BOGOTÁ, Colombia, Jan. 19, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports as follows: Ecopetrol S.A. ("Ecopetrol") signed a Share Purchase Agreement with De Jong Capital LLC, through one of its subsidiaries as buyer, pursuant to which Ecopetrol sold its 50% ownership interest in in Offshore International Group ("OIG").
This divestment is the result of a successfully competed process between a number of bidders jointly carried out by Ecopetrol and its partner, in respect of the sale of 100% of the capital stock of OIG, the parent company of Savia (Peru) and other companies based in the United States and Peru.
The relevant accounting reclassifications have been made in accordance with IFRS 5.
This transaction is part of Ecopetrol's non-strategic assets divestment plan and is aligned with Ecopetrol's priorities of cash protection, capital discipline and profitable and sustainable growth.
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-reports-on-the-sale-of-its-stake-in-offshore-international-group-301211358.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Jan. 19, 2021 /CNW/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports as follows: Ecopetrol S.A. ("Ecopetrol") signed a Share Purchase Agreement with De Jong Capital LLC, through one of its subsidiaries as buyer, pursuant to which Ecopetrol sold its 50% ownership interest in in Offshore International Group ("OIG").
This divestment is the result of a successfully competed process between a number of bidders jointly carried out by Ecopetrol and its partner, in respect of the sale of 100% of the capital stock of OIG, the parent company of Savia (Peru) and other companies based in the United States and Peru.
The relevant accounting reclassifications have been made in accordance with IFRS 5.
This transaction is part of Ecopetrol's non-strategic assets divestment plan and is aligned with Ecopetrol's priorities of cash protection, capital discipline and profitable and sustainable growth.
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-reports-on-the-sale-of-its-stake-in-offshore-international-group-301211358.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 24, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) hereby informs that on December 23, 2020 it consummated the transaction with Shell previously announced to the market on February 7, 2020, by which Shell, through its subsidiary Shell EP Offshore Ventures Limited ("Shell"), acquired a 50% stake in the Fuerte Sur, Purple Angel and COL-5 blocks, located in the Colombian Caribbean deep water, where a new gas province was discovered including the Kronos (2015), Purple Angel and the Gorgon (2017) wells. The transaction has now been consummated.
The transaction is aligned with the strategic priorities of Ecopetrol's business plan, focused on reserves and production growth under strict capital discipline. With the closing of this transaction, the relationship with a strategic partner, highly experienced in the development of offshore areas, such as Shell, is also strengthened.
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
- The investment plan approved by the Board of Directors is oriented towards restoring the Ecopetrol Business growth's path, increasing competitiveness, strengthening the energy transition of the Ecopetrol Business Group, and enhancing its sustainability agenda through positive social and environmental impact in the communities where the Company operates.
- Approximately to 80% of the investment is expected to continue to be allocated to projects in Colombia, and the remaining 20% mainly to investments in the United States and Brazil.
- The plan foresees reliable, clean and safe operation, with a production of hydrocarbons expected between 700 and 710 thousand barrels per day in 2021, a greater joint refining throughput of between 340 and 365 thousand barrels per day, and transported volumes over one million barrels per day.
- 77% of investments are expected to be oriented towards exploration and production projects, targeting assets with the highest strategic fit and profitability, with a goal of accelerating the value capture.
- The plan calls for an increase in the allocation of resources to energy transition and sustainability initiatives. 14% of investments are expected to be directed at expanding the gas chain and other energy sources, including expected investments of over US$200 million in energy efficiency projects and the incorporation of renewable energies. More than US$150 million is expected to be allocated to the decarbonization projects and over US$90 million to efficient water management in operations.
- The plan includes resources for the development of Integral Research Pilot Projects (PPII for its acronym in Spanish) in Colombia and continuing of operations in the Permian Basin.
- Nearly US$80 million is expected to be allocated to investments in technology and innovation, focusing on digital transformation, enhanced recovery, and energy transition.
- The 2021 plan expects to set aside approximately COP$405 billion for social investment allocated to the development and well-being of communities where we operate
- The generation of cash and the materialization of efficiencies is expected to facilitate a positive free cash flow and achieve a gross debt to EBITDA ratio of less than 2.5 times for 2021.
BOGOTÁ, Colombia, Dec. 14, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that its Board of Directors approved the 2021 organic investment plan for the Ecopetrol Group (GE) for an estimated amount between US$3.5 and US$4 billion.
The plan is oriented towards restoring the Ecopetrol Business Group's growth path, while continuing to prioritize cash generating opportunities and with better equilibrium prices, focusing on the execution of key assets development plans, and the preservation of asset value through investments that provide reliability, integrity and continuity to the Ecopetrol Business Group's value chain.
The plan was based on an expected average Brent price of US$45 per barrel for 2021.
80% of the investments are expected to be allocated to projects in Colombia, and the remaining 20% is expected to be invested mainly in the development of projects in the United States and Brazil.
In line with Ecopetrol Group's strategic priorities and the sturdiness of its integrated value chain, the plan holds as strategic objective the growth of the Upstream segment, towards which 77% of total investment is expected to be allocated, with a focus on accelerating the development of resources and reserves estimated at 3.7 bboe, through exploration, drilling and enhanced recovery. Production in 2021 is expected to reach levels of between 700 and 710 thousand barrels of oil equivalent per day (expected to be comprised of 81% oil and 19% gas). If the investments included in the plan are carried out as currently foreseen, it is expected that the Ecopetrol Business Group's production levels will be approximately 750 thousand barrels by 2023.
In terms of exploration, 9 exploratory wells are expected to be drilled, 8 of which are expected to be located in Colombia in the Llanos Orientales, Mid-Magdalena Valley, Low-Magdalena Valley and Sinú-San Jacinto basins, as well as continuing activities aimed at appraising discovered resources for more than 450 million barrels equivalent.
With regards to unconventional reservoirs (YNC for its acronym in Spanish), investments of approximately US$600 million are planned for the scaling up of development activities in the US Permian Basin in Texas. Investments for the development of initiatives related to Integral Research Pilot Projects for Unconventional Deposits (PPII) in the Mid-Magdalena Valley Basin are also expected to continue.
Investments in the Downstream segment are expected to remain to focus on ensuring the reliability and sustainability of the operation of the Barrancabermeja and Cartagena refineries, as well as the development of fuel quality and wastewater management programs, thus ensuring increasingly clean effluents. The joint throughput expected from the refineries for 2021 is estimated to range between 340 and 365 thousand barrels per day, in line with the expected recovery of demand and refining margins. The investment priority in the project to interconnect the original crude unit of the Cartagena refinery with the new refinery remains, with estimated investments of US$48 million for 2021.
The Midstream segment is expected to represent 7% of the total investment, mostly aimed at guaranteeing the integrity and reliability of the infrastructure, while achieving greater flexibility and efficiency in the logistics for the transportation of heavy crude oil. These investments are expected to enable the optimization of future operating costs through the upgrading of equipment and improved performance. The volumes transported are estimated to reach over one million barrels per day, in line with the country's crude production expectations and the national demand for refined products.
Consistently with the Ecopetrol Business Group's energy transition strategy, approximately US$150 million is expected to be invested in the decarbonization agenda, including noteworthy tasks in energy efficiency, leakage and vent reduction projects as well as the construction of the Rubiales Solar Park. Moreover, we increased our goal of reducing emissions to 3 million tons of CO2 by 2023, in addition to the 6.6 million tons reduced between 2010 and 2019. These resources are expected to allow us to move towards the goal of incorporating 400 MW in renewable energy by 2023.
The plan reaffirms the resources oriented to the socio-environmental investment program for an approximate amount of COP$1,7 trillion by 2023 for the 2020-2024 period, aiming to close social gaps and promoting the development and well-being of the communities where we operate, through strategic projects in infrastructure, public services, education, sports and healthcare, inclusive rural development and entrepreneurship and business development. In addition, financial support to meet specific needs arising from the COVID-19 pandemic are expected to continue to be provided in the areas and communities where we operate.
In an effort to accelerate the digital transformation process, nearly USD$50 million is expected to be allocated towards capturing benefits associated with artificial intelligence technologies, blockchain, and bots, among others. The ICP (Colombian Petroleum Institute for its acronym in Spanish) is expected to invest approximately US$30 million, mainly in energy transition projects, advanced materials and increasing the recovery factor.
The organic investment plan is expected to be mainly financed by internal cash generation and the existing cash surpluses from the beginning of the year. A gross debt to EBITDA ratio of less than 2.5 times is expected for 2021, reversing the leverage indicator trend seen in 2020.
We believe this plan is in line with (i) our strategy of becoming the energy that transforms Colombia and (ii) the Ecopetrol Group's cultural principles: life comes first, ethics, passion for excellence, making possible the impossible, leadership and inclusion, and working as a team. Furthermore, we believe it addresses the current challenges with a sustainability approach and ensures a strategy that adds value to the Business Group and the country.
"2020 challenged the Company and proved its resilience and ability to adapt to an adverse and volatile environment. The investment plan for 2021 seeks to recover the Company's growth path, enhance its competitiveness, enlarge the sustainability agenda and establish the course towards energy transition, in line with our strategic pillars of cash flow protection, cost efficiency, capital discipline and profitable and sustainable growth. With this investment plan we are using our energy to continue constructing a country of all, for all," said Ecopetrol's CEO, Felipe Bayón Pardo.
Bogotá D.C. December 14, 2020
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 4, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the rating agency Moody's kept the Company's long-term international rating at Baa3, with stable outlook.
In its report, the rating agency highlights the company's solid performance despite the drop in oil prices and contraction in demand, caused by the COVID-19 pandemic. Likewise, it emphasizes the measures adopted by Ecopetrol to protect its liquidity and respond proactively to the crisis.
Moody's maintained Ecopetrol's individual credit rating (Stand - Alone/ without incorporating government support) at ba1.
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/moodys-affirms-ecopetrol-sas-investment-grade-rating-and-stable-outlook-301186770.html
SOURCE Ecopetrol S.A.
Bogotá D.C., Colobmia, Dec. 1, 2020 /PRNewswire/ -- Ecopetrol (BVC: ECOPETROL; NYSE: EC) reports that the rating agency, Fitch Ratings, has affirmed the Company's credit rating at BBB- with a negative outlook and its standalone credit profile (without incorporating government support) at bbb.
In its statement, Fitch highlighted the Company's strategic importance for the country, its ability to maintain a solid financial profile, as well as its resilience in confronting the decrease in international oil prices during 2020. Likewise, it emphasized its strong capital structure which provided the Company flexibility during the crisis.
The rating agency highlighted Ecopetrol's liquidity profile, supported by its cash generation, strong access to capital markets and adequate debt maturity profile.
Additionally, Fitch highlighted the Company's strong linkage to the Republic of Colombia. The negative outlook is in line with Colombia's sovereign rating (BBB-/ negative outlook).
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/fitch-ratings-affirms-ecopetrol-sas-investment-grade-rating-301183273.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov.17, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) hereby discloses the press release issued by its subsidiaries Cenit Transporte y Logística de Hidrocarburos S.A.S. and Oleoducto Bicentenario de Colombia S.A.S., announcing that they have reached an agreement with Frontera Energy Corporation for the joint filing of a petition for a binding settlement which, upon completion and approval by the competent Colombian court, will resolve all the disputes pending among them related to the Bicentenario Pipeline and the Caño Limón – Coveñas Pipeline.
The arrangement is conditional upon certain regulatory approvals, including approval of the settlement arrangement as a conciliation under Colombian law, which requires an opinion from the Attorney General´s Office (Procuraduría General de la Nación) and approval of the Administrative Tribunal of Cundinamarca.
CENIT AND BICENTENARIO ANNOUNCE AGREEMENT WITH FRONTERA TO SETTLE THEIR PENDING TRANSPORTATION DISPUTES IN COLOMBIA
Cenit Transporte y Logística de Hidrocarburos S.A.S. ("CENIT") and Oleoducto Bicentenario de Colombia S.A.S. ("Bicentenario") announced today that they have reached an agreement with Frontera Energy Corporation ("Frontera"), for the joint filing of a petition for a binding settlement which, upon completion and approval by the competent Colombian court, will resolve all the disputes pending among them, related to the Bicentenario Pipeline ("BIC Pipeline") and the Caño Limón – Coveñas Pipeline ("CLC Pipeline"), and will terminate al the pending arbitration proceedings related to such disputes. All the Frontera subsidiaries involved in those proceedings are also parties to the agreement, and references to Frontera include such subsidiaries. All financial amounts in this news release are in United States dollars, unless otherwise stated.
The parties consider that this transaction eliminates any uncertainty related to the potential outcomes of the disputes, thus protecting the interests of all the parties and those of their stakeholders. The settlement will also create new business opportunities for the parties involved.
The settlement arrangement includes a full and final mutual release upon closing of all present and future amounts claimed by all parties in respect of the terminated transportation contracts for both the CLC Pipeline and the BIC Pipeline, and also in respect of contracts related to the use of additional facilities.
The transaction does not include any cash payments between the parties, except for Frontera's release of its interests in a trust fund (restricted cash) of approximately $28 million created as a collateral for one of the claims. Frontera will transfer to CENIT its 43.03% interest in Bicentenario, any related outstanding Bicentenario dividends, and will deliver to Bicentenario the BIC Pipeline line fill, also allowing Bicentenario to set-off a portion of its syndicated debt against certain account receivables outstanding in favor of Frontera. The claims released by Frontera include recovery of the letters of credit drawn by Bicentenario in 2018 and all other claims that have been asserted by Frontera against Bicentenario.
Frontera will also enter into new transportation contracts with CENIT and its subsidiaries Bicentenario and Oleoducto de los Llanos Orientales S.A. ("ODL").
The new ODL transportation contract would provide for a ship or pay commitment of 10,000 bbls/day for approximately 3.8 years at a current fee of $4.0/bbl.
The new transportation contracts with CENIT and Bicentenario for use of the CLC Pipeline and BIC Pipeline (and certain related facilities) will become effective within a six-month period as of the closing of the transaction. The new ship or pay commitment is projected to be approximately 3,900 bbls/day, based on the current oil price, for a term of five years subject to adjustments, at a current tariff of $11.5/bbl. Frontera will not have to make payments for oil it may have to ship through alternate pipelines. These contracts will allow CENIT and Bicentenario to obtain payment of certain amounts included in the settlement, during the term of the contracts.
The arrangement is conditional upon certain regulatory approvals, including approval of the settlement arrangement as a conciliation under Colombian law, which requires an opinion from the Attorney General´s Office (Procuraduría General de la Nación) and approval of the Administrative Tribunal of Cundinamarca, an Appeals Court that is also entrusted with reviewing certain arrangements in which state owned enterprises are a party. The settlement documentation provides that if such approvals are not obtained by June 30, 2021 or such later date as may be agreed, then either party will become entitled to terminate the settlement arrangement, and that the legal rights of the parties with respect to the disputes are not. There can be no assurance that the required approvals will be received on a timely basis or at all.
Cenit is an Ecopetrol Group subsidiary company that is dedicated to hydrocarbon transportation and logistics activities, leading the Midstream segment in the Colombian Oil chain. It is the second largest company in the country in terms of assets and is among the 10 largest companies by operating revenue and profits in the country. It has close to 9,000 kilometers of oil and multi-purpose pipelines transporting the majority of Colombia's crude oil and refined products. It has three ports, 51 stations and seven loading and unloading docks. In turn, the companies Oleoducto Central S.A -Ocensa-, Oleoducto de Colombia S.A. -ODC-, Oleoducto de los llanos Orientales S.A -ODL- and Oleoducto Bicentenario de Colombia S.A.S. are all Cenit subsidiary companies.
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact:
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Fax: +571-234-4480
Email: mauricio.tellez@ecopetrol.com.co
Paola Aguilar Santos
Head of Corporate Communications
Cenit - Transporte y Logística de Hidrocarburos
paola.aguilar@cenit-transporte.com
Phone: +57 (1) 319-8800 – Ext: 18725
http://www.cenit-transporte.com
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 27, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Ecopetrol Group's financial results for the third quarter and the first nine months of 2020. Financial results were prepared in accordance with the International Financial Reporting Standards applicable in Colombia.
Financial Summary Income Statement - Ecopetrol Group | ||||||||||
Billion (COP) | 3Q 2020 | 3Q 2019 | ∆ ($) | ∆ (%) | 9M 2020 | 9M 2019 | ∆ ($) | ∆ (%) | ||
Total sales | 12,323 | 18,014 | (5,691) | (31.6%) | 35,836 | 52,266 | (16,430) | (31.4%) | ||
Depreciation and amortization | 2,296 | 2,166 | 130 | 6.0% | 6,685 | 6,189 | 496 | 8.0% | ||
Variable cost | 4,038 | 6,735 | (2,697) | (40.0%) | 14,304 | 19,629 | (5,325) | (27.1%) | ||
Fixed cost | 2,010 | 2,339 | (329) | (14.1%) | 6,256 | 6,870 | (614) | (8.9%) | ||
Cost of sales | 8,344 | 11,240 | (2,896) | (25.8%) | 27,245 | 32,688 | (5,443) | (16.7%) | ||
Gross income | 3,979 | 6,774 | (2,795) | (41.3%) | 8,591 | 19,578 | (10,987) | (56.1%) | ||
Operating and exploratory expenses | 1,300 | 1,063 | 237 | 22.3% | 2,382 | 2,955 | (573) | (19.4%) | ||
Operating income | 2,679 | 5,711 | (3,032) | (53.1%) | 6,209 | 16,623 | (10,414) | (62.6%) | ||
Financial income (loss), net | (957) | (648) | (309) | 47.7% | (2,221) | (1,426) | (795) | 55.8% | ||
Share of profit of companies | 15 | 56 | (41) | (73.2%) | 92 | 290 | (198) | (68.3%) | ||
Income before income tax | 1,737 | 5,119 | (3,382) | (66.1%) | 4,080 | 15,487 | (11,407) | (73.7%) | ||
Income tax | (575) | (1,770) | 1,195 | (67.5%) | (1,209) | (5,315) | 4,106 | (77.3%) | ||
Net income consolidated | 1,162 | 3,349 | (2,187) | (65.3%) | 2,871 | 10,172 | (7,301) | (71.8%) | ||
Non-controlling interest | (289) | (339) | 50 | (14.7%) | (913) | (932) | 19 | (2.0%) | ||
Net income attributable to owners of Ecopetrol before impairment | 873 | 3,010 | (2,137) | (71.0%) | 1,958 | 9,240 | (7,282) | (78.8%) | ||
(Expense) recovery for impairment long-term assets | (22) | 1 | (23) | (2,300.0%) | (1,226) | 3 | (1,229) | (40,966.7%) | ||
Deferred tax of impairment | 4 | 0 | 4 | - | 281 | 0 | 281 | - | ||
Net income attributable to owners of Ecopetrol | 855 | 3,011 | (2,156) | (71.6%) | 1,013 | 9,243 | (8,230) | (89.0%) | ||
EBITDA* | 5,254 | 8,270 | (3,016) | (36.5%) | 12,506 | 23,934 | (11,428) | (47.7%) | ||
EBITDA Margin | 42.6% | 45.9% | - | (3.3%) | 34.9% | 45.8% | - | (10.9%) |
*Ebitda adjusted to exclude the effect of the Voluntary Retirement Plan amounts to COP 5,419 billion in 3Q20 and COP 12,843 billion in 9M20.
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 noted. For presentation purposes, certain figures in this report were rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"The operating and financial results of the third quarter reflect a better price environment, the gradual reactivation across the entire value chain within Ecopetrol Group and the progressive effect of the adjustment measures we undertook in the first half of the year. Thus the Ecopetrol Group reverted the downward trend of the previous quarters and obtained a net income of COP 855 billion and an EBITDA of COP 5.3 trillion, corresponding to an EBITDA margin of 43%, the highest recorded during the year and comparable to those reported in 2019. This quarter´s outcome stands for 85% of the accumulated net income year to date, and the results are comparable to the first quarter figures, previous to the crisis originated by the pandemic.
A worldwide improved balance between supply and demand provided a significant recovery of the average Brent price, which rose 30% between the second and third quarter of the year, from 33 to 43 USD per barrel. This environment enabled better realization prices along with higher volumes of crude oil and fuels sold, primarily due to the reactivation of the local demand once the mandatory lockdown measures were lifted and the resumption of economic activities began.
The increase in the total cost in the third quarter versus the second quarter (from 21.3 to 24.5 USD per barrel) was due to higher operating activity. However, total cost per barrel year to date decreased compared to the same period a year ago (26.1 versus 34.8 USD per barrel) as a result of the initiatives to optimize our cost and lower purchases and imports, both in price and volume.
To address this historic turning point, the Ecopetrol Group's has remained committed to the well-being of Colombians and the strengthening the local economy after the health emergency created by COVID-19. Through our social assistance program Apoyo País, aids totalling COP 52 billion have been delivered to date, out of COP 88 billion initially announced, in the form of medical equipment, personal protective elements, cleaning products and food supplies, as well as contributions to research and development foundations and institutions through alliances and support to initiatives assisting vulnerable populations like "Comparto mi Energía", among others.
The operational sustainability plan implemented ensured the continuity of Ecopetrol Group's operation under the minimum vital, striving for the lowest potential exposure of our employees and allies to the virus. In the process of adapting to the new normal, a pilot plan was launched in October for the safe and gradual return of administrative employees to the Company's facilities. This pilot plan will be subject to the evolution of the pandemic and to the provisions of local and national authorities.
Our proactive commercial strategy has allowed us to continue diversifying our customer base and to guarantee crude exports for the remainder of the year. Whereas 12 years ago 90% of our international crude oil sales were headed to the Gulf of Mexico (US) and only 8% to Asia, today this ratio is 43% and 49%, respectively. In keeping with the above mentioned, on October 19 we achieved a new commercial milestone with the fulfillment of the first shipment of one million barrels of crude delivered at place (DAP) to one of the leading private refiners in South Korea. The Company is also pursuing other anchor markets for Colombian oil in countries such as Sweden and Spain. This commercial strategy, along with better conditions for placing our products on the market, resulted in a significant improvement in the crude oil basket price realization, which increased from 20.4 USD per barrel in the second quarter to 38.4 USD per barrel in the third quarter.
The Ecopetrol Group's operating results are in line with the targets of the 2020-2022 business plan, which was recently updated. In exploration, Ecopetrol completed the drilling of three wells operated directly, reaching a total of ten year to date, maintaining activities in strategic areas such as Piedemonte and Brazil. It is worth highlighting the signing of a commercial agreement between Hocol and Lewis Energy for the exploration of natural gas in a frontier play in the Perdices block, located in the department of Atlántico.
Cumulative average production for this quarter reached 697.7 mboed by September, out of which gas represented 20%, driven by the gradual recovery of gas demand from thermal power plants and the industrial sector, and the reactivation of crude oil production, which in turn was primarily due to a better price scenario. This helped mitigate to a certain extent the negative effect of some operational and public order situations that impacted production in the third quarter.
Natural gas remains a strategic priority for the Ecopetrol Group, and reached an EBITDA margin of 55% and contributed on 34% to the upstream EBITDA, year to date. The aforementioned is the result of the stability of its US dollars-denominated prices and a positive commercial dynamism over the period.
As we mentioned in the second quarter, our Permian operations resumed at the end of July and five wells were drilled within the third quarter. By the end of 2020, we expect an estimated net average production for Ecopetrol between 5 to 5.5 mboed (before royalties).
Regarding the development of the Comprehensive Research Pilot Projects (PPII) for unconventional hydrocarbon reservoirs in Colombia, with the issuing of the regulatory framework (technical, environmental, social and contractual terms), Colombia now has the guidelines required to advance towards the execution of the pilot tests. Ecopetrol has stated its interest to participate in such projects. We wait the results of process launched by the National Hydrocarbon Agency to select contractors for the Special Research Project Contracts (CEPI), which will take place during the month of November 2020. Once granted, the next step would be launching the process for obtaining the environmental licenses.
In the midstream segment, we highlight a recovery in the transported volumes of gasoline and diesel during September, reaching 94% and 86% of pre-pandemic levels, respectively. Continuing our search for dilution efficiencies, successful technical tests to transport heavy crude oil at 650 cSt[1] were carried out in Cenit, Ocensa, Oleoducto de los Llanos (ODL) and Oleoducto de Colombia (ODC) pipeline systems. A large-scale implementation of this scheme could bring about relevant efficiencies for the transport chain, subject to its economic feasibility.
We would also like to mention the optimization achieved in the handling of Castilla crude in the port of Coveñas, by which a 250,000 barrel tank was released, increasing the available storage capacity and providing flexibility should another potential COVID-19 outbreak occur, affecting demand again.
The downstream segment exhibited operating stability during the quarter in all business units and an improvement of margins and throughput when compared to the second quarter of 2020. The Cartagena Refinery reported 100% use of national crude oil in September, the maximum level since the beginning of its operations. The use of local feedstock maximizes its margins and enables production increases for the Ecopetrol Group. Esenttia continued to report solid operating results, achieving two historical quarterly records: the highest polypropylene production, 173.6 thousand tons (kton), and the highest sales volume, 147.2 kton, delivering an important contribution towards the consolidated results of the segment.
As part of the Ecopetrol Group's commitment to energy transition, during the third quarter we signed a contract for the construction of the San Fernando solar farm with a capacity of 59 MW, the construction of which is expected to begin in November 2020. Moving forward towards our goal of having 300 MW of generation capacity from renewable sources by 2022, we also launched a competitive bidding process for a new wave of solar powered projects for 112 MW.
In the execution of our strategy regarding climate change and complying with the commitments acquired from our endorsement of the Climate and Clean Air Coalition (CCAC), we approved the fugitive emissions and venting management strategy. Further, as part of our biodiversity agenda, we announced our participation in the Sembrar Nos Une ("Planting Unites Us") initiative, sponsored by the National Government, in which we envisage the planting of six million trees by 2022. We have planted 1.8 million trees since 2018 and expect to plant 457,000 more trees in the last quarter of 2020, completing in this way the one million anticipated for 2020, with four million additional trees expected to be planted during the next two years.
Technology has been an essential enabler to maintain operation during the pandemic. In the last quarter, in average, 7,423 meetings per day were made digitally, with 4,500 concurrent connections each day. We are incorporating into the operation digital tools based on artificial intelligence, analytics and self-management. We have been reaping the benefits of the digital agenda, mainly from the Petrotechnical Database, Gross Refining Margin, Integrated Fields, Volumetric Management and Investment Management projects.
Throughout 2020, Ecopetrol has demonstrated its resilience, adaptability and the commitment to confront an unprecedented situation. With preservation of life as a priority, and in strict accomplishment to our strategic pillars, we remain devoted to the generation of sustainable value for society and the social and economic development of the regions where we operate".
To review the full report please visit the following link:
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
[1] cSt: centistock, unit of viscosity
View original content:http://www.prnewswire.com/news-releases/ecopetrol-business-group-announces-third-quarter-2020-results-301161184.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 20, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on October 27th, 2020 after market close, it will release its financial and operating results for the third quarter 2020. On Wednesday, October 28th, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 10:00 a.m. Col Time |
09:00 a.m. NY Time | 11:00 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 49983406 | Passcode: 49983407 |
To access the webcast, the following links will be available:
English:
https://onlinexperiences.com/Launch/QReg/ShowUUID=9062F110-6D2B-4438-AF44-6AFE1E7C8816
To ask a question, you will have to access through the telephone lines specified at the top of this release.
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link:
http://web.meetme.net/r.aspx?p=12&a=UhmeMcOiiSonaP
The earnings release, slide presentation, live webcast and replay of the conference call will be available on Ecopetrol's website: www.ecopetrol.com.co.
Please verify in advance the proper operation of the webcast in your browser. We recommend the use of the latest versions of Internet Explorer, Google Chrome and Mozilla Firefox.
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-the-dates-of-the-third-quarter-2020-earnings-report-301156453.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Sept. 14, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that it will prepay its short-term obligations with local and international banks entered into in March and April 2020, in the form of trade finance instruments and short-term bank loans.
The total principal to be prepaid amounts to COP 775 billion (in respect of the local debt) and USD 221.5 million (in respect of the international debt), plus accrued interest.
The aforementioned prepayments are possible thanks to the improvement in prices observed in recent months, and the progress in cost optimizations implemented to guarantee Ecopetrol Business Group's financial sustainability and to preserve its value promise in the medium and long term.
The prepayment reduces financial expense, improves leverage metrics and confirms Ecopetrol's commitment to cash efficiency and capital discipline.
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Juan Pablo Crane De Narváez
Head of Capital Markets
Phone: (+571) 234 5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-announces-the-prepayment-of-its-local-and-international-short-term-financing-contracts-301130638.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 4, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Ecopetrol Group's financial results for the second quarter and the first half of 2020 and the update of the Business Plan 2020-2022. Financial results were prepared in accordance with the International Financial Reporting Standards applicable in Colombia.
Table 1: Financial Summary Income Statement - Ecopetrol Group
Billion (COP) | 2Q | 2Q | ∆ ($) | ∆ (%) | 6M | 6M | ∆ ($) | ∆ (%) | ||
Total sales | 8,442 | 18,309 | (9,867) | (53.9%) | 23,514 | 34,251 | (10,737) | (31.3%) | ||
Depreciation and amortization | 2,236 | 2,052 | 184 | 9.0% | 4,388 | 4,023 | 365 | 9.1% | ||
Variable cost | 3,570 | 6,777 | (3,207) | (47.3%) | 10,266 | 12,893 | (2,627) | (20.4%) | ||
Fixed cost | 1,810 | 2,385 | (575) | (24.1%) | 4,249 | 4,531 | (282) | (6.2%) | ||
Cost of sales | 7,616 | 11,214 | (3,598) | (32.1%) | 18,903 | 21,447 | (2,544) | (11.9%) | ||
Gross income | 826 | 7,095 | (6,269) | (88.4%) | 4,611 | 12,804 | (8,193) | (64.0%) | ||
Operating and exploratory expenses | 2 | 1,138 | (1,136) | (99.8%) | 1,081 | 1,892 | (811) | (42.9%) | ||
Operating income | 824 | 5,957 | (5,133) | (86.2%) | 3,530 | 10,912 | (7,382) | (67.7%) | ||
Financial income (loss), net | (599) | (391) | (208) | 53.2% | (1,265) | (776) | (489) | 63.0% | ||
Share of profit of companies | 77 | 72 | 5 | 6.9% | 77 | 233 | (156) | (67.0%) | ||
Income before income tax | 302 | 5,638 | (5,336) | (94.6%) | 2,342 | 10,369 | (8,027) | (77.4%) | ||
Income tax | (3) | (1,872) | 1,869 | (99.8%) | (633) | (3,546) | 2,913 | (82.1%) | ||
Net income consolidated | 299 | 3,766 | (3,467) | (92.1%) | 1,709 | 6,823 | (5,114) | (75.0%) | ||
Non-controlling interest | (277) | (280) | 3 | (1.1%) | (624) | (593) | (31) | 5.2% | ||
Net income attributable to owners of Ecopetrol before impairment | 22 | 3,486 | (3,464) | (99.4%) | 1,085 | 6,230 | (5,145) | (82.6%) | ||
(Expense) recovery for impairment long-term assets | 4 | 1 | 3 | 300.0% | (1,204) | 2 | (1,206) | (60,300.0%) | ||
Deferred tax of impairment | (1) | 0 | (1) | - | 277 | 0 | 277 | - | ||
Net income attributable to owners of Ecopetrol | 25 | 3,487 | (3,462) | (99.3%) | 158 | 6,232 | (6,074) | (97.5%) | ||
EBITDA | 1,996 | 8,307 | (6,311) | (76.0%) | 7,253 | 15,665 | (8,412) | (53.7%) | ||
EBITDA Margin | 23.6% | 45.4% | - | (21.8%) | 30.8% | 45.7% | - | (14.9%) |
* Ebitda adjusted to exclude the effect of the Voluntary Retirement Plan amounts to COP 2,168 billion in 2Q20 and COP 7,425 billion in 6M20. |
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 noted. For presentation purposes, certain figures in this report were rounded to the nearest decimal place. |
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"In line with the guidance announced at the end of the first quarter, results for the second quarter reflect the impact of the unprecedented situation caused by the global spread of COVID-19. April reported the worst performance of crude prices since the beginning of the crisis. The inventory build-up and the contraction in demand as a result of the lockdown measures implemented worldwide led to a 38% decline in the Brent, compared to 2019 year-end, even with negative levels for WTI, and below USD 20 for Brent during some days. Likewise, during the second quarter, sales of our main products reported a decrease of 46%, mainly in jet fuel (-89%), gasoline (-46%) and diesel (-35%).
This new reality required a rapid financial and operational adjustment that we executed decisively, while reinforcing our three strategic pillars: strict capital discipline, cash protection and cost efficiency, as well as reserve growth and profitable production.
Thanks to this intervention, along with the gradual improvement in market conditions reported since mid-May, our operating and financial results, although impacted, were positive. As a result, the Ecopetrol Group reached a net income of COP 158 billion and an EBITDA of COP 7.3 trillion by the end of the first half of the year.
In response to the COVID-19 health emergency, we adapted our operations prioritizing the care and safety of our employees and contractors, through strict biosafety protocols and prevention measures, both in our operation areas and for those working remotely.
As part of Ecopetrol Group's commitment to the country, we continue allocating social investment resources to confront the pandemic, for a cumulative total of COP 88 billion to date, which includes: humanitarian aid, biosafety elements supply, aid for vulnerable families, provision of medical equipment to strengthen the healthcare system, in addition to our participation in the "Comparto mi Energía" program to support the payment of electricity services for low income families, the "Ayudar Nos Hace Bien" campaign which benefits the most vulnerable families, as well as initiatives in technology and innovation for medical equipment.
We continued to structure the economic reactivation program, which aims to support territorial entities in the implementation of short-term projects to help promote local productive employment. As part of this initiative and to alleviate the financial crisis of our small and medium suppliers, Ecopetrol implemented advance payments or "early payments" without discount for nearly COP 60 billion per month, which has allowed them to preserve their economic activities, leverage their cash flow, safeguard employment and mitigate the negative impact from the COVID-19 pandemic.
In order to address the health emergency caused by the pandemic, the COVID-19 Crisis Committee continues its operations, deploying the protocols and guidelines for the prevention, control and mitigation of the pandemic's effects on our employees, and to ensure the continuity of our operations during this health emergency.
Likewise, our Oil Price Committee has deployed the financial contingency plan through which we have managed the economic impact of the international oil price drop and changes in demand.
In response to the aforementioned, we were able to promptly reassess the 2020-2022 Business Plan, which responds to the crisis and protects the business sustainability going forward.
The new Plan includes: i) an organic investment of USD 11 - 13 billion, of which between USD 3.0 - 3.4 billion will be invested in 2020, similar to the investment levels that of 2019, and higher than the announced in May; ii) sustainable levels of profitable production in a range between 700 – 720 mboed, maintaining the focus on exploration, where more than 30 wells are expected to be drilled; enhance recovery in higher value opportunities; Comprehensive Research Pilot Projects development for unconventional reservoirs in Colombia (PPII for its Spanish acronym); and continuity of highest potential international investments; iii) stable transported volumes in a range between 1,100 – 1,025 mbd, iv) increasing consolidated throughput in a range between 300 - 380 mbd by 2022, focusing on developing initiatives to increase the refining margin and iv) a continued focus on reducing operating cost and expenses without affecting the reliability and safety of our operations, which will allow us to achieve cumulative savings of up to COP 6.5 trillion by 2022.
The Technology, Environmental, Social and Governance (TESG) front remains a priority. Therefore, we maintain our decarbonization target of 1.8 - 2.0 MtCO2e/year in 2022, renewable energy generation capacity of ~300 MW by 2022, and social and environmental investment of COP 1.7 trillion between 2020 and 2024. Likewise, in an effort to accelerate digital transformation, we will invest around USD 158 million in innovation and technology. The commitment to the continuous strengthening of our corporate governance has been reflected in a greater periodicity of the Board of Directors meetings, which has followed up on all the strategic aspects to confront the current exceptional environmental conditions.
Regarding the results for the first half of the year, we highlight the strength of our commercial strategy which has allowed us to maintain the combined refineries operation above their minimum levels and ensure the necessary revenues to make operations in our fields viable.
In the exploration campaign, during the first half of the year, the Group and its partners completed the drilling of seven wells, five in Colombia and two in Brazil. Ecopetrol and Shell continue to move forward with the COL-5, Purple Angel and Fuerte Sur projects, highlighting the start in the second half of the year of the environmental monitoring activities in the area where the appraisal well will be drilled, which is expected to occur in 2021.
In the first half of 2020 Ecopetrol Group's average production closed at 706 mboed, 19 mboed less than first semester of 2019, mainly explained by the current situation, as well as by public order events and blockages in the Rubiales and Suroriente fields. These impacts were partly offset by higher sales of white products from the LPG Plant in Cupiagua, and the operations reversal in the Pauto and Floreña fields.
The gas business made a significant contribution to the country's energy safety, whose hydric reserves reached critical levels during May and June. Transitional regulation allowed gas to replace hydro generation, compensating for the impact on the Group's demand as a result of the health emergency.
Regarding Non-conventionals, the Ministry of Mines and Energy published the technical regulation on July 7th, and we expect that the environmental, civil and contractual regulation will be published released in the coming months, completing the regulatory framework for the development of the Comprehensive Research Pilot Projects (PPII). The activity planned in the Mid-Magdalena Valley remains within the new 2020–2022 Plan, with an investment of around USD 127 million, and we recently announced a preliminary agreement with ExxonMobil to jointly work on these pilots.
We highlight the reactivation of operations of our activity with Oxy in the Permian during the second half of 2020. Activities will mainly focus on the drilling of 22 new wells, additional to the 22 already producing, and that will be completed and begin production in the first quarter of 2021. We estimate an average net production for the Ecopetrol Group of ~5.5 mboed in 2020, higher than the 4 - 5 mboed announced in the first quarter of the year. In addition to the economic rationale, this reactivation allows us to continue with the knowledge transfer and confirms the competitiveness of the position and the alignment with our strategic partner.
In the midstream segment, transported volume decreased 10% as compared to the first half of 2019, impacted by lower domestic production, as well as lower consumption of crude by our refineries. Given the exceptional situation and, with the aim of mitigating permanent impacts on volumes, a temporary relief program was activated that resulted in total financing of USD 8.7 million and commercial tariffs discounts between 5.5% and 10%s, for April and May. Also, volume requirements were relaxed for some ship-or-pay contracts. No reversal cycles have been carried out this year, thanks to reduced maintenance times for the repair of the Caño Limón oil pipeline.
The downstream segment performance was negatively impacted by the drop in demand associated to the lockdowns, as well as in the prices for major refined products worldwide. However, given the gradual recovery in demand, refineries have increased their throughput, reaching a combined throughput of 300 mbd and an integrated refined gross margin of 8.1 USD/Bl, compared to 364 mbd and 9.7 USD/Bl for the first half of 2019.
On June 25, 2020, the Superintendence of Companies decreed the termination of the reorganization process of Bioenergy, a subsidiary of the Ecopetrol Group, and the opening of a judicial liquidation process within the framework of the corporate insolvency law 1116 of 2006. The liquidation process will be carried out under the rules that govern this kind of processes, under the direction of the Superintendence of Companies.
Continuing with our commitment towards the energy transition and the preservation of the environment, during the first semester we achieved a reduction of 687,769 tons of CO2 equivalent, verified by Ruby Canyon Engineering firm, which will be registered in order to obtain an equivalent number of Certified Emission Reductions. Likewise, in line with the announcement made in the first quarter, the competitive bidding process for the procurement of the San Fernando Solar Park received six bids for its construction. This is the Group's second mega solar farm, which will have a capacity of 50 MW and will be located in the municipality of Castilla La Nueva in Meta, and whose contract is expected to be signed in August. Additionally, we continue to make progress in the maturation of other projects for nearly 100 MW of solar generation that are expected to be awarded during the second half of 2020.
Ecopetrol remains committed to generating sustainable value for society. Today more than ever, the safety and care of our employees and contractors, the reliability of our operations and the financial discipline that leverages results are at the core of our business. With our actions, we continue to promote the implementation of better environmental, as well as the social and economic development of the regions where we operate."
To review the full report please visit the following link:
Bogotá, August 4, 2020
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 3, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the rating agency Moody's kept the Company's long-term international rating at Baa3, with stable outlook.
Moody's highlighted the Company's strength as a leading firm in Colombia, the benefits of being an integrated company, as well as the adequate liquidity levels required to navigate the current situation.
Moody's maintained Ecopetrol's individual credit rating (Stand - Alone/ without incorporating government support) at ba1.
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Juan Pablo Crane De Narváez
Head of Capital Markets
Phone: (+571) 234 5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/moodys-confirms-ecopetrol-sas-investment-grade-rating-301105082.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 29, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on August 4th, 2020 before market opens, it will release its financial and operating results for the second quarter 2020, and its 2020-2022 Business Plan Update. On Wednesday, August 5th, Ecopetrol's senior management will host two conference calls to review the results and the Company's perspectives for the next three years. Please find below the timing, dial-in and links to access the conferences calls:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 10:00 a.m. Col Time |
09:00 a.m. NY Time | 11:00 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 49865469 | Passcode: 49865474 |
For this opportunity the presentation and Q&A session will be held by video conference. To access, the following links will be available:
English: https://onlinexperiences.com/Launch/QReg/ShowUUID=BF09E60F-C83D-4833-B28C-3B5E12042917
To participate in the Q&A session, you will have to access through the telephone lines specified at the top of this release.
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100875&t=P&o=UJCktVOJndARHm
The earnings release, presentation, live webcast and replay of the conference call will be available on Ecopetrol's website: www.ecopetrol.com.co.
Please verify in advance the proper operation of the webcast in your browser. We recommend the use of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
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:
Juan Pablo Crane De Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-the-dates-of-the-second-quarter-2020-earnings-report-and-its-2020---2022-business-plan-update-301101814.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 17, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") informs that the Board of Directors approved a new organic investment plan for the Ecopetrol Group (GE) for an estimated amount between USD$3.0 billion and USD$3.4 billion for 2020. This level of organic investment is similar to what was deployed in 2019 and higher than the investment plan announced in early May.
As a result of the solid financial results reported in 2019, Ecopetrol announced in November of last year an increase in its investment levels for 2020, to a range of between USD$4.5 to USD$5.5 billion (a plan set with an average Brent price of USD$57 per barrel). The unprecedented crisis suffered during the first quarter of 2020, instigated by the simultaneous shocks to the supply (price war) and demand (COVID-19) of oil, resulted in an downward adjustment of the investment level to a range between USD$2.5 and USD$3 billion (with an expected average Brent price of between USD$30 and USD$40 per barrel). After a thorough review of the Company's portfolio and the progression of its interventions, and with the gradual recovery of economic activity, the current outlook allows for an investment increase to a new estimated level of between USD$3 and USD$3.4 billion for 2020.
The new plan ensures the sustainability of the business in a low-price environment, prioritizing cash generating opportunities with better breakeven prices, maintaining growth dynamics focused on the execution of the key assets development plans and on the protection of the value of the asset base through investments that provide for the reliability, integrity and continuity of the operations of its refineries, transport systems and production fields.
The plan was developed based on an expected average Brent price of USD$38 per barrel for 2020. Despite the current low-price environment, this plan remains resilient and competitive, with a cash breakeven price of close to USD$30.
80% of the investments are expected to be focus on projects in Colombia and the remainder in the development of existing resources and reserves, mostly in the United States and Brazil.
In line with Ecopetrol Group's strategic priorities, the plan focuses on disciplined growth in the Upstream segment, to which 78% of the total investment is expected to be allocated, enabling organic production to reach levels of approximately 700,000 barrels of oil equivalent per day (oil and gas) for 2020, with emphasis on enhanced recovery technologies.
With regard to unconventional deposits (YNC for its acronym in Spanish), firm investments in the amount of USD$221 million continue for the scaling up of development activities in the Permian basin in Texas, United States, and of USD$13 million for the maturation of the initiatives associated with Integral Research Pilot Projects for Unconventional Deposits (PPII for its acronym in Spanish) in the Mid-Magdalena Valley basin.
USD$583 million is projected to be invested in Exploration, which is expected to make high-value opportunities viable for the Company, with a core focus on gas. The investments in the Colombian Piedemonte fields and Brazil are worth highlighting, as well as those for the continued evaluation and development of offshore gas discoveries in the Colombian Caribbean. In 2020, 13 exploratory wells are expected to be drilled, 11 of which would be located in Colombia in the Llanos Orientales, Mid-Magdalena Valley, Low-Magdalena Valley and Sinú-San Jacinto basins, and the remaining two in Brazil. Seismic activities are also planned in the amount of USD$17 million.
Investment in the Downstream segment is expected to represent 11% of the total investment and is expected to focus primarily on ensuring the reliability and sustainability of the operation of the Barrancabermeja and Cartagena refineries, as well as continuing the fuel quality and wastewater management programs, thus ensuring increasingly clean effluents. The joint throughput expected from the refineries for 2020 is ranging between 300 and 320 thousand barrels per day. Looking at growth opportunities, the project to interconnect the original crude unit of the Cartagena refinery with the new refinery is expected to continue, with investments of USD$60 million in 2020. This project would increase the refinery's capacity to more than 200,000 barrels per day by 2022.
The Midstream segment is expected to account for 8% of the total investment; these resources are expected to be mostly aimed at guaranteeing the integrity and reliability of the infrastructure, while achieving greater flexibility and efficiency in the logistics for the transportation of heavy crude oil. These investments are also expected to allow for the optimization of future operating costs through the upgrading of equipment and improved performance. The volumes transported are estimated at one million barrels per day, in line with the country's crude oil production expectations and the demand for refined products.
Furthermore, the plan includes funds for maturing and advancing into the incorporation of renewable energy sources, continuing with the digital transformation program and accelerating the development and implementation of technologies to optimize the Group's operation throughout the whole chain, as well as strengthening social and environmental investment programs.
During 2020, more than USD$50 million are expected to be invested in decarbonization projects, among them energy efficiency projects, leakage and vent reduction, and the construction of the San Fernando Solar Park (50 MW) in the department of Meta, to be developed through a PPA (power purchase agreement). In this manner, progress is expected to continue to be made towards the goal of reducing between 1.8 and 2.0 million tonnes of CO2e in 2022, in addition to the 6.6 million tonnes reduced between 2010 and 2019, and the goal of incorporating 300 MW of power generation based on renewable energy sources by 2022.
The plan contemplates allocating resources to the socio-environmental investment program in an approximate amount of $1.7 billion pesos by 2024, with the aim to close social gaps and promote the development and well-being of the communities where we operate, through strategic projects in infrastructure, public services, education, sports and health, rural development and entrepreneurship and business development. In addition, we will continue to provide support to meet specific needs arising from the COVID-19 pandemic in our areas of operation. To date, the resources approved to aid Colombia in the management of the pandemic amount to $88 billion pesos.
In an effort to accelerate the digital transformation process, nearly USD$70 million is expected to be allocated to capture benefits associated with artificial intelligence technologies, blockchain, and bots, among others.
Based on the Company's financial projections as of today, no additional debt requirements are estimated for the current year.
"This new investment plan we are presenting ensures the sustainability of the business and reflects our strategic pillars of cash protection, cost efficiency, capital discipline and profitable and sustainable growth. We maintain a stable level of investment, which demonstrates the Company's resilience, and continue to develop opportunities in natural gas and unconventional reservoirs, as well as move forward with our roadmap towards a profitable and orderly energy transition, in line with our commitment to produce more and increasingly clean energy," said Ecopetrol's CEO, Felipe Bayón Pardo.
Likewise, the plan responds to the best Corporate Governance practices of the Ecopetrol Group, whose priority is the commitment to the life and care of its workers, operational excellence, environmental protection, ethics and transparency, and joint growth with the communities where it operates.
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-further-adjusts-its-2020-investment-plan-to-a-range-of-between-usd3-0-billion-to-usd3-4-billion-301095451.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, May 11, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Ecopetrol Group's financial results for the first quarter of 2020, prepared in accordance with International Financial Reporting Standards (IFRS) applicable in Colombia.
Table 1: Financial Summary of Income Statement – Ecopetrol Group
Billion (COP) | 1Q 2020 | 1Q 2019 | ∆ ($) | ∆ (%) | |
Total sales | 15,072 | 15,943 | (871) | (5.5%) | |
Depreciation and amortization | 2,153 | 1,970 | 183 | 9.3% | |
Variable cost | 6,696 | 6,118 | 578 | 9.4% | |
Fixed cost | 2,438 | 2,147 | 291 | 13.6% | |
Cost of sales | 11,287 | 10,235 | 1,052 | 10.3% | |
Gross income | 3,785 | 5,708 | (1,923) | (33.7%) | |
Operating and exploratory expenses | 1,078 | 751 | 327 | 43.5% | |
Operating income | 2,707 | 4,957 | (2,250) | (45.4%) | |
Financial income (loss), net | (665) | (386) | (279) | 72.3% | |
Share of profit of companies | (1) | 161 | (162) | (100.6%) | |
Income before income tax | 2,041 | 4,732 | (2,691) | (56.9%) | |
Income tax | (630) | (1,674) | 1,044 | (62.4%) | |
Net income consolidated | 1,411 | 3,058 | (1,647) | (53.9%) | |
Non-controlling interest | (347) | (313) | (34) | 10.9% | |
Net income attributable to owners of Ecopetrol before impairment | 1,064 | 2,745 | (1,681) | (61.2%) | |
(Expense) recovery for impairment long-term assets | (1,209) | 0 | (1,209) | - | |
Deferred tax of impairment | 278 | 0 | 278 | - | |
Net income attributable to owners of Ecopetrol | 133 | 2,745 | (2,612) | (95.2%) | |
EBITDA | 5,257 | 7,357 | (2,100) | (28.5%) | |
EBITDA Margin | 34.9% | 46.1% | - | (11.2%) |
The figures included in this report were extracted from the audited financial statements. 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, and are so noted as applicable. For presentation purposes, certain figures of this report have been rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"2020 began as a year with growth prospects and a defined path. However, by the end of the first quarter, we confronted challenging and unexpected market conditions, reflected in a Brent price decline over 65% in comparison to year-end 2019. This change was triggered by external shocks, such as the substantial increase in oil supply, and the COVID-19 pandemic, which has generated a significant contraction of the demand for crude oil and products.
The Group is in a stronger operational and financial position, with a competitive investment portfolio from an industry standpoint, and a level of leverage that provide the flexibility to navigate through this environment. Although this scenario demands a quick response and major adjustments in the short-term, our focus on capital discipline, cash protection, production and reserves growth remain as pillars of the Company's sustainable value promise in the mid and long-term.
The life and safety of our employees across our operations remain our maximum priority. In response to the COVID-19 emergency, we promptly implemented remote work, even prior to authorities' decree of the mandatory lockdown measures. We have developed the "Minimum Operating Vital" concept in order to ensure reliable operations. Currently, out of the 13,000 employees of the Ecopetrol Group, more than 9,000 are working remotely through a secure digital connection.
Furthermore, Ecopetrol Group has contributed with COP 69 billion in social investment to confront the pandemic. These resources are been allocated in strengthening the country's healthcare system and providing humanitarian aid to different regions across the country.
From a financial standpoint, Ecopetrol has set an intervention plan that includes optimization and austerity measures in order to timely align the capital efficiency and costs to a volatile market, preserving the Company's long term value. On March 17, 2020 we announced the first stage of this plan that includes a set of actions in four fronts: i) An increase in revenues; ii) A COP 2 trillion reduction in costs and expenses in order to strengthen the Company's competitiveness; iii) A USD 1.2 billion decrease in the 2020 investment plan, and iv) Ensure financing and cash protection.
We have successfully completed the first stage, achieving optimizations in costs and expenses of COP 3.5 trillion. Furthermore, we have raised around USD 3.1 billion equivalent in financing through the disbursement of the contingent line of credit, short-term facilities, and a bond within international markets. With these actions, we have strengthened our cash position and anticipate any liquidity requirements caused by the deterioration of market conditions. These interventions will be reflected during the following quarter results.
During the first quarter of the year Ecopetrol Group achieved a consolidated net income, including impairment effect, of COP 133 billion and a consolidated EBITDA of COP 5.3 trillion. These results are mainly explained by the decrease in the international Brent price, which declined from 64 USD/Bl in 1Q19 to 51 USD/Bl in 1Q20, and a weakening of crude oil and product basket. By the end of this quarter, the crude basket spread vs. Brent was -10.5 USD/Bl versus -7.6 USD/Bl vis-à-vis the same period in 2019. These results were partially offset by the strengthening of gasoline, naphtha and diesel spreads and a average exchange rate devaluation of 13% during the first quarter of 2020.
The strenghtening of our commercial strategy has allowed us to promptly respond and quickly adapt to the new market conditions. We have been able to anticipate the sale of export crude, diversify end customers, and execute tactical hedges.
On the exploratory campaign, the Group and its partners completed the drilling of three wells in Colombia. In the international front, it is worth to highlight Gato do Mato-4 appraisal well, located offshore in the Santos basin in Brazil's Pre-salt. Currently, Ecopetrol and Shell continue to move forward with the COL-5, Purple Angel and Fuerte Sur project, and negotiations for the Joint Operating Agreement (JOA) are underway as scheduled.
During the first quarter, Ecopetrol Group's average production reached 735 mboed, 7.1 mboed more than in the first quarter of 2019, despite public order events and the deterioration of market conditions. Two important milestones stand out: i) on March 1st, Ecopetrol recovered the operation of the Pauto Sur and Floreña fields, with the termination of the Piedemonte association contract that Equion operated for 9 years, and ii) on April 7 the Superintendence of Industry and Commerce approved the agreement signed between Hocol, subsidiary of the Ecopetrol Group, and Chevron Petroleum Company to acquire the participation of the latter in the Chuchupa and Ballena fields, located in the Department of La Guajira. We continue to move forward with our energy transition strategy and increase our natural gas portfolio.
In the international front, within the framework of the JV with Oxy, a change in the 2020 Plan was agreed, which focuses on prioritizing the preservation and protection of the Company's cash flows. This new plan will result in an average 2020 production of between 4 and 5 mboed, with a total of 21 to 23 operating wells in production by year-end. This plan is already executed thanks to the flexibility of short-cycle assets.
In the midstream segment, transported volumes remained consistent when compared to 1Q19 and maintained its operational stability. We highlight the increase in volumes towards Coveñas through the Ayacucho-Coveñas and ODC corridors due to the decrease in maintenance times for the Caño Limón -Coveñas Pipeline repairs. No reversals cycles were reported for this quarter.
The downstream segment was affected by the decrease in demand for its main products, especially in March, as a result of the COVID-19 pandemic. The gross margin for downstream was 9.5 USD/Bl and the average throughput was 345,000 barrels per day, a 1.7% decrease as compared to the same period of 2019.
We continue our commitment to provide Colombia with cleaner fuels. During the first quarter, the diesel distributed had an average of 10 part per million of sulfur (ppm), and 100 ppm in gasoline. Both levels are below those required by Colombian legislation of 50 ppm for diesels and 300 ppm for gasoline.
As part of our efforts to contribute to the conservation of the environment and move towards decarbonization, during the first quarter we achieved a reduction of 178,099 tons of CO2 equivalent, verified by Ruby Canyon Engineering, which will be registered in order to obtain an equivalent number of Certified Emission Reductions.
In February, the competitive bidding process of the San Fernando Solar Park began through a Power Purchase Agreement scheme which, with an installed capacity of 50 MW, will be the largest solar self-generation park in the country. Likewise, progress continues in the maturation of other projects for an additional 120 MW of solar generation expected to be awarded in 2020.
It would like to highlight two events which took place during this quarter: first, we conducted the first 100% virtual Ecopetrol's General Shareholders' Meeting, in compliance with the measures decreed by the Government in response to the COVID-19 pandemic; and second, a COP 180 dividend per share was approved by the General Shareholders' Meeting, supported by the solid financial performance of the Company in 2019. The latter, in line with the current situation, will be paid out in its majority during the second half of this year.
Current low price environment and a weak demand determined the new reality that we need to incorporate. Therefore, we have decided to move forward with the implementation of additional measures, with the objective of ensuring a sustainable operation and a positive cash flow in the short term, in a Brent price environment between 30 - 40 USD/Bl during 2020. This measures include: i) revenue protection through a profitable production, a proactive commercial strategy and the execution of strategic hedging; ii) an additional COP 1.5 trillion reduction of costs and expenses, reaching a reduction of COP 3.5 trillion to date, to achieve a target of between COP 3.5 - 4.5 trillion in 2020; iii) an adjustment to the investment level to a new range between USD 2.5 - 3.0 billion. We have prioritized those strategic projects which allow us to fulfill our long-term vision and generate value to our shareholders.
Certainly the current environment and the measures adopted to address it will affect the former targets established in the 2020 business plan, which must be reviewed and adjusted to the current price scenario. We will provide an update of the Plan during the second half of the year.
Now, more than ever, Ecopetrol reaffirms its commitment to operational excellence, the safety and care of its employees, the environment protection, joint growth with communities, and the value creation for our shareholders.
To review the full report please visit the following link: https://www.ecopetrol.com.co/wps/portal/Home/en/Investors/Financial%20Information/Quarterly%20Earnings/!ut/p/z1/nZDBDoIwEES_xS_olJLaKyAUlFiLFrAXw8k0UfRg_H6JiYkYU4l7282b2ckQS1pi--7ujt3NXfruNOx7yw8qygUVIZRMVhl0zjKzqxk0BWnGgJozPtyXfAtZMylCYqfoMZoIcRXEDJAq-Ef_7jRN7wGs374h1vdCcXwCXyp6AuuAJ7QI6QbcLKDTVOiqLKmUL8BX0q-Y17MxpoUrXDR7AKAvSJo!/dz/d5/L2dBISEvZ0FBIS9nQSEh/
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-business-group-announces-first-quarter-2020-results-301057148.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, May 5, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on May 11, 2020 after market close, it will release its financial and operating results for the first quarter of 2020. On Tuesday, May 12, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
09:00 a.m. NY Time | 10:30 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 49610935 | Passcode: 49610942 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link:
https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100875&t=P&o=UBjCWZyRqpQRbj
Questions for the Q&A session should be submitted through the webcast chat:
https://event.on24.com/wcc/r/2263597/FEB6CAD7518043B61275C152A41DCDA7
(Spanish)
https://event.on24.com/wcc/r/2291417/A3A007F529285119354B08F27E383687
(English)
The earnings release, slide presentation, live webcast and the replay of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-the-dates-of-the-first-quarter-2020-earnings-report-301053448.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, April 20, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol") announced the filing of its annual report under Form 20-F for the fiscal year ended December 31, 2019 with the U.S. Securities and Exchange Commission (the "SEC").
With the filing of its annual report under Form 20-F the Company complies with its reporting obligations with the U.S. Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE), its bondholders and lenders.
The annual report includes, among others, the financial statements of Ecopetrol in accordance with International Financial Reporting Standards (IFRS) as adopted by the International Accounting Standards Board that were audited and certified in compliance with internal control over financial reporting by the auditing firm Ernst & Young Audit S.A.S. for the years 2017, 2018 and 2019.
Investors may receive a hard copy of Ecopetrol's 2019 Form 20-F free of charge by requesting a copy from the contact below:
Investor Relations Officer
Lina Maria Contreras Mora
Phone: +571-234-5190
E-mail: investors@ecopetrol.com.co
The 2019 Form 20-F can also be accessed by visiting the SEC's website at www.sec.gov or Ecopetrol's website at www.ecopetrol.com.co.
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
Juan Pablo Crane de Narváez
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-files-its-form-20-f-for-the-fiscal-year-2019-301043846.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, March 28, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that the ordinary General Shareholders' Meeting, held on March 27, 2020, approved the earnings distribution proposal presented for their consideration, which establishes the distribution of an ordinary dividend per share of one hundred and eighty pesos (COP$ 180).
The dividend of the minority shareholders will be paid in a single installment on April 23, 2020.
The dividend of the majority shareholder will be paid in two installments: 14% of the dividend on April 23, 2020, and the payment of the remaining 86% of the dividend to be disbursed in the second half of 2020.
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-2019-earnings-distribution-301031323.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, March 25, 2020 /PRNewswire/ -- In accordance with the authorizations and recommendations provided by the Colombian Financial Superintendence and the Superintendence of Companies, the President of Ecopetrol S.A. (the "Company") is permitted to publicize the call notice published on February 25, 2020 and its reminder published on March 22, 2020 in order to specify that:
The ordinary General Shareholders' Meeting (the "Meeting") of Ecopetrol S.A. scheduled for 9 a.m. on Friday, March 27, 2020, will be held remotely due to public health reasons and as required by the mobility restrictions imposed by the Colombian Government.
The Meeting will be streamed live on the Ecopetrol website at www.ecopetrol.com.co and via a public televised broadcast on the Institutional Channel (Canal Institucional), beginning at 9 a.m. on Friday, March 27, 2020.
To ensure shareholders' rights, Ecopetrol has provided a mechanism whereby shareholders may be represented by one of the attorneys the Company will appoint as proxies. These proxies are independent lawyers from a nationally-recognized firm. This proxy process will be free of charge for the shareholders. The instructions for using this system, the list of available proxies and the required forms are available on the Company's website at www.ecopetrol.com.co.
Shareholders of legal age must record their vote on a digital form. For proxies of shares currently subject to inheritance processes, as well as those held by underage shareholders, legal entities and/or persons with disabilities that require legal guardians, the Company will accept their respective proxy forms, votes and supporting documents by email to the following email address: asamblea2020@ecopetrol.com.co. The proxy process will be in effect until 9:00 am on March 26, 2020 (the day prior to the Meeting).
Contributions from shareholders who have completed the proxy process may be sent during the meeting to the following email address: intervencionesaga2020@ecopetrol.com.co. These contributions will be addressed outside the meeting as rights to petition. In these communications, shareholders must include their full names, identification documents, and the names of the attorneys representing them.
FELIPE BAYÓN PARDO
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/general-shareholders-meeting-of-ecopetrol-sa-301029475.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 18, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on February 25, 2020 after market close, it will release its financial and operating results for the fourth quarter and full year 2019, and the 2020-2022 Business Plan. On Wednesday, February 26, Ecopetrol's senior management will host two conference calls to review the results and the company's' perspectives for the next three years. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
08:00 a.m. NY Time | 09:30 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 49382507 | Passcode: 49382509 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100875&t=P&o=UWzWlwdZpqgsdP
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/2189986/468F54015B1BABCBB07BEE4EE94F9C56 (Spanish)
https://event.on24.com/wcc/r/2189990/0220A0FCD7060EFA418E7761651D2DC8 (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-the-dates-of-the-fourth-quarter-and-full-year-2019-earnings-report-and-its-2020-2022-business-plan-301006576.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 7, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) and Shell, through its subsidiary Shell EP Offshore Ventures Limited ("Shell"), signed an agreement whereby Shell will acquire a 50% stake in Fuerte Sur, Purple Angel and COL-5 blocks, located in the Colombian Caribbean deep-water, where a new gas province was discovered including the Kronos (2015), Purple Angel and Gorgon (2017) wells, which were previously announced to the market.
Following this commercial agreement, which includes the financing of Ecopetrol's investments by Shell, the latter will assume the operation of the blocks, the drilling of an appraisal well in the area by the end of 2021 and the completion of the first production test, once the approvals from the authorities are received. If these activities provide positive results, the discoveries could be further developed and consequently, expand the country's gas supply in the medium term, potentially exceeding 3 TCF (tera cubic feet) according to Ecopetrol's estimations.
The agreement between Ecopetrol and Shell is subject to approval by the National Hydrocarbon Agency and the fulfillment of other customary transaction conditions.
-----------------------------------------
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:
Juan Pablo Crane de Narváez
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Jorge Mauricio Tellez
Media Relations (Colombia)
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-and-shell-join-efforts-to-develop-the-gas-province-of-the-colombian-caribbean-301000941.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 3, 2020 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that having completed all legal and accounting analyses regarding the ruling issued by the Supreme Court of Justice dated October 30, 2019, reported by this same means, whereby the Company obtained a 51.88% shareholding of INVERCOLSA, this investment will be classified in Ecopetrol S.A's Separate Financial Statements as a subsidiary, rather than an associated company, whereby its consolidation process will begin, including all accounting matters, as of December 2019.
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 (a)
Fernando Suárez Tello
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-reports-on-the-changes-to-the-accounting-classification-of-one-of-its-investments-300998145.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 3, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) reports that the risk-rating agency Fitch Ratings has maintained the company's credit rating at BBB with negative outlook, and its stand-alone rating (without incorporating government support) at bbb.
In the press release, Fitch noted the strength of Ecopetrol's financial profile, due to the continuous improvement in its credit metrics in 2019. The agency also emphasized the company's solid liquidity position, supported by its cash deposits, positive cash flow generation, strong access to the capital markets and adequate debt maturity profile.
In its report, the rating agency noted the improvement in reserves life in 2018 to 7.2 years, from 6.8 years in 2016, as a result of a reserves replacement ratio of 129%.
The rating agency also highlighted the company's close relationship with the Colombian government and its strategic importance for the country. The negative outlook is in line with the outlook for the Republic of Colombia (BBB/ negative).
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance its sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, the performance of the Colombian economy and industry, and other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
Fernando Suárez Tello
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/fitch-ratings-confirms-ecopetrol-sas-investment-grade-rating-300968666.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Nov. 28, 2019 /PRNewswire/ -- In accordance to Colombian Corporate Law and Securities Regulations concerning illegal, unauthorized and unsafe practices by the issuers of securities, the Board of Directors of Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") approved the following measures to guarantee the adequate representation of the shareholders at the Extraordinary General Shareholders' Meeting to be held on Monday, November 16, 2019 (the "Meeting"):
The measures listed above, adopted by the Board of Directors of Ecopetrol will be made public to the market by the Chairman of the Board of Directors, acting through the Superintendent for Issuers, prior to the Meeting.
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 (a)
Fernando Suárez Tello
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/ecopetrol-adopts-measures-to-guarantee-the-adequate-representation-of-shareholders-at-the-2019-extraordinary-general-shareholders-meeting-300966702.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Nov. 28, 2019 /PRNewswire/ -- In connection with the convening of an Extraordinary Shareholders' Meeting of Ecopetrol S.A.'S shareholders, requested by the majority shareholder (the Ministry of Finance and Public Credit of Colombia), for the purpose of (i) submitting the proposed modification of the Company's occasional reserve and (ii) its subsequent distribution as an extraordinary dividend for consideration at such extraordinary General Shareholders' Meeting, the table below provides the details of the distribution project proposed by the Ministry of Finance and Public Credit:
Occasional Reserve Distribution | |
Total occasional reserve available: | COP $ 3,691,130,198,643 |
Number of shares: | 41,116,694,690.1959 |
Amount of occasional reserve for distribution | COP $ 3,659,385,827,427 |
Value for distribution per share: | COP $ 89 |
Value of reserve not distributed: | COP $ 31,744,371,216 |
The date established for payment of dividends is December 23, 2019, for all dividends to be paid to minority shareholders, and December 26, 2019 for payment of all dividends to the majority shareholder. |
The aforementioned Company's occasional reserve was approved by the Ordinary General Shareholders' Meeting held on March 29, 2019 from the net profits generated during the years ended December 31, 2016, 2017 and 2018. The reserve was allocated based on the earnings distribution proposal approved by the General Shareholders' Meeting in accordance with the financial statements of the company for the year ended December 31, 2018, which were subject to inspection in accordance with applicable law and the Company Bylaws.
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 (a)
Fernando Suárez Tello
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/distribution-of-occasional-reserve-to-be-submitted-for-consideration-of-the-general-shareholders-meeting-of-ecopetrol-sa-300966700.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Nov. 28, 2019 /PRNewswire/ -- The Chief Executive Officer of Ecopetrol S.A. invites the Shareholders of the Company to attend the Extraordinary General Shareholders' Meeting to be held on Monday, December 16, 2019, starting at 7:30 a.m., at the Auditorium of the International Center of Business and Exhibitions (Centro Internacional de Negocios y Exposiciones, Corferias), located at Carrera 37 No. 24 – 67 in Bogotá.
The agenda for the meeting will be:
The Shareholders may consult the supporting information of the agenda on the website of Ecopetrol S.A. The Shareholders who are unable to attend the Shareholders´ Meeting may be represented by proxy, granted in writing and it has to meet the requirements established on Article 184 of the Colombian Code of Commerce. The proxy form can be obtained from the web site of Ecopetrol S.A.
Except for cases of legal representation, officers and employees of Ecopetrol S.A. shall not represent shares, other than their own, while in exercise of their position, nor shall they be allowed to substitute the powers of attorney conferred upon them.
Shareholders´ representation shall be subject to the Basic Legal Principles Issued by the Financial Superintendence of Colombia, concerning illegal, unauthorized and unsafe practices by the issuers of securities.
FELIPE BAYÓN PARDO
Chief Executive Officer
For more information, you can consult the following link: https://www.ecopetrol.com.co/wps/portal/web_es/ecopetrol-web/our-company/Press-Room/Press-Release/2015/2015/extraordinary-gsm-2019
The meeting will be broadcasted live on Ecopetrol´s web site.
Recommendations:
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 (a)
Fernando Suárez Tello
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/extraordinary-general-shareholders-meeting-of-ecopetrol-sa-300966698.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Nov. 25, 2019 /PRNewswire/ --
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that in 2020 the Ecopetrol Group (GE) plans to invest an expected US$4.5 to US$5.5 billion, 25% to 53% higher than the estimated 2019 figure for organic investment.
The plan approved by the Board of Directors, which prioritizes opportunities under strict capital discipline, is aimed at maintaining the Ecopetrol Group's growth and consolidation momentum, producing efficiencies that ensure profitability with a focus on energy and environmental and social sustainability.
The plan was developed under the assumption of a projected Brent price of USD 50 to 60 per barrel. Within this range, the plan's goal is to ensure a return on average capital employed (ROACE) of over 12%, which is expected to position Ecopetrol as one of the best value-generators among its peers, with projected efficiencies of COP 1.6 trillion, to be added to the over COP 11 trillion achieved in the past five years.
The plan assumes an equilibrium price of some US$30 per barrel at which positive net earnings would be generated in 2020, thus demonstrating the Ecopetrol Group's resilience to fluctuating oil prices.
In line with the strategic priorities of the GEE, the plan focuses on disciplined growth in the upstream sector, to which 80% of total expected investments are projected to be allocated, thus affording organic production of 750 to 760 thousand barrels of oil-equivalent per day (oil and gas), and the incorporation of new proven reserves equivalent to at least 100% of annual production.
Seventy-eight percent of these investments are expected to be allocated to projects in Colombia, with the remainder to be invested in positioning and developing the Ecopetrol Group's operations in the United States, Mexico and Brazil.
It is anticipated drilling 18 exploratory wells in the basins with the highest potential, particularly in Colombia, which represents a total of 16 of the 18 wells to be drilled.
The Ecopetrol Group also intends to continue its evaluation and development of offshore natural gas discoveries in the Colombian Caribbean, with investments expected to total US$76 million. In terms of non-conventional deposits, we expect to continue with the maturing of initiatives associated with the Comprehensive Non-Conventional Deposits Research Pilot Project (PPII) at Valle Medio del Magdalena and the scaling of development activities in the Permian Basin of Texas, United States.
Investment in the Downstream segment is expected to represent 11%, with the Midstream segment expected to represent 7% of investment allocation under the plan. These investments are expected to be oriented primarily toward ensuring the sustained reliability and profitability of operations at the Barrancabermeja and Cartagena refineries, and of the entire network of oil pipelines and poly-duct lines. The investments are also expected to allow for the optimization of future operating costs, through equipment upgrades and enhanced performance.
We highlight the project to connect the original crude unit of the Cartagena refinery with the new refinery, which is expected to result in increased capacity of over 200,000 barrels per day in 2021. This initiative calls for an expected investment of US$85 million in 2020, which is expected to increase the availability of clean products, promote improvement in the national fuel supply and position the Group to take advantage of commercial opportunities associated with Marpol.
In the Downstream segment, expected throughput for the refineries in 2020 is projected to be some 380 thousand barrels per day. Funds for fuel quality and wastewater management programs are also being considered, to ensure that effluents are increasingly clean.
The Midstream segment is expected to continue strengthening its profitability, supported by greater volumes for both oil pipelines and poly-ducts, better operating results and lower capital employed. Transported volumes are estimated at 1.2 million barrels per day, in line with expectations for the Colombia's production of crude oil and the higher demand for refined products.
Finally, the plan includes funds for maturing projects in order to incorporate sources of renewable energy, the digital transformation program and the development and implementation of technologies to optimize the Ecopetrol Group's operations along the entire production chain, as well as a strengthening of socio-environmental investment programs.
US$150 million is expected to be invested in energy transition and carbon reduction in 2020. Further, progress is expected to be made toward the goal of reducing 1.8 million tons of CO2 by 2022, in addition to the 5 million tons already reduced in the past five years.
The plan includes funding for the medium-term socio-environmental investment program, with an expected investment of COP 1.7 trillion for the upcoming three years, with a view to help close socioeconomic gaps and boost community sustainable development and wellbeing. The priority areas for the socio-environmental investment program are public and community infrastructure, public services, education, sports and health, rural development and business entrepreneurship.
To strengthen the digital transformation, US$91 million are expected to be allocated at capturing benefits associated with artificial intelligence, block chain and bot technologies, among others. An additional US$35 million are expected to be invested in leveraging new innovation processes, including creating strategic alliances and innovation ecosystems.
"This plan includes a significant increase in our investment to continue along the path of profitable and sustainable growth. It also blazes the trail for the Ecopetrol Group to make an orderly energy transition, in line with our commitment to contribute to the country's energy security and to produce more clean energy that contributes to the wellbeing of all Colombians," said Ecopetrol CEO Felipe Bayón Pardo.
The investment plan is expected to be financed with own resources. The Group's solid cash position and low level of debt afford financial flexibility to take advantage of inorganic opportunities consistent with the Group's strategy, while maintaining its capacity to react to potential changes in the macroeconomic environment.
It is also consistent with the best corporate governance practices of the Ecopetrol Group, which priorities continue to be operational excellence, a commitment to industrial safety and care for its workers, protection of the environment, ethics and transparency, and growth in collaboration with the communities.
Bogotá D.C., November 25, 2019
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 (a)
Fernando Suárez Tello
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/ecopetrol-announces-greater-levels-of-investment-for-2020-us4-5-to-us5-5-billion-300964474.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 13, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("the Company") informs that today it completed the joint venture transaction announced last July 31, 2019. Through this deal, the Company and Occidental Petroleum Corp (NYSE: OXY) agreed to form a strategic alliance or Joint Venture ("JV") for the development of unconventional reservoirs in approximately 97,000 acres of the Permian Basin in the State of Texas (US).
For these purposes, Ecopetrol Permian LLC, 100% owned by Ecopetrol S.A., has acquired a 49% stake in Rodeo Midland Basin LLC, a company incorporated in the State of Delaware, meeting the capital requirements of such jurisdiction and whose economic activity will be directed towards the execution of the joint development plan under the JV. After the transaction, which has an already announced value of approximately 1.5 billion dollars (50% in cash and 50% in carry), Occidental will retain 51% of Rodeo Midland Basin LLC, through its affiliate Occidental Midland Basin LLC.
For the acquisition and closing of the transaction, Ecopetrol S.A. made an initial payment of approximately 876.5 million dollars (equivalent to 50% of the total transaction value) comprised as follows: (i) approximately 750 million dollars corresponding to its share of the transaction value of the JV and (ii) 126.5 million dollars corresponding to the estimated expenditures of the development plan in 2019 between the effective date of the JV (August 1, 2019) and the rest of the year.
Presently, there are two rigs in operation in the area. Two wells have been drilled and are in completion in order to achieve their first production by the end of 2019. Activity levels are expected to continue to increase through next year, with four rigs expected to be in operation by the end of 2020. The JV is expected to allow the Ecopetrol Group to incorporate proven reserves of approximately 160 million boe by the end of 2019.
This transaction is aligned with Ecopetrol's strategic priorities outlined in the 2019-2021 business plan, which are focused on reserves and production growth under strict capital discipline, supported by exploration activities, enhanced oil recovery, unconventional resources and the internationalization of operations. It also strengthens Ecopetrol's relationship with a respected, strategic partner, highly experienced in the development of unconventional resources.
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 (a)
Carolina Tovar Aragon
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.
BOGOTÁ, Colombia, Nov. 7, 2019 /PRNewswire/ -- Ecopetrol reports that its US subsidiary, Ecopetrol America LLC, has participated in the drilling of the Esox-1 well under a Farmout Agreement with Chevron U.S.A. Inc. The well which resulted in the discovery of light oil is located in Mississippi Canyon Block No. 726 in the deep waters of the Gulf of Mexico (USA).
Ecopetrol has elected to participate in the completion of the Esox-1 well earning a 21.43% interest in the well and the Esox Prospect (restricted to depths above the Tubular Bells Field pay sands).
As a result of the collective effort, last week Hess announced that the Esox-1 well was drilled in 1,405 meters (4,609 feet) of water, and 58 meters (191 feet) of net sand with light oil were found.
The well is located approximately 10 kilometers (6 miles) from the Tubular Bells production facilities, which will allow production to begin in the first quarter of 2020 with competitive costs, and solid financial returns are also expected, as reported by the operator.
"This transaction, with a partner such as Chevron allows us to strengthen our presence in one of the basins with the greatest potential in the world, the Gulf of México, in the United States, and maintain a strategy focused on production and reserves growth. This acquisition formalizes an exploratory operation in which we have participated from its inception, and for which Hess, another world-class partner, recently reported a high-quality oil discovery, one that will be in production in a few months," said Felipe Bayón, President of Ecopetrol.
Ecopetrol has an interest in 51 blocks in the Gulf of Mexico (USA). Between January and September of 2019, Ecopetrol America's production reached 13,200 barrels of oil equivalent per day (kbped), which represented an increase of 14% compared to the same period over the previous year.
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact:
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Fax: +571-234-4480
Email: mauricio.tellez@ecopetrol.com.co
View original content to download multimedia:http://www.prnewswire.com/news-releases/ecopetrol-part-of-a-light-oil-discovery-in-the-deep-waters-of-the-gulf-of-mexico-usa-300954371.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 6, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) reports that, as mentioned in certain media and in searches on the Judiciary website, the Colombian Supreme Court of Justice has handed down a ruling upholding the Superior Court of Bogotá's decision invalidating the acquisition in 1997 of 145 million ordinary shares of INVERCOLSA by Mr. Fernando Londoño Hoyos, which means these shares will revert to the property of Ecopetrol S.A., thus increasing its equity stake in INVERCOLSA from 43.35% to 51.88%.
It is important to clarify that the ruling has not been notified to date, and therefore its legal and financial implications will be evaluated in detail once the Company has received the complete text of the court decision.
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:
Capital Markets Manager (a)
Fernando Suárez
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-responds-to-information-published-in-the-media-on-the-ruling-ordering-145-million-invercolsa-shares-to-be-returned-to-ecopetrol-300952781.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Oct. 29, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Ecopetrol Group's financial results for the third quarter and the first nine months of 2019, prepared in accordance with International Financial Reporting Standards applicable in Colombia.
Table 1: Income Statement Financial Summary – Ecopetrol Group
Billion (COP) | 3Q 2019 | 3Q 2018 | ∆ ($) | ∆ (%) | 9M 2019 | 9M 2018 | ∆ ($) | ∆ (%) | ||
Total sales | 18,014 | 17,876 | 138 | 0.8% | 52,266 | 49,506 | 2,760 | 5.6% | ||
Depreciation and amortization | 2,166 | 2,053 | 113 | 5.5% | 6,189 | 5,723 | 466 | 8.1% | ||
Variable cost | 6,735 | 6,342 | 393 | 6.2% | 19,629 | 17,361 | 2,268 | 13.1% | ||
Fixed cost | 2,339 | 2,228 | 111 | 5.0% | 6,870 | 6,143 | 727 | 11.8% | ||
Cost of sales | 11,240 | 10,623 | 617 | 5.8% | 32,688 | 29,227 | 3,461 | 11.8% | ||
Gross income | 6,774 | 7,253 | (479) | (6.6%) | 19,578 | 20,279 | (701) | (3.5%) | ||
Operating and exploratory expenses | 1,062 | 1,600 | (538) | (33.6%) | 2,952 | 3,062 | (110) | (3.6%) | ||
Operating income | 5,712 | 5,653 | 59 | 1.0% | 16,626 | 17,217 | (591) | (3.4%) | ||
Financial income (loss) | (648) | (521) | (127) | 24.4% | (1,426) | (1,710) | 284 | (16.6%) | ||
Share of profit of companies | 56 | 57 | (1) | (1.8%) | 290 | 239 | 51 | 21.3% | ||
Income before income tax | 5,120 | 5,189 | (69) | (1.3%) | 15,490 | 15,746 | (256) | (1.6%) | ||
Income tax | (1,770) | (2,182) | 412 | (18.9%) | (5,315) | (6,155) | 840 | (13.6%) | ||
Net income consolidated | 3,350 | 3,007 | 343 | 11.4% | 10,175 | 9,591 | 584 | 6.1% | ||
Non-controlling interest | (339) | (232) | (107) | 46.1% | (932) | (682) | (250) | 36.7% | ||
Net income attributable to owners of Ecopetrol | 3,011 | 2,775 | 236 | 8.5% | 9,243 | 8,909 | 334 | 3.7% | ||
EBITDA | 8,270 | 7,997 | 273 | 3.4% | 23,934 | 23,756 | 178 | 0.7% | ||
EBITDA Margin | 45.9% | 44.7% | - | 1.2% | 45.8% | 48.0% | - | (2.2%) |
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, and this is so indicated where applicable. For presentation purposes, certain figures of this report were rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"The Ecopetrol Group achieved sound operational and financial results during the first nine months of the year, in particular net profit of 9.2 trillion pesos and EBITDA of 23.9 trillion pesos, equivalent to an EBITDA margin of 46%.
As of the close of the quarter, we reported a solid cash position of 16 trillion pesos, even after paying the third installment of dividends to the government on 2018 earnings, totaling 2.7 trillion pesos.
These results demonstrate the good operational performance in all segments and the positioning of our crudes in markets that generate greater value. The above, coupled with the devaluation of the average exchange rate, the financial savings associated with the prepayment of the debt and the lower nominal tax rate. All this allowed to compensate, the lower Brent price, which went from USD 76 per barrel in the third quarter of 2018 to USD 62 per barrel at the end of this quarter. We positively highlight the spread of crude oil basket of -5 USD/bl in the third quarter compared to -8.4 USD/bl for the same period of 2018.
On the international arena, I am pleased to highlight two very important milestones: the first, our entry to the Midland in the Permian basin, the most prolific in the world, through a Joint Venture (JV) with Occidental, to participate in the exploitation of unconventional resources. The JV would allow the company to incorporate proven reserves (P1) of around 160 million barrels of oil equivalent and increase production progressively until 2027, when it would contribute a net production for Ecopetrol estimated at about 95 thousand barrels of oil equivalent per day. The JV will also allow Ecopetrol to strengthen its knowledge in the evaluation, development and exploitation of unconventional resources.
Second, the execution of an agreement with Shell Brasil Petróleo Ltda. to acquire 30% stake in the "Gato do Mato" discovery, located in two offshore areas of Brazil's Santos basin, in the so-called Pre-Salt.
Under this agreement, Shell will reduce its stake from 80% to 50% and continue as operator, while the French oil company Total will retain the remaining 20%. With this purchase, Ecopetrol deepen its strategic position in Brazil's Santos basin.
It is important to note that these invesments are aligned with the strategic priorities of the 2019-2021 business plan, focused on the growth of reserves and production under strict capital discipline. The transactions will be paid with our cash.
On the other hand, we receive in a respectful, prudent and responsible manner, the provision of the State Council that allows us to advance to a research stage through the Pilot Projects (PPII, by its acronym in Spanish) recommended by the Experts Committee.
We believe that advancing to a research stage is a key opportunity to rigorously evaluate the possibility of developing unconventionals in Colombia. For Ecopetrol, this is a step forward that will be assuming responsibly, in strict compliance with the regulations and provisions of the authorities, while ensuring deep respect for the environment and communities.
In the production segment, during the quarter we faced a challenging environment and some operational limitations that forced us to temporarily shut down our Tibú, Caño Limón and Gibraltar fields, causing our average production for the quarter to be at 720 thousand barrels of oil-equivalent per day. However, accumulated average production to September was 723 thousand barrels of oil-equivalent per day, 8 thousand barrels higher than in the same period last year, in line with the 2019 target.
We note the positive results of the Group's subsidiaries, which contributed more than 60 thousand barrels of oil-equivalent per day during the first nine months of the year, some 8.4% of total production. The recovery program, which is the strategic pillar for adding hydrocarbon reserves, contributed 30% of the Group's daily production.
In the exploration campaign, the Group and its partners completed the drilling of 13 exploratory wells, exceeding the goal of 12 wells for the year, with a success rate of 38%. We note the success of the Flamencos-1 well, in the Valle Medio del Magdalena basin, 100% operated by Ecopetrol. This discovery forms part of the Near Field exploration strategy, which consists in identifying and testing opportunities in the vicinity of already existing fields and facilities.
In the transport segment, we highlight the higher volumes of crude transported. It is also worth to highlight the logistical improvements made at Buenaventura, facilitating the port's use as an alternate route for supplying fuels to the country's south western region, as well as the commissioning of the Chinchiná-Pereira bypass. This project demonstrate our commitment to emphasizing safety as a pillar of our operations.
During the third quarter, the oil pipeline network continued to suffer from attacks by third parties; nevertheless, contingent operations on the Bicentenario oil pipeline have succeeded in mitigating these impacts.
In the Downstream segment, during the third quarter of the year we achieved a new historic maximum average throughput of 389 thousand barrels per day for the two refineries, thus demonstrating their effective performance despite unscheduled operating events. Gross combined refining margin was 10.2 USD/bl, impacted mainly due to lower product prices and the strengthening of medium and heavy crudes, consistent with the behavior of the international market.
With regards the investment plan, between January and September 2019 the Group executed investments totaling USD 2,317 million, up 29% versus the same period in 2018. Eighty-one percent of investments were concentrated in the upstream segment, in line with the Group's strategic priorities.
As part of our efforts to contribute to preserving the environment, we have committed to reducing greenhouse gas emissions by 20% by the year 2030, and reducing our operational vulnerability to climate change. It is important to highlight that Ecopetrol S.A. was the first company in Colombia's Oil and Gas sector to verify its reduction in greenhouse gas emissions from operating processes. The firm Ruby Canyon Engineering verified the reduction of over one million tons of CO2-equivalent between 2013 and 2017.
Along these same lines, Ecopetrol has entered into an agreement with the Colombian Ministry of Environment and Sustainable Development to improve the country's environmental quality and sustainable development, in areas such as water resources, biodiversity, climate change, circular economy and improved air quality.
In addition to the above, we have met an important milestone in our energy transition process. On October 18th, we inaugurated the largest solar farm for self-generation of energy in Colombia, located in the city of Castilla La Nueva, in the Department of Meta. It has installed capacity of 21 peak megawatts and will supply energy for the next 15 years to the Castilla field, Ecopetrol's second largest. The tariff of the energy produced by the solar farm represents savings of more than 30% compared to that supplied by the national electricity grid.
The entry into solar energy demonstrates Ecopetrol's commitment to renewable energies. This operation will prevent the emission of over 154,000 tons of CO2 into the atmosphere.
Over the year, we have focused our efforts on activities such as water recycling. During the third quarter, we reused some 66 million cubic meters of water, up 4% versus the same period the year.
We maintain our commitment to profitable growth in production and reserves with sustainable results, reducing the impacts of our operations, encouraging good environmental practices and promoting the socio-environmental development of the regions in which we are active."
To review the full report please visit the following link:
https://www.ecopetrol.com.co/english/documentos/Reporte%203Q19%20-%20ENG%20FINAL.pdf
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager (e)
Fernando Alexander Suarez
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329 - Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-group-announces-third-quarter-and-the-first-nine-months-of-2019-results-300947737.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Oct. 23, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on October 29, 2019 after market close, it will release its financial and operating results for the third quarter of 2019. On Wednesday, October 30, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
09:00 a.m. NY Time | 10:30 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 49077369 | Passcode: 49077370 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: https://www.conferenceplus.com/AlternateNumbers/alternatenumbers.aspx?100875&t=P&o=UralAieLIeFEmO
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/2104281/3AD1B259354A60DA139521B483BFC956 (Spanish)
https://event.on24.com/wcc/r/2104367/9282D876BB266F2D0B10AD27078FF208 (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager (a)
Fernando Suárez
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-timing-of-the-third-quarter-of-2019-earnings-report-and-conference-call-300944425.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 22, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that regulatory approvals were received today in the United States to form the joint venture between Ecopetrol and OXY, announced last July 31 in a press release.
The transaction is expected to close by year end.
-----------------------------------------
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:
Capital Markets Manager (a)
Fernando Suárez
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-and-oxy-receive-us-approval-for-investment-agreement-in-permian-basin-300943004.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 21, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL, NYSE: EC) reports that its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda has entered into an agreement with Shell Brasil Petróleo Ltda. to acquire 30% of the interests, rights and obligations in two areas corresponding to the BM-S-54 Concession Agreement and the Sul de Gato do Mato Shared Production Agreement, located offshore in Brazil's Santos basin, in the so-called Pre-Salt, where a hydrocarbon deposit known as "Gato do Mato" was discovered.
Under this agreement, Shell will reduce its stake from 80% to 50% and continue as operator, while the French company Total will retain the remaining 20%. In addition to these oil companies, the Brazilian government also participates in the Shared Production Agreement, through Pré-Sal Petróleo S.A. (PPSA). After discounting this share, the consortium will proportionally maintain the above percentages.
Three wells that have discovered light hydrocarbons have been drilled in these two blocks. The consortium will continue executing activities and operations in order to initiate production in coming years.
"Joining this discovery in the Brazilian Pre-Salt with world-class companies is part of our growth and internationalization strategy, focused on high potential basins such as Santos in Brazil. This acquisition balances our production portfolio by adding light hydrocarbons. In 2018 we announced the entrance into the Pre-Salt, an area with one of the greatest potential in the continent. Today we strengthen our presence by being part of a discovery that will give us production in a few years" said Felipe Bayon, president of Ecopetrol.
According to Ecopetrol's estimates, the company could incorporate some 90 million barrels of crude in contingent resources as of 2020, which will be gradually added to its balance of reserves. Ecopetrol also estimates that its share of production could total around 20,000 barrels per day of crude in 2025.
This agreement is in line with the company's strategy of capital discipline and sustainable growth in reserves and production and strengthens Ecopetrol's position in the Santos basin in Brazil. The Gato do Mato stake will add to our current position at Pau-Brasil and Saturno blocks.
The agreement signed by Ecopetrol Óleo e Gás do Brasil Ltda. and Shell Brasil Petróleo Ltda. is subject to the respective approvals of assignment to Ecopetrol by Brazil's Ministry of Mines and Energy, the country's National Agency of Petroleum, Natural Gas and Biofuels and other customary transaction conditions.
-----------------------------------------
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Mexico, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager (e)
Fernando Alexander Suárez
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-acquires-30-of-the-gato-do-mato-discovery-in-brazils-pre-salt-300941988.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 12, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Ecopetrol Group's financial results for the second quarter of 2019, prepared in accordance with International Financial Reporting Standards applicable in Colombia.
Table 1: Income Statement Financial Summary – Ecopetrol Group | ||||||||||
Billion (COP) | 2Q 2019 | 2Q 2018 | ∆ ($) | ∆ (%) | 6M 2019 | 6M 2018 | ∆ ($) | ∆ (%) | ||
Total sales | 18,309 | 16,987 | 1,322 | 7.8% | 34,251 | 31,630 | 2,621 | 8.3% | ||
Depreciation and amortization | 2,052 | 1,899 | 153 | 8.1% | 4,023 | 3,670 | 353 | 9.6% | ||
Variable cost | 6,777 | 5,818 | 959 | 16.5% | 12,893 | 11,019 | 1,874 | 17.0% | ||
Fixed cost | 2,385 | 2,040 | 345 | 16.9% | 4,531 | 3,915 | 616 | 15.7% | ||
Cost of sales | 11,214 | 9,757 | 1,457 | 14.9% | 21,447 | 18,604 | 2,843 | 15.3% | ||
Gross income | 7,095 | 7,230 | (135) | (1.9%) | 12,804 | 13,026 | (222) | (1.7%) | ||
Operating expenses | 1,137 | 846 | 291 | 34.4% | 1,890 | 1,462 | 428 | 29.3% | ||
Operating income | 5,958 | 6,384 | (426) | (6.7%) | 10,914 | 11,564 | (650) | (5.6%) | ||
Financial income (loss) | (391) | (620) | 229 | (36.9%) | (776) | (1,189) | 413 | (34.7%) | ||
Share of profit of companies | 72 | 96 | (24) | (25.0%) | 233 | 182 | 51 | 28.0% | ||
Income before income tax | 5,639 | 5,860 | (221) | (3.8%) | 10,371 | 10,557 | (186) | (1.8%) | ||
Income tax | (1,872) | (2,093) | 221 | (10.6%) | (3,546) | (3,973) | 427 | (10.7%) | ||
Net income consolidated | 3,767 | 3,767 | 0 | 0.0% | 6,825 | 6,584 | 241 | 3.7% | ||
Non-controlling interest | (280) | (248) | (32) | 12.9% | (593) | (450) | (143) | 31.8% | ||
Net income attributable to owners of Ecopetrol | 3,487 | 3,519 | (32) | (0.9%) | 6,232 | 6,134 | 98 | 1.6% | ||
EBITDA | 8,307 | 8,609 | (302) | (3.5%) | 15,665 | 15,759 | (94) | (0.6%) | ||
EBITDA Margin | 45.4% | 50.7% | - | (5.3%) | 45.7% | 49.8% | - | (4.1%) |
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, and this is so indicated where applicable. For presentation purposes, certain figures of this report were rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"In the first half of 2019 the Ecopetrol Group reported a net profit of COP 6.2 trillion and an EBITDA of COP 15.7 trillion, equivalent to an EBITDA margin of 45.7%.
These results demonstrate the financial and operational strength of the company, which faced a challenging market environment during the second quarter, given the decline in international prices for Brent, naphtha and gasoline, as well as operating restrictions throughout the first half of the year, due to the scheduled maintenances in some fields and at the refineries, in order to achieve the highest standards of integrity in our operations.
On the positive side, we note the spread in the crude basket of -6.4 USD/bl in the first half of the year, supported by the strengthening of heavy crudes in the region and the commercial strategy of seeking higher-value markets, which helped offset the performance of international refined product prices. The 12% devaluation in the exchange rate compared to the first half of 2018 also favored our results.
The Ecopetrol group's first-half production totaled 726,000 barrels of oil-equivalent per day, increasing 2% compared to the same period the previous year, in line with the 2019 target. The positive results of the drilling campaign in fields such as Akacias and Rubiales, and the solid performance of the recovery program, which contributed 30% of production in the semester, partially mitigated the impact of the scheduled maintenances at the Oripaya, Cusiana and Cupiagua fields.
Sales volumes totaled 913,000 barrels-equivalent per day, increasing 4.2% compared with the first half of 2018, primarily driven by higher crude exports, and refined products from the Cartagena refinery.
On the exploratory front, the Ecopetrol Group continued to expand its presence throughout Colombia, with the award of five blocks by the National Hydrocarbons Agency during the 2019 Permanent Area Allocation Process (PPAA). Further, three of the 10 exploratory wells that were drilled demonstrated the presence of hydrocarbons.
In July, the process of setting new crude transport tariffs was completed, which will allow a moderate increase in the midstream segment's revenues, ensuring its financial stability for the next four years and the generation of cash for the group. Operationally, we highlight that production barrels that had been being transported by tanker, are now being transported by pipeline, as a result of the segment's commercial management.
In the downstream segment, during the second quarter we carried out a scheduled maintenance at the hydrocracking unit of the Cartagena refinery, which together with the one completed at the Barrancabermeja refinery in the first quarter, will ensure operational stability, the quality of the diesel produced and will prepare us to take advantage of future benefits of the MARPOL (International Convention for the Prevention of Pollution from Ships) regulation. Throughput for the quarter totaled 379,000 barrels of oil per day, in line with the business plan target.
This segment's financial results continued to be impacted by the unfavorable pricing environment for international refined products, primarily naphtha and gasoline, combined with the appreciation in heavy crudes, which comprise our refineries' feedstock.
Regarding the investment plan, the Ecopetrol Group executed USD 1,392 million in the first half of 2019, increasing 38% versus the first half of 2018, of which 81% was allocated in the upstream segment, consistent with the Ecopetrol Group's growth strategy.
Continuing with the efficiency strategies, we launched the new 2019 – 2023 phase, with a target of COP 8.0 trillion, involving initiatives which seek efficiencies mainly through the optimization of capex and operating costs as well as the increase of revenues and margins. During the first half of the year, COP 958 billion in efficiencies were incorporated, concentrated largely in optimizing investments in drilling and facilities construction. This is in addition to the COP 10.2 trillion of accumulated savings between 2015 and 2018.
On the environmental front, Ecopetrol S.A. was the first company in Colombia's Oil and Gas sector to verify its reduction in greenhouse gas emissions from operating processes. The firm Ruby Canyon Engineering verified the reduction of over one million tons of CO2-equivalent between 2013 and 2017. In environmental terms, this would be equivalent to reforesting 100,000 hectares of forest.
Social and environmental investments in the first half of 2019 totaled COP 28,339 million, confirming our commitment to the environment and communities.
Additionally, in the first half of 2019 we prepared the logistics system to ensure the delivery of the ultra-low-sulfur diesel and natural gas required by the new buses of the Bogotá Mass Transportation System (Transmilenio), which began operating in June. We thus contributed to the technological renovation of this important transportation system's fleet.
Finally, in our international expansion front, I would like to highlight two very important events. The first one is the approval by the Brazilian Ministry of Mines and Energy of Ecopetrol's 10% stake in the Saturno block, located in the central region of the Santos Basin in the Brazilian Pre-salt; and second, our entry into the Midland in the Permian basin, the area with the fastest growth and highest yield in the United States, to participate in exploiting non-conventional reservoirs. This is transformational news for Ecopetrol and the country.
All this became possible through our strategic alliance with a first-tier operator as Occidental. This will facilitate an increase in our reserves and production, as well as consolidate our knowledge in the exploitation of non-conventional reservoirs. This is a critical step forward along the path of sustainability and profitable growth that we have been laying out for over two years, with a view to generating more value added for our shareholders.
We remain committed to profitable growth in production and reserves, with sustainable results, safe operation and operational excellence, generating integrated value in harmony with the environment and our communities."
To review the full report please visit the following link:
https://www.ecopetrol.com.co/english/documentos/Reporte%202Q19%20-%20ENG.pdf
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329 - Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-group-announces-second-quarter-2019-results-300900357.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Aug. 6, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on August 12, 2019 after market close, it will release its financial and operating results for the second quarter of 2019. On Tuesday, August 13, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
09:00 a.m. NY Time | 10:30 a.m. NY Time |
US Dial-in #: 1 (847) 619-6817 | US Dial-in #: 1 (847) 619-6817 |
US Dial-in # (Toll Free): 1 (888) 427-2535 | US Dial-in # (Toll Free): 1 (888) 427-2535 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 48818546 | Passcode: 48818547 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UMGThyMLWfHvTD
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/2041716/4593B6901DFBEC6EC1482960B30ABABB (Spanish)
https://event.on24.com/wcc/r/2041720/36A544CDA66868A53378070E599F732C (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-timing-of-the-second-quarter-of-2019-earnings-report-and-conference-call-300897642.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 31, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on August 1st, Ecopetrol's senior management will host two conference calls to review the joint venture with Occidental Petroleum Corporation to develop Occidental's Midland Basin properties in the Permian Basin. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
1:00 p.m. Col Time | 2:00 p.m. Col Time |
2:00 p.m. NY Time | 3:00 p.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 48891871 | Passcode: 48891874 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UIytMcSKvkZdyb
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/2059759/E240216F46EAFB49309D196E39AE00A3 (Spanish)
https://event.on24.com/wcc/r/2059744/4CBBA0FF8C9AFEF0495AEC07B14D1AEA (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-conference-call-about-strategic-partnership-with-occidental-to-develop-acreage-in-midland-basin-300894538.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 31, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today that it formed a joint venture with Occidental Petroleum Corporation to develop 97,000 net acres of Occidental's Midland Basin properties in the Permian Basin.
The JV enables Ecopetrol to book ~160 MMboe of proved undeveloped reserves at transaction closing and provides access to one of the most prolific resource plays in the world. The JV will progressively increase production until 2027, when production for Ecopetrol in the JV is estimated to reach circa 95 kboed.
In addition to its share of future production from the development acreage, Ecopetrol will second employees to the joint venture. This will enable Ecopetrol to advance its expertise in shale development and ensure technology and knowledge transfer from the Permian Basin to its assets in Colombia. The deal is fully aligned with Ecopetrol's strategic priorities outlined in the 2019-2021 business plan, which focus on reserves and production growth, under a strict capital deployment discipline.
Ecopetrol will pay $750 million in cash plus $750 million of carried capital in exchange for a 49-percent interest in the new venture. Occidental will own a 51-percent interest and operate the joint venture. During the carry period, Ecopetrol will pay 75 percent of Occidental's share of capital expenditures.
The joint venture allows Occidental to accelerate its development plans in the Midland Basin. Occidental will retain production and cash flow from its existing operations in the Midland Basin.
"We are excited to partner with one of the largest operators in the Permian Basin, especially one we have worked successfully with for so many decades," said Ecopetrol CEO President Felipe Bayon. "This is a key step to enhance our reserve base and production growth whilst we strengthen our capabilities in shale development and bring this technology to Colombia for the economic benefit of the country."
The transaction is expected to close around year end.
To develop the JV, Ecopetrol incorporated two new companies, Ecopetrol Permian LLC and Ecopetrol USA Inc., and converted Ecopetrol America Inc. into Ecopetrol America LLC, which will continue to focus on US GoM operations.
Ecopetrol USA Inc. was incorporated in Delaware, and is 100% owned by Ecopetrol S.A. through its subsidiary Ecopetrol Global Energy SLU. Its objective is the exploration and exploitation of hydrocarbons.
Ecopetrol Permian LLC was also incorporated in Delaware, and is 100% owned by Ecopetrol USA Inc. and indirectly by Ecopetrol S.A. Its objective is the exploration, development and production of unconventional resources.
The transaction is subject to approvals from U.S. authorities.
Ecopetrol is receiving financial advice from Credit Suisse, legal advice from Shearman & Sterling and technical advice from DeGolyer and McNaughton. Petrie Partners is advising the Board of Directors of Ecopetrol and rendered a fairness opinion on the transaction.
-----------------------------------------
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:
Capital Markets Manager
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-and-occidental-form-strategic-partnership-to-develop-acreage-in-midland-basin-300894469.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 30, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the rating agency Moody's has kept the Company's long-term international rating at Baa3, with stable outlook.
In its report, Moody's highlighted the Company's strength as a leading firm in Colombia, its operating performance and capital efficiency, as well as the stable cash generation of its Transportation and Logistics segment.
In the press release, Moody's highlighted the Company's positive cash levels, as well as the strength of its credit metrics, thanks to the debt prepayments it has made in recent years.
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/moodys-confirms-ecopetrol-sas-investment-grade-rating-300893180.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 18, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the Ministry of Mines and Energy of Brazil has authorized the transfer of a 10% stake in the Saturno block, located in the Santos basin, to its subsidiary, Ecopetrol Óleo e Gas Brasil. Previously, this percentage was equally held by Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda.
The authorization was published in the Diario Oficial de Brasil on July 17, 2019.
As reported on December 20, 2018, Ecopetrol S.A. entered into an agreement with both companies to gain a 10% interest in the Saturno block, which was finally approved by the Ministry of Mines and Energy of Brazil. The block was assigned to Shell and Chevron last September 28th in the Fifth Pre-Salt Round held by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Ecopetrol holds a 10% interest in the block, while Shell, as operator, and Chevron each hold a 45% interest.
This block adds an additional Pre-Salt block, as Ecopetrol already holds a 20% stake in Pre-Salt block, Pau-Brazil, in partnership with CNOOC and BP. With these two Pre-Salt blocks, Ecopetrol has a presence in five blocks in Brazil, located in the Santos, Foz de Amazonas, Potiguar and Ceará basins.
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 (a)
Fernando Suárez Tello
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
View original content:http://www.prnewswire.com/news-releases/ministry-of-mines-and-energy-of-brazil-authorizes-the-transfer-of-10-stake-in-saturno-block-to-ecopetrol-300887507.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 11, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the Boranda-2 ST well, located in Rionegro (Santander), has discovered the presence of crude in the Eoceno basal sands.
The well was drilled from the same platform as the Boranda-1 discovery well (finding reported in 2017 in the Playón block, now known as Boranda), some 1,200 meters to the southeast.
In initial tests the well produced a total of 2,397 barrels of oil accumulated and posted average daily production of 960 barrels, with a water cut of less than 2%. The final depth achieved was 13,932 feet, and it confirmed the finding of medium crude with API of 23º.
The production unit at Boranda-2 ST is considered independent from the one found in the Boranda-1 production well, and is approximately 1,000 feet deeper.
Ecopetrol owns a 50% stake in the block, with the other 50% owned by Parex, who is the operator.
The proximity to Payoa and Provincia crude oil receiving stations and the Barrancabermeja refinery generate a competitive and operational advantage for this block, whose findings confirm its prospectivity.
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 (a)
Fernando Suárez Tello
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-reports-discovery-of-crude-in-boranda-2-st-well-at-rionegro-santander-300883839.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, May 27, 2019 /PRNewswire/ -- Ecopetrol (BVC: ECOPETROL, NYSE: EC) reports that, Fitch Ratings revised Ecopetrol´s Outlook to Negative from Stable, as a consequence of the adjustment made to the Colombia´s Sovereign Rating Outlook.
Fitch Ratings affirmed Ecopetrol's credit rating at BBB which is investment grade.
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 forwardlooking 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 contact:
Capital Markets Manager
María Catalina Escobar
Phone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/fitch-ratings-revises-ecopetrol-sas-outlook-in-line-with-the-action-taken-on-the-colombias-sovereign-rating-outlook-300857014.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, April 29, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on May 6, 2019 after market close, it will release its financial and operating results for the first quarter of 2019. On Tuesday, May 7, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
09:00 a.m NY Time | 10:30 a.m. NY Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 48566154 | Passcode: 48566155 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UAuRTSGACHMpgK
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/1992777/91B803BF6A6C9D4CDE758DA70D3E3E39 (Spanish)
https://event.on24.com/wcc/r/1992768/6E00F7AC5760C44EE9EDFC81CEE50208 (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-timing-of-the-first-quarter-of-2019-earnings-report-and-conference-call-300840268.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, April 5, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol") announced today the filing of its annual report under Form 20-F for the fiscal year ended December 31, 2018 with the U.S. Securities and Exchange Commission (the "SEC").
With the filing of its annual report under Form 20-F the Company complies with its reporting obligations with the U.S. Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE), its bondholders and lenders.
The annual report includes, among others, the financial statements of Ecopetrol in accordance with International Financial Reporting Standards (IFRS) as adopted by the International Accounting Standards Board that were audited and certified in compliance with internal control over financial reporting by the auditing firm Ernst & Young Audit S.A.S. for the years 2016, 2017 and 2018.
Investors may receive a hard copy of Ecopetrol's 2018 Form 20-F free of charge by requesting a copy from the contact below:
Investor Relations Officer
Andrés Felipe Sánchez
Phone: +571-234-5190
E-mail: investors@ecopetrol.com.co
The 2018 Form 20-F can also be accessed by visiting the SEC's website at www.sec.gov or Ecopetrol's website at www.ecopetrol.com.co .
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-files-its-form-20-f-for-the-fiscal-year-2018-300825644.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, March 29, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") announces that, at the General Shareholders' Meeting held on March 29, 2019, the Company's Shareholders approved the following:
1. The plan for distribution of profits, which establishes a distribution of an ordinary dividend per share of one hundred sixty-nine Colombian pesos (COP $169) and an extraordinary dividend per share of fifty-six Colombian pesos (COP $56), for a total dividend per share of two hundred twenty-five Colombian pesos (COP $225).
The dividend for the minority shareholders will be paid in one installment on April 25, 2019 (100% of the ordinary and extraordinary dividend).
The dividend for the majority shareholder, the Colombian State, will be paid in three installments on April 25 (50% of the ordinary dividend), June 25 (50% of the ordinary dividend), and September 25, 2019 (100% of the extraordinary dividend).
2. The appointment of its Board of Directors as follows:
Non Independent Representative:
Independent Representatives:
3. The appointment of Ernst & Young Audit S.A.S as the External Auditor for the period 2019-2020 for the Company.
4. The revision to the bylaws proposed by Company Management.
Once this is duly signed and recorded with the commercial registry, Ecopetrol will report the event in a release. The text of the approved revision may be consulted at the following link:
https://www.ecopetrol.com.co/Asamblea2019/190225%20Propuesta%20de%20reforma%20estatutaria%20(VF).pdf
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
View original content:http://www.prnewswire.com/news-releases/decisions-of-the-ecopetrol-general-shareholders-meeting-300821350.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 27, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") informs the 2018 earnings distribution proposal, approved by a majority of the members of its Board of Directors, which will be submitted for the consideration of the Shareholders Meeting (Asamblea de Accionistas) that will take place on March 29, 2019:
PROFIT DISTRIBUTION PROPOSAL | |
YEAR 2018 (colombian pesos) | |
Net Profit after provision for income tax | 11,556,405,128,649 |
+ Release of reserves from previous years | 3,050,703,491,516 |
New exploration reserves | 2,541,621,888,153 |
Excess of fiscal depreciation reserve (Art. 130 ET) | 509,081,603,363 |
- Legal reserves of the current year | 1,664,722,116,228 |
Legal Reserve (10%) | 1,155,640,512,865 |
Excess of fiscal depreciation reserve (Art. 130 ET) | 509,081,603,363 |
Available to the Shareholders | 12,942,386,503,937 |
It is proposed to distribute as follow: | |
For dividend payment: | |
According to the dividends policy (not taxed) (60% Net income) | 6,948,721,402,643 |
Extraordinary dividend not taxed (20% additional net profit) | 2,302,534,902,651 |
Subtotal: | 9,251,256,305,294 |
For the constitution of Occasional Reserve for sustainability: | |
Taxed | 1,569,967,075,971 |
Not taxed | 2,121,163,122,672 |
Subtotal: | 3,691,130,198,643 |
Total | 12,942,386,503,937 |
Ordinary dividend payable per share | 169 |
Extraordinary dividend to pay per share | 56 |
Total dividend payable | 225 |
Ordinary payout | 60% |
Extraordinary payout | 20% |
Payout total | 80% |
The proposed earnings distribution follows the Company's dividend policy to distribute between 40%-60% of net income for the year. Pursuant thereto, the Board approved an earnings distribution of 60% of 2018 net income as an ordinary dividend payment. In addition, considering the solid financial performance of the Company, the over delivery of its targets and its robust cash position at the end of 2018, the Board is also proposing an extraordinary dividend, of exceptional nature, of 20% of net income as well as the establishment of a reserve for the future sustainability of the Company.
Given the above, a $169 peso per share is proposed as earnings distribution in line with the 60% dividend policy in place and $56 pesos per share of an extraordinary dividend as a response to the over delivery of the financial performance of the company, which does not compromise the 2019-2021 business plan announced on February 26, 2019.
The proposed payment dates will be April 25, 2019 (100% ordinary and extraordinary dividend to minority shareholders / 50% of the ordinary dividend to the majority shareholder), June 25, 2019 (50% of the ordinary dividend to the majority shareholder) and September 25, 2019 (100% of the extraordinary dividend to the majority shareholder).
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.
BOGOTÁ, Colombia, Feb. 26, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Business Group's 2018 fourth quarter and full-year financial results, prepared in accordance with International Financial Reporting Standards (IFRS) applicable in Colombia.
TABLE 1: | ||||||||||
COP Billion | 4Q 2018 | 4Q 2017 | ∆ ($) | ∆ (%) | 2018 | 2017 | ∆ ($) | ∆ (%) | ||
Total Sales | 18,314 | 15,363 | 2,951 | 19.2% | 67,820 | 55,210 | 12,610 | 22.8% | ||
Operating Profit before impairment | 4,990 | 4,216 | 774 | 18.4% | 22,058 | 14,132 | 7,926 | 56.1% | ||
Net Income Consolidated before impairment | 3,309 | 2,271 | 1,038 | 45.7% | 12,787 | 6,069 | 6,718 | 110.7% | ||
Non-Controlling Interests | (296) | (196) | (100) | 51.0% | (977) | (782) | (195) | 24.9% | ||
Net Income Attributable to Shareholders of Ecopetrol before impairment | 3,013 | 2,075 | 938 | 45.2% | 11,810 | 5,287 | 6,523 | 123.4% | ||
Net Income Attributable to Shareholders of Ecopetrol | 2,647 | 3,427 | (780) | -22.8% | 11,556 | 6,620 | 4,936 | 74.6% | ||
EBITDA | 7,042 | 5,778 | 1,264 | 21.9% | 30,798 | 23,075 | 7,723 | 33.5% | ||
EBITDA Margin | 38.5% | 37.6% | 0.9% | 45.4% | 41.8% | 3.6% |
The figures included in this report were extracted from the audited financial statements. 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, and are so noted as applicable. For presentation purposes, certain figures of this report have been rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"2018 was an outstanding year for Ecopetrol, both operationally and financially. Today, we are a more efficient and disciplined company, with better technical capacity, constantly seeking integrity and operational safety.
The year's net profit totaled COP 11.6 trillion, the highest of the past five years and almost double the figure posted in 2017. Additionally, the Business Group's EBITDA totaled COP 30.8 trillion, the highest in its history.
Capital discipline and efficiencies are fundamental pillars of our strategy, and are in line with our business culture, which are creating new and solid dynamics in all the company's processes. This is evidenced by the results of the operational and commercial strategies we have applied during the year.
First, we note the better balance of reserves and fulfillment of our production goals, fundamental pillars of the company's growth.
In 2018 we added 307 million barrels of oil equivalent in proven reserves, continuing the positive trend of increasing reserves that began in 2017. At the close of the year, the Ecopetrol Group's net proven reserves totaled 1.727 billion barrels of oil equivalent. The reserve replacement ratio was 129%, the highest of the past four years. Average reserve life totaled 7.2 years, noting the increase in reserve life for crude from 5.8 to 6.3 years.
We note our record of increasing proven reserves associated with the results of the recovery factor enhancement program (129 MMboe), in which the largest gains occurred at fields such as Chichimene, Castilla and Teca.
We satisfactorily met the annual production goal by achieving 720,000 barrels of oil equivalent per day, despite some operational events and public security difficulties in the first quarter. The production increase was due to the successful drilling campaign and the use of technology in the enhanced recovery program.
It is significant that in the fourth quarter we achieved average production of 733,000 barrels of oil equivalent per day, up 2.2% over the same period the previous year, and the basis for meeting our 2019 goal.
We ended the year with a solid cash position of COP 14.5 trillion. The year's liquidity position allowed us to prepay the equivalent of USD 2.5 billion in debt, resulting in a lower leverage ratio, which dropped from 37% in 2017 to 28% in 2018, strengthening our capital structure. The Gross Debt/ EBITDA ratio was 1.2x for 2018, versus 1.9x in 2017, the lowest of the past five years.
Total investment for the year rose to USD 2.9 billion, up 32% over 2017. Eighty-one percent of investment was concentrated in Upstream, in line with our 2021 business plan. Ninety-four percent of investments were executed in Colombia and 6% in the Gulf of Mexico, Brazil, Mexico and Peru.
We achieved our goal of having a proactive and dynamic commercial management, which expand our presence in markets that create greater value for our products. Sales to Asia in 2018 represented 41% of crude exports, versus 25% the previous year. Through this initiative, our crude basket's price discount versus Brent declined to 11.9%, compared to 12.7% in 2017. Our affiliate Ecopetrol Energía SAS ESP was commissioned in 2018, with the goal of administering installed generation capacity and optimizing the Business Group's energy needs.
Exploration saw major achievements in line with our growth strategy. We drilled 17 wells in Colombia, exceeding the goal of 12 wells for 2018, with a geological success rate of 46%. Through this deployment of activity, we succeeded in adding over 250 MMBOE in discovered resources for appraisal.
On the international front, we posted significant progress by expanding our presence in Brazil and the US Gulf of Mexico. In the award of the Pau-Brasil block in Brazil, we joined forces with well-known companies of global size in the Santos basin, assuming a 20% stake in the joint venture with BP Energy (50% - Operator) and CNOOC Petroleum (30%). In December 2018 we acquired a 10% stake in the Saturno block, together with Shell (45% - Operator) and Chevron (45%). This deal is pending approval by the Brazilian National Oil, Natural Gas and Biofuels Agency.
Ecopetrol América Inc. won the Green Canyon 404, 405, 448 and 492 blocks located in the US Gulf of Mexico, during the GOM - Lease Sale 251 round. This increasing level of activity is in line with our goals of competitiveness and future profitability.
In Midstream, we are continuing to show solid results. I note our stable extraction of heavy crude with viscosities greater than 600 centistokes (cst – a measure of viscosity). This past year saw the commissioning of the San Fernando – Apiay system, and we expanded the P135 to make the system more robust.
During the year, the Bicentenario oil pipeline reversal strategy saw the completion of 53 reversal cycles, allowing us to reduce the impact of the attacks and the illegal valves installed on the Caño Limón-Coveñas oil pipeline.
In 2018, thanks to the stable operations and process optimization, the Downstream witnessed outstanding operating performance, achieving stable throughput of 373,000 barrels per day for the two refineries.
At the new Cartagena refinery, average throughput for the year totaled 151,300 barrels per day, 11.5% more than the previous year. Throughput composition was 77% domestic crude and 23% imported, versus 50% domestic and 50% imported in 2017. The results of the refinery optimization process were positive, as reflected in gross refining margin of USD 11 per barrel, up 15.4% over 2017.
The execution of initiatives to separate light and intermediate crude oils contributed to the Barrancabermeja refinery's profitable and efficient production of 221,600 barrels per day, up 5.6% over the previous year. Bioenergy also continued the stabilization phase of its agricultural and industrial operations, achieving production of 47.1 million liters of ethanol in 2018, compared to 36 million liters in 2017.
Operational synergies between the two refineries, as well as operating adjustments among the different segments, allowed us to offer the country cleaner fuels. In December, b2 diesel distributed in Colombia averaged 16 parts per million (ppm) of sulfur, with 108 ppm in gasoline, lower than the current Colombian standards of 50 ppm for diesel and 300 for gasoline. We fulfill our commitment to supply b2 diesel with a maximum 25 ppm of sulfur in the city of Medellín and the area of influence of the Aburrá Valley (and levels as low as 14 ppm in December).
We remain committed to our plan for operational and financial efficiencies. In 2018 we achieved cumulative savings of COP 2.7 trillion in the Business Group, some 6% more than in 2017. Our goal is to continue to improve the cost efficiencies and capital discipline we have adopted in our corporate culture.
In developing ESG (Environment, Social and Governance) initiatives, with a commitment to prioritizing safety as a pillar of our operations, we have strengthened the "Crisis Management Model," applying discipline to reports, analyses and the valuation of actual and potential crises. We have also met the annual audit requirements for recertification in the ISO 14001 and OHSAS 18001 standards, which will allow us to continue the certifications in 2019.
In 2018 Ecopetrol S.A. joined the "Climate and Clean Air Coalition (CCAC)," a voluntary association that seeks to improve air quality and protect climate through actions to reduce climate pollutants such as methane, black carbon and greenhouse gases. Through this measure, Ecopetrol S.A. joins ten other global oil companies that have signed this commitment.
Having achieved major operational and financial successes as defined in our 2016 – 2020 Business Plan, strengthening the company both operationally and financially, we are prepared for new goals. We have updated our 2019 – 2021 Business Plan, in which the priorities remain the same: focus on reserve and production growth, under capital discipline and cash efficiency principles. We updated the plan with the objective of maximizing the value for our shareholders, taking advantage of our integrated operation, and under new profitability, competitiveness, and sustainability criteria.
Among the most relevant operational and financial goals towards 2021 are: i) reach levels of organic production between 750 - 770 mboed, ii) increase of total reserves maintaining the organic reserve replacement ratio above 100% without price effect, iii) enabling optimal throughput of refining integrating system between 370 – 400 mbpd, iv) increase transport volume in line with country production, v) invest between 12 to 15 billion dollars that reflect a return over capital above 11% at business plan price and vi) maintain a strong cash position and an optimal leverage the preserves the company´s investment grade.
In 2019 our priorities will be excellence and safety as pillars of our operations, care for our workers and the environment; a commitment to ethics and transparency; and maintaining outstanding results that will allow us to continue to grow sustainably, creating added value for our shareholders"
To review the full report please visit the following link:
https://www.ecopetrol.com.co/english/documentos/Reporte%204T18%20-%2026%2002%202019%20-%20ENG.pdf
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329 - Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-business-group-presents-fourth-quarter-and-full-year-2018-results-300802900.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 22, 2019 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on February 26th, 2018 after market close, it will release its financial and operating results for the fourth and full year 2018. On Wednesday, February 27th, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time | 09:30 a.m. Col Time |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 48165856 | Passcode: 48165858 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link:
http://web.meetme.net/r.aspx?p=12&a=UxbCzHWhYBphvR
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
https://event.on24.com/wcc/r/1924686/928EF2CE66DEBDD1250790C13C879910 (Spanish)
https://event.on24.com/wcc/r/1924706/1798AABC0B837E7ECCF526D3E9B5613A (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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.
BOGOTÁ, Colombia, Dec. 20, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that it closed a deal with companies of the Shell and Chevron groups, which will allow it to expand its stake in Brazil's Pre-Salt Region.
The agreement grants Ecopetrol a 10% stake in the Saturno block, located in the central region of the Santos basin, which was assigned to Shell and Chevron last September 28th in the Fifth Pre-Salt Round held by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).
The agreement provides access the Saturno block and is subject to approval by Brazil's Ministry of Mines and Energy and the ANP, as well as other customary closing conditions for this kind of deals, was signed by the three companies in Río de Janeiro.
The Saturno block consists of 1,100 square kilometers and is located off the coast of the states of São Paulo and Río de Janeiro. The consortium originally made up of Shell and Chevron executed a proposal with a production stake of 70.2% in favor of the Brazilian State. Ecopetrol holds a 10% interest in the block's new composition, while Shell, the operator, and Chevron each hold a 45% interest.
Ecopetrol's stake in this new block is in addition to the one it won in another block in the Santos basin of Brazil's Pre-Salt Region, together with two other companies. Ecopetrol holds 20% of the Pau-Brasil exploratory block, while the Chinese company CNOOC holds 30% and the operator BP holds 50%.
With the addition of these two Pre-Salt blocks, Ecopetrol is now active in five blocks in Brazil, located in the Santos, Foz de Amazonas, Potiguar and Ceará basins.
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.
BOGOTÁ, Colombia, Dec. 6, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the risk-rating agency Fitch Ratings has upgraded the Company's stand-alone credit profile to BBB, from its previous level of BBB-. Fitch also confirmed the Company's rating at BBB (stable outlook).
The increase in the stand-alone credit profile is a recognition of the Company's stable operating performance, the soundness of its business plan, its solid financial profile achieved through its debt management strategy and the reasonableness of the dividend policy it has implemented.
In the press release, Fitch highlighted the strengthening of the Company's credit profile, with Gross Debt/EBITDA of 1.3x at the end of the third quarter of 2018, and a debt to reserves ratio of 8 dollars per barrel, indicators that have improved over the past two years.
The rating agency also highlighted the Company's positive liquidity levels, given the total cash reported at the close of September of this year and the new contingent line of credit for USD 665 million signed with Scotiabank and Mizuho.
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
View original content:http://www.prnewswire.com/news-releases/fitch-ratings-upgrades-ecopetrol-sas-stand-alone-credit-profile-and-confirms-its-investment-grade-rating-300761749.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 27, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") reports that today it provided a Notice of Redemption to the Noteholders of its 7.625% Notes due 2019 (the "Notes") issued on July 23, 2009 in the aggregate principal amount of USD 1,500 million and with an original maturity date of July 23, 2019. The Redemption Date will be December 27, 2018. Pursuant to the terms of the Notes, the redemption price will be approximately, US$1,025.29 per US$1,000 principal amount, plus accrued and unpaid interest to the Redemption Date equal to US$32.62 per US$1,000 principal amount, amounting to, approximately, US$1,057.91 per US$1,000 principal amount, to be finally calculated three business days prior to the Redemption Date.
Ecopetrol was able to take advantage of the Notes' optional redemption clause due to the Company's solid cash position, which amounted to COP 18.1 trillion (approximately USD 6,090 million) at September 30, 2018.
The redemption provides financial savings for the Ecopetrol Group. In particular, after the redemption, as if it had occurred on September 30, 2018, the Company's Gross Debt/EBITDA indicator (based on EBITDA over the past 12 months) would have dropped from 1.4x to 1.2x. It is also expected that the Ecopetrol Group's cash position will remain at a solid level to year end and thus the Ecopetrol Group should be able to finance the investment plan announced for 2019, pay dividends and have the flexibility to cope with different crude price volatility scenarios.
This redemption is in line with the objectives of the Company's 2020 business plan and confirms Ecopetrol's commitment to continue to improve its credit rating and competitive shareholder returns.
For more information please check the following link: https://www.ecopetrol.com.co/english/documentos/11_26_2018_Ecopetrol_-_Notice_of_Redemption_-_2019_Notes.pdf
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.
BOGOTÁ, Colombia, Nov. 27, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that in 2019 the Ecopetrol Business Group ("GEE") expects to invest between US$ 3.5 and US$4 billion, up 16% to 33% over the projected 2018 figure.
The plan approved by the Board of Directors aims to ensure the Company's strategy of growth and consolidation, with efficient, profitable and safe operations. Investments have been prioritized with a view to maintaining capital discipline and a focus on ensuring the company's future sustainability by increasing reserves and hydrocarbon production.
Brent price is expected to range between US$ 55 and US$ 65 per barrel. The net profit breakeven price for 2019 is expected to remain at approximately US$ 36 per barrel, demonstrating the Company's resilience in the face of fluctuations in the price of oil. The plan pursues a return on average capital employed (ROACE) of over 10%, which will rank Ecopetrol as one of the companies with higher value generation among its peers.
In line with the strategic priorities of the GEE, the plan is centered on disciplined growth in the Upstream segment, which accounts for 81% of total expected investment, enabling projected production for 2019 to be between 720,000 and 730,000 barrels of oil equivalent per day (oil and gas) and the addition of proven reserves equivalent to 100% of oil and gas production.
Greater activity in the various operating regions is currently projected for 2019. Highlights are expected to include the drilling of over 700 development wells, at least 12 exploratory wells on Colombia onshore, the acquisition of over 50,000 kilometers of seismic and the development of 15 improved recovery pilots.
Ninety-two percent of total capital investment is expected to be allocated to projects in Colombia, while the remainder is expected to be invested in positioning the Ecopetrol Group in prospective basins in the United States, Mexico and Brazil.
The plan assigns capital for initiatives associated with a non-conventional hydrocarbon pilot in the Middle Magdalena basin, and expects to continue the valuation and development of gas discoveries on Colombia's Caribbean coast.
Investment in the Downstream and Midstream units is expected to be focused on ensuring the reliability, integrity, performance standards and operating efficiency of the Barrancabermeja and Cartagena refineries, and of the entire oil and polyduct pipeline network.
The increased synergy and integration between the two refineries is expected to continue, as well as the assessment of particular opportunities for profitable growth aimed at increasing the supply of clean fuels to the local market, in line with growing demand.
Throughput of 223,000 barrels per day at Barrancabermeja and 152,000 barrels per day at Cartagena is expected (under the scenario of the projected 375,000 barrels per day).
Throughput maximization, a greater expected yield of high-value products and the ongoing optimization of the crude diet at Reficar and Barrancabermeja support a view of improved refining margins.
The Midstream segment is expected to continue strengthening profitability by leveraging on better operating results and less capital employed. Transported volumes are expected to be in line with Colombia's expected crude oil production and the expected increase in demand for refined products.
To maintain reliable, efficient and safe operations in all business units, investments in the integrity and sustainability of the oil infrastructure are expected to increase by 15% compared to 2018.
Finally, the plan includes development funds to promote the incorporation of renewable energy sources, the Company's digital transformation program and the development and implementation of technologies to optimize the operation through the value chain.
The organic investment plan that has been approved is expected to be financed by the Company's own funds. Ecopetrol's solid cash position brings financial flexibility to take advantage of non-organic opportunities consistent with the GEE strategy, maintaining its capacity to react to any changes in the macroeconomic environment.
The 2019 investment plan is aligned with the best practices of Corporate Governance of the GEE, continuing to prioritize operational excellence, with a commitment to industrial safety, care for its workers, protection of the environment, ethics and transparency and shared growth with communities, within a framework of joint prosperity.
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.
BOGOTÁ, Colombia, Oct. 31, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Business Group's financial results for the third quarter and year-to-date 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 | F | G | H | I | ||
COP Billion | 3Q 2018 | 3Q 2017 | ∆ ($) | ∆ (%) | Jan-Sep 18 | Jan-Sep 17 | ∆ ($) | ∆ (%) | ||
Total Sales | 17,876 | 13,325 | 4,551 | 34.2% | 49,506 | 39,847 | 9,659 | 24.2% | ||
Operating Profit | 5,653 | 3,323 | 2,330 | 70.1% | 17,217 | 9,889 | 7,328 | 74.1% | ||
Net Income Consolidated | 3,007 | 1,224 | 1,783 | 145.7% | 9,591 | 3,779 | 5,812 | 153.8% | ||
Non-Controlling Interests | (232) | (221) | (11) | 5.0% | (682) | (585) | (97) | 16.6% | ||
Net Income Attributable to Owners of Ecopetrol | 2,775 | 1,003 | 1,772 | 176.7% | 8,909 | 3,194 | 5,715 | 178.9% | ||
EBITDA | 7,997 | 5,852 | 2,145 | 36.7% | 23,756 | 17,296 | 6,460 | 37.3% | ||
EBITDA Margin | 44.7% | 43.9% | 0.8% | 48.0% | 43.4% | 4.6% |
The figures included in this report are not audited. 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, and is so indicated where applicable. For presentation purposes, certain figures in this report were rounded to the nearest decimal place. Further information on the Business Group's financial figures may be consulted in Ecopetrol's Consolidated Financial Statements, published on our website.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"For the first nine months of the year, Ecopetrol is reporting the best financial results of the past four years. Net income attributable to owners of Ecopetrol rose to 8.9 trillion pesos, EBITDA totaled 23.8 trillion pesos and EBITDA margin was at 48%. These solid financial results were achieved due to the good operating performance of all segments, which brought about an increase in crude oil and gas production, lower crude oil imports for the Downstream segment as well as of refined products to supply the local market. In summary, we were able to capture the profit coming from the higher international oil prices.
The flexibility of the Group's commercial strategy allowed us to take advantage from the higher demand for crude oil from refiners in Asia to create more value. In the third quarter of 2018, sales to Asia accounted for a 45% share of total crude exports, versus 25% during the same quarter in 2017. Thanks to this initiative, the discount price of the crude basket versus Brent remained at approximately 11%.
In the third quarter of 2018, Ecopetrol Group's average production totaled 724,000 barrels of oil equivalent per day, the highest in the last 10 quarters. Year-to-date average production was 716,000 barrels of oil equivalent per day. The increased production for the quarter is in line with the target set for 2018 and it was possible due to the positive results from our drilling campaign and the greater demand for natural gas in the thermal power and industrial sectors. At the end of the quarter, we had drilled 421 development wells and had 41 rigs in operation.
This increase in activity is reflected in larger investments during the quarter, totaling 789 million dollars and representing 80% of what was invested in the first half of the year and more than 50% over the investment in the third quarter of 2017.
In the exploration segment Ecopetrol entered into one of the highest-potential oil basins in the world. The Pau-Brasil block, located in the central region of the Santos basin, in the Brazilian pre-salt, was awarded to the joint venture between BP Energy (50% - Operator), Ecopetrol (20%) and CNOOC Petroleum (30%). This milestone is consistent with our long-term growth strategy and demonstrates Ecopetrol's ability to develop strategic alliances with leading companies in world-class industry opportunities.
During the third quarter, we drilled five exploratory wells, for a total of nine during the course of the year, and had an exploratory success rate of 44%. These results are in line with the goal of drilling 12 wells in 2018, and materialize our strategy of building a solid base of assets for the company's future sustainability.
In the Midstream segment, we saw increased volumes of crude oil and refined products transported, primarily due to the optimization of certain systems, such as Galán – Bucaramanga and Coveñas – Cartagena and the beginning of operation of San Fernando-Apiay-Monterrey system along with the expansion of Ocensa P135. Moreover, it is important to highlight the transportation tests carried out at a higher viscosity of 700 centistokes (cSt -- a measure of viscosity) with positive operating results, which are now under economic evaluation.
During the third quarter, the oil pipeline network continued to suffer from third-party disruptions, especially on the Caño Limón- Coveñas system; nevertheless, the Bicentenario oil pipeline was able to mitigate those impacts, resulting in five reversion cycles during the quarter. Year to date, 35 reversion cycles have been carried out on the Bicentenario oil pipeline. This flexible operation has prevented deferred production from Caño Limón field.
In the Downstream segment, the two refineries jointly achieved a new historic maximum of 380,000 barrels of stable throughput per day. The third quarter was the best of the year in terms of throughput and gross refining margin for each of our refineries.
In line with the optimization process, the Cartagena refinery continued to generate value by achieving an average throughput of 158,000 barrels per day for the quarter, with a throughput composition of 80% domestic and 20% imported crude. This result contributed significantly to the reduction of the Group's cost of sales. In August, a record was attained at the refinery by using 100% local crudes during nine days, getting an average throughput of 164,000 barrels per day. Gross refining margin for the quarter was 12.1 dollars per barrel which represents a 17.5% increase vis-à-vis the third quarter of 2017.
Additionally, the Barrancabermeja refinery showed an 11% increase in throughput versus the third quarter of 2017. This outcome was primarily due to the stable operation of its units and the segregation of light and intermediate crudes. The average refining margin for the quarter was 13.9 dollars per barrel, largely impacted by the increase in the prices of the crude basket vs. Brent.
Ecopetrol continues to work on fuel quality. In line with this commitment, we have taken advantage of the greater synergies between the Cartagena and Barrancabermeja refineries, as well as operational adjustments in the transport and logistics systems, to produce cleaner fuels.
In September, diesel distributed in Colombia had an average sulfur content between 15 and 20 parts per million (ppm), below the maximum of 50 ppm of sulfur permitted by local regulation. Specifically, we delivered diesel with an average sulfur content between 12 and 14 ppm to the city of Medellin that complies with international reference markets standards as those in the United States (10 to 15 ppm sulfur content).
Our reducing cost strategy through efficiency measures allowed us to account for 1.8 trillion pesos of higher efficiencies across the Group during the first nine months of 2018, up 26% versus those reported during the same period of 2017. We remain committed with cost efficiency and capital discipline, which are now embedded in our corporate culture.
These accomplishments had enhanced the financial position of the Group. At the end of the third quarter, we increased our cash position from 15 trillion at the end of the second quarter, to 18 trillion pesos, despite the payment of the second installment of dividends to the Government for 1.6 trillion pesos and the prepayments of debt for a total amount of 637 million dollars. This financial strength is essential to support the profitable growth plans of the Group and secure long-term sustainability through crude oil price cycles.
In September, Ecopetrol completed the negotiation of a new Collective Bargaining Agreement that will apply for four and a half years and cover aspects such as education, health, food, loans and transport services, among other worker benefits. The New Collective Bargaining Agreement is aligned with the business strategy that seeks to maintain efficiency, capital discipline and collective labor in the new phase of Ecopetrol's growth. We believe it will contribute positively to the workers wellbeing and the country's development.
Talking about our ESG initiatives, year-to-date efforts have been focused on activities such as the recycling of 63.3 million cubic meters of water used in our operations. This amount represents an additional saving of 20% compared with the same period last year, enabling us to optimize the water requirement. On another front, we have advanced towards the incorporation of non-conventional renewable energy into the matrix of energy resources, with the announcement of the construction of a solar farm that will supply part of the energy consumption of Castilla field. This is in addition to the existing renewable energy supply from biomass.
Ecopetrol remains committed to generating value, and caring for environment, safe operations, ethics and transparency. Maintaining positive results and growing profitably will remain our focus as we continue to operate as a sustainable company that generates value for its shareholders."
To review the full report please visit the following link:
https://www.ecopetrol.com.co/english/documentos/Ecopetrol%20-%20Report%203Q%202018%20-31%20OCT%2018.pdf
Bogotá D.C., October 31, 2018
--------------------------------------
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 contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-business-group-presents-third-quarter-and-year-to-date-2018-results-300741776.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Oct. 25, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on October 31st, 2018 after market close, it will release its financial and operating results for the third quarter of 2018. On Thursday, November 01st, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call | English Conference Call |
08:00 a.m. Col Time (09:00 a.m. NYC) | 09:30 a.m. Col Time (10:30 a.m. NYC) |
US Dial-in #: 1 (847) 585-4405 | US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 | US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 | Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 | Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 47752172 | Passcode: 47752183 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UDWttmnRSqdRpg
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
http://event.onlineseminarsolutions.com/wcc/r/1860357-1/DC064C359529BAB504745883599DDE54 (Spanish)
http://event.onlineseminarsolutions.com/wcc/r/1860384-1/9677D33EF14DF374F0373FF46368B3AE (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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.
BOGOTÁ, Colombia, Sept. 10, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") reports that as part of its integral debt management strategy, it will sign a contingent line of credit for USD 665 million with Scotiabank (USD 430 million) and Mizuho Bank (USD 235 million).
Under this type of facility, known as a committed line of credit, Scotiabank and Mizuho Bank agree to disburse funds as and when Ecopetrol requires them, under terms and conditions previously agreed between the parties. This facility would increase the Company's indebtedness only when the disbursements are made.
The contingent line will have a two (2) year availability period for disbursements, subject to the following conditions: (i) principal amortizable upon maturity after a five-year term as from the signing date of the agreement, and (ii) an interest rate of 6-month LIBOR + 125 basis points and an annual fee of 30 basis points on principal not disbursed during the availability period.
Resources to be deployed under this contingent line may be used for general corporate purposes, among them to strengthen Ecopetrol's liquidity position in the face of eventual growth opportunities, to mitigate risks associated to unexpected fluctuations in crude prices, as well as to reduce refinancing specific needs in the coming years, with flexibility and low financing costs.
To obtain the committed line of credit, the Company complied with all required internal and external procedures and approvals, including the corresponding Authorization Resolution by the Ministry of Finance and Public Credit**.
The conditions obtained confirm the local international financial sector's confidence in the Company.
** This administrative act can be subject to clarifications or changes, ex officio or at request of a party, in accordance with the legal mechanism that are applicable to the effect.
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 contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 14, 2018 /PRNewswire/ -- Today, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced the Business Group's financial results for the second quarter and the first half of 2018, prepared in accordance with International Financial Reporting Standards applicable in Colombia.
TABLE 1: | |||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||
ECOPETROL BUSINESS GROUP | |||||||||||
A |
B |
C |
D |
E |
F |
G |
H |
I | |||
COP Billion |
2Q 2018 |
2Q 2017 |
∆ ($) |
∆ (%) |
1H 2018 |
1H 2017 |
∆ ($) |
∆ (%) | |||
Total Sales |
16,987 |
13,151 |
3,836 |
29.2% |
31,630 |
26,522 |
5,108 |
19.3% | |||
Operating Profit |
6,384 |
3,268 |
3,116 |
95.3% |
11,564 |
6,567 |
4,997 |
76.1% | |||
Net Income Consolidated |
3,766 |
1,483 |
2,283 |
153.9% |
6,584 |
2,556 |
4,028 |
157.6% | |||
Non-Controlling Interests |
(247) |
(178) |
(69) |
38.8% |
(450) |
(365) |
(85) |
23.3% | |||
Net Income Attributable to Owners of Ecopetrol |
3,519 |
1,305 |
2,214 |
169.7% |
6,134 |
2,191 |
3,943 |
180.0% | |||
EBITDA |
8,609 |
5,632 |
2,977 |
52.9% |
15,759 |
11,445 |
4,314 |
37.7% | |||
EBITDA Margin |
50.7% |
42.8% |
7.9% |
49.8% |
43.2% |
6.6% |
The figures included in this report are unaudited. Financial information is expressed in billions of Colombian pesos (COP), US dollars (USD), thousands of barrels of oil equivalent per day (mboed) or tons, as noted where applicable. For presentation purposes, certain figures in this report have been rounded to the nearest decimal place.
In words of Felipe Bayón Pardo, CEO of Ecopetrol:
"During the second quarter of 2018, we saw significant operational and financial achievements for the Business Group. We posted an EBITDA margin of 51%, the highest in the business group's history, and had the highest production of the past seven quarters, at 721,000 barrels of petroleum equivalent per day, up 2.8% from the first quarter of 2018. We were able to take advantage of the favorable environment for crude prices and at the same time confirm our technical, operational and financial capacity and our commitment to safe and environmentally responsible practices.
"Net profit in the first half of 2018 totaled 6.1 trillion pesos, with cumulative EBITDA of 15.8 trillion pesos. This achievement was possible thanks to the optimal operation of the different business segments and the financial discipline of the Group's companies, combined with better crude prices during the period. At the close of the quarter, we succeeded in maintaining a solid cash position of 15.8 trillion pesos, even after paying out 2 trillion pesos as dividends on 2017 earnings. Risk rating agencies acknowledge our successes and have confirmed our investment-grade credit rating. Indeed, Moody's upgraded our baseline credit assessment from ba3 to ba1.
"Our commercial strategy, announced in 2015, has succeeded in yielding tangible benefits. In the first half of 2018, we succeeded in maintaining levels close to those of the first half of 2017, even with the 35% increase in the price of Brent crude and challenging environment. For the first half of 2018, the spread on the crude sales basket was -7.7 dollars per barrel, versus -7.5 for the same period in 2017.
"Average production for the quarter totaled 721,000 barrels of oil equivalent per day, some 0.6% above the same period the previous year and 2.8% over the first quarter of 2018. We succeeded in recovering from the operational issues in the first quarter, thanks to the results of the drilling campaign in fields such as La Cira, Rubiales, Caño Sur, Dina, Quifa and Castilla. The increased activity will lead us to the path of growth and ensure meeting our annual production goal at a range of 715,000 to 725,000 barrels of petroleum equivalent per day. On the other hand, the pilot recovery programs are also advancing satisfactorily; currently 21 pilots are in operation, 16 of which are still in the expansion phase.
"In the exploratory campaign, we scored a success during the quarter by confirming the presence of dry gas and light crude at the Bufalo-1 well, in the Valle Medio del Magdalena basin. We have also completed drilling of the Coyote-2 and Coyote-3 appraisal wells, located in the Valle Medio del Magdalena, as well as Capachos Sur-2, located in the Piedemonte. These three wells are undergoing assessment to determine their commercial feasibility. We expect to drill at least 12 exploratory wells in 2018.
"As part of our Near Field Exploration strategy, in late May the Infantas Oriente field in Barrancabermeja (Santander) was declared commercial. This allowed us to incorporate in record time the reserves associated with the Infantas Oriente-1 discovery, the assessment of which was carried out at the start of the year.
"In the transport segment, I would like to note the resumption of operations on the Caño Limón - Coveñas oil pipeline in June and the stability of the transport system for heavy crudes with viscosity greater than 600 centistokes (cst - a measure of viscosity), thereby structurally reducing dilution requirements.
"The reversal strategy implemented since 2017 on the Bicentenario oil pipeline allowed for reducing the impact of the attacks and illegal valves affecting the Caño Limón – Coveñas oil pipeline, preventing deferred production in its surrounding fields. In the first half of 2018, 30 reversal cycles were completed on the Bicentenario oil pipeline.
"The Refining segment saw outstanding operational performance in the second quarter, achieving stable throughput of 374,000 barrels per day.
"In the second quarter of 2018, the Cartagena refinery continued to demonstrate the consolidation and optimization of its operations with average throughput of 153,000 barrels per day and throughput composition of 79% domestic crude and 21% imported crude, thus contributing significantly to reducing the Business Group's cost of sales. In June, it achieved a record in the use of local crudes, at 83% of its diet. The gross refining margin for the Cartagena refinery during the quarter was USD 11.1/bl, up 44% over the same period the previous year (USD 7.7/bl), thus posting 10 consecutive months with gross margins in the double digits.
"Throughput and production at the Barrancabermeja refinery was up over 9% for the quarter versus the same quarter of 2017, thanks to the implementation of initiatives to segregate light and intermediate crudes, thus increasing their availability. The average refining margin for the quarter was USD 10.5/bl, affected primarily by the increase in the price of the crude basket versus Brent.
"In line with the Business Group's Efficiencies strategy, in the second quarter of the year we incorporated efficiencies representing 429 billion pesos, up 17% over the second quarter of 2017. Thus, cumulative efficiencies in the first half of 2018 totaled 892 billion pesos, for a total of 8 trillion pesos since the launching of the Transformation Program in 2015.
"In addition to the above, we are particularly proud of our success in implementing operational and logistics adjustments in record time throughout the entire supply chain, in order for diesel deliveries to Medellin and its Metropolitan area to have a sulfur content of below 25 parts per million. This is in line with our commitment to the environment, thus contributing to the improvement of the city's air quality.
"We have also committed to the massive transportation system Transmilenio S.A. to supply natural gas and B2 diesel with a maximum sulfur content of 10 parts per million for the renovation of the bus fleet of phases I and II, thus enabling the entry of EURO VI technologies.
"Together with the national and local institutions, Ecopetrol will continue to improve the quality of fuels for the whole country as set in the enhancement path established in the CONPES document for the improvement of air quality.
"In order to achieve a significant effect, it is not only necessary to improve fuels, but it is also necessary to carry out other actions such as improving the technology and age of the vehicle fleet, as well as promoting other initiatives related to road maintenance, mobility and the reduction of emissions in fixed sources, among others.
"Ecopetrol remains focused on operational excellence, value creation, a commitment to ethics and transparency, safety as a pillar of its operations and care for the environment. We are committed to profitable growth in production and reserves to deliver results that benefit the company's sustainability and the country's energy security."
To review the full report please visit the following link:
Statements on future projections:
This press release may contain statements of future projections relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. These are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the Company's sales plan. Achieving these estimates in the future depends on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and industry, and other factors; therefore, they are subject to change without prior notice.
Contact Information:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329 - Email: mauricio.tellez@ecopetrol.com.co
View original content with multimedia:http://www.prnewswire.com/news-releases/ecopetrol-sa-announces-2018-second-quarter-results-300697223.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 9, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on August 14, 2018 after market close, it will release its financial and operating results for the second quarter of 2018. On Wednesday, August 15th, Ecopetrol's senior management will host two conference calls to review the results. Please find below the timing, dial-in and links to access the conferences:
Spanish Conference Call |
English Conference Call |
08:00 a.m. Col Time |
09:30 a.m. Col Time |
US Dial-in #: 1 (847) 585-4405 |
US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Toll Free): 1 (888) 771-4371 |
US Dial-in # (Toll Free): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 47353235 |
Passcode: 47353240 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link:
http://web.meetme.net/r.aspx?p=12&a=UXzQuWKCgSyMQL
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
http://event.onlineseminarsolutions.com/wcc/r/1806327-1/E934C8DEA7B6C6E444887579EE01B359 (Spanish)
http://event.onlineseminarsolutions.com/wcc/r/1806354-1/B163754F8BF385987B8E2BFC078C5A8F (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome and Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
Fernando Alexander Suarez (e)
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
View original content with multimedia:http://www.prnewswire.com/news-releases/ecopetrol-announces-timing-of-the-second-quarter-of-2018-earnings-report-and-conference-call-300695174.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 31, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that due to her appointment as the Republic of Colombia's Minister of Mines and Energy, María Fernanda Suárez has resigned from Ecopetrol, effective August 6, 2018.
Bogotá D.C., July 31, 2018
--------------------------------------
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 contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-resignation-of-vice-president-for-strategy-and-finance-300689728.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, July 31, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that at its session on July 27, 2018, Ecopetrol's Board of Directors approved adjustments to the Company's management structure in addition to those announced last July 4, in response to the Ecopetrol Group's needs relating to growth, competitiveness and transformation.
The Offices of the Corporate Vice President for Finance, the Corporate Vice President for Strategy and New Business, and the Vice Presidents for Digital Affairs, Human Talent and Transformation will report directly to the Office of the President. The Office of the Executive Vice President for Strategy and Finance has been eliminated under this new structure.
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 contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-additional-adjustments-to-its-management-structure-300689725.html
SOURCE Ecopetrol S.A.
BOGOTÁ , Colombia, July 6, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports it will prepay the entire syndicated loan it entered into in 2013 with local banks, which had been scheduled to be amortized up to 2025.
As stipulated in the loan agreement, Ecopetrol can at any time pay off all the principal voluntarily, with no penalty whatsoever, subject to at least 30 calendar days' advance notice to the lenders. Pursuant thereto, the prepayment will be made August 6, 2018 in the total amount of COP$1,430,333,333,333, which includes principal and interest.
This prepayment is in line with the objectives of Ecopetrol's 2020 business plan and confirms Ecopetrol's commitment to maintaining its credit rating and increasing the return to its shareholders.
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network, and is significantly increasing its share of bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 - Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329 - Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-to-prepay-its-entire-syndicated-loan-with-local-banks-for-a-total-amount-of-cop-1-4-trillion-300677383.html
SOURCE Ecopetrol S.A.
- The Búfalo-1 well located in the Valle Medio del Magdalena confirmed the presence of dry gas and light crude oil
- Búfalo-1 is operated by Ecopetrol and its partner CPVEN E&P Corp
BOGOTÁ, Colombia, July 5, 2018 /PRNewswire/ -- Ecopetrol (BVC: ECOPETROL; NYSE: EC) reports that Búfalo-1 well confirmed the presence of oil in the Valle Medio del Magdalena, located near the town of Guaduas, Department of Cundinamarca.
The finding recorded a depth of 1,153 meters, in the Middle Magdalena Valley basin, where the presence of dry gas and light crudes was evident in the Grupo Honda.
Bufalo-1 is operated by Ecopetrol, who holds a 51% stake, and its partner CPVEN E&P Corp, who holds a 49% interest. The well is the first discovery in the VMM32 Exploration Contract.
The drilling works complied with environmental requirements, there were zero accidents and the works were in complete harmony with the communities in the area.
The Bufalo-1 well is located very close to Ecopetrol's transport infrastructure, which could facilitate its commercial production stage.
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 contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
Logo - http://photos.prnewswire.com/prnh/20090209/ARM001LOGO
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-new-oil-finding-at-cundinamarca-300676548.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, June 27, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the Standard & Poor's rating agency (S&P) has kept the company's long-term international rating at BBB-, with stable outlook, and stand-alone credit rating at bb+.
In its report, S&P highlighted Ecopetrol S.A.'s solid financial results, with strengthened credit metrics, thanks to the capital discipline and efficiencies it has implemented.
The rating agency noted the positive performance of the downstream and midstream segments, emphasizing the Cartagena refinery's operating results during its stabilization stage.
In turn, S&P recognized Ecopetrol's focus on increasing reserves, with the positive results posted on the 2017 balance sheet.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/sp-affirms-ecopetrol-sas-investment-rating-300673699.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, June 20, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports it will prepay all loans entered into in 2013 with international banks and guaranteed by the US Export-Import Bank, which had been subject to a payment schedule to 2023.
The loan agreements allow Ecopetrol to prepay without penalty all principal on the interest payment dates, which are scheduled for July 6 and 25, 2018. Total principal plus accrued interest owed is USD 155,979,564.
The Ecopetrol Group is able to make this prepayment as a result of its solid cash position of COP 16.6 billion as of the first quarter of 2018. This position is projected to remain robust, allowing the company to address crude price volatility scenarios and be prepared to seize any opportunities that might arise for inorganic growth.
This prepayment is in line with the objectives of the Company's 2020 business plan and confirms Ecopetrol's commitment to continue to improve its credit rating and increase shareholder returns.
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 contact:
Capital Markets Manager (e)
Francisco Pinilla Ortiz
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
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
View original content with multimedia:http://www.prnewswire.com/news-releases/ecopetrol-sa-announces-2018-first-quarter-results-300642636.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, March 28, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the spill of mud, oil and gas that occurred between March 12 and 15 at the La Lizama and Caño Muerto streams in the La Fortuna district, municipality of Barrancabermeja, is under control.
Ecopetrol estimates the quantity of oil that flowed into these water sources at 550 barrels, mixed with mud and rainwater.
The Company confirms it will spare no time or effort to address this situation and will continue to work unceasingly to recover and restore conditions in the region.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, COLOMBIA, March 26, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the Ordinary General Shareholders' Meeting, held March 23, 2018, approved the revision to the bylaws proposed by Company Management.
Once this is duly signed and recorded with the commercial registry, Ecopetrol will report the event in a release.
The text of the approved revision may be consulted at the following link:
https://www.ecopetrol.com.co/english/amendments-bylaws-2017.pdf
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, March 23, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") announces that, at the General Shareholders' Meeting held on March 23, 2018, the Company's Shareholders approved the following:
1. The plan for distribution of profits, which establishes a distribution of an ordinary dividend per share of eighty-nine Colombian pesos (COP$89).
The dividend for the minority shareholders will be paid in one installment on April 19, 2018.
The dividend for the majority shareholder, the Colombian State, will be paid in two equal installments on April 19 and September 17, 2018.
2. The appointment of its Board of Directors as follows:
Non Independent Representatives:
Independent Representatives:
3. The appointment of Ernst & Young Audit S.A.S as the External Auditor for the fiscal year 2018 for the Company.
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.
BOGOTA, Colombia, Feb. 27, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) informs the 2017 earnings Distribution proposal, approved by the Board of Directors, which will be submitted for the consideration of the Shareholders Meeting (Asamblea de Accionistas) that will take place on March 23:
PROFIT DISTRIBUTION PROPOSAL | |
YEAR 2017 (Colombian pesos) | |
Net Profit after provision for income tax |
6,620,411,850,505 |
+ Release of reserves from previous years |
751,718,653,488 |
New explorations reserve |
239,086,199,322 |
Excess of fiscal depreciation reserve (Art. 130 ET) |
509,081,603,363 |
Regulatory Decree 2336/95 current year reserve |
3,550,850,803 |
- Legal reserves of the current year |
1,171,122,788,414 |
Legal Reserve (10%) |
662,041,185,051 |
Excess of fiscal depreciation reserve (Art. 130 ET) |
509,081,603,363 |
Available to the Shareholders |
6,201,007,715,580 |
It is proposed to distribute as follows: |
|
Ordinary dividend non taxable (55% Net Profit) |
3,659,385,827,427 |
Strategic growth reserve (non taxable) |
1,143,610,022,344 |
New explorations reserve (taxed) |
1,398,011,865,809 |
Total |
6,201,007,715,580 |
Ordinary dividend payable per share |
$ 89.0 |
As a result of the financial strength achieved by the company, the Board of Directors approved as a dividend policy to distribute between 40% and 60% of the adjusted net income, for this purpose the Board of Directors will evaluate the macroeconomic environment, the cash projection for compliance of the strategy and growth plans, always maintaining an appropriate financial flexibility that is in line with the investment grade rating.
It is proposed to distribute $ 89 pesos / share, the proposed payment dates will be April 19, 2018 (100% to minority shareholders / 50% to the majority shareholders) and September 17 of 2018 (50% majority shareholders).
-----------------------------------------
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:
Capital Markets Manager
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.
BOGOTA, Colombia, Feb. 27, 2018 /PRNewswire/ --
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced today the Business Group's 2017 fourth quarter and full-year financial results, in accordance with International Financial Reporting Standards applicable in Colombia.
TABLE 1: |
||||||||||||
A |
B |
C |
D |
E |
F |
G |
H |
I |
||||
COP Billion |
4Q 2017 |
4Q 2016 |
∆ ($) |
∆ (%) |
2017 |
2016 |
∆ ($) |
∆ (%) |
||||
Total Sales |
15,363 |
13,313 |
2,050 |
15.4% |
55,210 |
47,732 |
7,478 |
15.7% |
||||
Operating Profit |
5,615 |
1,633 |
3,982 |
243.8% |
15,505 |
8,253 |
7,252 |
87.9% |
||||
Net Income Consolidated |
3,623 |
358 |
3,265 |
912.0% |
7,402 |
2,404 |
4,998 |
207.9% |
||||
Non-Controlling Interests |
(196) |
(172) |
(24) |
14.0% |
(782) |
(839) |
57 |
(6.8%) |
||||
Net Income Attributable to Owners of Ecopetrol |
3,427 |
186 |
3,241 |
1,742.5% |
6,620 |
1,565 |
5,055 |
323.0% |
||||
EBITDA |
5,778 |
4,474 |
1,304 |
29.1% |
23,075 |
18,018 |
5,057 |
28.1% |
||||
EBITDA Margin |
37.6% |
33.6% |
41.8% |
37.7% |
||||||||
Figures included in this report were extracted from the audited financial statements and were the source for the calculation of certain financial measures such as the Ebitda. The information is expressed in billions of Colombian pesos (COP) or US dollars (USD), or thousands of barrels of petroleum-equivalent per day (mboed) or tons, and are so noted as applicable. For presentation purposes, certain figures of this report have been rounded to the nearest decimal place.
In the opinion of Ecopetrol S.A. CEO, Felipe Bayon Pardo:
"2017 was a year of great operational and financial success for Ecopetrol. We are a more efficient and disciplined Company, demonstrating our technical capabilities and resilience by emerging stronger from the crisis of low oil prices.
"We are prepared to take advantage of opportunities that may arise. The discipline we have established and a more favorable price environment will allow us to better positioning to continue growing a profitable and safe operation.
"In 2017 we remained focused on seeking excellence and safety in all our operations and meeting our production goals with a better balance of reserves. These are basic foundations for the Company's growth. The rigorous allocation of investment resources, solid cash position and financial indicators, less leverage, a sustained investment-grade rating and the successful culmination of large projects were key aspects to the results we attained.
"We are successfully experiencing Ecopetrol's "profitable growth". Net profit in 2017 totaled 6.6 trillion pesos, the highest in the past four years and some 16% over 2014 profit, even with a Brent price 45% lower. EBITDA and EBITDA margin were 23.1 trillion pesos and 42%, respectively; EBITDA margin was up four percentage points over 2016, and is one of the highest in the global oil and gas industry.
"For the year as a whole, cash break-even was at 40 dollars per barrel.
"We closed out the year with a solid cash position of 14.5 trillion pesos (approximately 4.8 billion dollars), enabling opportunities for future inorganic growth. The 2017 year's cash position allowed us to prepay debt totaling 2.4 billion dollars, which is reflected in a 17% reduction in the Ecopetrol Group's nominal debt, strengthening its capital structure. Our Gross Debt/EBITDA indicator was at 1.9x for 2017, versus 2.9x in 2016.
"Total investment in 2017 totaled 2.2 billion dollars, out of which 80% was allocated to the Exploration and Production segment, in line with our proposed 2020 Business Plan. It is important to note that despite lower investment during the year, the Company met its operating goals.
"We are satisfied with the results achieved with our 2017 certification of reserves, which showed a change of trend. Proven reserves totaled 1,659 million barrels of oil equivalent, average life increased to 7.1 years and reserve replacement index was 126%, the highest in the past three years. This result was broadly leveraged by the success of our program to increase the recovery factor and the ongoing development of our fields.
"As a result of proactive commercial approach and a scarcity of heavy crude worldwide, we succeeded in reducing the crude basket spread by 2.5 dollars per barrel, to -6.9 dollars per barrel, an improvement of some 27% over the 2016 figure. Thanks to this progress, additional revenue of 1.2 trillion pesos was generated for Ecopetrol. Also, in 2017 a new energy marketing subsidiary was incorporated.
"The company met its 2017 production goal, at 715 thousand barrels of oil equivalent per day. This result was possible despite some operational events and public security issues, especially on the Caño Limón Coveñas oil pipeline. An important achievement was to be able to maintain a stable bi-directional operation on the Bicentenario oil pipeline and moving all our heavy crude along the same corridor. In 2017 some 500 development wells were drilled, reflecting a significant increase in activity versus 2016.
"The recovery program saw outstanding results and is continuing to mature toward an expansion phase for pilots that have successfully completed the analysis stage. The purpose of the recovery program is to expand enhanced recovery technologies to other fields, as for example in Chichimene, one of our main fields, which initiated the mature expansion of water-injection technology throughout the entire field, based on the positive results obtained in the pilot phase.
"2017 was a year of intense exploratory activity, as we worked hard to build the foundations for the Company's future growth. We ended the year with a total of 21 wells drilled. Through this deployment of activity we succeeded in incorporating more than 250 million barrels of oil equivalent in contingent resources, leveraging the future increase in the Business Group's reserves.
"It is important to highlight the experience we gain with the drilling of the Molusco-1 well, the first offshore well operated by Ecopetrol. This well ended up fulfilling projected plans with no technical, environmental or operational incidents. Through this project, Ecopetrol has acquired experience in offshore exploration, following the industry's highest HSE standards.
"In line with the strategy of growth and increased international activity, we were awarded new exploratory blocks in Mexico (blocks 6 and 8) and the United States (Garden Banks 77, 78, 121 and 122 in the US Gulf of Mexico). In turn, an additional stake was acquired in block K2 (Gulf of Mexico), contributing to our 2017 reserves and production balance.
"In the transport segment, we highlight the stable transport of heavy crude with viscosity greater than 600 centistokes (cst – a viscosity measurement), thereby reducing dilution requirements. Late 2017 saw the completion of the San Fernando - Monterrey pipeline, the most important infrastructure in the Orinoquia region, providing us greater capacity to transport heavy crudes.
"In refining, we achieved important operational milestones that yielded significant value to the Business Group. We note that in its second year of operations, the new Cartagena refinery is generating positive net profit and EBITDA, marking a significant change of trend in its financial figures. This important asset, which belongs to every Colombian, shows why it is considered the most modern refinery in Latin America.
"The new Cartagena refinery completed its stabilization stage in December 2017 with the execution of the global performance test, having a sustained load of 144 thousand barrels per day or 96% of its capacity during 60 days and a refining margin of 12.5 dollars per barrel in the fourth quarter of 2017. This milestone initiates the operational optimization phase.
"The Barrancabermeja refinery has consolidated a profitable and efficient operation, with an average refining margin of 13.5 dollars per barrel. During the year the Bioenergy project was completed and achieved several technical and operational milestones.
"It is important to highlight that in December we reached an historic peak load of 393 thousand barrels per day on one specific day of the month. These successes were achieved while both refineries were operating stably and optimally.
"The Transformation program remains a critical part of our growth. In 2017 operating efficiencies of 2.6 trillion pesos were reported versus the initial goal of 750 billion pesos. The key efficiency drivers in 2017 were energy, heavy crude handling, sales spread, optimization of the refining segment, and water management.
"Process Safety showed the best results of the past nine years, with a Level 1 Process Safety Incidents Indicator of five incidents, a decline of 17% versus 2015 and 2016. This result was largely due to the implementation of safe practices and the strengthening of leadership in the area, at the management levels.
"With a view to aligning our practices with global standards, Ecopetrol S.A. obtained OHSAS 18001 certification (Occupational Health and Safety) and ISO 14001 certification (Environmental Management), confirming its high HSE standards and enhancing its market competitiveness.
"The year 2018 comes with significant challenges for Ecopetrol. Increasing our production to a level between 715 and 725 thousand barrels of oil equivalent per day, maintaining operational excellence, safety in our operations and solid financial metrics are our priorities. For 2018 we project investment ranging from 3.5 to 4.0 billion dollars, with a major focus on Exploration and Production, which accounts for 85% of the CAPEX plan.
"In the Exploration and Production segment we plan the drilling of over 620 development wells, at least 12 exploratory wells, the use of 28 rigs and the acquisition of over 41,000 kilometers of 2D and 3D seismic. We also project developing activities at some 20 pilot projects to implement improved recovery technologies.
"In the refining segments, efforts are focused on optimizing operations at the new Cartagena refinery, where we forecast an EBITDA of at least 500 billion pesos and a double-digit refining margin. The Company expects to achieve a milestone in refined products, with its two refineries processing between 350 and 375 thousand barrels of oil per day.
"As part of the revision of the Corporate Responsibility strategy, in December 2017 the Corporate Responsibility Office was created, with the purposes of identify, adopt and facilitate the incorporation of initiatives that leverage the achievement of business objectives and ensure Ecopetrol's position as an organization that acts responsibly with its stakeholders.
"The Ecopetrol Group's 2018 priorities will continue to be operational excellence, a commitment to ethics and transparency, safety as a pillar of its operations, care for its workers, protection of the environment, shared growth with communities, within a framework of joint prosperity and safe operations."
To review the full report please visit Ecopetrol's website: www.ecopetrol.com.co
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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
1 Comparison made against financial results reported under IFRS as adopted in Colombia in 2015
with transition period on January First, 2014.
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 25, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that the risk-rating agency Moody's Investor Services has disclosed that the change in the Republic of Colombia's rating outlook, from stable to negative, had no effect on the Company's credit rating, as it anticipates continuously improving fundamental performance.
The rating was maintained at Baa3 with stable outlook, and an individual credit rating (BCA) of ba3. The agency notes that Ecopetrol has successfully reduced its operating costs, allowing it to increase its cash flow and reduce its debt. It also mentioned the Company's almost 130% reserves replacement achieved in 2017, and its improved fundamentals.
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia and most of the country's oil-pipeline and polyduct network, and is significantly increasing its share in bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 23, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) reports that its Board of Directors approved the Financial Statements for 2017 and will release on February 27th, 2018 after markets close, its financial and operating results for the fourth quarter and full year 2017. On Wednesday, February 28th, Ecopetrol's senior management will host two conference calls to review the results:
Spanish Conference Call |
English Conference Call |
07:30 a.m. Col Time |
09:00 a.m Col Time |
US Dial-in #: 1 (847) 585-4405 |
US Dial-in #: 1 (847) 585-4405 |
US Dial-in # (Free Toll): 1 (888) 771-4371 |
US Dial-in # (Free Toll): 1 (888) 771-4371 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in #: : 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 46403731 |
Passcode: 46403740 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UwaMWOVFzqjKwN
The earnings release, slide presentation and live webcast of the conference calls will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
http://event.onlineseminarsolutions.com/wcc/r/1601038-1/F17449F21C67CE66AEFE37C54F1B0EB8 (Spanish)
http://event.onlineseminarsolutions.com/wcc/r/1601042-1/82D6B304C09D64459DD2D1989DA3DDEC (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Capital Markets Manager
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.
BOGOTÁ, Colombia, February 20, 2018 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that on February 16, 2018, the Colombian Ministry of Finance and Public Credit subscribed the Declaration of the Nation in its role as Majority Shareholder of Ecopetrol S.A. for a 10 year term. In this declaration the Nation acquires commitments as majority shareholder allowing the company's minority shareholders to benefit from good corporate governance practices.
The document's complete text may be consulted at this link:
Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia and most of the country's oil-pipeline and polyduct network, and is significantly increasing its share in bio-fuels.
This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance the company's sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.
For further information, contact:
Capital Markets Manager
Maria Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Feb. 19, 2018 /PRNewswire/ -- Ecopetrol (BVC: ECOPETROL; NYSE: EC) today announced its proven reserves of oil, condensate and natural gas (1P reserves), including its share in affiliates and subsidiaries, as of December 31, 2017.
Reserves were estimated based on US Securities and Exchange Commission (SEC) standards and methodologies. 99% of the reserves were audited by two well-known, independent, specialized firms (Ryder Scott Company and Degolyer and MacNaughton).
At the 2017 close, the Ecopetrol Group's net proven reserves were 1,659 million barrels of oil-equivalent. The reserve replacement index was 126%, with average reserve life equivalent to 7.1 years.
95% of the proven reserves are owned by Ecopetrol S.A., while Hocol, Ecopetrol America and the Equión and Savia Perú interests contributed 5%. Ecopetrol S.A. has an average reserve life of 7.4 years.
In 2017, the Ecopetrol Group incorporated 295 million barrels of oil-equivalent of proven reserves, representing a positive change in the reserves incorporation trend in recent years. The year's total accumulated production was 234 million barrels of oil-equivalent.
The SEC price used for valuation of the 2017 reserves was USD 54.93 per Brent barrel, versus USD 44.49 per Brent barrel in 2016. Ecopetrol estimates that 94 million barrels of oil equivalent were recovered as a result of the higher price effect due to the extension of the fields' economic limit and the incorporation of new projects. It is further estimated that the company's technical management and financial optimization of assets contributed 201 million barrels of oil equivalent.
We note that much of the increase in proven reserves (73 MBOE) is due to the results of the Recovery Factor Increase program, the principal gains of which occurred in fields such as Chichimene, Castilla, Casabe and Tibú. This result is very satisfactory, as it is one of the pillars of the company's growth in reserves and production.
Ecopetrol Group Proven Reserves 2015 - 2017 | |||
2015 |
2016 |
2017 | |
Proven |
2.084 |
1.849 |
1.598 |
Revisions |
-25 |
-54 |
175 |
Enhanced Recovery |
16 |
11 |
73 |
Mineral Purchases |
0 |
0 |
4 |
Extensions and discoveries |
24 |
27 |
44 |
Sales |
0.0 |
0.0 |
0.0 |
Production |
-251 |
-235 |
-234 |
Net proven reserves Dec 17 |
1.849 |
1.598 |
1.659 |
Bogotá D.C., February 19, 2018
--------------------------------------
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content with multimedia:http://www.prnewswire.com/news-releases/ecopetrol-group-increases-its-hydrocarbon-reserves-proven-reserves-mount-to-1659-million-barrels-equivalent-at-2017-close-300600891.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 18, 2017 /PRNewswire/ -- Ecopetrol (BVC: ECOPETROL; NYSE: EC) reports that the Coyote-1 well confirmed the presence of oil in the Valle Medio del Magdalena basin, in the town of San Vicente de Chucurí, Department of Santander.
The finding was recorded at between 2,042 and 2,177 meters in depth, confirming the presence of crude of 25º - 28º API (lighter and more liquid than heavy Colombian crudes) in the Esmeraldas formation, in petroleum sand intervals with total thickness of 29 meters.
Coyote-1 is one of the exploratory projects that Ecopetrol (50%) and Parex (50%) are sharing in the De Mares block.
The new finding will ensure synergies and competitive advantages in the region, thanks to installed capacity and operations at the La Cira-Infantas, Lisama and Colorado fields, as well as the proximity of the Barrancabermeja refinery. All of this production, transport and refining infrastructure is within a distance of 26 kilometers.
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 forwardlooking 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 contact:
Capital Markets Manager
María Catalina Escobar
Teléfono: +571-234-5190
Correo electrónico: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Teléfono: + 571-234-4329
Correo electrónico: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-new-oil-finding-at-santander-300572540.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 7, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that as part of its transformation process, it is continuing the strategy of optimizing its capital structure in the Business Group (GEE). The strategy's objectives include an efficient allocation of debt within the companies comprising the Business Group. This is in line with the company's commitment to encouraging savings and optimization with a view to generating financial efficiencies in the consolidated results.
The operating and financial results achieved by the group's companies are reflected in a solid cash position, allowing it to continue optimizing its capital structure. As part of its implementation of this strategy, in December the business group will execute the three transactions described below:
After the transactions mentioned above, which fulfilled all the procedures and approvals internal and external required, the business group's nominal debt will decline to USD$ 14.580 billion.
As a result of the capital structure optimization strategy that has been implemented since October 2016, the credit metrics continue to improve versus the figures reported at the September 30, 2017 cutoff, as shown below:
GEE Companies Debt – Third-Party Debt | |||
Figures in Millions of USD (Does not include inter-company loans) | |||
Company1 |
Dec-16 |
Sep-17 |
Adjusted Sep-172 |
Ecopetrol |
13,017 |
11,027 |
13,219 |
Reficar |
2,796 |
2,666 |
0 |
Bicentenario |
516 |
483 |
483 |
ODL |
257 |
222 |
222 |
Bioenergy |
158 |
156 |
156 |
Ocensa |
500 |
500 |
500 |
Total |
17,244 |
15,055 |
14,580 |
Gross Debt / EBITDA3 |
3.0x |
2.1x |
2.0x |
Net Debt / EBITDA3 |
2.2x |
1.7x |
1.7x |
1 Nominal debt value. |
|||
2 Totals at the September close (15,055) - prepaid international loans (475). Includes reclassification of Reficar nominal debt (2,666). 3 Debt value reported on the Financial Statements under IFRS and past 12 months' EBITDA. |
The Ecopetrol Business Group's improved results and capital structure optimization strategy have allowed the nominal value of its consolidated debt to decline by USD$ 2.664 billion from December 2016 to date. The transactions executed are in line with the goals of the 2020 business plan, confirming the company's commitment to its credit rating and to increasing its return to shareholders.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-continues-its-transformation-process-by-optimizing-the-business-groups-capital-structure-300568833.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Dec. 7, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that risk-rating agency Fitch Ratings has maintained the company's credit rating at BBB with stable prospects, and its stand-alone rating without incorporating government support at BBB-.
The rating agency noted the company's actions to promote a solid financial and cash position, with Gross Debt /EBITDA of 2.1x. In terms of operations, it recognizes the importance of cost reduction, as a result of the company's transformation plan.
Throughout the report it emphasizes the company's close ties to the Colombian Government and Ecopetrol's strategic role in the country.
Fitch also notes that Ecopetrol's stand-alone rating is the best among its Latin American peers such as Petrobras and Pemex, thus confirming its strength.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/fitch-ratings-confirms-ecopetrol-sas-investment-grade-rating-300568817.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 23, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that its Board of Directors, meeting in ordinary session on November 16, 2017, authorized Dr. Felipe Bayón Pardo, Chairman and Company Legal Representative, to purchase up to the equivalent of COP$ 15,000,000 (fifteen million Colombian pesos) of Ecopetrol shares.
This transaction will become effective within eight (8) business days following the date of approval and after the publication of the 2018 investment plan, and according to Dr. Felipe Bayón, is not for speculative purposes.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/director-authorization-to-purchase-ecopetrol-shares-300561419.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 22, 2017 /PRNewswire/ --
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that it expects to invest USD 3.5 to USD 4 billion in 2018, up 35% to 55% over the projected investment at year-end 2017.
After two years of a successful transformation plan focused on cost reduction and capital discipline, the 2018 plan approved by the Board of Directors is aimed at increasing reserves and hydrocarbon production, capturing earnings through an improved international environment for the sector, and advancing along the path of efficiency.
Given the above, Ecopetrol is continuing to reduce its break-even price. In 2018 the Company expects that it will have a positive net income at Brent prices up to USD 35 per barrel.
The plan provides that 85% of funds will be allocated to strategic investments in the exploration and production segments, with over USD 1 billion more invested in those segments than in 2017.
Highlights include drilling over 620 development wells and at least 12 exploratory wells, using 28 rigs and acquiring over 41,000 kilometers of seismic. This projected 2018 activity represents an increase of some 140 wells and the use of 16 additional rigs compared to 2017.
The 96% of the investment will be executed in Colombia, with the remainder allocated to the Ecopetrol Group's projects in the United States (Gulf of Mexico), Mexico, Brazil and Peru.
The investments will allow the Ecopetrol Group to resume its path of production growth, leveraged on some 20 pilot projects to implement improved recovery technologies. 2018 production is projected at 715,000 to 725,000 barrels of petroleum-equivalent per day.
Investments in the transportation and refining segments, equivalent to 14% of the plan, will be oriented toward ensuring the reliability, integrity, performance standards and operating efficiency of the entire oil pipeline and polyduct network and the Barrancabermeja and Cartagena refineries.
Next year Ecopetrol expects to see the materialization of synergies and benefit from having two complementary refineries, one located in the middle of the country and the other on the Caribbean Coast, with capacity to achieve efficiencies in purchasing and crude mixtures, fuel production and exports.
In 2018, Ecopetrol anticipates stable and safe operations at the new Cartagena refinery, which will be capable of self-sustained financing, funding its own investments and generating profits, with an estimated EBITDA of at least COP 500 billion.
The investment plan will be financed with internal cash generation, and currently does not anticipate having to access financing sources, which demonstrates the efficiency achieved by the Company and resilience in a low-price environment.
Ecopetrol's solid cash position of USD 4,300 million and a Gross Debt / Ebitda level of 2.1 times at the end of the third quarter of 2017 confirm the financial flexibility for inorganic growth focused on the increase in reserves.
The plan includes the benefits of the 2016 Colombian tax reform, the effective tax rate will decrease between 7 to 11% as a result of the elimination of the wealth tax and a lower income tax rate from 40% to 37% and operating results of the subsidiaries.
The Ecopetrol Group's 2018 priorities will continue to be operational excellence, its commitment to ethics and transparency, industrial safety as a pillar of its operations, the care of its employees, the protection of the environment and growth with communities in a framework of shared prosperity and safe operations.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-will-invest-between-usd-35-to-usd-4-billion-in-2018-300560877.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 14, 2017 /PRNewswire/ -- In 2006, after completing the relevant analysis and with the necessary corporate authorizations, Ecopetrol S.A. organized the company Black Gold RE, domiciled in Bermuda, the corporate purpose of which was to support and foster the risk financing strategy of Ecopetrol and its subsidiaries and affiliates, in order to determine the optimal balance between retaining and transferring risks at any point in time.
As a result, Black Gold RE has engaged in efficient yet extensive risk financing by accessing the international reinsurance market directly, which in turn allows it to mitigate the capacity and coverage restrictions that exist in the local insurance markets, negotiate better insurance premium rates, monitor insurance brokerage costs, increase its retention capacity to efficiently address rate changes in the insurance market, and consolidate and concentrate the financial and administrative operations of the GE Corporate Insurance Program (a single deal), etc.
It is important to stress that Bermuda is not included on the list of countries considered tax havens, pursuant to Colombian Ministry of Finance and Public Credit Decrees 1966 and 2095 of October 7 and 21, 2014
For accounting purposes, Ecopetrol fully consolidates the earnings generated by this subsidiary in its financial statements, which are audited by E&Y, the Group companies' current external auditor, and in the other periodic reports, including the quarterly report, published as relevant information in Colombia, through the official page of the Financial Superintendence of Colombia, and the 20F that must be presented to the Securities Exchange Commission of the United States of America.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-sa-issues-statement-on-paradise-papers-article-300555615.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Nov. 7, 2017 /PRNewswire/ --
Today, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced third-quarter and year-to-date 2017 financial results for the Business Group, prepared and presented in billions of Colombian pesos (COP), in accordance with International Financial Reporting Standards applicable in Colombia.
TABLE 1: | ||||||||||
A |
B |
C |
D |
E |
F |
G |
H |
I | ||
COP Billion |
3Q 2017 |
3Q 2016 |
∆ ($) |
∆ (%) |
Jan-Sep 17 |
Jan-Sep 16 |
∆ ($) |
∆ (%) | ||
Total Sales |
13,325 |
12,183 |
1,142 |
9.4% |
39,847 |
34,419 |
5,428 |
15.8% | ||
Operating Profit |
3,323 |
2,540 |
783 |
30.8% |
9,889 |
6,620 |
3,269 |
49.4% | ||
Net Income Consolidated |
1,224 |
446 |
778 |
174.4% |
3,779 |
2,046 |
1,733 |
84.7% | ||
Non-Controlling Interests |
(221) |
(217) |
(4) |
1.8% |
(585) |
(667) |
82 |
(12.3%) | ||
Net Income Attributable to Owners of Ecopetrol |
1,003 |
229 |
774 |
338.0% |
3,194 |
1,379 |
1,815 |
131.6% | ||
EBITDA |
5,852 |
4,886 |
966 |
19.8% |
17,296 |
13,545 |
3,751 |
27.7% | ||
EBITDA Margin |
43.9% |
40.1% |
43.4% |
39.4% |
The figures included in this report are unaudited, expressed in billions of Colombian pesos (COP) or US dollars (USD), or thousands of barrels of petroleum-equivalent per day (mboed) or tons, and are so indicated where applicable. For presentation purposes, certain figures in this report have been rounded to the nearest decimal point.
In the opinion of Ecopetrol S.A. CEO Felipe Bayón Pardo:
"Year to date 2017, Ecopetrol reported a much higher operating and financial result than for the same period last year, we highlight an EBITDA of COP 17.3 trillion and an EBITDA margin of 43.4%, the highest in the past two years. Year-to-date net profit totaled COP 3.2 trillion, double the figure for all of 2016. These results reflect our soundness and our ongoing pursuit of: i) improved operating and commercial capacity, ii) greater efficiencies and cost reductions, iii) a focus on capital discipline, as well as a better environment for crude prices.
The Business Group's average production year to date totaled 715 mboed, in line with the 2017 production target, despite the challenges raised by a difficult environment in terms of security and operational events. We note also that we achieved our activity goals with a lower CAPEX, thanks to significant efficiencies in the production segment. Water injection projects continue to show positive results in fields such as Casabe, La Cira Infantas, Chichimene and Castilla, among others, where investments in water injection have yielded increased or stable production, along with better operating responses. This quarter, the International Energy Agency (IEA) invited Ecopetrol as a member of the technical recovery group this organization leads.
It is worth noting that the export basket spread for the third quarter totaled -USD 6.0/bl, the best of the past seven years and around 50% below the figure from two years ago. The basket's spread year to date as of September 2017 was -USD 6.9/bl, improved from the year-to-date figures for the same period in 2016 (USD -9.6/bl), largely due to: i) Changes in commercial strategy to reach directly end clients, ii) production cuts by OPEC, especially in heavy crudes, and iii) demand for heavy crudes in the Gulf of Mexico and Asia.
We closed out the quarter with a cash position of COP 12.8 trillion, confirming our financial soundness and flexibility. For its part, Moody's recognized the company's achievements and strategy, upgrading Ecopetrol's outlook to "stable" and retaining its investment-grade rating (Baa3). In October we completed the program to divest our equity stake in EEB, selling the remaining shares for COP 56.930 million.
Drilling activities are currently underway at four exploratory wells: Lunera, Molusco, Trogón and Coyote (re-entry to execute tests and hydraulic stimulation). The Bonifacio well, operated by our subsidiary HOCOL, has completed its drilling period and is now in the evaluation stage. During the quarter, drilling activities were completed at the Bullerengue and Brama wells, which were unsuccessful, as no commercial accumulation of hydrocarbons was found.
September 20 saw the start of drilling of the Molusco well (Block RC-9) in the Colombian Caribbean offshore, approximately 30 kilometers from Riohacha, in La Guajira. Molusco represents one of the most important milestones in Ecopetrol's history, as the first drilled offshore exploratory well operated by the company, through its subsidiary Ecopetrol Costa Afuera SAS - ECAS (50%), in joint venture with ONGC (50%). For the close of 2017, we are committed to meeting the goal of drilling 17 exploratory wells and adding contingent resources of 250 MBPE.
In the third quarter of 2017 crude was transported at viscosities of 600 centistokes (cst - a measurement of viscosity) through the systems of Cenit and its subsidiaries, which helped demonstrate the commercial feasibility of high-viscosity crudes. We exceeded operating milestones by transporting all the country´s crude along a single corridor, thanks to the bi-directional carrying ability of the Bicentenario oil pipeline and the capacity of OCENSA.
The third quarter was the best of the year for the Cartagena Refinery, as for the first time it posted double-digit operating margins, of USD 10.3/bl, a result of progress in unit stabilization and better market conditions for refiners worldwide. The year-to-date refining margin as of the third quarter totaled USD 8.3/bl, a 93% increase over the same period in 2016 (USD 4.3/bl). The third quarter also saw 100% completion of the individual unit tests of the refinery. The Barrancabermeja refinery posted profitable and efficient operations, with a year-to-date refining margin of USD 14.1/bl.
Our purpose is to continue strengthening safety as a pillar of our operations. The company's TRIF [Total Recordable Injury Frequency] index improved 38% compared to the same period last year, placing us among the top companies worldwide in terms health and security. To align our HSE [Health, Safety and the Environment] practices with high global standards and enhance our competitiveness, the company obtained OHSAS 18001 (Occupational Health and Safety) and ISO 14001 (Environmental Management) certifications.
Ecopetrol remains committed to the country's growth and development, the care of its workers, the environment and the communities in which it operates, constantly seeking shared prosperity and operational safety at all levels. Our focus will continue to be on delivering outstanding results, with the aim of maintaining a sustainable company that creates value for its shareholders."
The earnings release will be available on Ecopetrol's website:
http://www.ecopetrol.com.co/wps/portal/web_es/ecopetrol-web/investors/financial-information/quarterly-earnings
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-business-group-presents-third-quarter-and-year-to-date-2017-results-300551425.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 31, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on November 7, 2017 it will release after markets close its financial and operating results for the third quarter of 2017. On Wednesday, November 8, Ecopetrol's senior management will host two conference calls, in Spanish and in English, to review the results. Please below find the timing, telephone numbers and links to access the conferences:
Spanish Conference Call |
English Conference Call |
08:00 a.m. Col Time |
9:30 a.m. Col Time |
US Dial-in #: 1 (847) 619-6817 |
US Dial-in #: 1 (847) 619-6817 |
US Dial-in # (Free Toll): 1 (888) 427-2535 |
US Dial-in # (Free Toll): 1 (888) 427-2535 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 45935199 |
Passcode: 45935254 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UBUANbDYpEBviB
The earnings release, slide presentation and live webcast will be available on Ecopetrol's website: www.ecopetrol.com.co
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-announces-timing-of-the-third-quarter-of-2017-earnings-report-and-conference-call-300547076.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 24, 2017 /PRNewswire/ -- The Ecopetrol S.A. board of directors approved the establishment of Sociedad Ecopetrol Energía S.A.S. E.S.P, which is directly and indirectly wholly owned by Ecopetrol.
The main purpose of the new Bogota-based company will be energy generation, conversion and marketing, as well as providing services related, connected or complementary to electricity generation, conversion and marketing for the Ecopetrol Business Group and third parties, subject to Laws 142 and 143 of 1994.
The establishment of the new subsidiary is aimed at reducing electricity costs to optimize the costs of Business Group Ecopetrol S.A.
This company's authorized share capital will be three billion Colombian pesos (3,000 MM COP). As a step prior to establishing the company, Ecopetrol S.A. must process and obtain the corresponding national government approval; once obtained, this will allow it to establish the company, which will be reported to the market by this same method.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Oct. 19, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that as of today it has terminated the program for the disposal of Ecopetrol's shareholder interest in the EEB, which was approved by the national government under Decree 2305 of November 13, 2014 and Decree 2110 of 2016, which extended its validity to December 31, 2017.
Under Article 3, Number 2 of Decree 2305 of 2014, the two-stage program, which initially offered 631,098,000 common shares of EEB, equivalent to 6.87% of its share capital, was terminated after executing the last sell order in the second stage. This was completed in the cash round administered by the Colombian Securities Exchange (BVC), in which Ecopetrol's entire EEB shareholder interest was disposed of at market price.
The results of the placement through the BVC cash round were as follows:
Number of shares offered |
28,465,035 |
Number of shares placed |
28,465,035 |
Total amount awarded |
$ 56,930,070,000 |
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 contact:
Capital Markets Manager (A)
Fernando Suarez Tello
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Oct. 6, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that has signed a contract to supply Refinery-Grade Propylene (RGP) to its subsidiary COMPOUNDING AND MASTERBATCHING INDUSTRY LTDA (Comai Ltda) from October 2017 to August 2022.
The estimated value of this contract is USD 160 million, for the approximate supply of 315,000 tons during its lifetime.
Entering into this long-term agreement is a significant boost to the development of the country's petrochemical industry, while at the same time generating value for the Ecopetrol Group.
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 contact:
Capital Markets Manager (A)
Lina María Contreras Mora
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/ecopetrol-signs-contract-to-deliver-propylene-to-its-comai-subsidiary-300532864.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Sept. 21, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the rating agency Moody's has upgraded the company's perspective to stable and retained its rating at Baa3.
The upgrade in perspective was due to the company's solid strategy for adding reserves that the Company is advancing on, based on four pillars:
The rating action was also based on Ecopetrol's solid financial results, including a good liquidity position and low refinancing risk.
Finally, Moody's stated that it considers limited risk to Ecopetrol relating to the Reficar investigations.
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 contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: +571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
View original content:http://www.prnewswire.com/news-releases/moodys-upgrades-perspective-to-stable-and-confirms-ecopetrol-sas-investment-grade-rating-300524215.html
SOURCE Ecopetrol S.A.
BOGOTA, Colombia, Aug. 24, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that as part of its process of reviewing the Ecopetrol Group's corporate structure, at its meeting of August 18, 2017, the Board of Directors authorized:
-----------------------------------------
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
Maria 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
View original content:http://www.prnewswire.com/news-releases/ecopetrol-authorizes-liquidation-process-for-two-subsidiaries-300509519.html
SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 17, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that its Board of Directors, in a meeting held on August 16, 2017, accepted the resignation of Juan Carlos Echeverry Garzón, current president of the Company, submitted for family reasons, and appointed as his replacement Engineer Felipe Bayón Pardo, current Executive Vice President. The transition in the presidency will be made on September 15, 2017.
The appointment of Bayon is based on the process completed by a subcommittee of the Board of Directors, advised by an international firm specialized in the selection of high-level executives, after a rigorous analysis of the proposed candidates.
The Board of Directors made a special recognition to Juan Carlos Echeverry for the achievements during its management of Ecopetrol, in which he successfully met the challenges of the international oil market and maximized the value of the company for the benefit of its shareholders and all Colombians.
Echeverry formed a talented management group that surpassed the efficiencies and savings goal, and laid the foundations for the Company's growth in the long term. Among its achievements is the discovery of a new hydrocarbon province in the Colombian Caribbean, strengthening ethical and compliance management in the company, and a new strategy in key areas such as finance, projects, supply, human talent, environment and relationship with communities, among others.
The new president of Ecopetrol, Felipe Bayón Pardo, is a mechanical engineer from the University of Los Andes with more than 25 years of experience in the oil and gas industry, both in Colombia and abroad.
For more than 20 years he worked at BP PLC, where he held senior positions such as Senior Vice President BP Americas and Director of the Deepwater International Response Group. Since February 2016, he has led Ecopetrol's operations as Executive Vice President.
Dr. Bayón received the mandate from the Board of Directors to continue the transformation process and focus on profitable growth.
-----------------------------------------
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
Maria 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.
BOGOTA, Colombia, Aug. 8, 2017 /PRNewswire/ --
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) today announced the Ecopetrol Business Group's second-quarter and first half 2017 financial results, prepared and presented in billions of Colombian pesos (COP) according to International Financial Reporting Standards applicable in Colombia.
TABLE 1: | ||||||||||
A |
B |
C |
D |
E |
F |
G |
H |
I | ||
COP$ Billion |
2Q 2017 |
2Q 2016 |
∆ ($) |
∆ (%) |
1H 2017 |
1H 2016 |
∆ ($) |
∆ (%) | ||
Total Sales |
13,151 |
11,751 |
1,400 |
11.9% |
26,522 |
22,236 |
4,286 |
19.3% | ||
Operating Profit |
3,268 |
2,481 |
787 |
31.7% |
6,567 |
4,080 |
2,487 |
61.0% | ||
Net Income Consolidated |
1,483 |
989 |
494 |
49.9% |
2,556 |
1,600 |
956 |
59.8% | ||
Non-Controlling Interests |
(178) |
(202) |
24 |
(11.9%) |
(365) |
(450) |
85 |
(18.9%) | ||
Net Income Attributable to Owners of Ecopetrol |
1,305 |
787 |
518 |
65.8% |
2,191 |
1,150 |
1,041 |
90.5% | ||
EBITDA |
5,612 |
4,522 |
1,090 |
24.1% |
11,425 |
8,659 |
2,766 |
31.9% | ||
EBITDA Margin |
42.7% |
38.5% |
43.1% |
38.9% |
The figures included in this report are unaudited, expressed in billions of pesos (COP) or US dollars (USD), or in thousands of barrels of petroleum equivalent per day (mboed) or tons, as applicable. For presentation purposes, certain figures of this report were rounded to the nearest decimal place.
In the opinion of Ecopetrol S.A. CEO Juan Carlos Echeverry G.:
"Ecopetrol is focusing on the next pillar of its 2020 strategy, 'profitable growth.' Over the past two years we have embarked upon a profound transformation, and as a result have achieved financial soundness with ratios that are among the highest in the global industrial rankings.
The time has come to build on that financial soundness and discipline, and to concentrate our efforts on Ecopetrol's profitable growth. Profitable growth is supported on four basic pillars: i) increased exploratory activity, ii) development of improved recovery pilots and infill projects, iii) exploring opportunities in Unconventionals, and iv) advancing in opportunities for inorganic growth.
Operational and financial performance in the first half of the year was outstanding. The EBITDA margin of 43% is one of the highest in the industry and we closed out the period with a solid cash position of COP 10.4 trillion. During the quarter we distributed COP 945 billion in dividends to our shareholders on 2016 earnings, and prepaid an international commercial banking loan of USD 1,925 million (approximately COP 6 trillion). The Ecopetrol Group's nominal debt declined some 12.9% during the second quarter of 2017. The risk rating agencies have recognized our achievements and confirmed our investment-grade credit rating. For its part, S&P upgraded our stand-alone rating from BB to BB+.
Excellent commercial management and the global scarcity of heavy crude helped capture market opportunities in international sales. Ecopetrol's export basket spread improved significantly, to -USD 6.6/bl in the second quarter.
In line with our commitment to profitable growth, we created the Project Maturity Center with a view to ensure that projects generate value, maintain the highest standards and are executed on time and within budget.
During the quarter, the exploratory campaign continued to show outstanding results. The Warrior-2 well, located in the Gulf of Mexico, was declared successful upon confirming the presence of light crude, making it the second discovery in that area in the past eight months. This discovery is consistent with Ecopetrol's goal of positioning itself as a pan-American company. The Siluro well, in the Colombian offshore, did not yield the expected results with the presence of hydrocarbons. Thus, four discoveries were made in five wells, a success rate of 80% for the half-year period. In line with the search for growth opportunities, we participated in Round 2.1 in Mexico and were awarded two blocks in association with Pemex and Petronas.
In the second half of the year Ecopetrol will drill the Molusco well in the Colombian offshore, a milestone for the Company since it will be the first well of this kind operated directly by Ecopetrol. The second half's exploratory campaign will focus more on the Colombian onshore, with the drilling of 10 wells.
The Business Group's average production in the first half totaled 715 thousand barrels of oil equivalent per day, in line with the 2017 production goal. We succeeded in maintaining our production rate despite public security situations and operational events that have arisen. Pilot recovery programs are making satisfactory progress; by year-end we will have four recovery pilots that have completed the evaluation stage. One year after regaining control over the Rubiales and Cusiana fields, we have succeeded in maintaining stable and safe operations.
An important operational achievement has been sustaining stable bi-directional operation on the Bicentenario oil pipeline to extract crude from the Caño Limón field and thus, to a certain extent, mitigate the closure of the Cano Limón - Coveñas oil pipeline. Thanks to the bi-directional operation at Bicentenario, we have succeeded in performing major maintenance work on the Caño Limón oil pipeline without affecting production.
At Reficar we have completed performance testing on 28 plants, 82% of the refinery's 34 units. The alkylation unit is already in operation after undergoing maintenance to correct problems of the cooling water system. The Barrancabermeja refinery has built a profitable and efficient operation, with a margin of USD 13.9/bl for the half-year period.
In the Midstream we note the first shipment of heavy crude with viscosity greater than 500 centistokes (cst - viscosity measurement). This helped demonstrate the commercial viability of high-viscosity crude and encourages us to continue the transport testing of heavy crude at 600 cst, with a view to extending this capacity to other oil pipeline systems. During the quarter, crude pumping was initiated for operational stabilization of the San Fernando - Monterey system, and progress was made on commissioning and tests.
Structural savings for the half-year period totaled COP 516 billion, representing 70% of the year's savings goal (COP 740 billion).
On May 31 Ecopetrol published its annual 20-F report for fiscal year 2016. By publishing the 20-F, the Company fulfilled its reporting obligation to the Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE), bondholders and other creditors. The joint work of the Board of Directors, the 2014-2015 period auditors, the 2016 auditors and Ecopetrol management successfully completed the due diligence process to publish the 20-F.
Ecopetrol as a Company is committed with the country's development, the environment and generating value for its shareholders. Our commitment to financial soundness remains current and will leverage the focus on profitable growth needed to deliver outstanding results to the benefit of the Company's sustainability."
The earnings release will be available on Ecopetrol's website: www.ecopetrol.com.co
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTÁ, Colombia, Aug. 3, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company) announces that on August 8, 2017 it will release after markets close its financial and operating results for the second quarter of 2017. On Wednesday, August 9, Ecopetrol's senior management will host two conference calls, in Spanish and in English, to review the results. Please below find the timing, telephone numbers and links to access the conferences:
Spanish Conference Call |
English Conference Call |
08:30 a.m. Bogota |
10:00 a.m. Bogota |
09:30 a.m. New York |
11:00 a.m. New York |
US Dial-in #: 1 (847) 619-6817 |
US Dial-in #: 1 (847) 619-6817 |
US Dial-in # (Free Toll): 1 (888) 427-2535 |
US Dial-in # (Free Toll): 1 (888) 427-2535 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in #: 57 1 380 8041 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Local Colombia Dial-in # (Free Toll): 01 800 9 156 924 |
Passcode: 45410074 |
Passcode: 45399544 |
Participants from different countries may look for different international numbers to the ones mentioned above by consulting the following link: http://web.meetme.net/r.aspx?p=12&a=UCHTiXisrxybYb
The earnings release, slide presentation and live webcast will be available on Ecopetrol's website: www.ecopetrol.com.co and at the following links:
http://event.onlineseminarsolutions.com/wcc/r/1480057-1/2F08A45E66D923D0DA96CDDDD4971C23 (Spanish)
http://event.onlineseminarsolutions.com/wcc/r/1479574-1/18E79DF324F2C13CBBA46D965FDFC3F7 (English)
Please verify in advance proper operation of the webcast in your browser. We recommend the usage of the latest versions of Internet Explorer, Google Chrome y Mozilla Firefox.
The replay of the calls will be available on Ecopetrol's website (www.ecopetrol.com.co).
-----------------------------------------
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Capital Markets
María Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
BOGOTA, Colombia, July 28, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces a new hydrocarbon discovery in the Warrior-2 well, in which Ecopetrol America Inc. holds a 30% interest.
Warrior-2 is located in the Green Canyon area of the Gulf of Mexico (United States), 190 kilometers from the coast, 11 kilometers from the K2 production field operated by Anadarko Production Corporation. The proximity to the production facilities of the Marco Polo platform will facilitate the production process, representing a clear competitive advantage.
The company drilled to a depth of 31,646 feet (9,646 meters), with a water layer of 4,122 feet (1,256 meters). The crude it found is light, and analyses are being performed to determine volume. Once the exploratory operations phase is complete, the development plan for this new discovery will be determined.
Ecopetrol is a participant in 67 blocks in the Gulf of Mexico (US) in association with top-tier companies.
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
Logo - http://photos.prnewswire.com/prnh/20090209/ARM001LOGO
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SOURCE Ecopetrol S.A.