Ecopetrol Business Group presents First Quarter 2017 Results
May 12, 2017 at 02:17 AM EDT
- Group´s net income in the first quarter was COP 886 billion, which represents an increase of 144% versus the same quarter of 2016.
- The operational excellence of the quarter was reflected on an Ebitda of COP 5.8 trillion, the highest of the last two years, reaching an Ebitda margin of 43.5% and a solid cash position of COP 17. 5 trillion.
- The successful exploratory wells Gorgon-1 and Purple Angel -plus Kronos (2015)- in the Colombian Caribbean Offshore suggest the existence of a new gas province in that zone.
BOGOTA, Colombia, May 12, 2017 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) today announced the Business Group's financial results for the first quarter of 2017, prepared and presented in billions of Colombian pesos (COP) in accordance with International Financial Reporting Standards (IFRS) applicable in Colombia.
Table 1: Consolidated Financial Results - Ecopetrol Business Group
* Figures are not audited. They are included for illustrative purposes only.
Figures in this report are not audited. They are expressed in billions of Colombian pesos (COP) or million US dollars (USD); thousands of barrels of oil equivalent per day (mboed) o tons; and are so noted where applicable.
For presentation purposes some figures in this report were rounded to the nearest decimal.
In the opinion of Ecopetrol S.A. CEO Juan Carlos Echeverry G.:
"Ecopetrol had an outstanding first quarter of 2017. We feel confident in our corporate strategy and the results we have obtained. We have overcome challenges to achieve profitable and safe operations as reflected in our financial results.
During the quarter, Ecopetrol had three important achievements in its exploration campaign: the Purple Angel and Gorgon-1 discoveries on the Colombian coast, and Boranda in the Middle Magdalena Valley, all of which demonstrate our commitment to operational excellence.
Operational and financial results were outstanding: our EBITDA margin of 43.5% is one of the highest in the industry, and we have a solid cash position of COP 17.5 trillion. These results reflect: i) greater efficiency and cost reductions through the Transformation Plan, ii) capital discipline, and iii) better crude prices and margins versus Brent.
Average production was 712 thousand barrels of oil equivalent per day. During the year, public order situations and operational events have occurred, such as the temporary closure of the Caño Limón - Coveñas oil pipeline, which negatively impacted our production. The pipeline returned to normal on April 7. We also note the positive performance of Hocol and Ecopetrol America, which significantly contributed to all the subsidiaries' increasing their production by 23% versus the first quarter of 2016.
Reficar completed tests of four additional plants, for a total of 25 units, 74% of the refinery's 34 units. The Barrancabermeja refinery saw stable operations, establishing itself as an efficient and profitable refinery.
Sales strategy helped capture market opportunities for international sales, generating a significant improvement in Ecopetrol's export basket. For the quarter, the spread of the crude basket versus Brent was -8.30 dollars, 1.80 dollars better than the same period in 2016.
The transport segment has consolidated its business integration. The reversion of the Bicentenario oil pipeline was completed, allowing it to carry crude from the Caño Limón field and thus mitigate the impact of eventual closures of the Caño Limón - Coveñas pipeline. During the quarter, successful tests were carried out of the transport of heavy crude at 600 centistokes (a measurement of viscosity), and we will continue with the goal of extending this capacity to other oil pipeline systems.
Structural savings during the quarter totaled COP 150 billion; the savings goal for the year is COP 740 billion. We highlight savings of COP 52 billion from the lower dilution cost for heavy crudes.
Ecopetrol remains focused on being a profitable company, committed to the country's development and care for the environment. We will continue to follow our strategic plan as a road map for delivering remarkable results aimed at value creation and sustainability."
The full report is available at www.ecopetol.com.co
For further information, please contact:
Head of Corporate Finance and Investor Relations
Media Relations (Colombia)
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SOURCE Ecopetrol S.A.