Ecopetrol informs about second quarter 2024 results
Rhea-AI Summary
Ecopetrol Group reported Q2 2024 results, facing challenges like peso revaluation and lower refined product prices. Key highlights:
- Revenue: COP 32.6 trillion
- EBITDA: COP 14.1 trillion
- Net income: COP 3.4 trillion
- EBITDA margin: 43%
Operational achievements include:
- Production: 758 kboed (+30.2)
- Transported volumes: 1,152 kbd (+54.7)
- Refinery throughputs: 424 kbd (-3.4)
The Uchuva-2 delineation well confirmed gas discovery in the Caribbean Offshore. FEPC balance decreased by 61% YoY. The company paid COP 10.6 trillion in dividends and reduced emissions by 136,408 tCO2e in H1 2024.
Positive
- Increased production to 758 kboed (+30.2)
- Higher transported volumes at 1,152 kbd (+54.7)
- Improved crude basket prices by USD 10.3/Bl compared to Q2 2023
- EUST subsidiary achieved USD 24 million EBITDA and USD 19 million net income in Q2
- Reduced FEPC balance by 61% compared to Q2 2023
- Achieved 1.21 petajoules energy optimization, exceeding 2024 target
- Reduced emissions by 136,408 tCO2e, 176% compliance with H1 plan
Negative
- Revenue decreased by 4.9% YoY to COP 32.6 trillion
- Net income declined by 17.4% YoY to COP 3.4 trillion
- EBITDA decreased by 3.7% YoY to COP 14.1 trillion
- Refinery throughputs slightly decreased to 424 kbd (-3.4)
- Faced challenges from peso revaluation and lower refined product prices
News Market Reaction 1 Alert
On the day this news was published, EC declined 3.33%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BOGOTÁ,
During 2Q24, Ecopetrol generated revenues of
Regarding the Fuel Price Stabilization Fund (FEPC), we emphasize the sustained reduction of the outstanding account balance, which totaled
In the Hydrocarbons business line, for the second quarter of the year, we highlight the strength of our traditional business, closing with a production of 758 kboed (+30.2), transported volumes of 1,152 kbd (+54.7), and refinery throughputs of 424 kbd (-3.4). It is also noteworthy, the Uchuva-2 delineation well, which confirms the extension of the gas discovery in the Caribbean Offshore, providing significant information for the development of this new production frontier in the Colombian Caribbean, and supports the gas potential that has been foreseen in the region.
These results, along with a high-quality commercial strategy, allowed us to capture margins and new market opportunities, strengthening the prices of the crude basket by
In the Energies for the Transition business line, as of June, we achieved an accumulated energy optimization of 1.21 petajoules, anticipating the 1.1 petajoules target for 2024. With this result, we contribute to the reduction of Greenhouse Gases with 104,312 tons of CO2 equivalent greenhouse gases, with estimated savings of over
Finally, in the Transmission and Toll Roads business line, during 2Q24, ISA was awarded two private contracts in
Concerning our technology, environment, social and governance (TESG) strategy, we would like to highlight the following achievements for the quarter:
On July 31st, the Colombian Petroleum Institute (ICP) transformed into the Colombian Petroleum and Energy Transition Institute (Icpet) which will have the mission of driving the energy transition in the country.
By the end of 2Q24, we reduced emissions by 136,408 tCO2e on the environmental front, a
In the social dimension, we highlight that the Ecopetrol Group allocated resources for the execution of the Sustainable Territorial Development Portfolio for
On the Governance front, during 2Q24, we secured first place in the Merco Talent ranking for the third consecutive year, which identifies the 100 companies with the best capacity to attract and retain talent in
Regarding the Innovation and Technology agenda, Ecopetrol's efforts for safe and intelligent operations stand out, through the adoption of Artificial Intelligence for IT Operations - AIOPS. This technology has ensured an availability of over
We will continue strengthening relationships with all our stakeholders, focusing on generating sustainable value while advancing towards the energy transition.
Ricardo Roa Barragán
President, Ecopetrol
In 2Q24, the Ecopetrol Group reported a net income of
Table 1: Financial Summary Income Statement –Ecopetrol Group
Billion (COP) | 2Q 2024 | 2Q 2023 | ∆ ($) | ∆ (%) | 6M 2024 | 6M 2023 | ∆ ($) | ∆ (%) | ||
Total sales | 32,627 | 34,300 | (1,673) | (4.9 %) | 63,929 | 73,154 | (9,225) | (12.6 %) | ||
Depreciation and amortization | 3,594 | 3,239 | 355 | 11.0 % | 7,046 | 6,248 | 798 | 12.8 % | ||
Variable cost | 12,020 | 13,718 | (1,698) | (12.4 %) | 22,841 | 29,065 | (6,224) | (21.4 %) | ||
Fixed cost | 4,966 | 4,530 | 436 | 9.6 % | 9,757 | 8,952 | 805 | 9.0 % | ||
Cost of sales | 20,580 | 21,487 | (907) | (4.2 %) | 39,644 | 44,265 | (4,621) | (10.4 %) | ||
Gross income | 12,047 | 12,813 | (766) | (6.0 %) | 24,285 | 28,889 | (4,604) | (15.9 %) | ||
Operating and exploratory expenses | 2,512 | 2,314 | 198 | 8.6 % | 4,948 | 4,670 | 278 | 6.0 % | ||
Operating income | 9,535 | 10,499 | (964) | (9.2 %) | 19,337 | 24,219 | (4,882) | (20.2 %) | ||
Financial income (loss), net | (2,090) | (2,044) | (46) | 2.3 % | (4,092) | (3,549) | (543) | 15.3 % | ||
Share of profit of companies | 189 | 155 | 34 | 21.9 % | 386 | 497 | (111) | (22.3 %) | ||
Income before income tax | 7,634 | 8,610 | (976) | (11.3 %) | 15,631 | 21,167 | (5,536) | (26.2 %) | ||
Income tax | (3,234) | (3,336) | 102 | (3.1 %) | (6,154) | (8,929) | 2,775 | (31.1 %) | ||
Net income consolidated | 4,400 | 5,274 | (874) | (16.6 %) | 9,477 | 12,238 | (2,761) | (22.6 %) | ||
Non-controlling interest | (1,024) | (1,187) | 163 | (13.7 %) | (2,090) | (2,490) | 400 | (16.1 %) | ||
Net income attributable to owners of Ecopetrol | 3,376 | 4,087 | (711) | (17.4 %) | 7,387 | 9,748 | (2,361) | (24.2 %) | ||
EBITDA | 14,052 | 14,585 | (533) | (3.7 %) | 28,291 | 32,427 | (4,136) | (12.8 %) | ||
EBITDA Margin | 43.1 % | 42.5 % | - | 0.6 % | 44.3 % | 44.3 % | - | 0.0 % |
The financial information included in this report has not yet been 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.
For more information, please contact:
Head of Capital Markets (a)
Lina María Contreras Mora
Email: investors@ecopetrol.com.co
Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
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