SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
October 2010
Commission File Number: 333-153452
ECOPETROL S.A.
(Exact name of registrant as specified in its Charter)
Carrera 7 No. 37 – 69
BOGOTA – COLOMBIA
(Address of registrant’s principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F | x | Form 40-F | o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes | o | No | x |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes | o | No | x |
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes | o | No | x |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A
PRESS RELEASE | ![]() |
Ecopetrol Announces Results for the third quarter of 2010
and the nine-month period ended Sep. 30 of 2010
· | Production for the Ecopetrol Corporate Group for the quarter was 632.1 MBOED, up 16.4% compared to the same period last year. |
· | Ecopetrol S.A.’s net income for the quarter reached COL$1.7 trillion, and COL$5.6 trillion between January and September of 2010, increasing 42.7% and 57.2% respectively compared to 2009. |
· | EBITDA margin increased to 46% during the quarter and to 44% for the nine-month period ended September 30, 2010. |
· | The hydro-treatment plant began producing diesel and gasoline according to the highest international quality standards. |
· | A new subsidiary was incorporated for the construction of the Oleoducto Bicentenario. |
BOGOTA, Oct. 26 / — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) (“Ecopetrol” or the “Company”) announced today its unaudited unconsolidated and consolidated financial results for the third quarter of 2010 and the nine-month period ended Sep. 30, 2010, prepared and filed in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica – RCP) of the Colombian General Accounting Office and in Colombian pesos (COL$).
This current report on Form 6-k is hereby incorporated by reference into the Company’s registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission on February 12, 2010.
The table below sets forth the highlights of Ecopetrol’s financial results for the periods indicated
Highlights of Ecopetrol’s financial results
Unconsolidated | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||||||||||||||||||||
Total sales | 8,586.7 | 7,370.0 | 16.5 | % | 26,461.5 | 19,168.3 | 38.0 | % | 9,892.2 | 8,901.8 | 11.1 | % | 30,324.2 | 21,418.4 | 41.6 | % | ||||||||||||||||||||||||||||||||
Operating profit | 2,865.9 | 2,224.1 | 28.9 | % | 8,757.3 | 5,377.5 | 62.9 | % | 2,767.4 | 2,330.3 | 18.8 | % | 8,927.2 | 5,493.8 | 62.5 | % | ||||||||||||||||||||||||||||||||
Operating margin | 33 | % | 30 | % | 33 | % | 28 | % | 28 | % | 26 | % | 29 | % | 26 | % | ||||||||||||||||||||||||||||||||
EBITDA | 3,952.1 | 3,037.6 | 30.1 | % | 11,694.3 | 7,474.4 | 56.5 | % | 4,033.0 | 3,212.4 | 25.5 | % | 12,067.3 | 8,102.0 | 48.9 | % | ||||||||||||||||||||||||||||||||
EBITDA margin | 46 | % | 41 | % | 44 | % | 39 | % | 41 | % | 36 | % | 40 | % | 38 | % | ||||||||||||||||||||||||||||||||
Net Income | 1,702.4 | 1,193.4 | 42.7 | % | 5,604.1 | 3,564.9 | 57.2 | % | 1,723.5 | 1,109.8 | 55.3 | % | 5,444.8 | 3,410.6 | 59.6 | % | ||||||||||||||||||||||||||||||||
Net margin | 20 | % | 16 | % | 21 | % | 19 | % | 17 | % | 12 | % | 18 | % | 16 | % | ||||||||||||||||||||||||||||||||
Earnings per share (COP$) | 42.06 | 29.49 | 138.46 | 88.08 |
Ecopetrol’s CEO, Javier Gutierrez, said: “The third quarter’s results were very important for our strategic plan. Beside the production growth above 16%, the discovery of hydrocarbons in two exploratory wells and the acquisition of a 51% interest in BP in Colombia, are evidence that we are headed in the right direction to strengthen our E&P business.
The start in operations of the hydro-treatment plant which allows us to supply cleaner fuels with the highest international standards, the advances in the structuring of the Oleoducto Bicentenario project, and the beginning of production and transportation of biodiesel were also highlights of the quarter. As we had anticipated, today we are reporting important achievements. Another important milestone was the listing of the company’s ADR on the Toronto Stock Exchange, allowing us to continue strengthening our presence in the international capital markets. With this listing, Canadian investors with growing interest in Colombia and Ecopetrol are now able to follow our results and strategy more closely.
In summary, it was a positive quarter for the Company, which gives us confidence in achieving the goals for 2010, and accomplishing the objectives set for 2015 and 2020.”
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PRESS RELEASE | ![]() |
Ecopetrol Announces Results for the third quarter of 2010 and
the nine-month period ended September 30, 2010
Table of Contents
I. Financial and operating results | 3 | |
a. | Availability of crude oil and products | 3 |
b. | Ecopetrol sales volumes | 4 |
c. | Price behavior | 5 |
d. | Financial Results | 6 |
e. | Cash flow and position | 7 |
f. | Results by Segment | 8 |
g. | Balance sheet | 8 |
a. | Exploration | 10 |
b. | Production | 11 |
c. | Refining | 13 |
d. | Transportation | 14 |
e. | Biofuels | 15 |
III. Corporate Social Responsibility | 16 | |
a. | Human talent and recognition | 16 |
b. | Science and technology | 17 |
d. | Health, Safety and Environmental Performance | 17 |
IV. Financial Results of Ecopetrol and Subsidiaries (consolidated) | 18 | |
V. Presentation of Results | 20 | |
VI. Tables | 22 |
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PRESS RELEASE | ![]() |
I. Financial and operating results
a. | Availability of crude oil and products |
The availability of Ecopetrol crudes and products is summarized in the following table of volumes produced, purchased and imported:
Ecopetrol S.A. (does not include subsidiaries) Gross oil and gas production | ||||||||||||||||||||||||
(MBOED) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 498.9 | 412.8 | 20.9 | % | 471.9 | 394.1 | 19.7 | % | ||||||||||||||||
Natural Gas | 98.4 | 96.0 | 2.5 | % | 97.5 | 90.4 | 7.9 | % | ||||||||||||||||
Total | 597.3 | 508.8 | 17.4 | % | 569.4 | 484.5 | 17.5 | % |
(-) Royalties | ||||||||||||||||||||||||
(MBOED) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 77.8 | 62.1 | 25.3 | % | 71.3 | 59.9 | 19.0 | % | ||||||||||||||||
Natural Gas | 20.3 | 19.0 | 6.8 | % | 19.1 | 18.0 | 6.1 | % | ||||||||||||||||
Total | 98.1 | 81.1 | 21.0 | % | 90.4 | 77.9 | 16.0 | % |
(=) Net oil and gas production | ||||||||||||||||||||||||
(MBOED) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude oil | 421.1 | 350.7 | 20.1 | % | 400.6 | 334.2 | 19.9 | % | ||||||||||||||||
Gas natural | 78.1 | 77.0 | 1.4 | % | 78.4 | 72.4 | 8.3 | % | ||||||||||||||||
Total | 499.2 | 427.7 | 16.7 | % | 479.0 | 406.6 | 17.8 | % |
Purchase volume (mboed)* | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 174.4 | 164.1 | 6.3 | % | 175.1 | 163.1 | 7.4 | % | ||||||||||||||||
Refined products | 3.5 | 7.3 | (52.1 | )% | 5.2 | 8.1 | (35.8 | )% | ||||||||||||||||
Natural Gas | 36.4 | 38.6 | (5.7 | )% | 37.9 | 36.9 | 2.7 | % | ||||||||||||||||
Total Purchases | 214.3 | 210.0 | 2.0 | % | 218.2 | 208.1 | 4.9 | % |
Imports volume (mbd) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Products | 48.1 | 41.5 | 15.9 | % | 59.5 | 37.5 | 58.7 | % |
3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Total available** | 761.6 | 679.2 | 12.1 | % | 756.7 | 652.2 | 16.0 | % |
* Purchase volume includes royalties from Ecopetrol and other companies
** Does not include inventories variations
The Company’s growing crude and gas production was the main source of supply for the Company’s operations increasing 17.4% from the third quarter of 2009 to the same period of 2010. In terms of purchased volumes, total purchases grew 2% and third-party crude purchases increased 6.3% compared to the third quarter of 2009.
The 15.9% growth in imports was due to 1) the purchase of diesel with very low sulphur content in order to comply with the environmental regulations before the Company’s hydro-treatment plant became operational, and 2) increased naphtha imports to act as a diluent for the transportation of heavy crude oils.
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PRESS RELEASE | ![]() |
b. | Ecopetrol sales volumes |
Local Sales Volume (mboed) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 4.8 | 0.4 | 1,100.0 | % | 3.6 | 0.3 | 1,100.0 | % | ||||||||||||||||
Natural Gas | 87.1 | 75.5 | 15.4 | % | 96.1 | 67.8 | 41.7 | % | ||||||||||||||||
Gasoline | 59.3 | 73.5 | (19.3 | )% | 61.8 | 73.9 | (16.4 | )% | ||||||||||||||||
Medium Distillates | 99.9 | 82.8 | 20.7 | % | 101.7 | 79.1 | 28.6 | % | ||||||||||||||||
LPG and fuel oil | 14.5 | 18.9 | (23.3 | )% | 15.2 | 19.7 | (22.8 | )% | ||||||||||||||||
Industrial and Petrochemical | 17.1 | 13.8 | 23.9 | % | 16.7 | 12.8 | 30.5 | % | ||||||||||||||||
Total Local Sales | 282.7 | 264.9 | 6.7 | % | 295.1 | 253.6 | 16.4 | % |
Export Sales Volume (mboed) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 303.0 | 248.0 | 22.2 | % | 294.0 | 216.4 | 35.9 | % | ||||||||||||||||
Products | 54.0 | 40.3 | 34.0 | % | 50.7 | 50.7 | 0.0 | % | ||||||||||||||||
Natural Gas | 5.6 | 23.1 | (75.8 | )% | 2.3 | 24.1 | (90.5 | )% | ||||||||||||||||
Total Export Sales | 362.6 | 311.4 | 16.4 | % | 347.0 | 291.2 | 19.2 | % |
Sales to Free Trade Zone (mboed) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 75.9 | 76.2 | (0.4 | )% | 77.5 | 79.5 | (2.5 | )% | ||||||||||||||||
Products | 2.9 | 2.3 | 26.1 | % | 2.3 | 2.0 | 15.0 | % | ||||||||||||||||
Natural Gas | 2.1 | 1.9 | 10.5 | % | 2.4 | 2.0 | 20.0 | % | ||||||||||||||||
Total Sales to Free Trade Zone | 80.9 | 80.4 | 0.6 | % | 82.2 | 83.5 | (1.6 | )% | ||||||||||||||||
Total Sales Volume | 726.2 | 656.7 | 10.6 | % | 724.3 | 628.3 | 15.3 | % |
The increase in sales shown in the table above is primarily the result of:
International market:
The most significant developments in the Company’s international sales activity during the third quarter were:
· | The exporting of six shipments of Castilla crude of one million barrels each. |
· | Growth in gas exports to Venezuela. |
· | Increase in sales to refineries in United States, from 5.5 million barrels in the third quarter 2009 to 6.4 million barrels in the same period this year. |
As shown above, there was an increase in crude exports to Africa, Canada and Central and South America in the third quarter of 2010 compared to the same period in 2009. Product exports to the Caribbean and Central America were also significantly higher during the period.
Export destinations: Crudes | ||||||||
Destination | 3Q 2010 | 3Q 2009 | ||||||
US Gulf Coast | 56.6 | % | 58.6 | % | ||||
Far east | 12.5 | % | 21.6 | % | ||||
Central America | 6.5 | % | 0.3 | % | ||||
South America | 6.5 | % | 2.8 | % | ||||
Africa | 5.5 | % | 2.4 | % | ||||
US West Coast | 3.9 | % | 5.5 | % | ||||
Caribbean | 3.7 | % | 4.2 | % | ||||
Canada | 3.6 | % | 0.0 | % | ||||
US Atlantic Coast | 1.2 | % | 2.4 | % | ||||
Europe | 0.0 | % | 2.2 | % | ||||
100.0 | % | 100.0 | % |
Export destinations: Products | ||||||||
Destination | 3Q 2010 | 3Q 2009 | ||||||
US Gulf Coast | 46.2 | % | 20.5 | % | ||||
Far east | 23.4 | % | 7.2 | % | ||||
Central America | 9.4 | % | 13.3 | % | ||||
South America | 0.0 | % | 6.9 | % | ||||
Caribbean | 3.2 | % | 22.2 | % | ||||
US Atlantic Coast | 0.0 | % | 19.0 | % | ||||
Europe | 17.8 | % | 10.9 | % | ||||
100.0 | % | 100.0 | % |
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PRESS RELEASE | ![]() |
Local market:
Local sales increased by 6.7% in the third quarter of 2010. Such increase was largely the result of the growth in sales of medium distillates, natural gas and industrial and petrochemical products.
Growing sales of medium distillates is the result of constraints in the supply of B100 (100% palm biofuel) to wholesalers, who had to purchase higher B2 volumes from Ecopetrol to supply the market. Additionally, there was an increase on JET fuel demand due to a lower price of this fuel in Colombia compared to the close references and a growth of frequencies in the airlines in the country.
Gasoline sales decreased during the third quarter of 2010 compared to the same period of 2009 due to a lower demand in the north coast as well as in the western region of the country. The lower demand was partially offset by the reduction in ethanol content on gasoline, which decreased from 10% to 8%, requiring additional 2% of gasoline in the blend.
In the nine month period ended September 2010, local sales represented 52% of total sales, rising 12% when compared to the same period 2009. The growth is mainly because of the higher deliveries of natural gas (80GBTU) and diesel to thermal plants (1.4 MBD).
c. | Price behavior |
Average price export basket | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
WTI (average) | 76.2 | 68.3 | 11.6 | % | 77.6 | 57.0 | 36.1 | % | ||||||||||||||||
Export crude oil basket | 69.9 | 62.4 | 12.0 | % | 70.7 | 50.4 | 40.3 | % | ||||||||||||||||
Export products basket | 68.1 | 61.2 | 11.3 | % | 68.8 | 47.7 | 44.2 | % | ||||||||||||||||
Natural gas basket | 4.0 | 3.1 | 29.0 | % | 3.8 | 3.4 | 11.8 | % |
Crude differentials of Ecopetrol crude oil basket in the third quarter were close to those of the same period one year ago (US$-6.3/Bl in the third quarter of 2010 vs US$-5.9/Bl in the third quarter of 2009). The price of Castilla crude has been recovering as a result of 1) improvements in refining margins, 2) the reduction in heavy crude production by OPEC countries and Mexico, and 3) the lack of supply in the market of the Canadian Cold Lake crude due to the disruption of its transport lines between the West and East coasts and to within the United States.
Product differentials increased during the third quarter 2010 compared to the third quarter of 2009 (US$-8,1/Bl in the third quarter of 2010 vs US$-7,1/Bl in the third quarter of 2009) as a result of steeper discounts on fuel oils in the international markets. However, the discount for the nine-month period ended September 30, 2010 was lower than in 2009 due to the consolidation of Colombian fuel oil shipments using larger capacity tankers for transporting products to Singapore (a country with high demand and an attractive bunker price for shipping fuel).
The price of the natural gas basket rose on an increase in the price of Guajira gas, (which is the most significant gas production in respect of the Company’s gas revenue). According to CREG (Colombian energy and gas regulatory commission) regulation this price is indexed to fuel oil prices.
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PRESS RELEASE | ![]() |
d. | Financial Results |
Ecopetrol S.A. (does not include subsidiaries)
Income Statement (COP$ Billion) | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine- month period ended Sep 30, 2009 | % | ||||||||||||||||||
Local Sales | 3,115.4 | 2,765.6 | 12.6 | % | 9,871.0 | 7,697.6 | 28.2 | % | ||||||||||||||||
Export Sales* | 5,137.5 | 4,356.8 | 17.9 | % | 15,615.2 | 10,755.3 | 45.2 | % | ||||||||||||||||
Sales of services | 333.8 | 247.6 | 34.8 | % | 975.3 | 715.4 | 36.3 | % | ||||||||||||||||
Total Sales | 8,586.7 | 7,370.0 | 16.5 | % | 26,461.5 | 19,168.3 | 38.0 | % | ||||||||||||||||
Variable Costs | 3,851.6 | 3,383.2 | 13.8 | % | 12,169.7 | 9,009.0 | 35.1 | % | ||||||||||||||||
Fixed Costs | 1,415.0 | 1,247.4 | 13.4 | % | 4,014.4 | 3,298.3 | 21.7 | % | ||||||||||||||||
Cost of Sales | 5,266.6 | 4,630.6 | 13.7 | % | 16,184.1 | 12,307.3 | 31.5 | % | ||||||||||||||||
Gross profit | 3,320.1 | 2,739.4 | 21.2 | % | 10,277.4 | 6,861.0 | 49.8 | % | ||||||||||||||||
Operating Expenses | 454.2 | 515.2 | (11.8 | )% | 1,520.1 | 1,483.5 | 2.5 | % | ||||||||||||||||
Operating Profit | 2,865.9 | 2,224.2 | 28.9 | % | 8,757.3 | 5,377.5 | 62.9 | % | ||||||||||||||||
Non Operating Profit/(Loss) | (556.4 | ) | (588.9 | ) | (5.5 | )% | (1,167.4 | ) | (425.6 | ) | 174.3 | % | ||||||||||||
Income tax | 607.1 | 441.8 | 37.4 | % | 1,985.8 | 1,387.0 | 43.2 | % | ||||||||||||||||
Net Income | 1,702.4 | 1,193.5 | 42.6 | % | 5,604.1 | 3,564.9 | 57.2 | % | ||||||||||||||||
Earnings per share (COP$) | $ | 42.06 | $ | 29.49 | 42.6 | % | $ | 138.46 | $ | 88.08 | 57.2 | % | ||||||||||||
EBITDA | 3,952.1 | 3,037.6 | 30.1 | % | 11,694.3 | 7,474.4 | 56.5 | % | ||||||||||||||||
EBITDA Margin | 46 | % | 41 | % | 44 | % | 39 | % | ||||||||||||||||
Operating Margin | 33 | % | 30 | % | 33 | % | 28 | % | ||||||||||||||||
Net Margin | 20 | % | 16 | % | 21 | % | 19 | % |
* Sales to Free trade zones for the year 2009 were reclasified as export sales to make financial statements comparable
Ecopetrol’s net income in third quarter 2010 exceeded that of the same period one year ago, while the first nine months of 2010 also saw an increase compared to 2009. The higher net income primarily was the result of higher operating income derived from increases in volume and international prices. The increase in revenues was higher than the increase in costs which resulted in higher operating margin (33% in the third quarter of 2010 vs. 30% in the third quarter 2009). EBITDA margin was significantly higher for the quarter by 46%, and 44% cumulative for the year.
The following key factors are noted when comparing the third quarter 2010 financial results with those of last year as well as cumulative through the end of September 2010 and 2009:
· | Total sales increased primarily due to: 1) higher sales volume, and 2) higher crude and product prices. |
· | Variable costs increased mainly as a result of an increase in hydrocarbon purchases, imports as well as amortization and depletion stemming from new capitalizations and greater production. The effect of the peso revaluation against the U.S. dollar had a favorable effect by reducing costs. |
· | Fixed costs increased due to the higher contracted services both for direct as well as subsidiary operations, maintenance, well renovations and depreciations. |
· | Operating expenses decreased due to lower exploratory expenses and projects as a result of fewer dry well recognitions, |
· | Trade expenses increased derived from the economic recognition to customers of natural gas delivery cancellations resulting from operating and weather factors. |
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PRESS RELEASE | ![]() |
· | A non-operating loss of COL$556.4 billion was recorded for the third quarter primarily because of: |
o | A loss in registered interests, according to the equity method, of COL$293 billion primarily a result of: 1) dry well recognition at Ecopetrol Brasil (COL$160 billion); 2) negative margins of the Cartagena refinery margins (COL$63 billion), and 3) recognition of exploratory expenses in Ecopetrol Peru (COL$57 billion). |
o | Net loss of COL$128.5 billion due to the effect of the peso revaluation in the mark to market of dollar-denominated portfolio investments. However, it is important to highlight that the net position in foreign currency that resulted from the debt acquired in dollars has decreased the Company’s exposure to these exchange rate factors. The Company’s active net position in U.S. dollars at September 30, 2010 was US$511 million. |
o | Net allowances of COL$25.6 billion, primarily in the line item “allowance of property, plant and equipment” |
o | Net financial income of COL$98.4 billion corresponding to interest, and mark to market of the investment portfolio. |
o | Other minor expenditures of COL$10.8 billion. |
e. | Cash flow and position |
Col$ Billion* | 3Q 2010 | 3Q 2009 | Nine-month period ended Sep 30, 2010 | |||||||||
Initial Cash | 7,885 | 5,535 | 4,840 | |||||||||
Cash generated from operations (+) | 8,736 | 9,129 | 26,456 | |||||||||
Cash used in operations (-) | (6,133 | ) | (6,058 | ) | (17,140 | ) | ||||||
Capex (-) | (1,449 | ) | (1,408 | ) | (4,164 | ) | ||||||
Acquisitions (-) | (1,161 | ) | - | (1,161 | ) | |||||||
Dividend payments (-) | (1,214 | ) | (2,938 | ) | (2,469 | ) | ||||||
New debt (+) | - | 3,509 | - | |||||||||
Other inflows (+/-) | 358 | 263 | 968 | |||||||||
Fx differences (+) | (230 | ) | (238 | ) | (538 | ) | ||||||
Final Cash | 6,792 | 7,794 | 6,792 |
*For purposes of registration, the balances in U.S. dollars are converted to pesos each month at the average exchange rate. The initial cash in each quarter is calculated at the average first month rate and final cash is calculated with the average rate of the last month of the quarter.
As of September 30, 2010, Ecopetrol registered approximately COL$6.8 trillion in its total portfolio of liquidity surpluses, equivalent to cash and investments, including investments in portfolios held to maturity of COP$118.5 billion.
The company generated COL$ 8.7 trillion in cash from operations, which is less than the COL$9.1 trillion generated the year before, mainly because in the third quarter of 2010 only COL$144 billion of subsidies were received, compared to COL$1.6 trillion in the same period of 2009.
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PRESS RELEASE | ![]() |
f. | Results by Segment |
Results by Segment
COP$ Billion
E&P | Refining | Transportation | Sales and Marketing | Eliminations | Ecopetrol | |||||||||||||||||||||||||||||||||||||||||||
3Q 2010 | Nine- month period ended Sep 30, 2010 | 3Q 2010 | Nine- month period ended Sep 30, 2010 | 3Q 2010 | Nine- month period ended Sep 30, 2010 | 3Q 2010 | Nine- month period ended Sep 30, 2010 | 3Q 2010 | Nine- month period ended Sep 30, 2010 | 3Q 2010 | Nine- month period ended Sep 30, 2010 | |||||||||||||||||||||||||||||||||||||
Domestic Sales | 2,528.8 | 7,228.5 | 2,866.0 | 8,968.4 | 787.4 | 2,244.9 | 234.4 | 751.2 | (2,967.3 | ) | (8,346.7 | ) | 3,449.3 | 10,846.3 | ||||||||||||||||||||||||||||||||||
International Sales | 2,973.5 | 8,920.3 | 650.8 | 1,895.6 | - | - | 1,513.2 | 4,799.3 | - | - | 5,137.5 | 15,615.2 | ||||||||||||||||||||||||||||||||||||
Total Sales | 5,502.3 | 16,148.8 | 3,516.8 | 10,864.0 | 787.4 | 2,244.9 | 1,747.6 | 5,550.5 | (2,967.3 | ) | (8,346.7 | ) | 8,586.8 | 26,461.5 | ||||||||||||||||||||||||||||||||||
Operating Revenues | 2,845.7 | 8,526.5 | (209.6 | ) | (490.2 | ) | 167.0 | 549.1 | 41.2 | 171.8 | - | - | 2,844.3 | 8,757.2 | ||||||||||||||||||||||||||||||||||
Operating Margin | 51.7 | % | 52.8 | % | (6.0 | )% | (4.5 | )% | 21.2 | % | 24.5 | % | 2.4 | % | 3.1 | % | - | - | 33.1 | % | 33.1 | % | ||||||||||||||||||||||||||
Net Income | 1,835.4 | 5,769.2 | (190.3 | ) | (613.9 | ) | 74.8 | 426.0 | 39.3 | 22.7 | - | - | 1,759.1 | 5,604.0 | ||||||||||||||||||||||||||||||||||
Net Margin | 33.4 | % | 35.7 | % | (5.4 | )% | (5.7 | )% | 9.5 | % | 19.0 | % | 2.2 | % | 0.4 | % | - | - | 20.5 | % | 21.2 | % | ||||||||||||||||||||||||||
EBITDA | 3,768.8 | 11,000.7 | (114.6 | ) | (238.8 | ) | 237.7 | 760.8 | 40.6 | 171.6 | - | - | 3,932.5 | 11,694.3 | ||||||||||||||||||||||||||||||||||
Ebitda Margin | 68.5 | % | 68.1 | % | (3.3 | )% | (2.2 | )% | 30.2 | % | 33.9 | % | 2.3 | % | 3.1 | % | - | - | 45.8 | % | 44.2 | % |
Note: The report by segment is calculated based on transfer prices between business units, using as reference export parity prices.
Exploration and Production:
The Exploration and Production segment generated a net income of COL$1,835.4 billion in third quarter of 2010 as a result of the continued growth of the Company’s production. Net income corresponding to this segment totaled COL$5,769.2 billion in the nine-month period ended September 30, 2010. The Ebitda margin of the segment was 68.5% during the third quarter and 68.1% for the nine-month period ended September 30, 2010.
Refining:
The Refining and Petrochemical segment recorded a loss of COL$190.3 billion in the third quarter of 2010 and a loss of COL$613.9 billion for the nine-month period ended September 30, 2010, with an operating margin of US$-3.7/barrel. Starting September, imports of Premium Diesel decreased from 39MBD to 24MBD as a result of the commencement of operations of the hydro-treatment plant at the Barrancabermeja refinery. The Ebitda margin of the segment was -3.3% during the third quarter and -2.2% for the nine-month period ended September 30, 2010.
Transportation:
The Transportation segment generated net income of COP$74.8 billion in the third quarter of 2010 and net income of COP$426.0 billion for the nine-month period ended September 30, 2010. These increases were primarily due to the increase in volumes transported, which resulted from higher volumes of crude, biodiesel and other fuels. The Ebitda margin of the segment was 30.2% during the third quarter and 33.9% for the nine-month period ended September 30, 2010.
Supply and Marketing:
The Supply and Marketing segment generated net income of COP$39.3 billion in the third quarter of 2010 and net income of COP$22.7 billion for the nine-month period ended September 30, 2010, mainly as a result of higher volumes traded of crude and premium diesel. The Ebitda margin of the segment was 2.3% during the third quarter and 3.1% for the nine-month period ended September 30, 2010.
g. | Balance sheet |
The following table sets forth a summary of Ecopetrol’s unconsolidated balance sheet as of the periods indicated:
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Unconsolidated | ||||||||||||
Balance Sheet (COP$ Billion) | As of September 30, 2010 | As of June 30, 2010 | % | |||||||||
Current Assets | 11,554.3 | 11,278.8 | 2.4 | % | ||||||||
Long Term Assets | 48,604.7 | 47,815.9 | 1.6 | % | ||||||||
Total Assets | 60,159.0 | 59,094.7 | 1.8 | % | ||||||||
Current Liabilities | 10,608.1 | 11,211.5 | (5.4 | )% | ||||||||
Long Term Liabilities | 13,127.6 | 13,358.1 | (1.7 | )% | ||||||||
Total Liabilities | 23,735.7 | 24,569.6 | (3.4 | )% | ||||||||
Equity | 36,423.3 | 34,525.1 | 5.5 | % | ||||||||
Total Liabilities and Shareholders´ Equity | 60,159.0 | 59,094.7 | 1.8 | % | ||||||||
Debit Memorandum accounts | 85,123.2 | 88,299.8 | (3.6 | )% | ||||||||
Credit Memorandum accounts | 63,519.1 | 62,875.8 | 1.0 | % |
During the third quarter of 2010 the main variations in assets were 1) Higher mark to market due to the valuation of variable income portfolio investments, and adjustments made to fixed assets amounting to COL$210 billion; 2) Payment of the second installment of the dividend to the shareholders amounting to COL$1.2 trillion; 3) Depletion of the Company’s investment portfolio which was used for the payment of the acquisition of 51% of BP Exploration Company Colombia Limited; 4) Incorporation and capitalization of Oleoducto Bicentenario de Colombia S.A.S. for COL$306 billion, registered as an account payable; 5) Increase in property, plant and equipment of COL$804 billion, principally attributable to capitalizations associated with the start in operation of the hydro-treatment plant at the Barrancabermeja refinery.
The Company’s liabilities declined 3% in the third quarter of 2010 mainly as a result of the payment of the second installment of the dividend to the Company’s shareholders, in August 2010.
The Company’s equity increased 5.5% during the quarter mainly due to 1) recognition of the valuation surplus in property, plant and equipment investments, 2) revaluation of long-lifed assets, and 3) a decrease in the surplus from the equity method.
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II. Aspects of the Business
a. | Exploration |
Exploration in Colombia (does not include subsidiaries):
During the nine-month period ended September 30, 2010, the following exploratory drilling was carried out in Colombia:
A-3 and stratigraphic wells
Nine-month period ended Sep 30, 2010
Type of well | Number of wells | Hydrocarbon Presence | Under evaluation | Dry | ||||||||
A-3 | 12 | 3 | 0 | 9 | ||||||||
Stratigraphic | 8 | 4 | 0 | 4 |
Wells with hydrocarbon presence
Nine-month period ended Sep 30, 2010
Well | Type | Basin | Province | |||
Quifa-6 | A-3 | Llanos | Meta | |||
Rio Zulia West | A-3 | Catatumbo | Norte de Santander | |||
Oripaya | A-3 | Catatumbo | Norte de Santander | |||
Quifa-20x | Stratigraphic | Llanos | Meta | |||
Quifa-22x | Stratigraphic | Llanos | Meta | |||
Quifa-24x | Stratigraphic | Llanos | Meta | |||
Quifa-26x | Stratigraphic | Llanos | Meta |
During the third quarter of 2010, Ecopetrol concluded the drilling of two exploratory wells. The Oripaya well, of which Ecopetrol is operator with 100% participation rights, is located in Uribante Block (Catabumbo Basin – Norte de Santander Province) and has shown the presence of surface hydrocarbons. The Gouda well in the El Queso block (Valle Superior del Magdalena Basin – Tolima and Huila provinces), in which Ecopetrol is a 50% risk participant, was plugged and abandoned.
At the end of the third quarter of 2010, Ecopetrol was involved in drilling the Odin and Tinkhana wells in Valle Superior del Magdalena Basin and the Akacias well in the Llanos Basin.
Corporate Group Exploration:
International wells
Nine-month period ended Sep 30, 2010
Type of well | Number of wells | Hydrocarbon Presence | In evaluation | Dry | ||||||||
A-3 | 5 | 0 | 2 | 3 |
During the third quarter international exploratory activities were conducted on three wells: the Malbec and Itauna wells in Brazil, and the Runtusapa well in Peru.
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The Malbec well was plugged and abandoned. As of September 30, 2010, the Runtusapa well was being drilled, as was the Itauna well, which showed the presence of hydrocarbons.
In Colombia, the subsidiary Hocol conducted activities on four wells during the third quarter, adding to six wells in the nine month period ended September 2010. Five of the wells were plugged and abandoned and one is still on evaluation.
Seismic:
Total seismic data acquired during the nine-month period ended September 30, 2010 increased by 465% compared to the same period in 2009. 75% percent of acquired seismic in 2010 was at the international level by subsidiaries.
The following table summarizes the Company’s seismic activity:
Seismic Activity KM Eq | ||||||||||||
Jan-Sep 2010 | Jan-Sep 2009 | % | ||||||||||
Direct | 1,295 | 1,443 | -10 | % | ||||||||
Joint ventures | 2,761 | 130 | 2024 | % | ||||||||
Association contracts | - | 627 | -100 | % | ||||||||
Hocol | 1,095 | 416 | 163 | % | ||||||||
International | 11,022 | 249 | 4327 | % | ||||||||
Total | 16,173 | 2,865 | 465 | % |
b. | Production |
Production of Ecopetrol S.A.:
Gross production equivalent of Ecopetrol S.A. crude and gas increased 17.4% from 508.8 mboed in the third quarter of 2009 to 597.3 mboed in the third quarter of 2010, 83.5% of which was crude. Average production in the nine-month period ended September 30, 2010 reached 569.4 mboed, which represents an increase of 17.5% from the same period in 2009. In such nine-month period, Ecopetrol’s direct production share of total production was 43%.
The following table summarizes the Company’s production per crude for the periods indicated:
Production per crude | ||||||||||||||||||||||||
3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Light crudes | 55.8 | 44.6 | 25.1 | % | 46.0 | 44.3 | 3.8 | % | ||||||||||||||||
Medium crudes | 227.3 | 221.9 | 2.4 | % | 224.0 | 212.5 | 5.4 | % | ||||||||||||||||
Heavy crudes | 215.8 | 146.3 | 47.5 | % | 201.9 | 137.3 | 47.1 | % | ||||||||||||||||
Total | 498.9 | 412.8 | 20.9 | % | 471.9 | 394.1 | 19.7 | % |
Does not include subsidiaries
During the third quarter 2010, heavy crude accounted for 43% of total crude production compared to 35% in the same period of 2009. The increase is in line with initiatives implemented by the Company during 2010 to develop direct operations at the Castilla and Chichimene fields, and partnerships at the Rubiales and Quifa fields. In particular, Castilla’s results stood out with gross production in excess of 100 MBOD in the months of August (101 MBOD) and September (102 MBOD).
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During the quarter, natural gas production increased to 562 MCFD compared to 548 MCFD in the same period in 2009. The nine-month period ended September 30, 2010 has shown a 7.7% increase reaching a natural gas production of 555 MCFD.
The following table summarizes the Company’s development well drilling activity for the periods indicated:
Development Wells | ||||||||||||||||||||||||
3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Direct | 60 | 38 | 58 | % | 122 | 105 | 16 | % | ||||||||||||||||
In partnership | 155 | 103 | 50 | % | 400 | 320 | 25 | % | ||||||||||||||||
Total | 215 | 141 | 52 | % | 522 | 425 | 23 | % |
During the nine-month period ended September 30, 2010, 522 wells were drilled, with an increase of 23% compared with the same period in 2009. Direct drilling activity rose by 16%. The details of drilling per region during the nine-month period ended September 30, 2010 are summarized in the following table:
Development wells | ||||||||
Region | Direct wells | Asociated wells | ||||||
Magdalena | 39 | 213 | ||||||
Central | 74 | 141 | ||||||
North east | 0 | 4 | ||||||
Catatumbo Orinoquia | 0 | 8 | ||||||
South | 9 | 31 | ||||||
Others | 0 | 3 | ||||||
Total | 122 | 400 |
Costs for Ecopetrol S.A:
The lifting cost per barrel produced by Ecopetrol (including royalties) was US$7.28/BL for the nine-month period ended September 30, 2010, compared to US$6.40/BL for the same period of 2009. The US$0.88/BL rise was a result of the revaluation of the Colombian peso vs. the U.S. dollar and higher costs associated with maintaining surface, subsoil and subsidiary infrastructures. The growth of the Company’s volumes produced had a favorable effect by reducing the cost.
Lifting cost calculated over barrels produced net of royalties is US$9.21/Bl for the nine month period ended September 2010, compared to US$7.71/Bl in the same period of 2009.
Corporate group:
The following table summarizes the Ecopetrol Corporate Group’s production on a consolidated basis:
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Oil and gas production including royalties (mboed) | ||||||||||||||||||||||||
Ecopetrol S.A. | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Crude Oil | 498.9 | 412.8 | 20.9 | % | 471.9 | 394.1 | 19.7 | % | ||||||||||||||||
Natural Gas | 98.4 | 96.0 | 2.5 | % | 97.5 | 90.4 | 7.9 | % | ||||||||||||||||
Total | 597.3 | 508.8 | 17.4 | % | 569.4 | 484.5 | 17.5 | % |
Hocol | 3Q 2010 | 3Q 2009 | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Crude Oil | 25.4 | 23.8 | 6.7 | % | 24.8 | 23.6 | 5.1 | % | ||||||||||||||||
Natural Gas | - | 1.9 | -100.0 | % | 1.1 | 1.4 | (21.4 | )% | ||||||||||||||||
Total | 25.4 | 25.7 | -1.2 | % | 25.9 | 25.0 | 3.6 | % |
Savia | 3Q 2010 | 3Q 2009 | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Crude Oil | 6.4 | 5.8 | 10.3 | % | 6.5 | 5.6 | 16.1 | % | ||||||||||||||||
Natural Gas | 1.1 | 1.4 | -21.4 | % | 0.9 | 1.4 | -35.7 | % | ||||||||||||||||
Total | 7.5 | 7.2 | 4.2 | % | 7.4 | 7.0 | 5.7 | % |
Ecopetrol America INC (K2) | 3Q 2010 | 3Q 2009 | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | |||||||||||||||||||
Crude Oil | 1.7 | 1.2 | 41.7 | % | 1.7 | 0.7 | 142.9 | % | ||||||||||||||||
Natural Gas | 0.2 | 0.1 | 100.0 | % | 0.2 | - | 100.0 | % | ||||||||||||||||
Total | 1.9 | 1.3 | 46.2 | % | 1.9 | 0.7 | 171.4 | % | ||||||||||||||||
Total Group's production | 632.1 | 543.0 | 16.4 | % | 604.6 | 517.2 | 16.9 | % |
c. | Refining |
Barrancabermeja refinery:
Despite the completion of scheduled maintenance in two units, through-put at the Barrancabermeja Refinery during the third quarter of 2010 was higher compared to the same period in 2009.
The following table summarizes the refinery runs at the Barrancabermeja refinery:
Refinery runs Barrancabermeja
Mbod | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Barrancabermeja | 232.3 | 211.9 | 9.6 | % | 222.2 | 212.9 | 4.4 | % |
In terms of the hydro-treatment project, the diesel plant began operations in August followed by the gasoline plant in September, allowing for the delivery of clean fuels from the Company’s own production.
Margins and costs for Ecopetrol S.A.:
The cash operating cost of the Barrancabermeja refinery for the nine-month period ended September 30, 2010 was US$5.48/BL, a decrease of US$0.07BL from the same period in 2009, resulting from 1) higher through-put, 2) lower costs generated from optimization of chemical product and fuel usage; 3) better management of planned stoppages; and 4) lower general costs.
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Refining margin of the Barrancabermeja Refinery (average price of sold products minus average price of raw materials purchases) for the nine-month period ended September 30, 2010 was US$7.29/Bl, compared to US$4.74/Bl during the same period in 2009. The increase was a result of a higher average price of the product basket (US$81.24/Bl vs. US$59.00/Bl) that offset the growth on crude oil and product purchases (diesel imports mainly) which increased from US$54.30/Bl to US$73.95/Bl. The improvement of the margin is driven by a better crack spread and a cheaper feed.
Cartagena refinery:
At the Cartagena Refinery (Reficar S.A.) through-put during the third quarter of 2010 was lower than that of the third quarter of last year as a result restrictions on the operation of the refinery’s crude unit which will undergo general maintenance during the fourth quarter of 2010.
Refinery runs Cartagena
Mbod | 3Q 2010 | 3Q 2009 | % | Nine-month period ended Sep 30, 2010 | Nine-month period ended Sep 30, 2009 | % | ||||||||||||||||||
Cartagena | 75.7 | 80.1 | (5.5 | )% | 77.7 | 79.1 | (1.8 | )% |
For the nine-month period ended September 30, 2010, execution for the Development Master Plan in the Cartagena Refinery amounted to COL$690.5 billion. According to latest estimates, the mechanical end date will be February 28 of 2013.
d. | Transportation |
Volumes transported:
Volume transported during the third quarter of 2010 rose by 33% compared to the same period of 2009, from 785.5 MBOD to 1,048.0 MBOD. Most of the growth was in the transportation of crude, which increased from 557.1 MBOD during the third quarter of 2009 to 792.7 MBOD during the third quarter of 2010 (42.3% increase). The growth in crude transport results from: 1) Expansion of transportation capacity of the Galan-Ayacucho 18” Pipeline; 2) Expansion of the transportation capacity of the Apiay-Porvenir oil pipelines and; 3) Optimization of the Ayacucho-Covenas 16” and Vasconia-GRB 20” pipelines. In terms of refined products, the increase in volume transported during the period reflected an increase in the transportation capacity of the Pozos Colorados-Galan 14” pipeline.
Infrastructure expansion:
The Company’s Program for Crude Extraction led to significant growth in the Company’s transportation capacity, coming mainly from 1) The Llanos Orientales region with an increase in the transport capacity of the Castilla – Apiay pipeline from 80 to 120 MBOD, 2) The Mid Magdalena Valley with an increase in the transport capacity of the Vasconia – Barrancabermeja pipeline from 140 to 160 MBOD and 3) The pumping capacity between the Ayacucho and Covenas pipeline increased from 40 to 48 MBOD.
Regarding undergoing projects, the construction of the 170,000 barrel storage tank at the Altos del Porvenir station was 40% completed; the expansion of the truck unloading facility in Ayacucho and Banadia was 56% completed; and the construction of the Andino multi-use pipeline for transporting refined hydrocarbons was 43% completed.
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Costs:
The barrel/kilometer transport cost for the nine-month period ended September 30, 2010 was COL$7.95 BKM in real terms, a decrease from the COL$8.10 BKM recorded in the same period of 2009. This decrease results from higher volumes transported, notwithstanding greater maintenance activity and higher energy consumption (mainly resulting from oil pipeline operations).
Relevant Transportation Activities of the Group
Ocensa and ODL continued with the execution of expansion projects. Transported volumes by Ocensa during the third quarter increased significantly compared to the same period in 2009. The Porvenir-Vasconia section transported volume grew 57.1%, while the increase in the Vasconia-Coveñas section was 37.1%.
Ecopetrol incorporated the new subsidiary “Oleoducto Bicentenario de Colombia S.A.S.” in charge of the execution of the Oleoducto Bicenterario project. Interested parties will make their respective contributions and capitalize the company in the necessary amounts to start the construction. In order to meet the expected timelime, the environmental licenses for the first phase of the pipeline (section Araguaney – Banadía) were requested.
e. | Biofuels |
On August 1, 2010, Ecopetrol began blending Biodiesel and Diesel (Extra and Regular) at the Barrancabermeja refinery, which resulted in the delivery of two new products B2 and B2E (2% Biodiesel and 98% Diesel) to customers.
The biodiesel is being supplied by Ecodiesel Colombia S.A. from its Biodiesel plant to the refinery’s blending unit. The biodiesel is then transported via its multi-use pipeline system positioning Colombia as the first country in Latin America to use multi-purpose lines to transport biofuel mixtures.
During the months of August and September 2010, Ecodiesel production was stable and the biofuel produced was of optimum quality. The operation of this project helps ensure the Ecopetrol Corporate Group’s synergies, the sustainability of Ecopetrol’s biodiesel program at the Barrancabermeja refinery, and the consolidation of Ecopetrol’s new biofuels business.
f. | 2010 investment plan |
During the nine-month period ended September 30, 2010, Ecopetrol’s organic investments totaled US$3,364 billion, a 45.5% increase from the same period in 2009. Additionally, the Company acquired a 51% interest in BP Exploration Company Colombia Limited for US$645 million, which was announced on August 3, 2010. As of September 30 the transaction is undergoing the required necessary legal authorizations process on behalf of the Colombian authorities in order to finalize the transaction.
The total amount invested during the nine-month period ended September 30, 2010 reached US$4.0 billion, out of which 48% was allocated to production (US$1.9 billion), 16% to acquisitions (US$645 million), 12% to transport (US$459 million), 10% for refining and petrochemicals (US$415 million), 7% for subsidiaries (US$288 million), 4% for exploration (US$171 million) and the remaining 3% for the corporate segment and others (US$107 million).
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III. Corporate Social Responsibility
a. | Human talent and recognition |
In order to ensure the results of the work environment index, Ecopetrol continued with the execution of the necessary steps to become one of the best companies to work according to the Great Place to Work methodology. Additionally, the Company made progress in developing the technical, organizational and leadership skill of its employees.
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b. | Science and technology |
The Company’s primary achievements in science and technology during the third quarter of 2010 were:
· | Ecopetrol was one of the 51 finalists for the MAKE (Most Admired Knowledge Enterprises) award. This award recognizes the most admired worldwide companies in knowledge management. |
· | Five patent requests were made in Colombia during the quarter and PCT (Patent Cooperation Treaty) international phase corresponding to the same number of innovative technologies for current application into the company. These requests are added to the 15 requests during the year, which reflects the innovation strategy of the company and its mechanism of protection of those innovative components. |
c. | Social investment |
Several social investment agreements were signed during the third quarter of 2010, bringing the total amount committed to social investment to COL$52,894 million for the year, with resources being negotiated with other entities at the rate of $1.52 for each peso invested in Ecopetrol. In this quarter we highlight the following agreements of social management: “Strengthening of Labor Opportunities Program”, “Territorial connectivity program: Via Barranca” and “Environmental Preservation in the Catatumbo basin and tributaries”.
In addition, phase one of the Company’s environmental management program and phase two of the Company’s environmental emissions project began, through which the Company aims to make environmental management an active component of its strategic plan.
d. | Health, Safety and Environmental Performance |
The following is a summary of the Company’s performance in the area of Health, Safety and Environment (HSE) during the third quarter of 2010:
· | Reduction in the number of environmental incidents for operational reasons to 15 during the third quarter of 2010, compared to 43 incidents in the same period of 2009. |
· | Reduction in the frequency of absenteeism during the quarter due to job-related illnesses (events per one million man hours) from 0.5 in the third quarter of 2009 to 0.2 in the third quarter of 2010. |
· | The combined accidental frequency rate, which measures the number of accidents per million man working hours, was 1.54 in the nine-month period ended September 30, 2010, which represents a 24% increase over the rate for the same period in 2009. In order to reduce the number of accidents the Company is adopting a cultural model based on behaviors, which aims to identify and control risks through HSE case methodologies, and implementing a training program for critical activities in order to develop HSE skills. The program also emphasizes the role of managers and leaders in reducing the number of accidents. |
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IV. Financial Results of Ecopetrol and Subsidiaries (consolidated)1
For the third quarter of 2010, over 34 mboed of the 632.1 mboed of the Corporate Group’s daily production came from our subsidiary upstream companies: Hocol, Savia Peru, and Ecopetrol America Inc. Similarly, subsidiaries like Hocol, Propilco, Comai and Ecopetrol America Inc made significant contributions to the Ecopetrol Corporate group’s business and operations.
However, there are some subsidiary companies that do not yet make any financial contribution to the results of the Ecopetrol Corporate group, as these are still in a pre-operating stage or are conducting exploratory activities but do not yet have production. For the third quarter of 2010, Ecopetrol’s subsidiaries had an overall net loss which was primarily the result of the exploratory activity of Ecopetrol del Peru (Blocks 101, 134 and 158) and Ecopetrol del Brasil (well BM ES 29) and the pre-operating activities of Bioenergy.
The following tables summarize Ecopetrol’s consolidated financial results for the periods indicated:
Consolidated Income Statement* | ||||||||||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | % | Nine- month period ended Sep 30, 2010 | Nine- month period ended Sep 30, 2009 | % | ||||||||||||||||||
Local Sales | 3,816.9 | 3,361.5 | 13.5 | % | 11,800.4 | 10,049.0 | 17.4 | % | ||||||||||||||||
Export Sales* | 5,694.3 | 5,292.5 | 7.6 | % | 17,017.7 | 10,654.1 | 59.7 | % | ||||||||||||||||
Sales of services | 381.0 | 247.8 | 53.8 | % | 1,506.1 | 715.4 | 110.5 | % | ||||||||||||||||
Total Sales | 9,892.2 | 8,901.8 | 11.1 | % | 30,324.2 | 21,418.4 | 41.6 | % | ||||||||||||||||
Variable Costs | 4,739.9 | 4,593.6 | 3.2 | % | 14,638.9 | 10,284.2 | 42.3 | % | ||||||||||||||||
Fixed Costs | 1,585.7 | 1,478.0 | 7.3 | % | 4,484.7 | 4,230.1 | 6.0 | % | ||||||||||||||||
Cost of Sales | 6,325.6 | 6,071.6 | 4.2 | % | 19,123.6 | 14,514.3 | 31.8 | % | ||||||||||||||||
Gross profit | 3,566.6 | 2,830.2 | 26.0 | % | 11,200.6 | 6,904.1 | 62.2 | % | ||||||||||||||||
Operating Expenses | 799.2 | 499.9 | 59.9 | % | 2,273.4 | 1,410.3 | 61.2 | % | ||||||||||||||||
Operating Profit | 2,767.4 | 2,330.3 | 18.8 | % | 8,927.2 | 5,493.8 | 62.5 | % | ||||||||||||||||
Non Operating Profit/(Loss) | (435.6 | ) | (689.5 | ) | (36.8 | )% | (1,238.7 | ) | (584.1 | ) | 112.1 | % | ||||||||||||
Income tax | 599.7 | 532.4 | 12.6 | % | 2,131.1 | 1,507.7 | 41.3 | % | ||||||||||||||||
Minority interest | 8.6 | (1.4 | ) | (714.3 | )% | 112.6 | (8.6 | ) | (1,409.3 | )% | ||||||||||||||
Net Income | 1,723.5 | 1,109.8 | 55.3 | % | 5,444.8 | 3,410.6 | 59.6 | % | ||||||||||||||||
EBITDA | 4,033.0 | 3,212.4 | 25.5 | % | 12,067.3 | 8,102.0 | 48.9 | % | ||||||||||||||||
EBITDA Margin | 41 | % | 36 | % | 40 | % | 38 | % | ||||||||||||||||
Operating Margin | 28 | % | 26 | % | 29 | % | 26 | % | ||||||||||||||||
Net Margin | 17 | % | 12 | % | 18 | % | 16 | % |
* For ilustration purposes only
** Sales to Free trade zones for the year 2009 were reclasified as export sales to make financial statements comparable
1 For purposes of preparing the consolidated results for third quarter 2010, in addition to Ecopetrol’s results, those of the following affiliates were included:
Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A., ECP Global Energy, Hocol, Bioenergy S.A., Andean Chemicals Limited, Propilco S.A., Comai, ODL Finance S.A., Ecopetrol Transportation Company, Oleoducto de Colombia, Ocensa S.A., Reficar S.A. and Black Gold Re Ltd.
The consolidated financial results for the third quarter of 2009 include the following companies: Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A.,Hocol, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Transportation Company, Oleoducto de Colombia, Ocensa S.A., and Reficar S.A.
18
PRESS RELEASE | ![]() |
Balance Sheet (COP$ Billion) | As of September 30, 2010 | As of June 30, 2010 | % | |||||||||
Current Assets | 14,012.2 | 14,359.2 | (2.4 | )% | ||||||||
Long Term Assets | 49,960.7 | 47,922.5 | 4.3 | % | ||||||||
Total Assets | 63,972.9 | 62,281.7 | 2.7 | % | ||||||||
Current Liabilities | 11,025.2 | 11,957.6 | (7.8 | )% | ||||||||
Long Term Liabilities | 15,729.0 | 15,006.6 | 4.8 | % | ||||||||
Total Liabilities | 26,754.2 | 26,964.2 | (0.8 | )% | ||||||||
Equity | 36,265.9 | 34,348.7 | 5.6 | % | ||||||||
Minority interest | 952.8 | 968.8 | (1.7 | )% | ||||||||
Total Liabilities and Shareholders´ Equity | 63,972.9 | 62,281.7 | 2.7 | % | ||||||||
Debit Memorandum accounts | 86,525.3 | 89,667.0 | (3.5 | )% | ||||||||
Credit Memorandum accounts | 62,422.6 | 63,812.0 | (2.2 | )% |
The subsidiaries that contributed the most to total sales for nine-month period ended September 30, 2010 (without taking into account eliminations) were Reficar with COL$3,549.0 billion, Hocol with COL$ 1,817.1 billion, Ocensa S.A. with COL$1,044.6 billion, and Propilco S.A. with COL$991.1 billion.
Among subsidiaries, the highest contributors to the Group’s net income during the nine-month period ended September 30, 2010 were Ocensa with COL$292.6 billion, Hocol with COL$182.3 billion and Propilco (including Comai) with COL$43.6 billion. On the other hand, subsidiaries with the highest net losses were Ecopetrol America Inc. with a net loss of COL$266.9 billion, Ecopetrol del Brasil with a net loss of COL$182.9 billion and Ecopetrol del Peru with a net loss of COL$57.6.
Under the equity method, Offshore International Group contributed net income of COL$40.3 billion.
Consolidated Ebitda as of September 30, 2010 was COL$12,067.3 billion, which represents an Ebitda margin of 40%, driven mainly by the Corporate Group’s outstanding operating results.
In the third quarter of 2010, the subsidiaries with the highest net income were Hocol with COL$35.6 billion, and Propilco S.A with COL$9.3 billion. The subsidiaries with the highest net losses were Ecopetrol Brasil with a net loss of COL$171.1 billion and Ecopetrol del Peru with a net loss of COL$56.9 billion.
Consolidated Ebitda for the nine-month period ended September 30, 2010 was COL$4,033.0 billion, and an Ebitda margin of 41%. Ebitda increase was mainly driven by the revenue growth for the Corporate Group.
19
PRESS RELEASE | ![]() |
V. Presentation of Results
On Wednesday, October 27, Ecopetrol’s management will hold two presentations on the Web to discuss results for the third quarter of 2010 and the nine-month period ended September 30, 2010.
In Spanish | In English |
October 27, 2010 | October 27, 2010 |
1:00 p.m. Bogota-Lima | 2:30 pm Bogota-Lima |
2:00 p.m. New York-Toronto | 3:30 p.m. New York-Toronto |
The webcast will be available on Ecopetrol’s website: www.ecopetrol.com.co.
Please access the site 10 minutes beforehand in order to download any necessary software. A copy of the webcast will remain available throughout the year following the live event.
About Ecopetrol S.A.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) is the largest company in Colombia in terms of revenue, profit, assets and shareholders’ equity. Ecopetrol is Colombia’s only vertically integrated crude oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast. Its affiliates include Propilco, as well as Black Gold Re Ltda., Ecopetrol Oleo e Gas do Brazil Ltda., Ecopetrol America Inc., Ecopetrol del Peru S.A., Hocol, Andean Chemicals Limited, COMAI, Bioenergy S.A., ODL Finance S.A., ECP Global Energy, Ecopetrol Transportation Company, Ocensa S.A., Oleoducto de Colombia and Refineria de Cartagena. Ecopetrol is one of the 40 largest oil companies in the world and one of the four principal oil companies in Latin America. It is majority owned by the Republic of Colombia, and its shares are traded on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL, on the New York Stock Exchange (NYSE) through its ADR and on the Bolsa de Valores de Lima (BVL) under the symbol EC. The company divides its operations into five business segments that include exploration and production, transport, refining, petrochemicals, marketing and sale of petroleum, and corporate.
For more information on Ecopetrol, visit www.ecopetrol.com.co
Forward-looking statements
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.
20
PRESS RELEASE | ![]() |
Contact information:
Investor Relations Director
Alejandro Giraldo
Telephone: +571-234-5190
Fax: +571-234-5628
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Fax: +571-234-4480
E-mail: mauricio.tellez@ecopetrol.com.co
21
PRESS RELEASE | ![]() |
VI. Tables
Unaudited Income Statement | |||||||
Ecopetrol S.A. |
COP$ Million | 3Q-10 | 3Q-09 | % | 2Q-10 | As of September 30, 2010 | As of September 30, 2009 | % | |||||||||||||||||||||
Income | ||||||||||||||||||||||||||||
Local Sales | 3,115,437 | 2,765,553 | 12.7 | % | 3,372,841 | 9,871,035 | 7,697,566 | 28.2 | % | |||||||||||||||||||
Export Sales | 5,137,480 | 4,356,821 | 17.9 | % | 5,437,495 | 15,615,222 | 10,755,334 | 45.2 | % | |||||||||||||||||||
Sale of Services | 333,802 | 247,647 | 34.8 | % | 322,847 | 975,252 | 715,383 | 36.3 | % | |||||||||||||||||||
Total Income | 8,586,719 | 7,370,021 | 16.5 | % | 9,133,183 | 26,461,509 | 19,168,283 | 38.0 | % | |||||||||||||||||||
Cost of Sales | - | |||||||||||||||||||||||||||
Variable Costs | - | |||||||||||||||||||||||||||
Purchase of Hydrocarbons | 2,085,145 | 1,954,898 | 6.7 | % | 2,273,654 | 6,525,217 | 5,096,133 | 28.0 | % | |||||||||||||||||||
Amortization and Depletion | 759,901 | 530,033 | 43.4 | % | 642,430 | 2,007,738 | 1,353,891 | 48.3 | % | |||||||||||||||||||
Imported products | 710,195 | 628,336 | 13.0 | % | 1,148,515 | 2,868,381 | 1,574,851 | 82.1 | % | |||||||||||||||||||
Transportation Cost for Refineries | 197,153 | 188,873 | 4.4 | % | 162,254 | 554,882 | 549,661 | 0.9 | % | |||||||||||||||||||
Inventories | 68,524 | (65,002 | ) | 205.4 | % | 114,515 | 5,843 | (16,594 | ) | 135.2 | % | |||||||||||||||||
Other | 30,707 | 146,096 | (79.0 | )% | 158,210 | 207,657 | 451,099 | (54.0 | )% | |||||||||||||||||||
Fixed Costs | ||||||||||||||||||||||||||||
Depreciation | 212,186 | 158,983 | 33.5 | % | 199,801 | 605,624 | 472,717 | 28.1 | % | |||||||||||||||||||
Contracted Services | 463,326 | 377,971 | 22.6 | % | 439,635 | 1,299,963 | 1,055,637 | 23.1 | % | |||||||||||||||||||
Maintenance | 250,882 | 221,867 | 13.1 | % | 239,121 | 659,068 | 522,045 | 26.2 | % | |||||||||||||||||||
Labor Costs | 238,700 | 233,904 | 2.1 | % | 232,742 | 722,737 | 598,178 | 20.8 | % | |||||||||||||||||||
Other | 249,919 | 254,675 | (1.9 | )% | 255,831 | 727,055 | 649,746 | 11.9 | % | |||||||||||||||||||
Total Cost of Sales | 5,266,638 | 4,630,634 | 13.7 | % | 5,866,708 | 16,184,165 | 12,307,364 | 31.5 | % | |||||||||||||||||||
Gross Profits | 3,320,081 | 2,739,387 | 21.2 | % | 3,266,475 | 10,277,344 | 6,860,919 | 49.8 | % | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Administration | 120,343 | 146,866 | (18.1 | )% | 120,311 | 333,817 | 363,938 | (8.3 | )% | |||||||||||||||||||
Selling expenses | 246,404 | 200,502 | 22.9 | % | 306,721 | 772,130 | 609,953 | 26.6 | % | |||||||||||||||||||
Exploration and Projects | 87,480 | 167,829 | (47.9 | )% | 146,284 | 414,174 | 509,613 | (18.7 | )% | |||||||||||||||||||
Operating Income | 2,865,854 | 2,224,190 | 28.8 | % | 2,693,159 | 8,757,223 | 5,377,415 | 62.9 | % | |||||||||||||||||||
Non Operating Income (expenses) | ||||||||||||||||||||||||||||
Financial Income | 888,412 | 1,530,205 | (41.9 | )% | 1,207,951 | 3,058,543 | 6,008,832 | (49.1 | )% | |||||||||||||||||||
Financial Expenses | (920,255 | ) | (1,755,377 | ) | 47.6 | % | (1,078,370 | ) | (3,004,504 | ) | (5,661,911 | ) | 46.9 | % | ||||||||||||||
Non Financial Income | 138,474 | 119,279 | 16.1 | % | 173,142 | 504,426 | 439,833 | 14.7 | % | |||||||||||||||||||
Non Financial Expenses | (370,007 | ) | (526,803 | ) | 29.8 | % | (474,533 | ) | (1,556,877 | ) | (1,292,186 | ) | 20.5 | % | ||||||||||||||
Income before income tax | 2,309,500 | 1,635,323 | 41.2 | % | 2,407,435 | 7,589,867 | 4,951,785 | 53.3 | % | |||||||||||||||||||
Provision for Income Tax | 607,144 | 441,803 | 37.4 | % | 602,437 | 1,985,847 | 1,386,995 | 43.2 | % | |||||||||||||||||||
Minority interest | - | - | 0.0 | % | - | |||||||||||||||||||||||
Net Income | 1,702,356 | 1,193,520 | 42.6 | % | 1,804,998 | 5,604,020 | 3,564,790 | 57.2 | % | |||||||||||||||||||
EBITDA | 3,952,142 | 3,037,569 | 30.1 | % | 3,635,691 | 11,694,283 | 7,474,437 | 56.5 | % | |||||||||||||||||||
EBITDA MARGIN | 46 | % | 41 | % | 40 | % | 44 | % | 39 | % | ||||||||||||||||||
EARNINGS PER SHARE | $ | 42.06 | $ | 29.49 | 42.6 | % | $ | 44.60 | $ | 138.46 | $ | 88.08 | 57.2 | % |
Notes
-Beginning 2010 transportation service's cost are reclasified as variable costs
- Amounts reported of purchases and imports in the third quarter of 2009 were adjusted in order to make them comparable as an effect of the assignation of price differences generated in the purchase process
- Sales to Free trade zones for the year 2009 were reclasified as export sales to make financial statements comparable
22
PRESS RELEASE | ![]() |
Unaudited Income Statement
Ecopetrol S.A. and Subsidiaries *
COP$ Million | 3Q-10 | 3Q-09 | % | 2Q-10 | As of September 30, 2010 | As of September 30, 2009 | % | |||||||||||||||||||||
Income | ||||||||||||||||||||||||||||
Local Sales | 3,816,906 | 3,361,491 | 13.5 | % | 4,102,371 | 11,800,425 | 10,048,973 | 17.4 | % | |||||||||||||||||||
Export Sales | 5,694,256 | 5,292,486 | 7.6 | % | 5,783,161 | 17,017,673 | 10,654,058 | 59.7 | % | |||||||||||||||||||
Sale of Services | 380,969 | 247,829 | 53.7 | % | 328,811 | 1,506,147 | 715,383 | 110.5 | % | |||||||||||||||||||
Total Income | 9,892,131 | 8,901,806 | 11.1 | % | 10,214,343 | 30,324,245 | 21,418,414 | 41.6 | % | |||||||||||||||||||
Cost of Sales | ||||||||||||||||||||||||||||
Variable Costs | 4,739,929 | |||||||||||||||||||||||||||
Purchase of Hydrocarbons | 2,203,762 | 2,660,045 | (17.2 | )% | 2,863,218 | 7,839,507 | 5,829,569 | 34.5 | % | |||||||||||||||||||
Amortization and Depletion | 851,846 | 569,576 | 49.6 | % | 783,941 | 2,274,092 | 1,463,372 | 55.4 | % | |||||||||||||||||||
Imported products | 1,542,964 | 964,901 | 59.9 | % | 1,445,074 | 4,095,276 | 2,019,117 | 102.8 | % | |||||||||||||||||||
Transportation Cost for Refineries | 170,523 | 137,049 | 24.4 | % | 171,062 | 553,250 | 497,837 | 11.1 | % | |||||||||||||||||||
Inventories | (7,520 | ) | (99,681 | ) | (92.5 | )% | 176,537 | (110,403 | ) | (51,273 | ) | 115.3 | % | |||||||||||||||
Other | (21,646 | ) | 361,667 | (106.0 | )% | (34,137 | ) | (12,839 | ) | 525,564 | (102.4 | )% | ||||||||||||||||
Fixed Costs | 1,585,695 | - | - | 0.0 | % | |||||||||||||||||||||||
Depreciation | 325,938 | 441,920 | (26.2 | )% | 170,816 | 762,185 | 1,004,143 | (24.1 | )% | |||||||||||||||||||
Contracted Services | 486,868 | 369,474 | 31.8 | % | 431,152 | 1,321,754 | 1,078,521 | 22.6 | % | |||||||||||||||||||
Maintenance | 311,947 | 284,409 | 9.7 | % | 289,360 | 811,322 | 669,203 | 21.2 | % | |||||||||||||||||||
Labor Costs | 250,521 | 253,347 | (1.1 | )% | 244,832 | 759,139 | 639,779 | 18.7 | % | |||||||||||||||||||
Other | 210,421 | 128,898 | 63.2 | % | 261,655 | 830,319 | 838,475 | (1.0 | )% | |||||||||||||||||||
Total Cost of Sales | 6,325,624 | 6,071,605 | 4.2 | % | 6,803,510 | 19,123,602 | 14,514,307 | 31.8 | % | |||||||||||||||||||
Gross Profits | 3,566,507 | 2,830,201 | 26.0 | % | 3,410,833 | 11,200,643 | 6,904,107 | 62.2 | % | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Administration | 145,654 | 167,060 | (12.8 | )% | 154,387 | 427,495 | 453,572 | (5.7 | )% | |||||||||||||||||||
Selling expenses | 272,691 | 123,736 | 120.4 | % | 321,795 | 855,311 | 405,563 | 110.9 | % | |||||||||||||||||||
Exploration and Projects | 380,893 | 209,087 | 82.2 | % | 391,249 | 990,579 | 551,160 | 79.7 | % | |||||||||||||||||||
Operating Income | 2,767,269 | 2,330,318 | 18.8 | % | 2,543,402 | 8,927,258 | 5,493,812 | 62.5 | % | |||||||||||||||||||
Non Operating Income (expenses) | ||||||||||||||||||||||||||||
Financial Income | 2,272,762 | 3,513,002 | (35.3 | )% | 2,410,906 | 6,267,295 | 13,695,750 | (54.2 | )% | |||||||||||||||||||
Financial Expenses | (2,419,468 | ) | (3,789,805 | ) | (36.2 | )% | (2,268,341 | ) | (6,377,481 | ) | (13,422,061 | ) | 52.5 | % | ||||||||||||||
Non Financial Income | 126,043 | 131,279 | (4.0 | )% | 203,012 | 535,822 | 483,906 | 10.7 | % | |||||||||||||||||||
Non Financial Expenses | (414,887 | ) | (543,935 | ) | (23.7 | )% | (505,387 | ) | (1,664,319 | ) | (1,341,718 | ) | 24.0 | % | ||||||||||||||
- | - | 0.0 | % | |||||||||||||||||||||||||
Income before income tax | 2,331,719 | 1,640,859 | 42.1 | % | 2,383,592 | 7,688,575 | 4,909,689 | 56.6 | % | |||||||||||||||||||
Provision for Income Tax | 599,658 | 532,408 | 12.6 | % | 618,731 | 2,131,148 | 1,507,719 | 41.3 | % | |||||||||||||||||||
Minority interest | 8,590 | (1,414 | ) | (707.5 | )% | (2,205 | ) | 112,560 | (8,605 | ) | 1,408.1 | % | ||||||||||||||||
Net Income | 1,723,471 | 1,109,865 | 55.3 | % | 1,767,066 | 5,444,867 | 3,410,575 | 59.6 | % | |||||||||||||||||||
EBITDA | 4,032,956 | 3,212,357 | 25.5 | % | 3,579,622 | 12,067,310 | 8,102,023 | 48.9 | % | |||||||||||||||||||
EBITDA MARGIN | 41 | % | 36 | % | 35 | % | 40 | % | 38 | % |
Notes
* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year, wherefore the quarterly figures in this report do not constitute a formal consolidation of Ecopetrol's financial statement, though they do adjust to the methodology defined for this purpose.
23
PRESS RELEASE | ![]() |
Unaudited Balance Sheet
Ecopetrol S.A. | Ecopetrol S.A. and Subsidiaries | |||||||||||||||||||||||
As of September 30, | As of June 31, | As of September 30, | As of June 31, | |||||||||||||||||||||
COP$ Million | 2010 | 2010 | % | 2010 | 2010 | % | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||
Cash and cash equivalents | 3,421,565 | 3,427,341 | (0.2 | )% | 4,992,972 | 4,867,304 | 2.6 | % | ||||||||||||||||
Investments | 606,356 | 1,243,708 | (51.2 | )% | 1,201,318 | 1,924,788 | (37.6 | )% | ||||||||||||||||
Accounts and notes receivable | 2,529,688 | 2,748,775 | (8.0 | )% | 1,915,839 | 2,849,060 | (32.8 | )% | ||||||||||||||||
Other | 4,996,692 | 3,858,983 | 29.5 | % | 5,902,032 | 4,718,082 | 25.1 | % | ||||||||||||||||
Total Current Assets | 11,554,301 | 11,278,807 | 2.4 | % | 14,012,161 | 14,359,234 | (2.4 | )% | ||||||||||||||||
Non Current Assets | ||||||||||||||||||||||||
Investments | 11,000,767 | 11,440,259 | (3.8 | )% | 4,271,101 | 4,819,758 | (11.4 | )% | ||||||||||||||||
Accounts and notes receivable | 1,281,974 | 1,266,844 | 1.2 | % | 1,301,625 | 163,680 | 695.2 | % | ||||||||||||||||
Property, plant and equipment, net | 13,215,809 | 12,447,635 | 6.2 | % | 20,118,828 | 19,029,927 | 5.7 | % | ||||||||||||||||
Natural and environmental properties, Net | 9,255,484 | 9,094,740 | 1.8 | % | 9,897,361 | 9,803,951 | 1.0 | % | ||||||||||||||||
Resources delivered to administration | ||||||||||||||||||||||||
Other | 13,850,688 | 13,566,478 | 2.1 | % | 14,371,817 | 14,105,183 | 1.9 | % | ||||||||||||||||
Total Non Current Assets | 48,604,722 | 47,815,956 | 1.6 | % | 49,960,732 | 47,922,499 | 4.3 | % | ||||||||||||||||
Total Assets | 60,159,023 | 59,094,763 | 1.8 | % | 63,972,893 | 62,281,733 | 2.7 | % | ||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||||||
Financial obligations | 92,703 | 125,422 | (26.1 | )% | 450,403 | 523,299 | (13.9 | )% | ||||||||||||||||
Accounts payable and related parties | 6,745,659 | 7,832,596 | (13.9 | )% | 5,026,134 | 5,143,659 | (2.3 | )% | ||||||||||||||||
Estimated liabilities and provisions | 1,285,328 | 1,341,710 | (4.2 | )% | 1,605,487 | 1,682,844 | (4.6 | )% | ||||||||||||||||
Other | 2,484,428 | 1,911,804 | 30.0 | % | 3,943,220 | 4,607,796 | (14.4 | )% | ||||||||||||||||
Total Current Liabilities | 10,608,118 | 11,211,532 | (5.4 | )% | 11,025,244 | 11,957,598 | (7.8 | )% | ||||||||||||||||
Long Term Liabilities | ||||||||||||||||||||||||
Financial obligations | 4,920,035 | 5,094,890 | (3.4 | )% | 6,823,507 | 6,043,270 | 12.9 | % | ||||||||||||||||
Labor and pension plan obligations | 3,036,238 | 2,911,912 | 4.3 | % | 3,044,303 | 2,920,183 | 4.3 | % | ||||||||||||||||
Estimated liabilities and provisions | 3,127,080 | 3,127,565 | (0.0 | )% | 3,202,488 | 3,201,613 | 0.0 | % | ||||||||||||||||
Other | 2,044,257 | 2,223,756 | (8.1 | )% | 2,658,666 | 2,841,507 | (6.4 | )% | ||||||||||||||||
Total Long Term Liabilities | 13,127,610 | 13,358,123 | (1.7 | )% | 15,728,964 | 15,006,573 | 4.8 | % | ||||||||||||||||
Total Liabilities | 23,735,728 | 24,569,655 | (3.4 | )% | 26,754,208 | 26,964,171 | (0.8 | )% | ||||||||||||||||
Minoritary Interest | 952,805 | 968,792 | (1.7 | )% | ||||||||||||||||||||
Equity | 36,423,295 | 34,525,108 | 5.5 | % | 36,265,880 | 34,348,770 | 5.6 | % | ||||||||||||||||
Total Liabilities and Shareholders' Equity | 60,159,023 | 59,094,763 | 1.8 | % | 63,972,893 | 62,281,733 | 2.7 | % | ||||||||||||||||
Memorandum Debtor Accounts ** | 85,123,221 | 88,299,767 | 86,525,302 | 89,666,986 | ||||||||||||||||||||
Memorandum Creditor Accounts ** | 63,519,144 | 62,875,849 | 62,422,642 | 63,812,042 |
Notes
* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year, wherefore the figures for interim periods in this report do not constitute a formal consolidation of Ecopetrol's financial statement, though they do adjust to the methodology defined for this purpose.
**Under Colombian GAAP, Ecopetrol must maintain in its accounting the recording of financial information and transactions not reflected in financial statements
24
PRESS RELEASE | ![]() |
Unaudited Cash Flow Statement
Ecopetrol S.A.
COP$ million | As of September 30, | As of September 30, | ||||||||||||||||||||||||||
3Q 2010 | 3Q 2009 | % | 2Q 2010 | 2010 | 2009 | % | ||||||||||||||||||||||
Cash flow provided by operating activities: | ||||||||||||||||||||||||||||
Net income | 1,702,355 | 1,193,520 | 42.6 | % | 1,804,998 | 5,604,019 | 3,564,790 | 57.2 | % | |||||||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 1,086,289 | 813,379 | 33.6 | % | 942,531 | 2,937,060 | 2,097,022 | 40.1 | % | |||||||||||||||||||
Provisions | 752,500 | 539,753 | 39.4 | % | 913,334 | 2,191,158 | 1,178,150 | 86.0 | % | |||||||||||||||||||
Net changes in operating assets and liabilities: | ||||||||||||||||||||||||||||
Accounts and notes receivable | (1,015,830 | ) | 1,204,911 | (184.3 | )% | 934,554 | (701,846 | ) | 119,182 | (688.9 | )% | |||||||||||||||||
Inventories | 72,862 | (67,660 | ) | 207.7 | % | 219,192 | 10,893 | (17,317 | ) | 162.9 | % | |||||||||||||||||
Deferred and other assets | (152,998 | ) | (308,978 | ) | 50.5 | % | (458,962 | ) | (575,513 | ) | (2,525,923 | ) | 77.2 | % | ||||||||||||||
Accounts payable and related parties | 112,212 | 90,763 | 23.6 | % | 831,951 | 2,095,181 | 2,625,462 | (20.2 | )% | |||||||||||||||||||
Taxes payable | (175,601 | ) | (599,246 | ) | 70.7 | % | (1,347,745 | ) | (1,880,749 | ) | (3,441,842 | ) | 45.4 | % | ||||||||||||||
Labor obligations | 20,021 | 35,971 | (44.3 | )% | (12,210 | ) | (6,952 | ) | 6,825 | (201.9 | )% | |||||||||||||||||
Estimated liabilities and provisions | (24,473 | ) | (18,087 | ) | 35.3 | % | 391,230 | 358,506 | (31,640 | ) | 1,233.1 | % | ||||||||||||||||
Cash provided by operating activities | 2,523,456 | 2,945,046 | (14.3 | )% | 4,576,086 | 10,352,680 | 3,725,230 | 177.9 | % | |||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Purchase of investment securities | (1,821,683 | ) | (3,741,998 | ) | 51.3 | % | (2,025,193 | ) | (7,439,317 | ) | (4,607,977 | ) | 61.4 | % | ||||||||||||||
Redemption of investment securities | 2,556,856 | 3,508,213 | (27.1 | )% | 1,219,327 | 5,944,364 | 9,853,692 | (39.7 | )% | |||||||||||||||||||
Investment in natural and environmental resources - Reserves | (922,366 | ) | (592,436 | ) | (55.7 | )% | (759,920 | ) | (2,144,366 | ) | (1,392,662 | ) | 54.0 | % | ||||||||||||||
Additions to property, plant and equipment | (916,915 | ) | (939,905 | ) | 2.4 | % | (1,030,436 | ) | (2,698,228 | ) | (3,138,107 | ) | 14.0 | % | ||||||||||||||
Net cash used in investing activities | (1,104,108 | ) | (1,766,126 | ) | 37.5 | % | (2,596,222 | ) | (6,337,547 | ) | 714,946 | (986.4 | )% | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Financial obligations | (179,524 | ) | 3,338,500 | (105.4 | )% | (13,526 | ) | (366,510 | ) | 5,103,200 | (107.2 | )% | ||||||||||||||||
Debts from credit and financing operations | (28,050 | ) | 91,295 | (130.7 | )% | 19,655 | (42,205 | ) | 112,623 | (137.5 | )% | |||||||||||||||||
Received from associates - capitalization | 219 | 29,664 | (99.3 | )% | (826 | ) | 556 | 35,063 | (98.4 | )% | ||||||||||||||||||
Payment of dividends | (1,217,769 | ) | (2,935,994 | ) | 58.5 | % | (1,254,644 | ) | (2,472,405 | ) | (5,962,183 | ) | 58.5 | % | ||||||||||||||
Net cash used in financing activities | (1,425,124 | ) | 523,465 | (372.2 | )% | (1,249,341 | ) | (2,880,564 | ) | (711,297 | ) | 305.0 | % | |||||||||||||||
Net increase in cash and cash equivalent | (5,776 | ) | 1,702,385 | (100.3 | )% | 730,523 | 1,134,569 | 3,728,879 | (69.6 | )% | ||||||||||||||||||
Cash and cash equivalent at beginnig of year | 3,427,341 | 3,896,740 | (12.0 | )% | 2,696,818 | 2,286,996 | 1,870,246 | 22.3 | % | |||||||||||||||||||
Cash and cash equivalent at end of year | 3,421,565 | 5,599,125 | (38.9 | )% | 3,427,341 | 3,421,565 | 5,599,125 | (38.9 | )% |
25
PRESS RELEASE | ![]() |
Unaudited Cash Flow Statement
Ecopetrol S.A. and subdiaries
COP$ million | As of September 30, | As of September 30, | ||||||||||||||||||||||||||
3Q 2010* | 3Q 2009 * | % | 2Q 2010 * | 2010 | 2009 | % | ||||||||||||||||||||||
Cash flow provided by operating activities: | ||||||||||||||||||||||||||||
Net income | 1,723,470 | 1,109,865 | 55.3 | % | 1,767,065 | 5,444,865 | 3,410,575 | 59.6 | % | |||||||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 1,296,201 | 1,074,965 | 20.6 | % | 1,056,806 | 3,371,987 | 2,801,137 | 20.4 | % | |||||||||||||||||||
Provisions | 770,749 | 605,342 | 27.3 | % | 980,724 | 2,422,157 | 1,298,874 | 86.5 | % | |||||||||||||||||||
Net changes in operating assets and liabilities: | ||||||||||||||||||||||||||||
Accounts and notes receivable | (1,681,163 | ) | 1,015,910 | 265.5 | % | 1,506,742 | (994,746 | ) | 867,708 | (214.6 | )% | |||||||||||||||||
Inventories | 86,979 | (17,273 | ) | 603.6 | % | 178,967 | 1,622 | (212,950 | ) | 100.8 | % | |||||||||||||||||
Deferred and other assets | (2,322,012 | ) | 198,815 | (1,267.9 | )% | 1,636,041 | (576,646 | ) | (939,492 | ) | 38.6 | % | ||||||||||||||||
Accounts payable and related parties | (126,384 | ) | 2,529,226 | (105.0 | )% | 848,588 | 2,190,041 | 2,939,393 | (25.5 | )% | ||||||||||||||||||
Taxes payable | 1,136,885 | (639,596 | ) | 277.8 | % | (2,979,625 | ) | (1,055,476 | ) | (3,372,817 | ) | 68.7 | % | |||||||||||||||
Labor obligations | 23,959 | 418,009 | (94.3 | )% | (9,731 | ) | (7,106 | ) | 53,694 | (113.2 | )% | |||||||||||||||||
Estimated liabilities and provisions | (57,798 | ) | (32,175 | ) | 79.6 | % | 464,292 | 479,298 | 297,286 | 61.2 | % | |||||||||||||||||
Cash provided by operating activities | 762,637 | 3,890,683 | (80.4 | )% | 5,724,095 | 10,005,186 | 7,413,837 | 35.0 | % | |||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Payment for purchase of Companies, net of cash acquired | - | - | 0.0 | % | - | - | (1,082,580 | ) | 100.0 | % | ||||||||||||||||||
Purchase of investment securities | (1,821,683 | ) | (3,741,998 | ) | (51.3 | )% | (2,025,193 | ) | (7,439,317 | ) | (4,607,977 | ) | 61.4 | % | ||||||||||||||
Redemption of investment securities | 3,042,968 | 3,219,297 | (5.5 | )% | 1,003,682 | 6,107,395 | 12,862,680 | (52.5 | )% | |||||||||||||||||||
Investment in natural and environmental resources - Reserves | (1,165,021 | ) | 122,586 | (1,050.4 | )% | (746,399 | ) | (2,373,500 | ) | (1,430,201 | ) | 66.0 | % | |||||||||||||||
Additions to property, plant and equipment | (163,527 | ) | (2,684,643 | ) | 93.9 | % | (2,448,817 | ) | (3,531,031 | ) | (9,019,429 | ) | 60.9 | % | ||||||||||||||
Net cash used in invesment activities | (107,263 | ) | (3,084,758 | ) | (96.5 | )% | (4,216,727 | ) | (7,236,453 | ) | (3,277,507 | ) | 120.8 | % | ||||||||||||||
Cash flows financing activities: | ||||||||||||||||||||||||||||
Minority interest | (15,987 | ) | (69,809 | ) | 77.1 | % | (83,424 | ) | 11,494 | 644,735 | (98.2 | )% | ||||||||||||||||
Financial obligations | 775,569 | 3,494,101 | (77.8 | )% | 247,819 | 1,109,153 | 5,801,403 | (80.9 | )% | |||||||||||||||||||
Debts from credit and financing operations | (68,227 | ) | 99,872 | (168.3 | )% | 87,488 | 13,322 | (27,351 | ) | 148.7 | % | |||||||||||||||||
Received from associates - capitalization | 219 | 29,664 | (99.3 | )% | (826 | ) | 556 | 35,063 | (98.4 | )% | ||||||||||||||||||
Payment of dividends | (1,221,279 | ) | (3,275,110 | ) | 100.0 | % | (1,254,628 | ) | (2,472,405 | ) | (6,317,736 | ) | 60.9 | % | ||||||||||||||
Net cash used in financing activities | (529,705 | ) | 278,718 | (290.1 | )% | (1,003,571 | ) | (1,337,880 | ) | 136,114 | (1,082.9 | )% | ||||||||||||||||
Net increase in cash and cash equivalent | 125,668 | 1,084,643 | (88.4 | )% | 503,798 | 1,430,853 | 4,272,444 | (66.5 | )% | |||||||||||||||||||
Cash and cash equivalent at beginnig of year | 4,867,304 | 5,301,604 | (8.2 | )% | 4,363,506 | 3,562,119 | 2,113,803 | 68.5 | % | |||||||||||||||||||
Cash and cash equivalent at end of year | 4,992,972 | 6,386,247 | -21.8 | % | 4,867,304 | 4,992,972 | 6,386,247 | -21.8 | % |
Notes
* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year, wherefore the quarterly figures in this report do not constitute a formal consolidation of Ecopetrol's financial statement, though they do adjust to the methodology defined for this purpose.
26
PRESS RELEASE | ![]() |
Calculation and Reconciliation of EBITDA
Ecopetrol S.A.
COP$ Millions | 3Q 2010 | 3Q 2009 | % | 2Q 2010 | As of September 30 2010 | As of September 30 2009 | % | |||||||||||||||||||||
EBITDA CALCULATION | ||||||||||||||||||||||||||||
Operating income | 2,693,160 | 2,224,190 | 21.1 | % | 2,693,160 | 8,757,223 | 5,377,415 | 62.9 | % | |||||||||||||||||||
Plus: Depreciations, depletions and amortizations | 942,531 | 813,379 | 15.9 | % | 942,531 | 2,937,060 | 2,097,022 | 40.1 | % | |||||||||||||||||||
NON CONSOLIDATED EBITDA | 3,635,691 | 3,037,569 | 19.7 | % | 3,635,691 | 11,694,283 | 7,474,437 | 56.5 | % | |||||||||||||||||||
RECONCILIATION NET INCOME TO EBITDA | - | - | 0.0 | % | - | - | - | 0.0 | % | |||||||||||||||||||
Net Income | 1,804,998 | 1,193,520 | 51.2 | % | 1,804,998 | 5,604,019 | 3,564,790 | 57.2 | % | |||||||||||||||||||
Depreciations, depletions and amortizations | 942,531 | 813,379 | 15.9 | % | 942,531 | 2,937,060 | 2,097,022 | 40.1 | % | |||||||||||||||||||
Financial income | (1,207,951 | ) | (1,530,205 | ) | (21.1 | )% | (1,207,951 | ) | (3,058,543 | ) | (6,008,832 | ) | (49.1 | )% | ||||||||||||||
Financial expenses | 1,078,370 | 1,755,377 | (38.6 | )% | 1,078,370 | 3,004,504 | 5,661,911 | (46.9 | )% | |||||||||||||||||||
Non financial income | (173,142 | ) | (119,279 | ) | 45.2 | % | (173,142 | ) | (504,426 | ) | (439,833 | ) | 14.7 | % | ||||||||||||||
Non financial expenses | 474,533 | 526,803 | (9.9 | )% | 474,533 | 1,556,877 | 1,292,186 | 20.5 | % | |||||||||||||||||||
Results in subsidiaries | 113,914 | (43,829 | ) | (359.9 | )% | 113,914 | 168,944 | (79,802 | ) | (311.7 | )% | |||||||||||||||||
Provision for income tax | 602,438 | 441,803 | 36.4 | % | 602,438 | 1,985,848 | 1,386,995 | 43.2 | % | |||||||||||||||||||
NON CONSOLIDATED EBITDA | 3,635,691 | 3,037,569 | 19.7 | % | 3,635,691 | 11,694,283 | 7,474,437 | 56.5 | % | |||||||||||||||||||
Ecopetrol and Subsidiaries | ||||||||||||||||||||||||||||
3Q 2010 | 3Q 2009 | % | 2Q 2010 | As of September 30 2010 | As of September 30 2009 | % | ||||||||||||||||||||||
EBITDA CALCULATION | ||||||||||||||||||||||||||||
Operating income | 2,767,268 | 2,330,318 | 18.8 | % | 2,543,402 | 8,927,257 | 5,493,812 | 62.5 | % | |||||||||||||||||||
Plus: Depreciations, depletions and amortizations | 1,296,201 | 1,074,965 | 20.6 | % | 1,056,806 | 3,371,987 | 2,801,137 | 20.4 | % | |||||||||||||||||||
Minority interest | (30,513 | ) | (192,926 | ) | (20,586 | ) | (231,934 | ) | (192,926 | ) | ||||||||||||||||||
CONSOLIDATED EBITDA | 4,032,956 | 3,212,357 | 25.5 | % | 3,579,622 | 12,067,310 | 8,102,023 | 48.9 | % | |||||||||||||||||||
RECONCILIATION NET INCOME TO EBITDA | - | - | 0.0 | % | - | - | - | |||||||||||||||||||||
Net income | 1,723,470 | 1,109,865 | 55.3 | % | 1,767,065 | 5,444,865 | 3,410,575 | 59.6 | % | |||||||||||||||||||
Depreciations, depletions and amortizations | 1,296,201 | 1,074,965 | 20.6 | % | 1,056,806 | 3,371,987 | 2,801,137 | 20.4 | % | |||||||||||||||||||
Financial income | (2,272,762 | ) | (3,513,002 | ) | (35.3 | )% | (2,410,905 | ) | (6,267,294 | ) | (13,695,750 | ) | (54.2 | )% | ||||||||||||||
Financial expenses | 2,419,468 | 3,789,805 | (36.2 | )% | 2,268,340 | 6,377,480 | 13,422,061 | (52.5 | )% | |||||||||||||||||||
Non financial income | (126,043 | ) | (131,279 | ) | (4.0 | )% | (203,011 | ) | (535,821 | ) | (483,906 | ) | 10.7 | % | ||||||||||||||
Non financial expenses | 414,887 | 543,935 | (23.7 | )% | 505,388 | 1,664,320 | 1,341,718 | 24.0 | % | |||||||||||||||||||
Minority interest on net income | 8,590 | (1,414 | ) | (707.5 | )% | (2,205 | ) | 112,560 | (8,605 | ) | (1,408.1 | )% | ||||||||||||||||
Provision for income taxes | 599,658 | 532,408 | 12.6 | % | 618,731 | 2,131,148 | 1,507,719 | 41.3 | % | |||||||||||||||||||
Minority interest on Ebitda | (30,512 | ) | (192,926 | ) | (20,587 | ) | (231,934 | ) | (192,926 | ) | ||||||||||||||||||
TOTAL EBITDA | 4,032,956 | 3,212,357 | 25.5 | % | 3,579,622 | 12,067,310 | 8,102,023 | 48.9 | % |
27
PRESS RELEASE | ![]() |
Subsidiaries
Exploration and Production
· | Hocol |
Production including royalties (MBOED) | 3Q 2010 | 3Q 2009 | As of Sep. 2010 | As of Sep. 2009 | ||||||||||||
Crude Oil | 25.4 | 23.8 | 24.8 | 23.6 | ||||||||||||
Natural gas | - | 1.9 | 1.1 | 1.4 | ||||||||||||
Total | 25.4 | 25.7 | 25.9 | 25.0 | ||||||||||||
Royalties (MBOED) | 3Q 2010 | 3Q 2009 | As of Sep. 2010 | As of Sep. 2009 | ||||||||||||
Crude Oil | 2.90 | 3.00 | 2.90 | 3.00 | ||||||||||||
Natural gas | 0.00 | 0.10 | 0.10 | 0.10 | ||||||||||||
Total | 2.9 | 3.1 | 3.0 | 3.1 | ||||||||||||
Net Production (MBOED) | 3Q 2010 | 3Q 2009 | As of Sep. 2010 | As of Sep. 2009 | ||||||||||||
Crudo Oil | 22.50 | 20.80 | 21.90 | 20.6 | ||||||||||||
Natural Gas | 0.00 | 1.80 | 1.0 | 1.3 | ||||||||||||
Total | 22.5 | 22.6 | 22.9 | 21.9 |
Income Statement | ||||||||||||||||
US$ million | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Local Sales | 5.6 | 8.5 | 22.9 | 26.9 | ||||||||||||
Export Sales | 675.2 | 564.6 | 1,794.2 | 1,278.7 | ||||||||||||
Total Sales | 680.8 | 573.1 | 1,817.1 | 1,305.6 | ||||||||||||
Variable Costs | 458.0 | 119.1 | 1,185.6 | 729.3 | ||||||||||||
Fixed Costs | 65.8 | 311.2 | 213.5 | 311.2 | ||||||||||||
Cost of Sales | 523.8 | 430.3 | 1,399.1 | 1,040.5 | ||||||||||||
Gross profit | 157.0 | 142.8 | 418.0 | 265.1 | ||||||||||||
Operating Expenses | 111.5 | 0.3 | 158.1 | 8.8 | ||||||||||||
Operating Profit | 45.5 | 142.5 | 259.9 | 256.3 | ||||||||||||
Non Operating Profit/(Loss) | (16.0 | ) | 5.0 | (41.4 | ) | (5.5 | ) | |||||||||
Income tax | (6.1 | ) | 50.9 | 36.4 | 81.7 | |||||||||||
Net Income/Loss | 35.6 | 96.6 | 182.1 | 169.1 | ||||||||||||
EBITDA | 101.7 | 192.7 | 430.0 | 406.2 | ||||||||||||
EBITDA Margin | 0.1 | 0.3 | 0.2 | 0.3 |
Balance Sheet | ||||||||
US$ million | As of Sep. 30, 2010 | As of June 30, 2010 | ||||||
Current Assets | 851.9 | 884.3 | ||||||
Long Term Assets | 1,149.1 | 1,115.4 | ||||||
Total Assets | 2,001.0 | 1,999.7 | ||||||
Current Liabilities | 431.8 | 437.6 | ||||||
Long Term Liabilities | 141.4 | 148.1 | ||||||
Total Liabilities | 573.2 | 585.7 | ||||||
Equity | 1,427.8 | 1,414.0 | ||||||
Total Liabilities and Shareholders´ Equity | 2,001.0 | 1,999.7 |
28
PRESS RELEASE | ![]() |
· | Offshore International Group (OIG) |
Production for Ecopetrol (MBOED) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Crude oil | 6.4 | 5.8 | 6.5 | 5.6 | ||||||||||||
Natural gas | 1.1 | 1.4 | 0.9 | 1.4 | ||||||||||||
Total | 7.5 | 7.2 | 7.4 | 7.0 | ||||||||||||
Production Royalties (MBOED) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Crude oil | 1.0 | 0.9 | 1.0 | 0.9 | ||||||||||||
Natural gas | 0.2 | 0.2 | 0.1 | 0.2 | ||||||||||||
Total | 1.2 | 1.1 | 1.1 | 1.1 | ||||||||||||
Production Net (MBOED) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Crude oil | 5.4 | 4.9 | 5.5 | 4.7 | ||||||||||||
Natural gas | 0.9 | 1.2 | 0.8 | 1.2 | ||||||||||||
Total | 6.3 | 6.1 | 6.3 | 5.9 |
Income Statement | ||||||||||||||||
US$ million | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Local Sales | 81.4 | 68.8 | 230.2 | 158.0 | ||||||||||||
Sales of services | (0.4 | ) | (31.9 | ) | 0.6 | 2.0 | ||||||||||
Total Sales | 81.0 | 36.9 | 230.8 | 160.0 | ||||||||||||
Variable Costs | 28.2 | 28.8 | 93.6 | 91.2 | ||||||||||||
Fixed Costs | 11.7 | (0.3 | ) | 35.3 | 23.3 | |||||||||||
Cost of Sales | 39.9 | 28.5 | 128.9 | 114.5 | ||||||||||||
Gross profit | 41.1 | 8.4 | 101.9 | 45.5 | ||||||||||||
Operating Expenses | 23.0 | (3.7 | ) | 33.2 | 13.9 | |||||||||||
Operating Profit | 18.1 | 12.1 | 68.7 | 31.6 | ||||||||||||
Non Operating Profit/(Loss) | 23.5 | 18.4 | 69.0 | 36.8 | ||||||||||||
Income tax | 4.7 | 5.6 | 16.4 | 13.2 | ||||||||||||
Employee profit sharing | 0.8 | 1.0 | 3.0 | 2.3 | ||||||||||||
Deferred taxes | 3.0 | 0.3 | 5.0 | (1.8 | ) | |||||||||||
Net Income/Loss | 15.0 | 11.5 | 44.6 | 23.1 |
Balance Sheet | ||||||||
US$ million | As of Sep. 30, 2010 | As of June 30, 2010 | ||||||
Current Assets | 211.5 | 185.0 | ||||||
Long Term Assets | 321.6 | 274.0 | ||||||
Total Assets | 533.1 | 459.0 | ||||||
Current Liabilities | 100.7 | 54.0 | ||||||
Long Term Liabilities | 16.1 | 10.0 | ||||||
Deferred taxes | 16.6 | 12.0 | ||||||
Total Liabilities | 133.4 | 76.0 | ||||||
Equity | 399.7 | 383.0 | ||||||
Total Liabilities and Shareholders´ Equity | 533.1 | 459.0 |
29
PRESS RELEASE | ![]() |
Refining & Petrochemicals
· | Propilco |
Sales volume (tons) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Polypropylene | 104,655 | 99,675 | 303,005 | 303,615 | ||||||||||||
Polypropylene marketing for COMAI | 2,493 | 2,270 | 7,464 | 6,868 | ||||||||||||
Total | 107,148 | 101,945 | 310,468 | 310,483 |
Income Statement | ||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Local Sales | 161.8 | 128.5 | 501.4 | 357.0 | ||||||||||||
Export Sales | 157.3 | 153.2 | 489.7 | 426.9 | ||||||||||||
Total Sales | 319.1 | 281.7 | 991.1 | 783.9 | ||||||||||||
Variable Costs | 278.9 | 178.3 | 866.1 | 615.6 | ||||||||||||
Fixed Costs | 21.7 | 63.0 | 63.0 | 63.0 | ||||||||||||
Cost of Sales | 300.6 | 241.3 | 929.1 | 678.6 | ||||||||||||
Gross profit | 18.5 | 40.4 | 62.0 | 105.3 | ||||||||||||
Operating Expenses | 23.9 | 21.1 | 69.9 | 67.3 | ||||||||||||
Operating Profit | (5.4 | ) | 19.3 | (7.9 | ) | 38.0 | ||||||||||
Non Operating Profit/(Loss) | 16.3 | 4.2 | 55.9 | 8.4 | ||||||||||||
Income tax | 1.6 | 2.5 | 4.4 | 5.0 | ||||||||||||
Net Income/Loss | 9.3 | 21.0 | 43.6 | 41.4 |
Balance Sheet | ||||||||
COP$ Billion | As of Sep 30, 2010 | As of Jun 30, 2010 | ||||||
Current Assets | 500.3 | 522.3 | ||||||
Long Term Assets | 530.7 | 526.3 | ||||||
Total Assets | 1,031.0 | 1,048.6 | ||||||
Current Liabilities | 376.6 | 404.0 | ||||||
Long Term Liabilities | 30.9 | 30.3 | ||||||
Total Liabilities | 407.5 | 434.3 | ||||||
Equity | 623.5 | 614.3 | ||||||
Total Liabilities and Shareholders´ Equity | 1,031.0 | 1,048.6 |
· | Reficar S.A. |
Refinery runs (MBD) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Utilization % | 101.0 | % | 101.4 | % | 101.3 | % | 101.6 | % |
As of sep. | As of sep. | |||||||||||||||
Sales Volume Bls | 3Q 2010 | 3Q 2009 | 2010 | 2009 | ||||||||||||
Local | 3,420,447 | 3,847,161 | 11,030,499 | 11,522,160 | ||||||||||||
International | 4,630,800 | 3,331,188 | 13,334,233 | 10,244,560 | ||||||||||||
Total | 8,051,247 | 7,178,349 | 24,364,732 | 21,766,720 |
30
PRESS RELEASE | ![]() |
Income Statement | ||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Local Sales | 618.7 | 571.8 | 1,711.9 | 1,383.6 | ||||||||||||
Export Sales | 695.9 | 504.9 | 1,837.1 | 1,087.1 | ||||||||||||
Total Sales | 1,314.6 | 1,076.7 | 3,549.0 | 2,470.7 | ||||||||||||
Variable Costs | 1,274.4 | 879.4 | 3,354.3 | 2,306.0 | ||||||||||||
Fixed Costs | 39.3 | 180.9 | 164.8 | 180.9 | ||||||||||||
Cost of Sales | 1,313.7 | 1,060.3 | 3,519.1 | 2,486.9 | ||||||||||||
Gross profit | 0.9 | 16.4 | 29.9 | (16.2 | ) | |||||||||||
Operating Expenses | 11.7 | 8.3 | 40.5 | 34.4 | ||||||||||||
Operating Profit | (10.8 | ) | 8.1 | (10.6 | ) | (50.6 | ) | |||||||||
Non Operating income | 19.6 | (32.2 | ) | 50.4 | (24.2 | ) | ||||||||||
Non Operating expenses | (48.6 | ) | - | (80.2 | ) | - | ||||||||||
Non Operating Profit/(Loss) | (39.8 | ) | (24.1 | ) | (40.4 | ) | (74.8 | ) | ||||||||
Income tax | 2.0 | 5.8 | 5.4 | 15.4 | ||||||||||||
Net Income/Loss | (41.8 | ) | (29.9 | ) | (45.8 | ) | (90.2 | ) |
Balance Sheet | ||||||||
COP$ Billion | As of Sep 30, 2010 | As of June 30 2010 | ||||||
Current Assets | 736.7 | 1,048.7 | ||||||
Long Term Assets | 2,639.0 | 2,319.2 | ||||||
Total Assets | 3,375.7 | 3,367.9 | ||||||
Current Liabilities | 933.2 | 884.8 | ||||||
Long Term Liabilities | 17.3 | 16.0 | ||||||
Total Liabilities | 950.5 | 900.8 | ||||||
Equity | 2,425.2 | 2,467.1 | ||||||
Total Liabilities and Shareholders´ Equity | 3,375.7 | 3,367.9 |
Transportation
· | Ocensa |
Transported volumes (MBOD) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep- 2009 | ||||||||||||
Cusiana-Porvenir | 53.3 | 60.2 | 53.3 | 61.3 | ||||||||||||
Porvenir-Vasconia | 463.7 | 295.1 | 451.0 | 278.5 | ||||||||||||
Vasconia-Coveñas | 269.2 | 196.4 | 272.2 | 190.6 | ||||||||||||
Coveñas-Export Port | 227.6 | 209.5 | 255.2 | 220.1 |
Income Statement | ||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Sales of services | 234.2 | 163.9 | 1,044.6 | 509.1 | ||||||||||||
Total Sales | 234.2 | 163.9 | 1,044.6 | 509.1 | ||||||||||||
Variable Costs | 171.8 | 141.7 | 485.3 | 425.5 | ||||||||||||
Fixed Costs | 1.1 | - | 1.1 | - | ||||||||||||
Cost of Sales | 172.9 | 141.7 | 486.4 | 425.5 | ||||||||||||
Gross profit | 61.3 | 22.2 | 558.2 | 83.6 | ||||||||||||
Operating Expenses | 12.4 | 8.9 | 33.7 | 35.8 | ||||||||||||
Operating Profit | 48.9 | 13.3 | 524.5 | 47.8 | ||||||||||||
Non Operating Profit/(Loss) | (74.8 | ) | (38.5 | ) | (135.8 | ) | (82.4 | ) | ||||||||
Income tax | (8.5 | ) | 4.6 | 96.1 | 13.7 | |||||||||||
Net Income | (17.4 | ) | (29.8 | ) | 292.6 | (48.3 | ) |
31
PRESS RELEASE | ![]() |
Balance Sheet | ||||||||
As of Sep. | As of June 30, | |||||||
COP$ Billion | 30, 2010 | 2010 | ||||||
Current Assets | 2,038.6 | 1,105.2 | ||||||
Long Term Assets | 1,066.9 | 1,094.9 | ||||||
Total Assets | 3,105.5 | 2,200.1 | ||||||
Current Liabilities | 251.1 | 186.6 | ||||||
Long Term Liabilities | 1,101.6 | 243.3 | ||||||
Total Liabilities | 1,352.7 | 429.9 | ||||||
Equity | 1,752.8 | 1,770.2 | ||||||
Total Liabilities and Shareholders´ Equity | 3,105.5 | 2,200.1 |
· | ODL |
3Q 2010 | 3Q 2009 | As of sep. 2010 | As of Sep. 2009 | |||||||||||||
Transported volumes (MBOD) | 146.6 | 0.0 | 134.9 | 0.0 |
Income Statement | ||||||||||||||||
(COP$ Billion) | 3Q 2010 | 3Q 2009 | As of sept. 2010 | As of sept. 2009 | ||||||||||||
Sales of services | 50.8 | - | 121.7 | - | ||||||||||||
Total Sales | 50.8 | - | 121.7 | - | ||||||||||||
Variable Costs | 7.6 | - | 18.8 | - | ||||||||||||
Fixed Costs | 37.6 | - | 71.2 | - | ||||||||||||
Cost of Sales | 45.2 | - | 90.0 | - | ||||||||||||
Gross profit | 5.6 | - | 31.7 | - | ||||||||||||
Operating Expenses | 2.0 | (0.3 | ) | 4.8 | - | |||||||||||
Operating Profit | 3.6 | 0.3 | 26.9 | - | ||||||||||||
Non Operating Profit/(Loss) | (9.0 | ) | 11.9 | (26.8 | ) | 11.9 | ||||||||||
Income tax | (1.0 | ) | - | (3.0 | ) | - | ||||||||||
Net Income | (6.4 | ) | 12.2 | (2.9 | ) | 11.9 |
Balance Sheet | ||||||||
COP$ Billion | As of Sep. 30, 2010 | As of Sep. 30, 2010 | ||||||
Current Assets | 489.4 | 542.9 | ||||||
Long Term Assets | 1,313.5 | 1,251.1 | ||||||
Total Assets | 1,802.9 | 1,794.0 | ||||||
Current Liabilities | 82.0 | 163.0 | ||||||
Long Term Liabilities | 1,303.8 | 1,206.3 | ||||||
Total Liabilities | 1,385.8 | 1,369.3 | ||||||
Equity | 417.1 | 424.7 | ||||||
Total Liabilities and Shareholders´ Equity | 1,802.9 | 1,794.0 |
Bio fuels
· | Ecodiesel |
Production (Barrels) | 3Q 2010 | 3Q 2009 | As of sep. 2010 | As of sep. 2009 | ||||||||||||
Biodiesel | 140,419.0 | - | 144,287.0 | - | ||||||||||||
Glycerine | 12,192.0 | - | 12,378.0 | - |
32
PRESS RELEASE | ![]() |
Income Statement | ||||
(COP$ Billion) | 3Q 2010 | |||
Domestic sales | 38.2 | |||
Total Sales | 38.2 | |||
Variable Costs | 34.0 | |||
Fixed Costs | 1.0 | |||
Cost of Sales | 35.0 | |||
Gross profit | 3.2 | |||
Operating Expenses | 0.7 | |||
Operating Profit | 2.5 | |||
Non Operating Profit/(Loss) | 0.6 | |||
Net Income | 0.6 |
Balance Sheet | ||||||||
COP$ Billion | As of Sep 30, 2010 | As of June 30, 2010 | ||||||
Current Assets | 27.0 | 15.5 | ||||||
Long Term Assets | 107.0 | 106.5 | ||||||
Total Assets | 134.0 | 122.0 | ||||||
Current Liabilities | 54.0 | 28.3 | ||||||
Long Term Liabilities | 59.0 | 73.1 | ||||||
Total Liabilities | 113.0 | 101.4 | ||||||
Equity | 21.0 | 20.6 | ||||||
Total Liabilities and Shareholders´ Equity | 134.0 | 122.0 |
33
Date: October 26, 2010
Ecopetrol S.A. | |||
By: | /s/ Adriana M. Echeverri | ||
Name: | Adriana M. Echeverri | ||
Title: | Chief Financial Officer |