BOGOTA, Colombia, May 3, 2018 /PRNewswire/ -- Ecopetrol
S.A. (BVC: ECOPETROL; NYSE: EC) announced today the financial
results of the Business Group for the first quarter of 2018,
prepared in accordance with International Financial Reporting
Standards applicable in Colombia.
TABLE
1:
|
CONSOLIDATED
FINANCIAL RESULTS -
|
ECOPETROL BUSINESS
GROUP
|
|
|
|
|
|
|
|
A
|
|
|
B
|
C
|
D
|
E
|
|
|
|
|
|
|
|
COP
Billion
|
|
|
1Q
2018
|
1Q
2017
|
∆
($)
|
∆
(%)
|
Total
Sales
|
|
|
14,642
|
13,371
|
1,271
|
9.5%
|
Operating
Profit
|
|
|
5,180
|
3,299
|
1,881
|
57.0%
|
Net Income
Consolidated
|
|
|
2,817
|
1,073
|
1,744
|
162.5%
|
Non-Controlling
Interests
|
|
|
(202)
|
(187)
|
(15)
|
8.0%
|
Net Income
Attributable to Owners of Ecopetrol
|
|
|
2,615
|
886
|
1,729
|
195.1%
|
|
|
|
|
|
|
|
EBITDA
|
|
|
7,149
|
5,813
|
1,336
|
23.0%
|
EBITDA
Margin
|
|
|
48.8%
|
43.5%
|
|
|
The figures included in this report are not audited. The
financial information is expressed in billions of Colombian pesos
(COP) or US dollars (USD), or thousands of barrels of oil
equivalent per day (mboed) or tons, as so indicated where
applicable. For presentation purposes, certain figures in this
report were rounded to the nearest decimal point.
To review the full report please visit the following
link:
https://www.ecopetrol.com.co/english/documentos/Ecopetrol%20Q1%202018%20Earnings%20Report.pdf
The financial results for the first quarter of 2018 were the
best of the past four years. It is highlighted the EBITDA
of COP 7.1 trillion and the EBITDA
margin of 49%. Net profit totaled COP 2.6
trillion and net margin came in at 18%. We are maintaining a
solid cash position at COP 16.6
trillion and a Gross Debt / EBITDA ratio of 1.7x, reflecting
i) greater efficiency and cost reductions through the
transformation plan, ii) capital discipline, iii) stabilization of
the Cartagena Refinery, and iv) better crude prices and margins
versus the Brent price.
Our commercial strategy continues to yield good results. We have
succeeded in keeping our spread on the crude sales basket in the
first quarter of 2018 at levels close to those of 2017, at
-USD 7.3 per barrel, despite the
increase in crude prices. The spread improved 12% versus the first
quarter of 2017.
We took advantage of the favorable price environment we
experienced during the quarter. Brent crude saw a 23% price
increase as compared to the same period of 2017, increasing from an
average of USD 54.6 per barrel to
USD 67.2 per barrel.
Average production during the first quarter totaled 701 thousand
barrels of oil equivalent per day, a result of a challenging public
security environment. In February, certain communities in the
Department of Meta blocked roads and attacked oil infrastructure,
causing temporary closures at the Castilla, Chichimene and CPO9
fields. This event had an estimated negative impact of 12 mboed
during the quarter (3 mboed averaged over the year). It is worth to
highlight we did succeed at restoring operations in total
compliance with security and environmental protocols. In March we
resumed our production trend with a monthly average of 712 mboed,
which increased to 715 mboed at the end of the first quarter.
Even with the attacks that occurred during the first quarter, we
are keeping our 2018 production goal within a range of 715-725
mboed.
Our operating results remain solid. As part of the exploratory
campaign, we drilled two wells during the quarter. The Búfalo-1
well, located in the Valle Medio del Magdalena basin, is under
evaluation, while the Jaspe-6D well in the Llanos Orientales basin
was declared successful.
"We are keeping our annual production target within a
range of 715-725,000 barrels of oil equivalent per day."
Ecopetrol S.A. CEO
Felipe Bayón Pardo
In the transport segment, the San Fernando - Monterrey system
has now entered into operation. This new system is key to our
extra-heavy crude extraction strategy. Partial crude oil transport
tests were also executed at up to 700 centistokes (cSt - a measure
of viscosity) in some of our oil pipeline systems, with a view to
achieving greater dilution efficiencies.
The reversal strategy on the Bicentenario Oil Pipeline,
implemented since 2017, reduced the impact of the attacks on the
Caño Limón - Coveñas oil pipeline, allowing us to maintain the flow
of operations in Caño Limon field and other nearby fields. During
the first quarter of 2018, the Caño Limón - Coveñas system was in
operation 9 days, a situation that resulted in the execution of 12
reversal cycles.
In the Refining segment, we experienced stable operations in our
refineries system, with total throughput of some 360 thousand
barrels of oil per day. The Cartagena refinery achieved average
throughput of 144 mbd during the quarter, exceeding the 2017
average figure of 136 mbd. The Cartagena refinery's average gross
refining margin totaled USD 11.5/bl,
up 69% over the same period in the previous year (USD 6.8/bl). As a result of the refinery's stable
operations, we enjoyed seven consecutive months with a gross margin
in double digits. During the quarter, the refinery's crude diet
used approximately 71% of domestic crudes, demonstrating
consolidation in the process of optimizing the crude diet and
operating costs.
We achieved a milestone in the country's refining industry:
"We achieved the greatest throughput in the history of the
Cartagena refinery, with an average of 160 mbd in March,"
said Felipe Bayón
Pardo.
Between March 14 and 22, specific
tests were performed at the Cartagena refinery in which a
throughput of 165 mbd was reached through the period. These tests
are a good indicator of opportunities to continue consolidating the
optimization process.
At the Barrancabermeja refinery we noted stable throughput in
the first quarter versus the same period of 2017, achieving an
average of 215 mbd. The Barrancabermeja refinery's average refining
margin was USD 11.8/bl, primarily
impacted by lower spreads in gasoline and fuel oil prices,
consistent with performance on the international markets.
On March, 2018, an unexpected seepage of water and traces of
crude oil occurred near the Lisama 158 well, located in the
municipality of Barrancabermeja, in the village of La Fortuna. It
is estimated that between March 12 and
15, 550 barrels of crude, mixed with mud and rainwater,
seeped into the streams of La Lizama and Caño Muerto. Ecopetrol
activated its contingency plan for containing the spill and
permanently resolve this situation in accordance with its risk
management and HSE protocols. As of March
30, flows from the Lisama-158 well had been controlled and a
specialized "snubbing unit" equipment had been installed to record
logs and identify the optimal means of permanently and safely
shutting down the well.
Our priority and commitment has always been a safe operation to
the people and the environment. In view of this unfortunate
incident, we are committed to this region of the country and will
continue to work closely with the communities and authorities to
restore the environmental and social conditions as soon as
possible, and determine the causes of the incident.
On April 19, Ecopetrol filed its
annual report on form 20-F for the fiscal year 2017 with the US
Securities and Exchange Commission (SEC), demonstrating our
commitment to the highest standards of corporate governance and
transparency.
Ecopetrol's profitability outstands. The Company is totally
committed to its growth and the country's development. The
Ecopetrol Group's priority will continue to be the operational
excellence, the commitment to ethics and transparency, safety as a
basis for its operations, and proper care for the environment and
the communities in which we operates, seeking shared prosperity at
all times. We are focused on growth in the reserves, the profitable
production and the operational excellence, delivering outstanding
results to the benefit of shareholders, and the sustainability of
both the company and the country.
Felipe Bayón Pardo
Ecopetrol CEO
-----------------------------------------
This release contains statements that may be considered
forward looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. All forward-looking statements, whether made
in this release or in future filings or press releases or orally,
address matters that involve risks and uncertainties, including in
respect of the Company's prospects for growth and its ongoing
access to capital to fund the Company's business plan, among
others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
& gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, the
Company's competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234-5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio
Tellez
Phone: (+571) 234-4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.