BOGOTA,
Colombia, May 7, 2024 /PRNewswire/ -- Ecopetrol S.A.
(BVC: ECOPETROL; NYSE: EC) ("Ecopetrol", the "Company", the
"Ecopetrol Group", or the "Group") announced today the financial
results of the Ecopetrol Group for the first quarter of 2024,
prepared in accordance with International Financial Reporting
Standards applicable in Colombia.
We began 2024 with outcomes that highlight our operational
prowess and our initiatives to achieve a fair energy
transition.
During the 1Q24, we navigated an environment impacted by
exogenous variables, with increased energy costs, inflationary
pressures, the revaluation of the Colombian peso, and lower prices
for refined products. Despite these challenges, the Ecopetrol Group
was able to maintain operational resilience thanks to market
diversification, efficiency maximization, and the application of
planning, optimization, and cost-saving measures in our operations,
thus achieving favorable results and generating a competitive level
of profitability in the industry.
For the first quarter of the year, we recorded COP 31.3 trillion in revenue, an EBITDA of
COP 14.2 trillion, a net profit of
COP 4.0 trillion, an EBITDA margin of
45% in line with the average of the last 8 years, and a ROACE of
11%.
Regarding the Fuel Price Stabilization Fund, it is worth noting
the sustained decrease in the pace of accumulation of the accounts
receivable, which has been consistently decreasing each year until
reaching a decrease of 72% in the first quarter of 2024, compared
to the same period in 2023.
In the Hydrocarbons business line, we highlight the
strength of our traditional business with the increase in volumes
compared to 1Q23, closing the quarter's production at 741 kboed
(+22 kboed as compared to 1Q23), transported volumes of 1,118 kbd
(+28 kbd as compared to 1Q23) and refining throughputs at 428 kbd
(+16 kbd as compared to 1Q23), with the operational availability of
our refineries at 96% on par with the best refineries in
Latin America. Notable strategic
achievements for the period include the commercial viability of the
Arrecife gas field in the Cordoba department and the signing of the
Piedemonte Norte gas exploration agreement with Parex, which
enhances the nation's gas supply. This allows us to announce an
increase in our production target for 2024, to a range between 730
and 735 Kboed from a target of 725 to 730 Kboed announced in our
2024 financial plan.
In addition to these results, strong commercial
management allowed us to capitalize on the market's margins and
opportunities, achieving an improvement of USD 4.4 per barrel in the crude basket
differential.
We highlight the successful sale of 16.7 million barrels of
crude oil and products by Ecopetrol US Trading, our commercial
subsidiary in Houston, which
generated an EBITDA of USD 37.1
million and a net profit of USD 28.5
million in the 1Q24. In addition, we emphasize the notable
decarbonization strategy through the carbon trading desk and in the
refined products segment, the execution of the strategy to ensure
diesel supply to the thermal sector for energy generation during
the El Niño phenomenon.
In the Low-Emission Solutions business line, natural gas
and liquified petroleum gas ("LPG") accounted for 23.2% of the
overall production during 1Q24. Regarding renewable energy, we
point out the launch of the first solar farm in a refinery in
Latin America, located in
Cartagena, with a capacity of 22.1 MW, making it the first solar
farm in a refinery in Latin
America.
Also, during this quarter, in the Transmission and Toll
Roads business line, Interconexión Eléctrica S.A. ("ISA") was
awarded six expansions of the transmission networks and two
connection contracts in Brazil.
Additionally, ISA was awarded the design, construction, operation
and maintenance of two projects in Colombia.
We would like to draw attention to the following technology,
environment, social and governance ("TESG") results:
In the environmental component, we lowered greenhouse gas
emissions by 50.3 thousand tons of CO2e during the quarter,
accumulating 1.54 million metric tons of CO2e since 2020. In 1Q24,
we utilized 39.6 million cubic meters of recycled water for our
activities, representing a 7% increase compared to 1Q23 and
equivalent to 80% of the total water required for our operations.
Additionally, we emphasize the launch of Ecopetrol Group's new
Circular Economy model, which enables our goals in energy
transition, net-zero carbon emissions, reduction of water
footprint, and the closing of material and waste cycles.
In the social dimension, we invested COP 65.8 billion in the Sustainable Territorial
Development Portfolio during the quarter. We highlight the
completion of 50 projects under the works-in-lieu-of-taxes
mechanism since 2018.
In corporate governance, during the 1Q24 we highlight the
holding of the General Shareholder's Meeting where new members of
the Board of Directors were elected. These members, with diversity
in age, gender, and experience, aim to safeguard the company's
traditional business while reaffirming their commitment to
advancing towards a fair and responsible energy transition. In
April, we filed the corresponding Form 20-F for the year 2023 with
the Security Exchange Commission, wherein our Board of Directors
reaffirmed its commitment to the 2040 strategy.
Under the innovation and technology agenda, participation
in the Tenth Antarctic Expedition came to an end under the terms of
the Ecopetrol-National Navy agreement. During the expedition, gas
measurements and particulate matter sampling were conducted, and
the collected data will be utilized in studies on the production of
offshore energy from renewable sources.
Ecopetrol's priority for the upcoming quarters of 2024 will
continue to be caring for our workers, upholding TESG, and
demonstrating our commitment to ethics and transparency. We will
continue to make decisive progress in our goal of advancing the
transition to low-emission energies while guaranteeing Colombia's energy security and generating
sustainable value for all our stakeholders.
Ricardo Roa
Barragan
President, Ecopetrol S.A.
In 1Q24, the Ecopetrol Group generated a net
income of COP 4.0 trillion, EBITDA of
COP 14.2 trillion with an EBITDA
margin of 45%. These results were leveraged on outstanding
operating performance and the positive effect of improved crude oil
spreads. However, quarterly results were affected by i) exogenous
factors such as a lower average exchange rate, inflationary
effects, and the "El Niño" phenomenon, which affected revenue,
costs, and expenses, as well as ii) narrower product
spreads.
Table 1: Financial Summary Income
Statement – Ecopetrol Group
Billion
(COP)
|
|
1Q
2024
|
1Q
2023
|
∆ ($)
|
∆ (%)
|
Total
sales
|
|
31,302
|
38,854
|
(7,552)
|
(19.4 %)
|
Depreciation and
amortization
|
|
3,452
|
3,009
|
443
|
14.7 %
|
Variable
cost
|
|
10,821
|
15,348
|
(4,527)
|
(29.5 %)
|
Fixed cost
|
|
4,790
|
4,422
|
368
|
8.3 %
|
Cost of
sales
|
|
19,063
|
22,779
|
(3,716)
|
(16.3 %)
|
Gross
income
|
|
12,239
|
16,075
|
(3,836)
|
(23.9 %)
|
Operating and
exploratory expenses
|
|
2,437
|
2,354
|
83
|
3.5 %
|
Operating
income
|
|
9,802
|
13,721
|
(3,919)
|
(28.6 %)
|
Financial income
(loss), net
|
|
(2,002)
|
(1,506)
|
(496)
|
32.9 %
|
Share of profit of
companies
|
|
197
|
342
|
(145)
|
(42.4 %)
|
Income before income
tax
|
|
7,997
|
12,557
|
(4,560)
|
(36.3 %)
|
Income tax
|
|
(2,921)
|
(5,593)
|
2,672
|
(47.8 %)
|
Net income
consolidated
|
|
5,076
|
6,964
|
(1,888)
|
(27.1 %)
|
Non-controlling
interest
|
|
(1,064)
|
(1,304)
|
240
|
(18.4 %)
|
Net income
attributable to owners of Ecopetrol
|
|
4,012
|
5,660
|
(1,648)
|
(29.1 %)
|
|
|
|
|
|
|
EBITDA
|
|
14,238
|
17,842
|
(3,604)
|
(20.2 %)
|
EBITDA
Margin
|
|
45.5 %
|
45.9 %
|
-
|
(0.4 %)
|
The financial information included in this report has not yet to
be audited. It is expressed in billions or trillions of Colombian
pesos (COP) or US dollars (USD), or thousands of barrels of oil
equivalent per day (kboed) or tons, as noted. Certain figures in
this report were rounded to the nearest decimal place for
presentation purposes.
Forward-looking statements: This release contains statements
that may be considered forward-looking statements concerning
Ecopetrol's business, operational and financial results, and
prospects for growth. These are forward-looking statements and, as
such, are based solely on management's expectations regarding
Ecopetrol's future and its ongoing access to capital to fund
Ecopetrol's business plan. Such forward-looking statements depend
primarily on changes in market conditions, government regulations,
competitive pressures, and the performance of the Colombian economy
and the industry, to mention a few. Therefore, they are subject to
change without notice.
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SOURCE Ecopetrol S.A.