015. Production was reduced by approximately 22 mboed in the Caño Limón field
and by approximately 4 mboed in the Gibraltar field, each as compared to the third quarter of 2014. Also contributing to this
decrease in production, was the natural decline of certain fields, especially those located in the Guajira district, as well as
the reduction in Ecopetrol’ s production stake in certain fields affected by high price contractual clauses, which together
decreased production by approximately 12 mboed, as compared to the third quarter of 2014.
These production decreases were partially
offset primarily by the Castilla and Chichimene assets, which maintained production levels of the second quarter of 2015 and represent
increases of 19.5% and 27.5%, respectively, in comparison with the third quarter of 2014. In addition, the resumption of activity
in the Rubiales field during the third quarter of 2015 halted the decline observed since the end of 2013.
Projects to Increase the Recovery Factor:
During the third quarter of 2015, four
pilot projects were launched with the aim of increasing the recovery factor – a chemical injection pilot project in the
Chichimene field and water injection pilot projects in the fields Provincia, Tisquirama and Castilla.
The air injection pilot project in Chichimene
field reached 92% completion on construction of surface facilities, thereby completing most of the project’s main works.
Connectivity tests were also concluded with positive results, demonstrating the continuity in the sands and the connection between
the injection well and production wells, and helping to also evaluate the flow conditions of fluids between them.
Including the pilot projects begun in
2015, the Company has to date 28 recovery pilots underway, of which 16 have shown positive results in increasing pressure and
14 an increase in crude production in the areas impacted by the pilot projects.
Production of Main Fields:
The following table summarizes the average
production of our main fields by region for the periods indicated:
Table 17: Gross Average Production Main
Fields by Region – Ecopetrol´ s Net Interest
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
| |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Central Region | |
| 95.2 | | |
| 96.3 | | |
| (1.1 | )% | |
| 97.8 | | |
| 95.1 | | |
| 2.8 | % |
1) La Cira - Infantas | |
| 22.9 | | |
| 24.9 | | |
| (8.0 | )% | |
| 23.5 | | |
| 24.7 | | |
| (4.9 | )% |
2) Casabe | |
| 20.9 | | |
| 22.2 | | |
| (5.9 | )% | |
| 22.5 | | |
| 21.9 | | |
| 2.7 | % |
3) Yarigui | |
| 19.6 | | |
| 17.6 | | |
| 11.4 | % | |
| 18.0 | | |
| 17.4 | | |
| 3.4 | % |
4) Other | |
| 31.8 | | |
| 31.6 | | |
| 0.6 | % | |
| 33.8 | | |
| 31.1 | | |
| 8.5 | % |
Orinoquia Region | |
| 260.4 | | |
| 231.2 | | |
| 12.6 | % | |
| 259.6 | | |
| 222.7 | | |
| 16.6 | % |
1) Castilla | |
| 122.9 | | |
| 102.9 | | |
| 19.4 | % | |
| 121.4 | | |
| 103.2 | | |
| 17.6 | % |
2) Chichimene | |
| 77.7 | | |
| 60.9 | | |
| 27.6 | % | |
| 78.5 | | |
| 52.5 | | |
| 49.5 | % |
3) Cupiagua | |
| 37.3 | | |
| 39.7 | | |
| (6.0 | )% | |
| 36.1 | | |
| 39.0 | | |
| (7.4 | )% |
4) Other | |
| 22.5 | | |
| 27.7 | | |
| (18.8 | )% | |
| 23.6 | | |
| 28.0 | | |
| (15.7 | )% |
South Region | |
| 31.8 | | |
| 34.4 | | |
| (7.6 | )% | |
| 33.1 | | |
| 35.3 | | |
| (6.2 | )% |
1) San Francisco | |
| 8.0 | | |
| 9.2 | | |
| (13.0 | )% | |
| 8.3 | | |
| 9.4 | | |
| (11.7 | )% |
2) Huila Area | |
| 8.2 | | |
| 9.0 | | |
| (8.9 | )% | |
| 8.7 | | |
| 9.3 | | |
| (6.5 | )% |
3) Tello | |
| 4.8 | | |
| 4.6 | | |
| 4.3 | % | |
| 4.9 | | |
| 4.5 | | |
| 8.9 | % |
4) Other | |
| 10.8 | | |
| 11.6 | | |
| (6.9 | )% | |
| 11.2 | | |
| 12.1 | | |
| (7.4 | )% |
Associated Operations* | |
| 298.6 | | |
| 342.1 | | |
| (12.7 | )% | |
| 316.8 | | |
| 349.1 | | |
| (9.3 | )% |
1) Rubiales | |
| 94.7 | | |
| 101.2 | | |
| (6.4 | )% | |
| 94.2 | | |
| 107.0 | | |
| (12.0 | )% |
2) Guajira | |
| 40.0 | | |
| 46.4 | | |
| (13.8 | )% | |
| 43.7 | | |
| 51.1 | | |
| (14.5 | )% |
3) Quifa | |
| 23.8 | | |
| 33.0 | | |
| (27.9 | )% | |
| 24.5 | | |
| 33.2 | | |
| (26.2 | )% |
4) Caño Limón | |
| 12.0 | | |
| 34.2 | | |
| (64.9 | )% | |
| 24.8 | | |
| 27.8 | | |
| (10.8 | )% |
5) Cusiana | |
| 32.2 | | |
| 33.8 | | |
| (4.7 | )% | |
| 32.6 | | |
| 33.7 | | |
| (3.3 | )% |
6) Other | |
| 95.9 | | |
| 93.5 | | |
| 2.6 | % | |
| 97.0 | | |
| 96.3 | | |
| 0.7 | % |
Total Ecopetrol S.A. | |
| 686.0 | | |
| 704.0 | | |
| (2.6 | )% | |
| 707.3 | | |
| 702.2 | | |
| 0.7 | % |
Direct Operation | |
| 391.8 | | |
| 366.3 | | |
| 7.0 | % | |
| 395.0 | | |
| 357.0 | | |
| 10.6 | % |
Associated Operation | |
| 294.2 | | |
| 337.7 | | |
| (12.9 | )% | |
| 312.3 | | |
| 345.2 | | |
| (9.5 | )% |
Hocol | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
1) Ocelote | |
| 15.2 | | |
| 13.9 | | |
| 9.4 | % | |
| 14.2 | | |
| 14.6 | | |
| (2.7 | )% |
2) Other | |
| 7.1 | | |
| 6.4 | | |
| 10.9 | % | |
| 7.0 | | |
| 7.2 | | |
| (2.8 | )% |
Equion** | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
1) Piedemonte | |
| 15.4 | | |
| 11.7 | | |
| 31.6 | % | |
| 14.2 | | |
| 11.7 | | |
| 21.4 | % |
2) Tauramena / Chitamena | |
| 4.5 | | |
| 4.6 | | |
| (2.2 | )% | |
| 4.6 | | |
| 4.6 | | |
| 0.0 | % |
3) Other | |
| 1.3 | | |
| 1.3 | | |
| 0.0 | % | |
| 1.3 | | |
| 1.4 | | |
| (7.1 | )% |
Savia** | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
1) Lobitos | |
| 2.4 | | |
| 3.0 | | |
| (20.0 | )% | |
| 2.6 | | |
| 3.0 | | |
| (13.3 | )% |
2) Peña Negra | |
| 2.3 | | |
| 2.3 | | |
| 0.0 | % | |
| 2.3 | | |
| 2.3 | | |
| 0.0 | % |
3) Other | |
| 1.2 | | |
| 1.4 | | |
| (14.3 | )% | |
| 1.2 | | |
| 1.2 | | |
| 0.0 | % |
Ecopetrol America Inc. | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
1) Dalmatian | |
| 4.4 | | |
| 4.7 | | |
| (6.4 | )% | |
| 4.6 | | |
| 2.4 | | |
| 91.7 | % |
2) k2 | |
| 1.1 | | |
| 1.5 | | |
| (26.7 | )% | |
| 1.2 | | |
| 1.3 | | |
| (7.7 | )% |
* Fields previously classified as minor fields belong
to the Associated Operation Vicepresidency regardless the type of operation.
** Figures for Equion and Savia are not consolidated
within the Ecopetrol Group.
The following table summarizes the results of our crude oil
production by type of crude for the periods indicated:
Table 18: Gross Corporate Group Production
per Type of Crude (mbod)
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
| |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Light | |
| 64.9 | | |
| 61.2 | | |
| 6.0 | % | |
| 62.9 | | |
| 61.2 | | |
| 2.8 | % |
Medium | |
| 193.0 | | |
| 219.7 | | |
| (12.2 | )% | |
| 209.2 | | |
| 219.5 | | |
| (4.7 | )% |
Heavy | |
| 354.1 | | |
| 336.8 | | |
| 5.1 | % | |
| 355.0 | | |
| 334.0 | | |
| 6.3 | % |
Total | |
| 612.0 | | |
| 617.7 | | |
| (0.9 | )% | |
| 627.1 | | |
| 614.7 | | |
| 2.0 | % |
Lifting Cost
The lifting cost per barrel produced by
the Group, not including production corresponding to royalties, was US$6.89 per barrel for the third quarter of 2015, representing
a US$3.81 per barrel reduction compared with US$10.70 for the same period of 2014. This reduction was primarily due to:
| · | A
cost effect resulting in a US$0.25 per barrel decrease in lifting costs due to the combined
effects of: |
| o | Cost optimization strategies
in Ecopetrol and Hocol operations resulting in a US$0.63 reduction. These strategies
included 1) fewer number of well interventions as a result of subsoil strategies, 2)
improvements in maintenance routines and equipment reliability, 3) reduction of energy
costs by optimizing electrical systems and 4) lower costs resulting from contract renegotiations. |
| o | A US$0.38 increase in costs per
barrel resulting from 1) increased subsoil and surface maintenance activity at the Chichimene
field and the startup of activities at the CPO-09 field and 2) artificial lift facilities
in the K2 field Ecopetrol America Inc. |
| · | Volume
effect resulting in a US$0.14 per barrel increase in lifting costs, caused by decreased
production volumes. |
| · | The
effect of the devaluation of the Colombian peso against the U.S. dollar resulting in
a US$3.70 per barrel decrease in lifting costs, owing to the conversion of peso-denominated
cost in US dollars at a higher exchange rate (COP$2,935.60/US in the third quarter of
2015 versus COP$1,909.13/US in the same quarter of 2014). |
The lifting cost per barrel produced by
the Group during January – September 2015 was US$7.29/Bl, showing a US$3.62/Bl decrease compared with the same period of
2014 (US$10.91/Bl). Out of this observed reduction, a total of US$1.03/Bl per barrel were attributable to cost reduction and optimization
strategies.
The following table summarizes our volumes transported for
the periods indicated:
Table 19: Volumes Transported (mbod)
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
| |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Crude | |
| 947.4 | | |
| 980.3 | | |
| (3.4 | )% | |
| 982.7 | | |
| 947.1 | | |
| 3.8 | % |
Refined Products | |
| 247.6 | | |
| 252.0 | | |
| (1.7 | )% | |
| 250.2 | | |
| 249.2 | | |
| 0.4 | % |
Total | |
| 1,195.0 | | |
| 1,232.3 | | |
| (3.0 | )% | |
| 1,232.9 | | |
| 1,196.3 | | |
| 3.1 | % |
Note: figures correspond to volumes transported
by the Ecopetrol Group and by third parties.
The volume of crude transported by the
main Cenit S.A.S. system and those of its affiliates decreased 3.4% in the third quarter of 2015, compared to the same period
of 2014, due primarily to the attacks on infrastructure of the Caño Limón–Coveñas system, which was
out of operations 62% of the time in the third quarter of 2015 versus 29% in the same period of 2014. Ecopetrol S.A. crude accounted
for approximately 71% of the total volume of crude transported by Cenit oil pipelines.
The volumes of refined products transported
by the main Cenit S.A.S systems decreased 1.7% in the third quarter of 2015 compared to the same period of 2014, as a result of
lower volumes of fuel transported by the Galán-Sebastopol system, due to fewer deliveries of refined products from the
Barrancabermeja refinery. Ecopetrol S.A. refined products accounted for approximately 15% of the total volume of refined products
transported through Cenit pipelines.
Projects:
During the third quarter, the work of
renovating the Tocancipá Terminal was completed. Its purpose is to improve the fuel storage and handling infrastructure
and diversify supply sources for the country’s central region. The installation’s total load capacity is 12,000 barrels
per day of motor gasoline, extra gasoline and diesel, which meets biofuel blends and additives standards.
Also in the third quarter, the construction
and testing of two storage tanks at the Coveñas terminal was completed, each with a capacity of 420 thousand barrels. The
tanks are expected to be placed into operation during the fourth quarter after the fire systems are installed.
Cost Per Barrel Transported4
The average cost per barrel transported
for the Ecopetrol Group during the third quarter of 2015 was US$3.42/BL, representing a US$0.60 per barrel decrease as compared
to US$4.02 per barrel for the same period of 2014. This result was primarily due to the following factors:
| · | Expenditure
effect: US$1.15 per barrel: US$ 1.38 per barrel increase in tax expenditures as a consequence
of increased revenues during the quarter partially offset by US$ 0.23 per barrel decrease
in fixed and variable costs due to higher efficiencies obtained. |
| · | Volume
effect: US$0.08 per barrel increase, owing to lower volume transported. |
| · | TRM
effect: US$1.83 cost per barrel decrease resulting from the devaluation of the Colombian
peso from COP$1,026.47 per dollar compared to the same quarter of 2014 (COP$2,935.60/US
in 2015 vs COP$1,909.13/US in 2014). |
The cost per barrel transported for the
Ecopetrol Group for the third quarter of 2015 was US$3.95 per barrel, representing a US$0.78 per barrel decrease as compared to
US$4.72 per barrel for the same period last year.
4 In
2014, Ecopetrol S.A. reported its results individually and it calculated its transport cost taking into account all payments made
to affiliates for crude transport, transport by truck, and all costs incurred by Ecopetrol S.A. in the operation and maintenance
of some of its own crude systems. These costs were divided by the crude barrels sold by Ecopetrol S.A.
In 2015, all financial information and
volumes for the business group is reported under IFRS, eliminating out all transactions between Ecopetrol S.A. and its transport
affiliates; hence, the cost is calculated as follows: total costs and expenses of each transport company from the group, plus
Ecopetrol S.A. costs in the operation and maintenance of some of its own systems; divided by the total volumes transported by
all the affiliates (crude and refined products).
The dollar portion of the cost per barrel transported for the
Ecopetrol Group represents 9% of the barrel cost.
e.1) Reficar (Cartagena
Refinery):
The new Cartagena refinery reached a key
milestone on October 21: the start-up of operations of the crude oil unit. This was the beginning of the process of sequentially
placing into service the 31 plants of the new Cartagena Refinery, which will be completed in the first quarter of 2016. The operation
is expected to be running smoothly by the second quarter of 2016, with an estimated throughput of between 150 and 158 thousand
barrels a day.
The Cartagena Refinery will have a maximum
capacity of 165 thousand barrels a day and a conversion factor of 97%. The refinery is expected to have a feedstock of 70% heavy
crude and 30% light crude, which is expected to be satisfied with 70% national crude and 30% imported crude.
At a stable throughput of 165 thousand
barrels a day, the daily estimate production will be: 90 thousand barrels of diesel, 45.5 thousand barrels of naphtha and gasoline,
16 thousand barrels of jet fuel, 5 thousand barrels of propylene, 5 thousand barrels of LPG, 250 tons of sulphur and 2,500 tons
of coke.
Reficar will deliver products with low
sulphur content (diesel- ULSD- of 10 parts per million – ppm- and gasoline of a maximum of 50 ppm), the quality of which
will allow those products to reach any market, with emphasis on North America, South America and the Caribbean.
e.2) Barrancabermeja
Refinery:
The following table summarizes the results
of our refining activities for the periods indicated:
Table 20: Refinery Runs, Utilization
Factor and Production
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
| |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Refinery Runs* (mbod) | |
| 208.2 | | |
| 226.3 | | |
| (8.0 | )% | |
| 219.5 | | |
| 226.7 | | |
| (3.2 | )% |
Utilization Factor (%) | |
| 71.8 | % | |
| 78.9 | % | |
| (9.0 | )% | |
| 76.4 | % | |
| 81.2 | % | |
| (5.9 | )% |
Production (mboed) | |
| 209.6 | | |
| 224.7 | | |
| (6.7 | )% | |
| 220.8 | | |
| 228.8 | | |
| (3.5 | )% |
* Includes volumes
loaded in the refinery, not total volumes received.
The throughput and the utilization factor
of the Barrancabermeja refinery decreased as compared to the third quarter of 2014, as a consequence of scheduled maintenance
at the U-200 crude unit, which has a capacity of 75 thousand barrels a day. It is important to mention the use of a visbraker
as a crude unit to minimize the impact of the scheduled turnaround of the U200. Year to date, the negative effect has also been
generated by lower crude availability, a heavier feedstock, and difficulties in the evacuation of fuel oil. However, through the
optimization of operational schemes, it has been possible to increase the yields of jet fuel and diesel, lowering the imports
of these fuels.
The Industrial Services Master plan obtained
99.2% completion, initiating the pre-commissioning, commissioning and start-up of a furnace, which is expected to be completed
in the last quarter of 2015.
Costs and Margins of the Refining
Segment
The cash operating cost for the segment
(includes the operation of the Barrancabermeja refinery and Propilco) in the third quarter of 2015 was US$4.33/Bl, US$2.16/Bl
lower compared to the same period in 2014 (US$6.49/Bl), as a result of:
| · | The
effects of the devaluation of the Colombian peso against the U.S. dollar resulting in
a US$2.33 per barrel decrease, due to the re-expression of peso-denominated cost in US
dollars at a higher exchange rate (COP$2,935.60/US in the third quarter of 2015 versus
COP$1,909.13/US in the same quarter of 2014). |
| · | Cost
effects: US$-0.16/Bl due to the net effects of: |
| o | A US$0.57/Bl cost decrease in fixed
costs due to cost reduction and optimization strategies in maintenance in support services |
| o | A US$0.41/Bl cost increase related
to industrial services cost increases at Ecopetrol; and operation cost increases at Propilco
associated to a higher sale volume, allowing for a higher contribution margin. |
| · | A
volume effect due to lower recorded throughput resulting in a US$0.33 per barrel increase
in cash operating costs. |
Ecopetrol Group’s cash operating
cost for the January-September 2015 period was US$4.51 per barrel, representing a US$1.84 per barrel decrease as compared to US$6.35
per barrel for the same period of 2014. Out of this observed reduction, a total of US$0.35 per barrel were attributable to cost
reduction and optimization strategies.
The portion in dollars corresponding to
the refining cost is 19%.
The following table summarizes the results
of our refining margin for the periods indicated:
Table 21: Refining Margin
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
| |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan-Sep 15 | | |
Jan-Sep 14 | | |
∆ (%) | |
Refining Margin (USD/bl) | |
| 16.7 | | |
| 15.5 | | |
| 7.7 | % | |
| 17.5 | | |
| 14.2 | | |
| 23.2 | % |
The increase in the gross refining margin
in Barrancabermeja during the third quarter of 2015, as compared to the third quarter of 2014, was primarily the result of: 1)
implementation of initiatives to increase the value of LPG and residual streams ( diluent for heavy crudes) and a higher yield
of medium distillates through the change of operational schemes in some units, and 2) more attractive international prices for
refined products as compared to crude.
| III. | Organizational Consolidation, Corporate Responsibility and Corporate
Governance (Ecopetrol S.A.) |
| a. | Organizational Consolidation |
Health, Safety and the Environment
(HSE):
The following table summarizes our HSE
record for the periods indicated:
Table 22: Health, Safety and the Environment
(HSE)
A | |
B | | |
C | | |
D | | |
E | |
HSE* | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Accident Frequency Index (accidents per million labor hours) | |
| 0.56 | | |
| 1.09 | | |
| 0.45 | | |
| 0.99 | |
Environmental Incidents (operational cause) | |
| 1 | | |
| 5 | | |
| 5 | | |
| 21 | |
*Results are subject to revision due to the fact
that some figures may be reclassified, depending on the final results of the respective investigations.
The Cartagena Refinery Modernization Project
has experienced more than 110 million man-hours to date without any job-related fatalities.
Science and Technology:
In the third quarter of 2015, the company
was granted two patents, one in Colombia and the other in Peru, each with duration of 20 years:
| · | Colombia:
“Device and method for escalation of processes for secondary and tertiary recovery,
or oil improvement”. |
| · | Peru:
“Process for the treatment of spent caustic soda and the product obtained from
the process”. |
These two patents bring the total to four
for 2015 and a total of 64 patents in force for the Company, making it still the company with the highest number of patents in
Colombia.
| b. | Corporate Social Responsibility |
Dow Jones Sustainability Index:
For the fifth year in a row, Ecopetrol
S.A. was included in the Dow Jones World Sustainability Index. Ecopetrol S.A. is still among the top 10% of companies with the
best sustainability performance among 2,500 publicly traded companies that are also part of the Standard & Poor’s Broad
Market Index (BMI).
Social Investment:
During 2015, the Company invested COP$21,028
million in regional competitiveness programs, COP$8,034 million in education and cultural programs and COP$3,083 million for citizenship
and democracy programs, amounting to a total investment of COP$32,145 million.
Extraordinary Shareholders Meeting
On September 4th 2015 Mr Carlos
Cure Cure was appointed as an independent member of the Board of Directors, following the resignation of Mr. Gonzalo Restrepo
López.
| IV. | Presentations of Third Quarter Results |
Ecopetrol’s management will host
two conference calls to review our results for the third quarter of 2015:
Spanish |
English |
November 18, 2015 |
November 18, 2015 |
9:00 a.m. Bogota/New York/Toronto |
10:30 a.m. Bogota/New York/Toronto |
The webcast will be available
on Ecopetrol’s website: www.ecopetrol.com.co
Please log on in advance to download the
necessary software and check the proper operation of the webcast in your browser. We recommend using the latest versions of Internet
Explorer, Google Chrome or Mozilla Firefox.
About Ecopetrol S.A.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE:
EC; TSX: ECP) is one of the 40 largest oil companies in the world and one of the four main oil companies in Latin America. It
is the largest company in Colombia based on revenue, profit, assets and net worth. Ecopetrol is the only vertically integrated
Colombian oil and gas company with stakes in operations in Colombia, Brazil, Peru and the United States (Gulf of Mexico).
Ecopetrol is majority-owned by the Republic
of Colombia (88.5%) and its shares are traded on the Colombian Stock Exchange (Bolsa de Valores de Colombia S.A.) under the ticker
symbol ECOPETROL, on the New York Stock Exchange under the ticker symbol EC, and on the Toronto Stock Exchange under the ticker
symbol ECP. Ecopetrol has three business segments: 1) exploration and production, 2) transport and logistics and 3) refining,
petrochemicals and biofuels. Its subsidiaries include the following companies: Andean Chemicals Limited, Bioenergy S.A., Bionergy
Zona Franca S.A.S., Black Gold Re Ltd, Cenit Transporte y Logística de Hidrocarburos S.A.S., Ecopetrol America Inc, Ecopetrol
del Perú S.A., Ecopetrol Oleo e Gas do Brasil Ltda, Ecopetrol Germany GmbH, Ecopetrol Capital AG, Ecopetrol Global Energy
S.L.U., Ecopetrol Global Capital S.L.U., Equion Energía Limited, Hocol Petroleum Limited, Hocol S.A., Oleoducto de los
Llanos Orientales S.A., Propilco S.A., Compounding and Masterbatching Industry Ltda - COMAI, Oleoducto Bicentenario de Colombia
S.A.S, Oleoducto Central S.A. - OCENSA, Oleoducto de Colombia S.A. - ODC, Refinería de Cartagena S.A., Santiago Oil Company,
Colombia Pipelines Limited, SENTO S.A.S y PROYECTOS ODC N1 S.A.S.
Forward-looking Statements
This release may contain forward-looking
statements related to the prospects of the business, estimates of operating and financial results, and growth forecasts for Ecopetrol.
These are projections, and, as such, are based solely on the expectations of management with regard to the future of the company
and its continuous access to capital to finance the company’s business plan. Such forward-looking statements depend essentially
on changes in market conditions, government regulations, competitive pressures, and the performance of the Colombian economy and
industry, among other factors. Therefore, they are subject to change without prior notice.
Contacts:
Director of Corporate Finance and Investor Relations
Maria Catalina Escobar
Telephone: +571-234-5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
E-mail: mauricio.tellez@ecopetrol.com.co
| V. | Ecopetrol´s Group Exhibits |
Table 1 – Local Purchases and
Imports
A | |
B | | |
C | | |
D | | |
E | | |
F | | |
G | |
Ecopetrol S.A. (consolidated) | |
| | |
| | |
| | |
| | |
| | |
| |
1) Local Purchases (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan - Sep 15 | | |
Jan - Sep 14 | | |
∆ (%) | |
Crude* | |
| 152.9 | | |
| 177.5 | | |
| (13.9 | )% | |
| 175.8 | | |
| 190.0 | | |
| (7.5 | )% |
Gas** | |
| 1.5 | | |
| 2.2 | | |
| (31.8 | )% | |
| 1.9 | | |
| 2.3 | | |
| (17.4 | )% |
Refined Products | |
| 6.1 | | |
| 5.4 | | |
| 13.0 | % | |
| 15.3 | | |
| 12.4 | | |
| 23.4 | % |
Diluent*** | |
| 7.6 | | |
| 15.8 | | |
| (51.8 | )% | |
| 7.4 | | |
| 14.2 | | |
| (47.9 | )% |
Total | |
| 168.1 | | |
| 200.9 | | |
| (16.3 | )% | |
| 200.4 | | |
| 218.9 | | |
| (8.5 | )% |
2) Imports (mbded) | |
3Q 2015 | | |
3Q 2014 | | |
∆ (%) | | |
Jan - Sep 15 | | |
Jan - Sep 14 | | |
∆ (%) | |
Crude | |
| 4.9 | | |
| 0.0 | | |
| N.A. | | |
| 1.7 | | |
| 0.0 | | |
| N.A. | |
Refined Products | |
| 176.2 | | |
| 131.5 | | |
| 34.0 | % | |
| 210.9 | | |
| 187.8 | | |
| 12.3 | % |
Diluent | |
| 53.6 | | |
| 62.0 | | |
| (13.7 | )% | |
| 60.8 | | |
| 58.0 | | |
| 4.9 | % |
Total | |
| 234.7 | | |
| 193.5 | | |
| 21.3 | % | |
| 273.4 | | |
| 245.8 | | |
| 11.2 | % |
* Includes purchases of royalties and purchases from third
parties.
** Does not include purchses of royalties due to a regulatory
change.
*** Includes products used as diluent and diluent own production.
Table 2 – Consolidated Income Statement
A | |
B | | |
C | | |
D | | |
E | | |
F | |
COP$ Million | |
3Q 2015* | | |
3Q 2014* | | |
2Q 2015* | | |
Jan-Sep 15* | | |
Jan-Sep 14* | |
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | |
Local Sales | |
| 5,643,785 | | |
| 5,859,075 | | |
| 5,404,533 | | |
| 15,765,278 | | |
| 18,551,700 | |
Export Sales | |
| 6,161,281 | | |
| 9,890,758 | | |
| 7,735,658 | | |
| 20,371,027 | | |
| 30,389,872 | |
Sale of Services | |
| 1,198,294 | | |
| 1,063,808 | | |
| 869,438 | | |
| 3,177,539 | | |
| 2,775,595 | |
Total Revenue | |
| 13,003,360 | | |
| 16,813,641 | | |
| 14,009,629 | | |
| 39,313,844 | | |
| 51,717,167 | |
Cost of Sales | |
| | | |
| | | |
| | | |
| | | |
| | |
Variable Costs | |
| | | |
| | | |
| | | |
| | | |
| | |
Imported Products | |
| 3,623,729 | | |
| 3,429,576 | | |
| 2,918,686 | | |
| 9,307,297 | | |
| 9,975,767 | |
Purchase of Hydrocarbons | |
| 1,386,076 | | |
| 2,843,787 | | |
| 1,870,088 | | |
| 4,917,606 | | |
| 8,708,940 | |
Depreciation, Amortization and Depletion | |
| 1,278,208 | | |
| 1,254,419 | | |
| 1,311,582 | | |
| 3,768,870 | | |
| 3,677,060 | |
Hydrocarbon Transportation Services | |
| 442,386 | | |
| 350,031 | | |
| 208,431 | | |
| 971,393 | | |
| 1,109,970 | |
Inventories and Other | |
| (32,097 | ) | |
| 348,044 | | |
| 768,579 | | |
| 1,247,061 | | |
| 1,424,977 | |
Fixed Costs | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation | |
| 339,686 | | |
| 255,056 | | |
| 321,060 | | |
| 991,928 | | |
| 786,556 | |
Contracted Services | |
| 610,997 | | |
| 904,414 | | |
| 635,809 | | |
| 1,906,336 | | |
| 2,421,338 | |
Maintenance | |
| 512,918 | | |
| 661,685 | | |
| 597,630 | | |
| 1,511,881 | | |
| 1,724,822 | |
Labor Costs | |
| 390,787 | | |
| 357,544 | | |
| 398,934 | | |
| 1,165,854 | | |
| 1,103,677 | |
Other | |
| 509,762 | | |
| 516,890 | | |
| 390,517 | | |
| 1,250,179 | | |
| 1,355,756 | |
Total Cost of Sales | |
| 9,062,452 | | |
| 10,921,446 | | |
| 9,421,316 | | |
| 27,038,405 | | |
| 32,288,863 | |
Gross Income | |
| 3,940,908 | | |
| 5,892,195 | | |
| 4,588,313 | | |
| 12,275,439 | | |
| 19,428,304 | |
Operating Expenses | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Operating Expenses | |
| 834,011 | | |
| 788,025 | | |
| 787,538 | | |
| 2,925,386 | | |
| 2,272,441 | |
Exploration and Projects | |
| 256,774 | | |
| 660,625 | | |
| 251,537 | | |
| 592,844 | | |
| 1,535,483 | |
Operating Income/Loss | |
| 2,850,123 | | |
| 4,443,545 | | |
| 3,549,238 | | |
| 8,757,209 | | |
| 15,620,380 | |
Financial Results, Net** | |
| (692,984 | ) | |
| (834,448 | ) | |
| (779,024 | ) | |
| (3,002,282 | ) | |
| (1,042,335 | ) |
Share of Profit of Associates | |
| (36,703 | ) | |
| 57,615 | | |
| 46,618 | | |
| 10,659 | | |
| 200,371 | |
Income before income tax | |
| 2,120,436 | | |
| 3,666,712 | | |
| 2,816,832 | | |
| 5,765,586 | | |
| 14,778,416 | |
Income Tax | |
| (1,233,879 | ) | |
| (1,781,672 | ) | |
| (1,121,300 | ) | |
| (2,827,555 | ) | |
| (6,069,812 | ) |
Consolidated Net Income | |
| 886,557 | | |
| 1,885,040 | | |
| 1,695,532 | | |
| 2,938,031 | | |
| 8,708,604 | |
Non-Controlling Interests | |
| (232,440 | ) | |
| (153,990 | ) | |
| (188,976 | ) | |
| (617,328 | ) | |
| (492,593 | ) |
Ecopetrol Equity Holders*** | |
| 654,117 | | |
| 1,731,050 | | |
| 1,506,556 | | |
| 2,320,703 | | |
| 8,216,011 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other comprenhensive income | |
| 2,203,033 | | |
| 1,209,665 | | |
| 459,113 | | |
| 3,374,472 | | |
| 920,760 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 4,698,423 | | |
| 6,344,251 | | |
| 5,521,889 | | |
| 15,003,025 | | |
| 21,241,656 | |
EBITDA MARGIN | |
| 36.1 | % | |
| 37.7 | % | |
| 39.4 | % | |
| 38.2 | % | |
| 41.1 | % |
Notes
* The quarterly figures in this report are not audited.
** Includes exchange difference. COP$ Million
*** According to IAS-1, “Presentation of financial statements”,
paragraph 83, the company must include in the statement of comprehensive income results attributable to non-controlling interests
(minority interest) and results attributable to shareholders of the controlling company
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
Table 3 – Consolidated Balance Sheet
A | |
B | | |
C | |
COP$ Million | |
September 30, 2015 | | |
June 30, 2015 | |
| |
| | | |
| | |
Assets | |
| | | |
| | |
Current Assets | |
| | | |
| | |
Cash and Cash Equivalents | |
| 9,306,584 | | |
| 9,285,236 | |
Trade and Other Receivables | |
| 5,024,797 | | |
| 4,555,928 | |
Inventories | |
| 3,019,257 | | |
| 2,905,021 | |
Current Tax Assets | |
| 4,746,509 | | |
| 3,690,713 | |
Non-Current Assets Held for Sale | |
| 906,865 | | |
| 1,440,846 | |
Other Assets | |
| 5,023,354 | | |
| 5,532,925 | |
Total Current Assets | |
| 28,027,366 | | |
| 27,410,669 | |
| |
| | | |
| | |
Non Current Assets | |
| | | |
| | |
Investments in Associates and Joint Ventures | |
| 2,653,711 | | |
| 2,499,397 | |
Trade and Other Receivables | |
| 528,882 | | |
| 548,364 | |
Property, Plant and Equipment | |
| 68,853,645 | | |
| 62,352,315 | |
Natural and Environmental Resources | |
| 27,566,483 | | |
| 26,541,945 | |
Intangibles | |
| 380,714 | | |
| 244,908 | |
Deferred Tax Assets | |
| 6,247,510 | | |
| 3,454,215 | |
Other Non-Current Assets | |
| 3,156,064 | | |
| 3,118,817 | |
Total Non Current Assets | |
| 109,387,009 | | |
| 98,759,961 | |
| |
| | | |
| | |
Total Assets | |
| 137,414,375 | | |
| 126,170,630 | |
| |
| | | |
| | |
Liabilities | |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Loans and Borrowings | |
| 4,344,293 | | |
| 4,220,309 | |
Trade and Other Payables | |
| 12,189,106 | | |
| 12,907,459 | |
Labor and Pension Plan Obligations | |
| 1,389,684 | | |
| 1,309,233 | |
Current Tax Liabilities | |
| 2,497,255 | | |
| 1,890,913 | |
Accrued Liabilities and Provisions | |
| 857,557 | | |
| 908,961 | |
Other Liabilities | |
| 270,009 | | |
| 144,586 | |
Total Current Liabilities | |
| 21,547,904 | | |
| 21,381,461 | |
| |
| | | |
| | |
Long Term Liabilities | |
| | | |
| | |
Loans and Borrowings | |
| 48,559,464 | | |
| 41,755,963 | |
Trade and Other Payables | |
| 29,246 | | |
| 26,317 | |
Labor and Pension Plan Obligations | |
| 4,660,403 | | |
| 4,461,073 | |
Deferred Tax Liabilities | |
| 5,421,576 | | |
| 3,598,739 | |
Accrued Liabilities and Provisions | |
| 5,552,573 | | |
| 5,282,595 | |
Other Long-Term Liabilities | |
| 538,977 | | |
| 526,855 | |
Total Non-Current Liabilities | |
| 64,762,239 | | |
| 55,651,542 | |
| |
| | | |
| | |
Total Liabilities | |
| 86,310,143 | | |
| 77,033,003 | |
| |
| | | |
| | |
Equity | |
| | | |
| | |
Equity Attributable to Owners of the Company | |
| 49,479,573 | | |
| 47,427,640 | |
Non-Controlling Interests | |
| 1,624,659 | | |
| 1,709,987 | |
Total Equity | |
| 51,104,232 | | |
| 49,137,627 | |
| |
| | | |
| | |
Total Liabilities and Shareholders' Equity | |
| 137,414,375 | | |
| 126,170,630 | |
Table 4 – Consolidated Cash Flow Statement
A | |
B | | |
C | | |
D | | |
E | | |
F | |
COP$ Million | |
3Q 2015 | | |
3Q 2014 | | |
2Q 2015 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Cash Flow Provided by Operating Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Net Income Equity Holders of Ecopetrol | |
| 654,117 | | |
| 1,731,050 | | |
| 1,506,556 | | |
| 2,320,703 | | |
| 8,216,011 | |
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Non-Controlling Interests | |
| 232,440 | | |
| 153,990 | | |
| 188,976 | | |
| 617,328 | | |
| 492,593 | |
Income Tax | |
| 1,233,879 | | |
| 1,781,672 | | |
| 1,877,852 | | |
| 2,827,555 | | |
| 6,069,812 | |
Depreciation, Depletion and Amortization | |
| 1,673,281 | | |
| 1,575,724 | | |
| 1,661,244 | | |
| 4,921,443 | | |
| 4,625,738 | |
Foreign Exchange Loss | |
| 46,560 | | |
| 570,722 | | |
| 451,181 | | |
| 1,672,593 | | |
| 381,757 | |
Finance Costs Recognised in Profit or Loss | |
| 736,826 | | |
| 328,280 | | |
| 441,137 | | |
| 1,604,068 | | |
| 943,356 | |
Gain on Disponsal of Non-Current Assets | |
| (7,534 | ) | |
| 98,697 | | |
| 18,998 | | |
| 11,958 | | |
| 145,318 | |
Impairment of Assets | |
| 11,690 | | |
| 10,746 | | |
| (151,063 | ) | |
| (97,625 | ) | |
| (11,011 | ) |
Fair Value Loss (Gain) on Financial Assets Valuation | |
| (65,447 | ) | |
| (6,937 | ) | |
| (63,014 | ) | |
| (67,898 | ) | |
| (21,926 | ) |
Share or Profit os Associates | |
| 36,703 | | |
| (57,615 | ) | |
| (46,618 | ) | |
| (10,659 | ) | |
| (200,371 | ) |
Gain on Sale of Non-Current Assets Held for Sale | |
| (72,339 | ) | |
| - | | |
| - | | |
| (72,339 | ) | |
| - | |
Realized Foreign Exchange Cash Flow Hedges | |
| 167,103 | | |
| - | | |
| - | | |
| 167,103 | | |
| - | |
Net Changes in Operating Assets and Liabilities | |
| (640,691 | ) | |
| (67,374 | ) | |
| (2,329,511 | ) | |
| (2,907,799 | ) | |
| (2,531,729 | ) |
Income Tax Paid | |
| (60,439 | ) | |
| (142,102 | ) | |
| (2,949,979 | ) | |
| (3,135,527 | ) | |
| (4,819,169 | ) |
Cash Provided by Operating Activities | |
| 3,946,149 | | |
| 5,976,853 | | |
| 605,759 | | |
| 7,850,904 | | |
| 13,290,379 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Cash Flows from Investing Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Investment in Property, Plant and Equipment | |
| (1,960,210 | ) | |
| (1,395,470 | ) | |
| (1,395,974 | ) | |
| (5,445,331 | ) | |
| (5,507,955 | ) |
Investment in Natural and Environmental Resources | |
| (2,020,399 | ) | |
| (2,084,159 | ) | |
| (1,813,855 | ) | |
| (4,724,778 | ) | |
| (4,108,083 | ) |
Payments for Intangibles | |
| (39,424 | ) | |
| 12,737 | | |
| (30,284 | ) | |
| (76,681 | ) | |
| (95,722 | ) |
Proceeds from Sales of Non-Current Assets Held for Sale | |
| 633,406 | | |
| - | | |
| - | | |
| 633,406 | | |
| - | |
(Purchases) Sales of Other Financial Assets | |
| 1,864,305 | | |
| 1,657,717 | | |
| (1,358,756 | ) | |
| (957,170 | ) | |
| (980,673 | ) |
Interest Received | |
| 114,740 | | |
| 93,490 | | |
| 107,669 | | |
| 296,099 | | |
| 272,612 | |
Dividends Received | |
| 10,174 | | |
| 70,942 | | |
| 110,832 | | |
| 121,006 | | |
| 112,753 | |
Proceeds from Sales of Property, Plant and Equipment | |
| 33,057 | | |
| (67,465 | ) | |
| 10,099 | | |
| 58,441 | | |
| (23,056 | ) |
Net Cash used in Investing Activities | |
| (1,364,351 | ) | |
| (1,712,208 | ) | |
| (4,370,269 | ) | |
| (10,095,008 | ) | |
| (10,330,124 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Cash Flows from Financing Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Increase (Decrease) Loans and Borrowings | |
| (2,309,542 | ) | |
| 1,712,533 | | |
| 2,803,018 | | |
| 4,988,895 | | |
| 7,156,620 | |
Interest Paid | |
| (611,431 | ) | |
| (213,649 | ) | |
| (301,618 | ) | |
| (1,316,120 | ) | |
| (949,867 | ) |
Capitalizations | |
| - | | |
| 2 | | |
| (8 | ) | |
| 3 | | |
| 45 | |
Dividends Paid | |
| (384,912 | ) | |
| (4,690,271 | ) | |
| (645,817 | ) | |
| (1,212,433 | ) | |
| (7,333,691 | ) |
Net Cash (used in) Provided by Financing Activities | |
| (3,305,885 | ) | |
| (3,191,385 | ) | |
| 1,855,575 | | |
| 2,460,345 | | |
| (1,126,893 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Exchange Difference in Cash and Cash Equivalents | |
| 745,435 | | |
| 151,021 | | |
| 253,168 | | |
| 1,481,582 | | |
| 50,933 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Increase (Decrease) in Cash and Cash Equivalents | |
| 21,348 | | |
| 1,224,281 | | |
| (1,655,767 | ) | |
| 1,697,823 | | |
| 1,884,295 | |
Cash and Cash Equivalents at the Beginning of the Year | |
| 9,285,236 | | |
| 9,465,104 | | |
| 10,941,003 | | |
| 7,608,761 | | |
| 8,805,090 | |
Cash and Cash Equivalents at the End of the Year | |
| 9,306,584 | | |
| 10,689,385 | | |
| 9,285,236 | | |
| 9,306,584 | | |
| 10,689,385 | |
Table 5 – Reconciliation of EBITDA, Ecopetrol Consolidated
A | |
B | | |
C | | |
D | | |
E | | |
F | |
COP$ Millions | |
3Q
2015 | | |
3Q
2014 | | |
2Q
2015 | | |
Jan
- Sep 2015 | | |
Jan
- Sep 2014 | |
RECONCILIATION NET INCOME TO EBITDA | |
| | | |
| | | |
| | | |
| | | |
| | |
Net Income | |
| 654,117 | | |
| 1,731,050 | | |
| 1,506,556 | | |
| 2,320,703 | | |
| 8,216,011 | |
+ Depreciation, Depletion and Amortization | |
| 1,673,281 | | |
| 1,575,724 | | |
| 1,661,244 | | |
| 4,921,443 | | |
| 4,625,738 | |
+/- Impairment of Non-Current Assets | |
| 4,625 | | |
| 6,078 | | |
| 6,123 | | |
| 16,706 | | |
| 5,731 | |
+/- Finane Results, Net | |
| 692,984 | | |
| 834,448 | | |
| 779,024 | | |
| 3,002,282 | | |
| 1,042,335 | |
+ Income Tax | |
| 1,233,879 | | |
| 1,781,672 | | |
| 1,121,300 | | |
| 2,827,555 | | |
| 6,069,812 | |
+ Other Taxes | |
| 207,097 | | |
| 261,289 | | |
| 258,666 | | |
| 1,297,008 | | |
| 789,436 | |
+ Non-Controlling Interest | |
| 232,440 | | |
| 153,990 | | |
| 188,976 | | |
| 617,328 | | |
| 492,593 | |
CONSOLIDATED EBITDA | |
| 4,698,423 | | |
| 6,344,251 | | |
| 5,521,889 | | |
| 15,003,025 | | |
| 21,241,656 | |
Note: To see the impact of the Hedge Account
over the net income of 1Q 2015, 2Q 2015, 3Q 2015 and January-September 2015, please refer to the table 12 of the chapter "Cash
Flow Hedge for Future Company Exports".
| VI. | Exhibits of Subsidiary Results and Shareholder Interest |
Note: The financial results of subsidiary companies have not been
audited
Exploration and Production
Table 6 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 76 | | |
| - | | |
| 189 | | |
| 1 | |
Export Sales | |
| 181 | | |
| 380 | | |
| 542 | | |
| 1,179 | |
Sale of services | |
| 36 | | |
| 173 | | |
| 156 | | |
| 271 | |
Total Sales | |
| 293 | | |
| 553 | | |
| 887 | | |
| 1,451 | |
Variable Costs | |
| 182 | | |
| 110 | | |
| 453 | | |
| 354 | |
Fixed Costs | |
| 85 | | |
| 214 | | |
| 289 | | |
| 497 | |
Cost of Sales | |
| 267 | | |
| 324 | | |
| 742 | | |
| 851 | |
Gross Profits | |
| 26 | | |
| 229 | | |
| 145 | | |
| 600 | |
Operating Expenses | |
| 10 | | |
| 69 | | |
| 101 | | |
| 150 | |
Operating Income/Loss | |
| 16 | | |
| 160 | | |
| 44 | | |
| 450 | |
Financial Income/Loss | |
| - | | |
| (2 | ) | |
| 24 | | |
| 5 | |
Profit/(Loss) before taxes | |
| 16 | | |
| 158 | | |
| 68 | | |
| 455 | |
Provision for Income Tax | |
| 12 | | |
| (110 | ) | |
| (28 | ) | |
| (320 | ) |
Net Income | |
| 28 | | |
| 48 | | |
| 40 | | |
| 135 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 161 | | |
| 231 | | |
| 426 | | |
| 758 | |
EBITDA Margin | |
| 55 | % | |
| 42 | % | |
| 48 | % | |
| 52 | % |
Table 7 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 1,072 | | |
| 1,250 | |
Non Current Assets | |
| 2,753 | | |
| 2,383 | |
Total Assets | |
| 3,825 | | |
| 3,633 | |
Current Liabilities | |
| 911 | | |
| 1,161 | |
Long Term Liabilities | |
| 576 | | |
| 476 | |
Total Liabilities | |
| 1,487 | | |
| 1,637 | |
Equity | |
| 2,338 | | |
| 1,996 | |
Total Liabilities and Shareholders' Equity | |
| 3,825 | | |
| 3,633 | |
Table 8 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
US$ Million | |
3Q 2015* | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 25.1 | | |
| 91.8 | | |
| 119.1 | | |
| 289.9 | |
Total Sales | |
| 25.1 | | |
| 91.8 | | |
| 119.1 | | |
| 289.9 | |
Variable Costs | |
| 19.0 | | |
| 47.6 | | |
| 69.1 | | |
| 99.3 | |
Fixed Costs | |
| 10.5 | | |
| 26.2 | | |
| 58.3 | | |
| 79.9 | |
Cost of Sales | |
| 29.5 | | |
| 73.8 | | |
| 127.4 | | |
| 179.2 | |
Gross Profits | |
| (4.4 | ) | |
| 18.0 | | |
| (8.3 | ) | |
| 110.7 | |
Operating Expenses | |
| (7.7 | ) | |
| (18.7 | ) | |
| (30.2 | ) | |
| (47.0 | ) |
Operating Income/Loss | |
| (12.1 | ) | |
| (0.7 | ) | |
| (38.5 | ) | |
| 63.7 | |
Financial Income/Loss | |
| (0.6 | ) | |
| 2.3 | | |
| (1.9 | ) | |
| 0.3 | |
Profit/(Loss) Before Taxes | |
| (12.7 | ) | |
| 1.6 | | |
| (40.4 | ) | |
| 64.0 | |
Provision for Income Tax | |
| 1.6 | | |
| (2.2 | ) | |
| 8.3 | | |
| (28.4 | ) |
Net Income | |
| (11.1 | ) | |
| (0.6 | ) | |
| (32.1 | ) | |
| 35.6 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 3.2 | | |
| 25.3 | | |
| 29.7 | | |
| 141.3 | |
EBITDA Margin | |
| 12.7 | % | |
| 27.6 | % | |
| 24.9 | % | |
| 48.7 | |
* As of August 31, 2015
Table 9 – Balance Sheet
A | |
B | | |
C | |
US$ Million | |
August 31, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 123.3 | | |
| 129.2 | |
Non Current Assets | |
| 721.1 | | |
| 739.2 | |
Total Assets | |
| 844.4 | | |
| 868.4 | |
Current Liabilities | |
| 168.0 | | |
| 178.3 | |
Long Term Liabilities | |
| 145.3 | | |
| 147.9 | |
Total Liabilities | |
| 313.3 | | |
| 326.2 | |
Equity | |
| 531.1 | | |
| 542.2 | |
Total Liabilities and Shareholders' Equity | |
| 844.4 | | |
| 868.4 | |
Table 10 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 124 | | |
| 86 | | |
| 280 | | |
| 223 | |
Export Sales | |
| 236 | | |
| 257 | | |
| 643 | | |
| 777 | |
Total Sales | |
| 360 | | |
| 343 | | |
| 923 | | |
| 1,000 | |
Variable Costs | |
| 219 | | |
| 107 | | |
| 546 | | |
| 289 | |
Fixed Costs | |
| 50 | | |
| 49 | | |
| 140 | | |
| 136 | |
Cost of Sales | |
| 269 | | |
| 156 | | |
| 686 | | |
| 425 | |
Gross Profits | |
| 91 | | |
| 187 | | |
| 237 | | |
| 575 | |
Operating Expenses | |
| (6 | ) | |
| (1 | ) | |
| (17 | ) | |
| 8 | |
Operating Income/Loss | |
| 85 | | |
| 186 | | |
| 220 | | |
| 583 | |
Financial Income/Loss | |
| 16 | | |
| 2 | | |
| 36 | | |
| 19 | |
Profit/(Loss) Before Taxes | |
| 101 | | |
| 188 | | |
| 256 | | |
| 602 | |
Provision for Income Tax | |
| (185 | ) | |
| (162 | ) | |
| (241 | ) | |
| (292 | ) |
Net Income | |
| (84 | ) | |
| 26 | | |
| 15 | | |
| 310 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 273 | | |
| 270 | | |
| 695 | | |
| 805 | |
EBITDA Margin | |
| 76 | % | |
| 79 | % | |
| 75 | % | |
| 81 | % |
Table 11 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 1,428 | | |
| 1,225 | |
Non Current Assets | |
| 2,158 | | |
| 1,891 | |
Total Assets | |
| 3,586 | | |
| 3,116 | |
Current Liabilities | |
| 971 | | |
| 639 | |
Long Term Liabilities | |
| 381 | | |
| 253 | |
Total Liabilities | |
| 1,352 | | |
| 892 | |
Equity | |
| 2,234 | | |
| 2,224 | |
Total Liabilities and Shareholders' Equity | |
| 3,586 | | |
| 3,116 | |
Refining and Petrochemical
Table 12 – Sales Volumes
A | |
B | | |
C | | |
D | | |
E | |
Sales Volume (mbd) | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local | |
| 42.0 | | |
| 36.7 | | |
| 39.7 | | |
| 35.5 | |
International | |
| 0.0 | | |
| 1.7 | | |
| 0.0 | | |
| 13.4 | |
Total | |
| 42.0 | | |
| 38.4 | | |
| 39.7 | | |
| 48.9 | |
Table 13 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 183 | | |
| 176 | | |
| 528 | | |
| 481 | |
Export Sales | |
| 311 | | |
| 272 | | |
| 828 | | |
| 736 | |
Total Sales | |
| 494 | | |
| 448 | | |
| 1,356 | | |
| 1,217 | |
Variable Costs | |
| 342 | | |
| 383 | | |
| 1,052 | | |
| 1,039 | |
Fixed Costs | |
| 22 | | |
| 14 | | |
| 66 | | |
| 61 | |
Cost of Sales | |
| 364 | | |
| 397 | | |
| 1,118 | | |
| 1,100 | |
Gross Profits | |
| 130 | | |
| 51 | | |
| 238 | | |
| 117 | |
Operating Expenses | |
| 39 | | |
| 31 | | |
| 113 | | |
| 89 | |
Operating Income/Loss | |
| 91 | | |
| 20 | | |
| 125 | | |
| 28 | |
Financial Income/Loss | |
| (13 | ) | |
| (8 | ) | |
| 9 | | |
| 18 | |
Profit/(Loss) Before Taxes | |
| 78 | | |
| 12 | | |
| 134 | | |
| 46 | |
Provision for Income Tax | |
| (32 | ) | |
| - | | |
| (39 | ) | |
| 1 | |
Net Income | |
| 46 | | |
| 12 | | |
| 95 | | |
| 47 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 98 | | |
| 24 | | |
| 150 | | |
| 51 | |
EBITDA Margin | |
| 20 | % | |
| 5 | % | |
| 11 | % | |
| 4 | % |
Table 14 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 850 | | |
| 788 | |
Non Current Assets | |
| 963 | | |
| 812 | |
Total Assets | |
| 1,813 | | |
| 1,600 | |
Current Liabilities | |
| 450 | | |
| 465 | |
Long Term Liabilities | |
| 122 | | |
| 121 | |
Total Liabilities | |
| 572 | | |
| 586 | |
Equity | |
| 1,241 | | |
| 1,014 | |
Total Liabilities and Shareholders' Equity | |
| 1,813 | | |
| 1,600 | |
Table 15 – Sales
Volume
Sales Volume (mbd) | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local | |
| 42.0 | | |
| 36.7 | | |
| 39.7 | | |
| 35.5 | |
International | |
| 0.0 | | |
| 1.7 | | |
| 0.0 | | |
| 13.4 | |
Total | |
| 42.0 | | |
| 38.4 | | |
| 39.7 | | |
| 48.9 | |
Table 16 – Income
Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 827 | | |
| 793 | | |
| 2,147 | | |
| 2,349 | |
Export Sales | |
| - | | |
| 35 | | |
| - | | |
| 772 | |
Total Sales | |
| 827 | | |
| 828 | | |
| 2,147 | | |
| 3,121 | |
Variable Costs | |
| 754 | | |
| 775 | | |
| 1,991 | | |
| 2,894 | |
Fixed Costs | |
| 46 | | |
| 59 | | |
| 134 | | |
| 161 | |
Cost of Sales | |
| 800 | | |
| 834 | | |
| 2,125 | | |
| 3,055 | |
Gross Profits | |
| 27 | | |
| (6 | ) | |
| 22 | | |
| 66 | |
Operating Expenses | |
| 241 | | |
| 161 | | |
| 580 | | |
| 373 | |
Operating Income/Loss | |
| (214 | ) | |
| (167 | ) | |
| (558 | ) | |
| (307 | ) |
Financial Income/Loss | |
| (46 | ) | |
| 44 | | |
| (3 | ) | |
| 1 | |
Profit/(Loss) Before Taxes | |
| (260 | ) | |
| (123 | ) | |
| (561 | ) | |
| (306 | ) |
Provision for Income Tax | |
| (1 | ) | |
| (64 | ) | |
| 31 | | |
| (39 | ) |
Net Income | |
| (261 | ) | |
| (187 | ) | |
| (530 | ) | |
| (345 | ) |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| (171 | ) | |
| (113 | ) | |
| (360 | ) | |
| (155 | ) |
EBITDA Margin | |
| -21 | % | |
| -14 | % | |
| -17 | % | |
| -5 | % |
Table 17 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 1,235 | | |
| 1,381 | |
Non Current Assets | |
| 28,043 | | |
| 22,263 | |
Total Assets | |
| 29,278 | | |
| 23,644 | |
Current Liabilities | |
| 1,747 | | |
| 1,274 | |
Long Term Liabilities | |
| 15,820 | | |
| 13,209 | |
Total Liabilities | |
| 17,567 | | |
| 14,483 | |
Equity | |
| 11,711 | | |
| 9,161 | |
Total Liabilities and Shareholders' Equity | |
| 29,278 | | |
| 23,644 | |
Transportation
Table 18 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015 | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| - | | |
| 3 | | |
| 9 | | |
| 16 | |
Sale of services | |
| 986 | | |
| 745 | | |
| 2,788 | | |
| 2,212 | |
Total Sales | |
| 986 | | |
| 748 | | |
| 2,797 | | |
| 2,228 | |
Variable Costs | |
| 33 | | |
| 54 | | |
| 103 | | |
| 108 | |
Fixed Costs | |
| 446 | | |
| 455 | | |
| 1,394 | | |
| 1,426 | |
Cost of Sales | |
| 479 | | |
| 509 | | |
| 1,497 | | |
| 1,534 | |
Gross Profits | |
| 507 | | |
| 239 | | |
| 1,300 | | |
| 694 | |
Operating Expenses | |
| 56 | | |
| 94 | | |
| 210 | | |
| 129 | |
Operating Income/Loss | |
| 451 | | |
| 145 | | |
| 1,090 | | |
| 565 | |
Financial Income/Loss | |
| 1,166 | | |
| 766 | | |
| 1,668 | | |
| 1,024 | |
Profit/(Loss) Before Taxes | |
| 1,617 | | |
| 911 | | |
| 2,758 | | |
| 1,589 | |
Provision for Income Tax | |
| (369 | ) | |
| (23 | ) | |
| (604 | ) | |
| (189 | ) |
Net Income | |
| 1,248 | | |
| 888 | | |
| 2,154 | | |
| 1,400 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 563 | | |
| 235 | | |
| 1,508 | | |
| 817 | |
EBITDA Margin | |
| 57 | % | |
| 31 | % | |
| 54 | % | |
| 37 | % |
Table 19 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
September 30, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 2,713 | | |
| 1,398 | |
Non Current Assets | |
| 16,219 | | |
| 16,002 | |
Total Assets | |
| 18,932 | | |
| 17,400 | |
Current Liabilities | |
| 1,075 | | |
| 801 | |
Long Term Liabilities | |
| 963 | | |
| 952 | |
Total Liabilities | |
| 2,038 | | |
| 1,753 | |
Equity | |
| 16,894 | | |
| 15,647 | |
Total Liabilities and Shareholders' Equity | |
| 18,932 | | |
| 17,400 | |
Biofuels
Table 20 – Sales Volume
A | |
B | | |
C | | |
D | | |
E | |
Total Sales (mboed) | |
3Q 2015 | | |
3Q 2014 | | |
Jan - Sep 15 | | |
Jan - Sep 14 | |
Biodiesel | |
| 2.4 | | |
| 2.2 | | |
| 2.3 | | |
| 2.3 | |
Glycerin | |
| 0.2 | | |
| 0.2 | | |
| 0.2 | | |
| 0.2 | |
Total | |
| 2.6 | | |
| 2.4 | | |
| 2.5 | | |
| 2.5 | |
Table 21 – Income Statement
A | |
B | | |
C | | |
D | | |
E | |
COP$ Billion | |
3Q 2015* | | |
3Q 2014 | | |
Jan-Sep 15 | | |
Jan-Sep 14 | |
Local Sales | |
| 99 | | |
| 70 | | |
| 248 | | |
| 231 | |
Total Sales | |
| 99 | | |
| 70 | | |
| 248 | | |
| 231 | |
Variable Costs | |
| 83 | | |
| 62 | | |
| 213 | | |
| 201 | |
Cost of Sales | |
| 83 | | |
| 62 | | |
| 213 | | |
| 201 | |
Gross Profits | |
| 16 | | |
| 9 | | |
| 35 | | |
| 30 | |
Operating Expenses | |
| 3 | | |
| 2 | | |
| 9 | | |
| 8 | |
Operating Income/Loss | |
| 13 | | |
| 6 | | |
| 26 | | |
| 23 | |
Financial Income/Loss | |
| (1 | ) | |
| (1 | ) | |
| (2 | ) | |
| (2 | ) |
Profit/(Loss) before Taxes | |
| 12 | | |
| 5 | | |
| 24 | | |
| 21 | |
Provision for Income Tax | |
| (1 | ) | |
| (1 | ) | |
| (4 | ) | |
| (4 | ) |
Net Income | |
| 11 | | |
| 4 | | |
| 20 | | |
| 17 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDA | |
| 14 | | |
| | | |
| 30 | | |
| | |
EBITDA Margin | |
| 14 | % | |
| | | |
| 12 | % | |
| | |
* As of August 31 of 2015.
Table 22 – Balance Sheet
A | |
B | | |
C | |
(COP$ Billion) | |
August 31, 2015 | | |
June 30, 2015 | |
Current Assets | |
| 69 | | |
| 70 | |
Non Current Assets | |
| 73 | | |
| 74 | |
Total Assets | |
| 143 | | |
| 144 | |
Current Liabilities | |
| 52 | | |
| 58 | |
Long Term Liabilities | |
| 24 | | |
| 26 | |
Total Liabilities | |
| 76 | | |
| 84 | |
Equity | |
| 67 | | |
| 60 | |
Total Liabilities and Shareholders' Equity | |
| 143 | | |
| 144 | |
| VII. | Corporate Group´s Financial Indebtedness |
Table 23 – Long Term Indebtedness by
Entity*
Entity | |
Denominated in U.S. Dollars | | |
Denominated in Colombian Pesos** | | |
Total | |
Ecopetrol | |
| 10.926 | | |
| 1.198 | | |
| 12.124 | |
Reficar | |
| 3.205 | | |
| 0 | | |
| 3.205 | |
Bicentario | |
| 0 | | |
| 572 | | |
| 572 | |
ODL | |
| 0 | | |
| 269 | | |
| 269 | |
Bioenergy | |
| 0 | | |
| 157 | | |
| 157 | |
Ocensa | |
| 500 | | |
| 0 | | |
| 500 | |
Propilco | |
| 12 | | |
| 0 | | |
| 12 | |
Total | |
| 14.643 | | |
| 2.196 | | |
| 16.839 | |
Notes:
* Nominal value of debt as of September 30, 2015, excluding accrued
interests
** Figures expressed in thousands of US dollars converted using
the Representative Market Exchange Rate as of September 30, 2015
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
Ecopetrol S.A. |
|
|
|
|
|
By: |
/s/ Maria Fernanda Suarez |
|
|
|
Name: |
Maria Fernanda Suarez |
|
|
|
Title: |
Chief Financial Officer |
|
Date: November 18, 2015
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