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Ecopetrol Presents its Third Quarter and Accumulated Results as of September 2009

BOGOTA, Oct. 21 /PRNewswire-FirstCall/ --

  • In the third quarter of 2009, Ecopetrol S.A.'s ("Ecopetrol" or the "Company") average production of oil and gas increased by 12.9%* to reach 514.4 MBOED; in September the Company's monthly production (excluding the Company's subsidiaries Petro-tech and Hocol), came to 527.2 thousand BOE/D.
  • The Company met its accumulated September goal of drilling 12 exploratory wells, with an exploration success rate of 42%.
  • Volume sold increased by 17.6%*, driven by increased production and purchases of hydrocarbons.
  • Unconsolidated operating profit in the third quarter of 2009 was COP$2,224.2 billion, compared to COP$2,132.3 billion in the second quarter of the same year.
  • Unconsolidated net income in the third quarter of 2009 came to COP$1,193.5 billion, equivalent to COP$29.49 per share.
  • Unconsolidated accumulated net income as of September of 2009 was COP$3,564.8 billion, equivalent to COP$88.08 per share.
  • We continued improving the safety and reliability of our operations
  • A 5-year collective labor agreement was signed with the Company's three labor unions.
  • The Llanos Orientales oil pipeline ("ODL") started operations.

* Results for the third quarter of 2009 as compared to results for the third quarter of 2008

(Logo: http://www.newscom.com/cgi-bin/prnh/20090209/ARM001LOGO )

Ecopetrol, S.A. (BVC: ECOPETROL; NYSE: EC) announced today its unaudited interim financial results, both unconsolidated and consolidated(1), for the third quarter 2009 and cumulative for the nine months ended September 2009, prepared and filed in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica - RCP) of the Colombian General Accounting Office, in Colombian pesos (COP$).

Summary of financial results

                        Unconsolidated              Unconsolidated
    (COP$Billion)     Q3 2009    Q3 2008     %    9M 2009   9M 2008      %
    ------------      -------    -------   -----  -------   --------   -----

    Total sales       7.370,0    9.966,3  (26,1%) 19.168,3  26.613,4  (28,0%)
    Operating profit  2.224,2    4.016,1  (44,6%)  5.377,4  12.168,6  (55,8%)
    Net Income        1.193,5    3.928,4  (69,6%)  3.564,8   9.578,4  (62,8%)
    Earnings per
     share (COP$)       29,49      97,06  (69,6%)    88,08    236,66  (63,0%)
    EBITDA            3.037,6    4.583,6  (33,7%)  7.474,4  13.783,0  (46,0%)
    EBITDA Margin          41%        46%               39%       52%

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(1) Under the Public Accountancy Legal Framework (Regimen de Contabilidad Publica en Colombia - RPC), companies are only obliged to consolidate their financial statements at the close of each fiscal year. Therefore, the figures presented in this report do not constitute a formal consolidation of the financial statements of Ecopetrol, but are adjusted in accordance with the methodology defined for such purpose.

EcopetrolĀ“s CEO, Javier Gutierrez, highlighted: "Results for the third quarter of 2009 have benefited from the growing production levels of crude and gas, which in September reached 527.2 thousand BOE/D, as well as higher prices for our crude and products. All of the above resulted in a 10.2% increase in our revenues and a 56.6% rise in net income, compared to the second quarter of 2009. Although the revaluation of the Colombian peso continued to generate non-operating losses in financial investment portfolios in the third quarter of 2009, its impact was partially offset by the effect of dollar denominated liabilities resulting from the successful USD$1.5 billion bond placement in July 2009".

Gutierrez also emphasized: "in line with our objective of producing one million barrels of oil equivalent in 2015, we are maintaining production growth above 12%, we started operations in the Llanos Orientales pipeline with our partner Pacific Rubiales Energy and completed the first phase of the Apiay-Porvenir pipeline, which will enable us to transport growing quantities of Rubiales and Castilla heavy crudes at competitive costs, and we are moving ahead with the consolidation of acquisitions made in the first half of 2009."

The full report can be downloaded at: www.ecopetrol.com.co

Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

SOURCE Ecopetrol S.A.

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