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
February 2012
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
Ecopetrol S.A. Announces its Fourth Quarter and Full Year Results for 2011
| · | Financial and operating results for 2011 were the highest in our history |
| · | Our consolidated average production was 724.1 MBOED1, an increase of 17.6% compared to the consolidated average production of 2010. |
| · | Revenues, operating income, EBIDTA2 and net income for Ecopetrol S.A. in 2011 grew 53.5%, 82.2%, 70.4% and 85.1%, respectively, compared to 2010. |
| · | Ecopetrol S.A.’s net income in 2011 was COP$15,448.4 billion, equivalent to COP$379.97 per share. |
BOGOTA, Feb. 15, 2012 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) (the “Company”) announced today unaudited financial results (under auditing process), both consolidated and unconsolidated, for the fourth quarter and full year 2011, prepared and filed in Colombian Pesos (COP$) and in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública or RCP) of the Colombian General Accountancy Office in Colombian pesos (COP$).
Some figures in this report are presented in US dollars (USD) where indicated. Exhibits shown in the body of the report are rounded to one digit. Figures presented in COP$ billion are equivalent to COP$ one thousand million.
Ecopetrol S.A. financial results highlights
| Unconsolidated | ||||||||||||||||||||||||
| (COP$ Billion) | 4Q 2011 * | 4Q 2010 * | ∆ % | 2011 | 2010 | ∆ % | ||||||||||||||||||
| Total sales | 15,988.3 | 10,199.7 | 56.8 | % | 56,277.1 | 36,661.1 | 53.5 | % | ||||||||||||||||
| Operating profit | 7,019.5 | 4,451.5 | 57.7 | % | 24,061.0 | 13,208.6 | 82.2 | % | ||||||||||||||||
| Net Income | 4,432.7 | 2,742.1 | 61.7 | % | 15,448.4 | 8,346.0 | 85.1 | % | ||||||||||||||||
| Earnings per share (COP$) | 107.81 | 67.75 | 379.97 | 206.22 | ||||||||||||||||||||
| EBITDA | 7,463.9 | 4,664.2 | 60.0 | % | 27,879.6 | 16,358.4 | 70.4 | % | ||||||||||||||||
| EBITDA Margin | 47 | % | 46 | % | 50 | % | 45 | % | ||||||||||||||||
| Consolidated | ||||||||||||||||||||||||
| (COP$ Billion) | 4Q 2011 * | 4Q 2010 * | ∆ % | 2011 | 2010 | ∆ % | ||||||||||||||||||
| Total sales | 18,851.7 | 11,644.1 | 61.9 | % | 65,752.3 | 41,968.3 | 56.7 | % | ||||||||||||||||
| Operating profit | 7,398.0 | 3,951.7 | 87.2 | % | 25,691.0 | 12,878.8 | 99.5 | % | ||||||||||||||||
| Net Income | 4,437.8 | 2,701.8 | 64.3 | % | 15,452.4 | 8,146.4 | 89.7 | % | ||||||||||||||||
| Earnings per share (COP$) | ||||||||||||||||||||||||
| EBITDA | 7,952.0 | 4,632.2 | 71.7 | % | 30,021.1 | 16,699.5 | 79.8 | % | ||||||||||||||||
| EBITDA Margin | 42 | % | 40 | % | 46 | % | 40 | % | ||||||||||||||||
* Not audited, for illustration purposes only
1 Thousand barrels of oil equivalent per day
2 Earnings before interest, taxes, depreciation and amortization
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 1 |
In the opinion of Javier Gutiérrez, CEO of Ecopetrol:“The historically high results achieved in 2011, both operationally and financially, are clear evidence of the Company’s commitment to its shareholders in fulfilling the value promise of our strategic plan.
In production, we continued attaining record levels driven by the higher extraction of heavy crude, and the 1P reserves replacement ratio of 164% is outstanding given the increase in production.
In exploration, it’s worth to highlight the exploratory success rate in Colombia, mainly in the Caño Sur block in the Llanos Orientales, and internationally five discoveries by Savia in Peru as well as the discovery in one of the assets where we have interest on the U.S. Gulf Coast.
The transportation business kept growing as a consequence of the growing production of Ecopetrol as well as of the rest of the companies with operations in Colombia. In 2011 total capacity for crude transportation grew 13% and total capacity for product transportation increased by 27%.
The refining and petrochemicals segment had significant activity with the modernization projects at the Cartagena and Barrancabermeja refineries, which will increase production of fuels and raw material for the petrochemical industry, as well as improving the return of this business segment.
Our outstanding financial results were the product of the abovementioned factors together with cost reduction initiatives and the very favorable environment in the international prices of crude oil and refined products.
In the midst of a difficult local and international market environment, in 2011 we reached important milestones such as the successful placement of 1.6% of the capital of the company in the second round equity offering in Colombia, which enlarged our shareholder base to 521 thousand shareholders and the financial closure of one of the most important projects of the corporate group such as the expansion and modernization of Reficar for US$3.5 billion. On the other hand, Ecopetrol was included in the Dow Jones Sustainability Index - World, and the investment grade rating by the risk rating agencies S&P and Fitch, adding to the investment grade rating granted by Moody’s in 2009.
Additionally, during 2011 we also achieved significant progress in Corporate Responsibility as social investment grew 34% vs. 2010 reaching COP$214 billion, and also a considerable reduction in accidents of employees and contractors, reaching the minimum level ever.
2011 will be also be remembered due to the challenging situations produced by the severe weather conditions as a consequence of world´s climate change, affecting the operations of the company and with unfortunate consequences to the community, and the loss of human lives. We were deeply touched by these very unfortunate incidents.
In spite of the difficulties, we are on track and demonstrating our total commitment to fulfill our goals, which in turn will produce further welfare for our investors, for the community and for the rest of our stakeholders. Our production goal for year 2020 is 1.3 million “clean” barrels of crude equivalent per day, with no incidents, no accidents, in harmony with our stakeholders and with profitable growth. The difficulties strengthen us to face even bigger challenges in the future.”
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 2 |
| I. Financial and operating results of Ecopetrol S.A. | 4 | |
| a. | Availability of crude oil and products | 4 |
| b. | Sales Volume | 5 |
| c. | Crudes and Products’ Prices | 7 |
| d. | Financial results | 7 |
| e. | Cash flow | 10 |
| f. | Segment results | 10 |
| g. | Balance sheet | 12 |
| II. Business Aspects | 13 | |
| a. | Investment plan | 13 |
| b. | Exploration | 14 |
| c. | Production | 17 |
| d. | Refining and petrochemicals | 20 |
| e. | Transportation | 21 |
| f. | Biofuels | 23 |
| III. Organizational Consolidation, Social Corporate Responsibility and Corporate Governance | 24 | |
| a. | Organizational consolidation | 24 |
| b. | Corporate responsibility | 25 |
| c. | Corporate Governance | 26 |
| IV. Consolidated Financial results of Ecopetrol | 27 | |
| V. Presentation of results | 29 | |
| VI. Exhibits | 31 | |
| VII. Subsidiaries results | 37 | |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 3 |
I. Financial and operating results of Ecopetrol S.A.
| a. | Availability of crude oil and products |
The availability of Ecopetrol S.A.’s crude oil, products and volumes produced, purchased and imported is summarized in the following exhibit:
| Ecopetrol S.A. (unconsolidated) | ||||||||||||||||||||||||
| Gross oil and gas production | ||||||||||||||||||||||||
| (MBOED) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆(%) | ||||||||||||||||||
| Crude Oil | 581.9 | 511.1 | 13.9 | % | 569.8 | 481.9 | 18.2 | % | ||||||||||||||||
| Natural Gas | 103.1 | 97.9 | 5.3 | % | 100.3 | 97.6 | 2.8 | % | ||||||||||||||||
| Total | 685.0 | 609.0 | 12.5 | % | 670.1 | 579.5 | 15.6 | % | ||||||||||||||||
| (-) Royalties | ||||||||||||||||||||||||
| (MBOED) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 87.8 | 78.5 | 11.8 | % | 86.8 | 73.2 | 18.6 | % | ||||||||||||||||
| Natural Gas | 22.2 | 21.9 | 1.4 | % | 21.4 | 20.1 | 6.5 | % | ||||||||||||||||
| Total | 110.0 | 100.4 | 9.6 | % | 108.2 | 93.3 | 16.0 | % | ||||||||||||||||
| (=) Net oil and gas production | ||||||||||||||||||||||||
| (MBOED) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 494.1 | 432.6 | 14.2 | % | 483.0 | 408.7 | 18.2 | % | ||||||||||||||||
| Natural Gas | 80.9 | 76.0 | 6.4 | % | 78.9 | 77.4 | 1.9 | % | ||||||||||||||||
| Total | 575.0 | 508.6 | 13.1 | % | 561.9 | 486.1 | 15.6 | % | ||||||||||||||||
| Purchase volume (MBOED)* | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 201.6 | 169.0 | 19.3 | % | 189.1 | 173.6 | 8.9 | % | ||||||||||||||||
| Products | 9.1 | 4.1 | 122.0 | % | 7.3 | 4.9 | 49.0 | % | ||||||||||||||||
| Natural Gas | 40.4 | 36.7 | 10.1 | % | 38.3 | 37.6 | 1.9 | % | ||||||||||||||||
| Total Purchases | 251.1 | 209.8 | 19.7 | % | 234.7 | 216.1 | 8.6 | % | ||||||||||||||||
| Imports volume (MBD) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Products | 97.3 | 61.0 | 59.5 | % | 80.1 | 59.9 | 33.7 | % | ||||||||||||||||
| * Purchase volume includes royalties from Ecopetrol and other companies |
Net production of crude oil and gas, which increased by 15.6% year-over-year in 2011, was the main source of hydrocarbons for Ecopetrol S.A. (unconsolidated) operations. Net production for the fourth quarter of 2011 was 13.1% higher than in the fourth quarter of 2010.
During the fourth quarter of 2011, continuing the trend of the year, the higher volumes of crude purchased reflect the increase in the production of crude oil countrywide. During the fourth quarter of 2011 we acquired domestic crude oil diluent to transport heavy crude due to a decline in naphtha production at the Barrancabermeja refinery caused by a scheduled maintenance, and the sustained growth in heavy crude production.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 4 |
During the fourth quarter of 2011 we purchased more Payoa and Serafin gas for the Barrancabermeja refinery as well as more Cusiana gas. Royalty gas purchases also increased due to greater requirements of the export market.
The increase in volume of imported products was mainly caused by a greater amount of diluents required to blend with heavy crude, as well as an increase in diesel demand during the fourth quarter of 2011, and for the full year. During the fourth quarter of 2011 it was necessary to import gasoline because of the scheduled maintenance at the Barrancabermeja refinery’s cracking unit.
| b. | Sales Volume |
| Ecopetrol S.A. (unconsolidated) | ||||||||||||||||||||||||
| Sales volume | ||||||||||||||||||||||||
| Local Sales Volume (MBOED) | 4Q 2011 | 4Q 2010 | % | 2011 | 2010 | % | ||||||||||||||||||
| Crude Oil | 9.2 | 2.0 | 360.0 | % | 5.2 | 3.2 | 62.5 | % | ||||||||||||||||
| Natural Gas | 71.6 | 73.4 | (2.5 | %) | 70.9 | 90.4 | (21.6 | %) | ||||||||||||||||
| Gasoline | 64.7 | 67.2 | (3.7 | %) | 65.0 | 63.2 | 2.8 | % | ||||||||||||||||
| Medium Distillates | 114.6 | 103.5 | 10.7 | % | 109.7 | 102.0 | 7.5 | % | ||||||||||||||||
| LPG and propane | 16.3 | 17.1 | (4.7 | %) | 16.4 | 17.0 | (3.5 | %) | ||||||||||||||||
| Fuel oil | 0.4 | 0.6 | (33.3 | %) | 0.6 | 1.0 | (40.0 | %) | ||||||||||||||||
| Industrial and Petrochemical | 16.1 | 15.4 | 4.5 | % | 15.7 | 14.4 | 9.0 | % | ||||||||||||||||
| Total Local Sales | 292.9 | 279.2 | 4.9 | % | 283.5 | 291.2 | (2.6 | %) | ||||||||||||||||
| Export Sales Volume (MBOED) | 4Q 2011 | 4Q 2010 | % | 2011 | 2010 | % | ||||||||||||||||||
| Crude Oil | 454.2 | 363.6 | 24.9 | % | 413.8 | 311.6 | 32.8 | % | ||||||||||||||||
| Products | 50.8 | 55.1 | (7.8 | %) | 54.5 | 51.8 | 5.2 | % | ||||||||||||||||
| Natural Gas | 28.2 | 19.9 | 41.7 | % | 25.4 | 6.7 | 279.1 | % | ||||||||||||||||
| Total Export Sales | 533.2 | 438.6 | 21.6 | % | 493.7 | 370.1 | 33.4 | % | ||||||||||||||||
| Sales to Free Trade Zone (MBOED) | 4Q 2011 | 4Q 2010 | % | 2011 | 2010 | % | ||||||||||||||||||
| Crude Oil | 75.9 | 36.2 | 109.7 | % | 76.0 | 67.1 | 13.3 | % | ||||||||||||||||
| Products | 1.2 | 2.3 | (47.8 | %) | 1.8 | 2.3 | (21.7 | %) | ||||||||||||||||
| Natural Gas | 2.5 | 1.7 | 47.1 | % | 2.4 | 2.2 | 9.1 | % | ||||||||||||||||
| Total Sales to Free Trade Zone | 79.6 | 40.2 | 98.0 | % | 80.2 | 71.6 | 12.0 | % | ||||||||||||||||
| Total Sales Volume | 905.7 | 758.0 | 19.5 | % | 857.4 | 732.9 | 17.0 | % | ||||||||||||||||
The following is a summary of sales volume:
International market (58% of 2011 sales; 67% including sales to Free Trade Zone/Reficar):
The increase in volumes exported by Ecopetrol (unconsolidated) was primarily the result of:
·Crude oil: 1) higher production and transportation capacity of Castilla and Magdalena crude (a new crude oil the Company began exporting in the third quarter of 2011), 2) three shipments of two million barrels each of crude for export to the Far East.
·Natural gas: 1) higher Venezuelan demand and, 2) higher availability of product for exports given that the legal restrictions that were imposed in 2010 with the objective of ensuring domestic supply were lifted in 2011.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 5 |
·Products: 1) higher exports of fuel oil because of an increase in production at Barrancabermeja, 2) greater availability of an inland water way fleet to transport the product to Cartagena, 3) however, in the fourth quarter of 2011, export volumes fell because of lower throughput at the refinery while scheduled maintenance work was performed on a cracking unit.
The following is a summary of the main destinations of crude and product exports (not including natural gas) in 2010 and 2011.
| Export destinations: Crudes | ||
| Destination | 2011 | 2010 |
| U.S. Gulf Coast | 52.4% | 60.3% |
| Far East | 13.2% | 16.5% |
| Caribbean | 10.6% | 2.5% |
| US West Coast | 7.7% | 4.5% |
| South America | 5.4% | 5.7% |
| Europe | 5.2% | 1.0% |
| Central America | 1.6% | 6.1% |
| U.S. Atlantic Coast | 2.3% | 0.3% |
| Canada | 0.7% | 1.3% |
| Africa | 0.9% | 1.8% |
| 100.00% | 100.00% | |
| Export destinations: Products | ||
| Destination | 2011 | 2010 |
| Caribbean | 34.3% | 22.9% |
| U.S. Gulf Coast | 32.9% | 34.2% |
| Central America | 1.2% | 4.4% |
| U.S. Atlantic Coast | 19.4% | 10.4% |
| Far East | 9.2% | 19.9% |
| South America | 1.3% | 3.1% |
| Europe | 1.7% | 4.5% |
| Africa | 0.0% | 0.6% |
| 100.00% | 100.00% | |
In 2011, we diversified the destinations of our exports mainly crude exports to other non-traditional destinations, such as the Caribbean, the West Coast of the United States and Europe. Those increases offset the reduction in exports to the U.S. Gulf Coast and the Far East.
Local market (42% of sales in 2011, 33% excluding sales to Free Trade Zone/ Reficar S.A.):
The reduction in local sales volume in 2011 is mainly attributable to a reduction in sales volume of certain products partially offset by the increase in sales volume of others, as follows:
| 1) | Lower sales volume of the following products: |
| · | Natural gas: In 2011, natural gas sales came back to their historical levels given the normalization of demand, which had increased in 2010 to help meet the nation’s electric power needs, affected by the El Niño phenomenon. Furthermore, during the third quarter of 2011, sales to the Western part of the country were restricted by the damage to the Mariquita-Cali gas pipeline caused by the harsh rain season. |
| · | LPG and propane: Flooding caused by the severe rainy season caused highway and road closures, preventing these products from being transported as scheduled. |
| 2) | Higher sales volume of the following products: |
| · | Gasoline and medium distillates: Generated by increases in the automotive, coal and oil industries. Also, as airline frequencies increased, so did the sale of jet fuel. |
| · | Crude: Due to the substitution of fuel oil by crude and higher sales of Jazmin crude. |
| · | Industrial and petrochemicals: Growth was strongly based on a import product strategy (polyethylene, lubricant bases), which aimed to capture a larger share of the market for certain categories. |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 6 |
| c. | Crudes and Products’ Prices |
| Prices | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| WTI (average) (US$/Bl) | 94.0 | 85.2 | 10.3 | % | 95.1 | 79.5 | 19.6 | % | ||||||||||||||||
| Brent (average) (US$/Bl) | 109.0 | 87.3 | 24.9 | % | 110.9 | 80.3 | 38.1 | % | ||||||||||||||||
| Export crude oil basket (US$/Bl) | 102.7 | 77.7 | 32.2 | % | 99.1 | 72.0 | 37.6 | % | ||||||||||||||||
| Crudes sold to free trade zone* (US$/Bl) | 112.0 | 85.3 | 31.3 | % | 107.7 | 76.0 | 41.7 | % | ||||||||||||||||
| Export products basket (US$/Bl) | 96.6 | 73.3 | 31.8 | % | 96.1 | 70.0 | 37.3 | % | ||||||||||||||||
| Products sold to free trade zone* (US$/Bl) | 55.3 | - | N/A | 101.8 | - | N/A | ||||||||||||||||||
| Natural gas basket (US$/MMBTU) | 5.8 | 4.0 | 45.0 | % | 5.0 | 3.9 | 28.2 | % | ||||||||||||||||
| Gas sold to free trade zone* (US$/MMBTU) | 5.8 | 4.0 | 45.0 | % | 4.9 | 3.8 | 28.9 | % | ||||||||||||||||
| * Free trade zone = Reficar S.A | ||||||||||||||||||||||||
During 2011, there was a rise in the price of the export basket of crudes due to higher international prices and lower discounts on our heavy crudes.
Differentials were better mainly because: 1) indexation of a higher percentage of sales to markers such as Brent and Maya, whose price increased more than that of WTI, and 2) a reduction in the region’s heavy crude production, which benefited the negotiations of Colombian crudes.
There were no WTI-referenced exports during the fourth quarter of 2011.
| d. | Financial results |
| Unconsolidated Income Statement | ||||||||||||||||||||||||
| (COP$ Billion) | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 2011* | 2010* | ∆ (%) | ||||||||||||||||||
| Local Sales | 4,787.6 | 3,557.6 | 34.6 | % | 17,704.9 | 13,428.6 | 31.8 | % | ||||||||||||||||
| Export Sales | 9,266.9 | 5,672.6 | 63.4 | % | 31,475.7 | 18,164.3 | 73.3 | % | ||||||||||||||||
| Sales to free trade zone | 1,530.3 | 571.6 | 167.7 | % | 5,613.2 | 3,695.1 | 51.9 | % | ||||||||||||||||
| Sales of services | 403.5 | 397.9 | 1.4 | % | 1,483.3 | 1,373.1 | 8.0 | % | ||||||||||||||||
| Total Sales | 15,988.3 | 10,199.7 | 56.8 | % | 56,277.1 | 36,661.1 | 53.5 | % | ||||||||||||||||
| Variable Costs | 6,034.0 | 3,235.8 | 86.5 | % | 22,364.2 | 15,451.5 | 44.7 | % | ||||||||||||||||
| Fixed Costs | 2,327.6 | 1,818.6 | 28.0 | % | 6,892.9 | 5,787.1 | 19.1 | % | ||||||||||||||||
| Cost of Sales | 8,361.6 | 5,054.4 | 65.4 | % | 29,257.1 | 21,238.6 | 37.8 | % | ||||||||||||||||
| Gross profit | 7,626.7 | 5,145.3 | 48.2 | % | 27,020.0 | 15,422.5 | 75.2 | % | ||||||||||||||||
| Operating Expenses | 607.2 | 693.8 | (12.5 | %) | 2,959.0 | 2,213.9 | 33.7 | % | ||||||||||||||||
| Operating Profit | 7,019.5 | 4,451.5 | 57.7 | % | 24,061.0 | 13,208.6 | 82.2 | % | ||||||||||||||||
| Non Operating Loss | (536.2 | ) | (615.4 | ) | (12.9 | %) | (1,246.0 | ) | (1,782.7 | ) | (30.1 | %) | ||||||||||||
| Income tax | 2,050.6 | 1,094.0 | 87.4 | % | 7,366.6 | 3,079.9 | 139.2 | % | ||||||||||||||||
| Net Income | 4,432.7 | 2,742.1 | 61.7 | % | 15,448.4 | 8,346.0 | 85.1 | % | ||||||||||||||||
| Earnings per share (COP$) | 107.8 | 67.8 | 59.1 | % | 380.0 | 206.2 | 84.3 | % | ||||||||||||||||
| EBITDA | 7,463.9 | 4,664.2 | 60.0 | % | 27,879.6 | 16,358.4 | 70.4 | % | ||||||||||||||||
| EBITDA Margin | 47 | % | 46 | % | 50 | % | 45 | % | ||||||||||||||||
| * Not audited, for illustration purposes only | ||||||||||||||||||||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 7 |
Operating income during the fourth quarter of 2011 had a 56.8% increase compared to the same period of 2010. This was mainly due to: 1) an increase in international benchmark prices during the fourth quarter of 2011, which generated a rise of 32.2% in crude export prices and 31.8% in export product prices; 2) a 21.6% rise in export volumes (excluding sales to free Trade zone/Reficar); 3) 4.9% increase in national sales’ volume, primarily of medium distillates; and 4) the positive effect of a 3.0% devaluation of the Colombian peso versus the dollar.
In 2011, operating income rose by 53.5% compared with 2010 explained by: 1) a 37.6% increase in the price of the crude export basket and 2) a 33.4% increase in export volume.
Cost of sales in the fourth quarter of 2011 recorded a net increase of 65.4% compared to the same quarter of 2010. The variation can be attributed mainly to a 86.5% net grow invariable costs, as a result of: 1) a larger volume of crude oil purchased from the National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos or ANH) (1,569 KBLS), coupled with an increase of 24 US$/Bl in the average price; 2) an increase in volumes and benchmark prices of the following imports: solvent naphtha for transporting heavy crude (1,785 KBLS), gasoline (631 KBLS) and low sulfur diesel (848 KBLS), compared to the same period of 2010; 3) an increase in the cost of hydrocarbon transport services because of higher volumes transported by pipeline and tanker trucks; and 4) higher net value of investment amortizations in producing areas, due to an adjustment in the amortization factor carried out by recalculating new reserves at year-end, new capitalizations, and greater production in the fourth quarter of 2011. The increase in the amortization in the fourth quarter of 2011 is explained mainly by the reestimation of the amortization costs from the previous three quarters, once the amortization factor was updated based on the reserves balance as end of year.
Additionally there were higher capitalizations of petroleum investments.
The 28% increase infixed costs during in 2011 as compared to 2010 is mainly the result of greater operating activity, as well as: 1) an increase in depreciation in new capitalizations of COP$33.6 billion in the fourth quarter of 2011; 2) contracted services for COP$ 131 billion, mainly in associated operations derived from windfall profit clauses and, on the other hand, an increase in the execution in line with the higher activity of the last quarter of the year; and 3) major and routine maintenance services of COP$81.8 billion scheduled at different facilities, refining plants, and the transportation systems.
In 2011cost of sales increased by 37.8% (COP$8,018 billion) compared with 2010, mainly driven by a net increase of 44.7% (COP$6,913 billion) invariable costsprimarily because of: 1) hydrocarbon purchases from the ANH and third parties for higher volume at higher prices totaling COP$3,586 billion; 2) imported products totaling COP$2,346 billion, consisting mainly of naphtha solvent, gasoline and low sulfur diesel; 3) amortization and depletion of COP$251 billion, mainly the result of higher production and investment capitalization in producing areas and higher amortization factor; and 4) hydrocarbon transport services of COP$343 billion mainly from to the increase in tanker trucks usage and higher transported volumes.
Fixed costs for 2011 increased by 19.1% (COP$1.106 billion), compared to 2010, mainly because of: 1) depreciation of COP$274 billion from new capitalizations, and 2) contracted services of COP$373 billion associated with an increase in production and development of new fields.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 8 |
Operating expenses in the fourth quarter of 2011 were down by 12.5% compared to the same quarter of 2010. The variation was mainly the result of reassignments of exploration and project expenditures for the acquisition of rights at the Caño Sur Block that was capitalized as ongoing exploration project, offset by an increase in operating and commercialization expenditures of COP$238 billion mainly driven by higher pipeline transportation cost for crude exports. In 2011 operating costs increased COP$746 billion as compared to 2010, owing mainly to a COP$464 billion increase in operating and commercialization expenses, as well as a COP$181 billion increase in administration expenses.
These results generated anoperating margin for the fourth quarter of 2011 of 43.9%, compared to 43.6% for the same period in 2010. For 2011, the operating margin was 42.8%, versus 36.0% in 2010.
Thenon-operating results for the fourth quarter reported a loss of COP$536 billion, compared to a loss of COP$615 billion in the fourth quarter of 2010. The m ain drivers were provision expenditures of COP$308 billion, mainly due to association contracts and environmental contingencies; retirement expenditures of COP$281 billion driven by higher healthcare expenses and an revision of the actuarial calculation; offset by improved results for companiesrecognized through the equity method totaling COP$451 billion as well as a by the adjustment in the goodwill of OIG of COL$288 billion in 2010.
For the full year 2011, the cumulative non-operating loss decreased by COP$537 billion compared to 2010, mainly due to: 1) subsidiaries’ results of COP$1.913 billion; and 2) a foreign exchange gain of COP$280 offset by crude differential hedging losses in operations totaling COP$-790 billion, as well as an equity tax and surcharge of COP$-174 billion.
The increase in theincome tax provision in 2011 as compared to 2010 is attributable to: 1) a 69% increase in pre-tax income; and 2) elimination of the 30% tax break on investments in productive real fixed assets (Tax Reform, Law 1430 of 2010).
Increase in operating results generated mainly by better prices, higher production and cost saving initiatives, increased ournet income by 61.7% in the fourth quarter of 2011, compared to the same period in 2010, to a total of COP$4,432.7 billion, or COP$107.81 per share, compared to COP$67.75 per share in the prior year for the same period.Net margin was 27.7% in the fourth quarter of 2011, compared to 26.9% in the same period of 2010.Ebitda margin increased from 46% in the fourth quarter of 2010 to 47% in fourth quarter of 2011.
For 2011, net income was COP$ 15,448 billion, an increase of 85% compared to 2010.Net income per share was COP$379.97 per share, while for the previous year it was COP$206.22. Net margin was 27.5% compared to 22.8% for 2010.
Ebitda for 2011 was COP$27.880 billion, an increase of 70.4% compared to 2010, whileEbitda margin rose from 45% in 2010 to 50% in 2011. Earnings and Ebitda results mainly reflect the increase in operating margins.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 9 |
| e. | Cash flow |
| COP$ Billion* | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Initial cash | 8,360 | 6,798 | 5,479 | 4,840 | ||||||||||||
| Cash generated from operations (+) | 15,845 | 9,397 | 53,848 | 35,852 | ||||||||||||
| Cash used in operations (-) | (10,331 | ) | (7,666 | ) | (34,751 | ) | (24,806 | ) | ||||||||
| Capex (-) | (5,054 | ) | (3,428 | ) | (12,235 | ) | (7,592 | ) | ||||||||
| Acquisitions (-) | - | - | (769 | ) | (1,161 | ) | ||||||||||
| Dividend payments (-) | (1,974 | ) | (1,214 | ) | (5,899 | ) | (3,683 | ) | ||||||||
| Equity offering (+) | 1,960 | - | 2,195 | - | ||||||||||||
| New debt (+) | - | 1,295 | - | 1,295 | ||||||||||||
| Other inflows (+/-) | 357 | 171 | 1,178 | 1,139 | ||||||||||||
| Fx differences (+) | 76 | 253 | 195 | (279 | ) | |||||||||||
| Final Cash | 9,240 | 5,606 | 9,240 | 5,606 | ||||||||||||
*For purposes of recording, balances in dollars are converted to pesos monthly at the average exchange rate. The initial cash position for each quarter is calculated based on the average rate for the first month and the final cash position is calculated based on the average rate for the last month of the respective quarter.
As of December 31, 2011, Ecopetrol had COP$9.240 billion in cash and portfolio investments of relatively high liquidity (62% denominated in U.S. dollars). As of December 31, 2011, the cash net balance in dollars was US$2,322 million.
| f. | Segment results |
| Total year results by Segment | ||||||||||||||||||||||||||||||||
| COP$ Billion | E&P | Refining & Petrochem. | Transportation | Sales and Marketing | ||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
| Domestic Sales | 14,964.6 | 10,307.7 | 16,968.4 | 12,453.4 | 3,908.4 | 3,019.3 | 1,130.8 | 1,002.4 | ||||||||||||||||||||||||
| International Sales | 21,352.0 | 12,396.2 | 3,470.5 | 2,616.6 | 0.0 | 0.0 | 12,266.4 | 6,846.6 | ||||||||||||||||||||||||
| Total Sales | 36,316.7 | 22,703.9 | 20,438.9 | 15,070.0 | 3,908.4 | 3,019.3 | 13,397.2 | 7,849.0 | ||||||||||||||||||||||||
| Operating Revenues | 22,674.9 | 12,483.0 | 23.0 | (552.3 | ) | 663.3 | 768.9 | 699.6 | 509.1 | |||||||||||||||||||||||
| Operating Margin | 62.4 | % | 55.0 | % | 0.1 | % | (3,7 | %) | 17.0 | % | 25.5 | % | 5.2 | % | 6.5 | % | ||||||||||||||||
| Net Income | 15,469.2 | 8,362.5 | (601.1 | ) | (783.1 | ) | 354.5 | 542.3 | 225.7 | 224.4 | ||||||||||||||||||||||
| Net Margin | 42.6 | % | 36.8 | % | (2,9 | %) | (5,2 | %) | 9.1 | % | 18.0 | % | 1.7 | % | 2.9 | % | ||||||||||||||||
| EBITDA | 25,675.8 | 15,034.2 | 507.2 | (218.3 | ) | 990.7 | 1,033.9 | 705.8 | 508.6 | |||||||||||||||||||||||
| Ebitda Margin | 70.7 | % | 66.2 | % | 2.5 | % | (1,4 | %) | 25.3 | % | 34.2 | % | 5.3 | % | 6.5 | % | ||||||||||||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 10 |
| Quarterly Results by Segment | ||||||||||||||||||||||||||||||||
| COP$ Billion | ||||||||||||||||||||||||||||||||
| E&P | Refining & Petrochem. | Transportation | Sales and Marketing | |||||||||||||||||||||||||||||
| 4Q-11 | 4Q-10 | 4Q-11 | 4Q-10 | 4Q-11 | 4Q-10 | 4Q-11 | 4Q-10 | |||||||||||||||||||||||||
| Domestic Sales | 3,972.9 | 3,072.6 | 4,526.0 | 3,432.9 | 1,075.4 | 771.7 | 301.2 | 253.5 | ||||||||||||||||||||||||
| International Sales | 6,516.9 | 3,551.5 | 844.2 | 721.1 | - | - | 3,436.1 | 1,971.6 | ||||||||||||||||||||||||
| Total Sales | 10,489.7 | 6,624.1 | 5,370.3 | 4,154.0 | 1,075.4 | 771.7 | 3,737.3 | 2,225.1 | ||||||||||||||||||||||||
| Operating Revenues | 6,999.1 | 4,088.4 | (236.5 | ) | (172.1 | ) | 116.7 | 212.9 | 140.1 | 322.4 | ||||||||||||||||||||||
| Operating Margin | 66.7 | % | 61.7 | % | (4,4 | %) | (4,1 | %) | 10.9 | % | 27.6 | % | 3.7 | % | 14.5 | % | ||||||||||||||||
| Net Income | 4,817.9 | 2,692.5 | (395.2 | ) | (252.9 | ) | (56.5 | ) | 114.8 | 66.4 | 187.8 | |||||||||||||||||||||
| Net Margin | 45.9 | % | 40.6 | % | (7,4 | %) | (6,1 | %) | (5,3 | %) | 14.9 | % | 1.8 | % | 8.4 | % | ||||||||||||||||
| EBITDA | 7,211.2 | 4,164.1 | (98.1 | ) | (87.5 | ) | 208.5 | 265.1 | 142.2 | 322.4 | ||||||||||||||||||||||
| Ebitda Margin | 68.7 | % | 62.9 | % | (1,8 | %) | (2,1 | %) | 19.4 | % | 34.4 | % | 3.8 | % | 14.5 | % | ||||||||||||||||
Note: The report by segment is calculated based on transfer prices between business units, using as reference export parity prices. For comparative purposes, in 2010 an adjustment was made to account for a change in reference crudes.
Exploration and Production:
Earnings grew by 85.8% and EBITDA by 70.7% in 2011 compared to 2010 as a result of higher volumes produced and higher sale prices. In the fourth quarter of 2011, net income rose by 79.0% and EBITDA by 73.2% compared to the same quarter of 2010.
Refining and Petrochemicals:
The yearly results for this segment was a loss of COP$601 billion, 23.2% less than in 2010, due to better spreads of the Ecopetrol refined product basket versus crude oil between January and Octobergiven the market situation. EBITDA margin for the year was 2.5% compared to -1.4% in 2010. The fourth quarter of 2011 saw a net loss of COP$395 billion, higher than that of the same period in 2010. This was mainly attributable to the decrease in product margins, non-operating results (loss in Reficar) and the effect of higher retiree expenses for the adjustment in healthcare expenses mentioned before. EBITDA margin was -1.8%, an improvement over the fourth quarter of 2010, thanks to higher volumes of refined products sold with better differentials relative to crude.
Transportation:
In 2011, the segment had a net income of COP$354.5 billion and an EBITDA margin of 25.3%. During the fourth quarter, the segment posted a net loss of COP$56.5 billion. These results, lower than those of 2010, reflect the increase in labor costs, line maintenance, contracted services, and measures for addressing the effects of the harsh rainy season and damage to infrastructure.
Sales and Marketing:
Full year 2011 net income was COP$225.7 billion and an EBITDA margin of 5.3%. In the fourth quarter, the segment had a net income of COP$66.4 billion and EBITDA margin of 3.8%, less than in the same period of 2010. These results reflect higher markups on crude purchases from third parties, solvent imports for exporting heavy crude and shipment by tank truck in response to the flooding caused by the severe rainy season.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 11 |
| g. | Balance sheet |
| Unconsolidated Balance Sheet | ||||||||||||
| (COP$ Billion) | December 31, 2011 | December 31, 2010 | ∆ (%) | |||||||||
| Current Assets | 15,824.1 | 9,497.2 | 66.6 | % | ||||||||
| Long Term Assets | 69,427.1 | 55,628.8 | 24.8 | % | ||||||||
| Total Assets | 85,251.2 | 65,126.0 | 30.9 | % | ||||||||
| Current Liabilities | 13,818.3 | 9,288.6 | 48.8 | % | ||||||||
| Long Term Liabilities | 16,421.8 | 14,309.5 | 14.8 | % | ||||||||
| Total Liabilities | 30,240.1 | 23,598.1 | 28.1 | % | ||||||||
| Equity | 55,011.1 | 41,527.9 | 32.5 | % | ||||||||
| Total Liabilities and Shareholders´ Equity | 85,251.2 | 65,126.0 | 30.9 | % | ||||||||
| Debit Memorandum accounts | 122,266.3 | 116,788.8 | ||||||||||
| Credit Memorandum accounts | 103,461.1 | 92,600.8 | ||||||||||
In 2011 the main variations inassets came from: 1) an increase in cash and cash equivalents from higher treasury surpluses given the high hydrocarbon prices during the year; 2) an increase in permanent investments of COP$4,927 billion resulting from capitalizations of COP$ 38 billion in Ecopetrol del Perú, COP$132 billion in Ecopetrol America Inc., COP$ 1,193 billion in Andean Chemicals, COP $99 billion in ODL Finance, and COP$ 95 billion in Oleoducto Bicentenario, and the COP$1,132 billion investment in Equion Energy Ltd.; and 3) an increase in property, plant and equipment of COL$4,303 billion related to plant, pipeline and network capitalizations essentially for improvements on the Andean Multipurpose Pipeline (Sebastopol–Sutamarchan section).
On the other hand, the receivable for the fuel price differential amounted to COP$483 billion (does not include long term receivables for COP$ 77 billion). In December, payments for COP$1,416 billion were received from the Ministry of Mines and Energy corresponding to 1) the receivable of 2010 for COP$ 74 billion, and 2)differentials accrued between January and September of 2011 of COP$1,342 billion.
Liabilities represented 35.5% of total assets as of December 31, 2011. Accounts payable remained almost unchanged between 2011 and 2010 (COP$4.171 and COP$4.159 respectively). It’s worth to highlight the increase in the income tax provision of COP$3,972 billion was due to the higher net income in 2011.
Financial obligations accounted for 7.2% of total assets and 20.4% of total liabilities. Represented mainly by: 1) Financial loan acquired in 2009 with 11 local banks for COP$2,043 billion, 2) US$ 1.500 international dollar denominated notes, 3) COP$1 billion local bonds bullet with variable rate and semi-annual interests payments, 4) BOMT contract for the Gibraltar Gas Plant signed with the Gibraltar Gas Temporary Union with the objective of funding, designing, operating, purchasing equipment, supplying, constructing and maintaining the plant for 15 years. As of December 31, 2011, the balance amounted to COL$76 billion.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 12 |
Equity was COP$55,011 billion as of December 2011. The main drivers were earnings of COP$15.448 billion in 2011 and the COP$2,199 billion increase in surplus from the equity method given the appraisal in Oleoducto Central S.A. and Oleoducto Central de Colombia S.A.’s assets. In September, 644,185,868 shares were issued amounting to COP$2,383 billion. 219,054 shareholders were granted shares, increasing the capital paid by COP$161 billion and creating a capital surplus of COP$2.2 trillion. On the other hand, there was a mark to market loss of COP$571 billion on the investments in the Empresa de Energía de Bogotá –EEB- (COP$517 billion) and ISA (COP$172 billion).
II. Business Aspects
| a. | Investment plan |
The following is a summary of investments by Ecopetrol for the years 2010 and 2011:
Capex (US$ million)
| Business Segment | 2011 | 2010 | Δ (%) | |||||||||
| Exploration | 565.3 | 322.5 | 75 | % | ||||||||
| Production | 3,626.5 | 3,069.5 | 18 | % | ||||||||
| Refining and Petrochemicals | 358.1 | 616.7 | -42 | % | ||||||||
| Transportation | 1,055.6 | 814.3 | 30 | % | ||||||||
| Supply and marketing | 1.8 | 2.9 | -38 | % | ||||||||
| Subsidiaries | 1,034.0 | 468.5 | 121 | % | ||||||||
| Acquisitions | 450.3 | 614.7 | -27 | % | ||||||||
| Corporate | 122.1 | 121.9 | 0 | % | ||||||||
| Total | 7,213.7 | 6,031.0 | 20 | % | ||||||||
Investments in 2011 amounted to US$7,213.7 million, the highest amount invested in the history of the company which drove the outstanding operating results reached this year.
Of the total invested, 50% went to production (US$3,626.5 million), 15% to transportation (US$1,055.6 million), 14% to subsidiaries (US$1,034.0 million), 8% to exploration (US$565.3 million), 6% to acquisitions (US$450.3 million), 5% to refining and petrochemicals (US$358.1 million), 2% to the corporate segment (US$122.1 million) and 0.02% to supply and marketing (US$1.8 million).
Acquisitions include pending payments for: 1) Savia’s earn out 2) Hocol’s earn out, and 3) Equion’s acquisition. Subsidiaries include, among others: 1) equity contributions to exploration subsidiaries, 2) equity contributions to transportation subsidiaries, and 3) equity contributions to Bioenergy.
Capex for 2012:
The Board of Directors approved in November of 2011 the investment plan for the year 2012 and the update of the strategic plan for the Corporate Group for the 2012-2020 period. The investment plan approved for 2012 amounts to US$8,477 million of which US$7,452 is expected to be invested directly in Ecopetrol and US$1.025 million in other companies of the Corporate Group.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
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| 13 |
Strategic plan 2012-2020:
Regarding the strategic plan for the period 2012-2020, the company reaffirmed the following goals: 1) produce 1.3 million “clean” barrels by 2020; 2) increase average reserve life to 10 years, adding 6,200 million barrels by year 2020,;and, 3) expand the refining capacity from 300 thousand to 415 thousand processed barrels a day, among others. In order to accomplish the goals set forth in the 2012-2020 Strategic Plan, and estimated Capex amounts to US$80 billion. The Capex is expected to be financed 75% through internal cash generation, 16% with debt and the other 9% by the issuance of shares as part of the capitalization process.
| b. | Exploration |
Signing of contracts:
During 2011, Ecopetrol signed contracts for 11 exploratory blocks with the ANH awarded in the bidding round of 2010: 1) contracts LLA 37, LLA 38, LLA 52, LLA 6, LLA 8, SAMICHAY A, SAMICHAY B, TUM OFF 3 and UPAR, in which Ecopetrol’s stake is 100%; and 2) contracts SSJS-1 ECP and VMM 32, in which Ecopetrol’s stake is 70% and 51%, respectively. These blocks are primarily located in the Llanos Orientales region, and total exploratory area is approximately 1.4 million hectares.
Exploration in Colombia:
In 2011, Ecopetrol S.A. drilled a total of 40 wells, 21 A3/A2 exploratory wells, 10 appraisal wells (A1) and 9 stratigraphic wells. Evidence of hydrocarbons was discovered in 9 of the exploratory wells (Mito-1, Nunda-1, CSE-8 ST1, Rumbero-1, Pinocho-1, Fauno-1, Trasgo-1, Azabache-1 and Opalo-1), and in 5 of the stratigraphic wells (Jaspe-3, Avila-1, El Valle-1, Akacias ES-2 and CSE-6).
| Drilling in Colombia (A2/A3 and Stratigraphic) - 2011 | ||||
| Ecopetrol S.A.* | ||||
| Type of well | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| A-3/A-2 | 21 | 9 | 0 | 12 |
| Stratigraphic | 9 | 5 | 0 | 4 |
| * Does not include appraisal wells | ||||
Hocol Petroleum Limited (“Hocol”) drilled 7 A3 wells and 13 stratigraphic wells in 2011. In two of the A3 wells drilled, evidence of hydrocarbons was found. Three of them are under evaluation (Granate-1, Merlín-1 and Merlín-2) and two were dry. Regarding the stratigraphic wells, 11 presented evidence of hycrocarbons while 2 were dry.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 14 |
| Drilling in Colombia (A2/A3 and Stratigraphic) - 2011 | ||||
| Hocol S.A. | ||||
| Type of well | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| A-3/A-2 | 7 | 2 | 3 | 2 |
| Stratigraphic | 13 | 11 | 0 | 2 |
The following is a summary of successful wells:
| Exploratory wells | ||||
| Quarter | Operator | Basin | Block | Well |
| 1 | Ecopetrol S.A. | Mid Magdalena Valley | Playón | RUMBERO-1 |
| 1 | Ecopetrol S.A. | Upper Magdalena Valley | Cuisinde | NUNDA-1 |
| 2 | Ecopetrol S.A. | Llanos | Caño Sur | MITO-1 |
| 2 | Ecopetrol S.A. | Llanos | Caño Sur | PINOCHO-1 |
| 2 | Ecopetrol S.A. | Llanos | Caño Sur | FAUNO-1 |
| 3 | Ecopetrol S.A. | Llanos | Caño Sur | CSE-8 ST1 |
| 3 | Ecopetrol S.A. | Llanos | Caño Sur | TRASGO |
| 4 | Metapetroleum | Llanos | Quifa | AZABACHE-1 |
| 4 | Metapetroleum | Llanos | Quifa | OPALO-1 |
| 4 | Hocol | Lower Magdalena Valley | Saman | BONGA-1 |
| 4 | Hocol | Llanos | Guarrojo | GUARROJO ESTE-1 |
| Stratigraphic wells | ||||
| Quarter | Operator | Basin | Block | Well |
| 1 | Hocol | Llanos | CPO-17 | CPO-17 EST-6 |
| 1 | Metapetroleum | Llanos | Quifa | JASPE-3 |
| 2 | Ecopetrol S.A. | Llanos | Caño Sur | EL VALLE-1 |
| 2 | Hocol | Llanos | CPO-17 | CPO-17 EST-5A |
| 3 | Ecopetrol S.A. | Llanos | Caño Sur | AVILA-1 |
| 3 | Hocol | Llanos | CPO-17 | CPO-17 EST-1 |
| 3 | Hocol | Llanos | CPO-17 | CPO-17 EST-3 |
| 3 | Hocol | Llanos | CPO-17 | CPO-17 EST-7 |
| 4 | Ecopetrol S.A. | Llanos | CPO-9 | AKACIAS ES-2 |
| 4 | Ecopetrol S.A. | Llanos | Caño Sur | CSE-6 |
| 4 | Hocol | Llanos | CPO-17 | CPO-17 EST-2 |
| 4 | Hocol | Llanos | CPO-17 | CPO-17 EST-8 |
| 4 | Hocol | Llanos | CPO-16 | CPO-16 EST-1 |
| 4 | Hocol | Llanos | CPO-16 | CPO-16 EST-5 |
| 4 | Hocol | Llanos | CPO-16 | CPO-16 EST-3 |
| 4 | Hocol | Llanos | CPO-16 | CPO-16 EST-3A |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 15 |
During the fourth quarter, seven A3 wells were drilled (Embrujo -1ST, Kantaka-1, Opalo-1, Rubi-1, Trueno-1, Azabache-1 and Uturunco), of which Opalo-1 and Azabache-1, located on Quifa block in Meta province, showed evidence of hydrocarbons.
Ecopetrol also drilled 3 stratigraphic wells: two in Caño Sur block and the remainder on CPO-9 in the Llanos Orientales. In two of them there was evidence of hydrocarbons.
Regarding unconventional hydrocarbons, at the end of fourth quarter of 2011, the Luna well was being drilled in the Mid-Magdalena Valley. Its results are under evaluation.
| Drilling in Colombia (A2/A3 and Stratigraphic) - 4Q 2011 * | ||||
| Ecopetrol S.A. | ||||
| Type of well | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| A3/A2 | 7 | 2 | 0 | 5 |
| Stratigraphic | 3 | 2 | 0 | 1 |
| * Does not include unconventional hydrocarbons' exploration | ||||
During the fourth quarter, Hocol drilled four A3 and seven stratigraphic wells. Presence of hydrocarbons was found in two of the exploratory and in seven of the stratigraphic wells.
| Drilling in Colombia (A2/A3 and Stratigraphic) - 4Q 2011 | ||||
| Hocol | ||||
| Type of well | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| A3/A2 | 4 | 2 | 2 | 0 |
| Stratigraphic | 7 | 6 | 0 | 1 |
With the abovementioned results, the success rate for 2011 for Ecopetrol and Hocol was 44% not including wells in evaluation. The wells were located mainly in the Caño Sur block in the Llanos Orientales basin.
International Exploration:
Exploration goal of Ecopetrol for 2011, not including Savia or Hocol was 37 exploratory (A1, A2 and A3) and stratigraphic wells: 30 in Colombia and 7 international. 40 wells were drilled in Colombia and 4 internationally.
During the year, eleven exploratory wells (A3/A2) were drilled: seven on the Peruvian coast by Savia Perú, two along the U.S. Gulf Coast and two in Brazil.
Evidence of hydrocarbons was identified in the well Logan-1 on the U.S. Gulf Coast and in five wells in offshore Peru operated by Savia.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 16 |
| International Drilling A3/A2 wells | ||||
| 2011 | ||||
| Location | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| US Gulf Coast / ECP America | 2 | 1 | 0 | 1 |
| Peru / Savia | 7 | 5 | 1 | 1 |
| Brazil / Ecopetrol do Brasil | 2 | 0 | 0 | 2 |
During the fourth quarter of 2011, the brazilian wellss Agua Viva-1 and Ilha Do Mel (on blocks BMS-73 and BMS-74 respectively) were drilled (Ecopetrol Brasil has in interest),, both of them plugged and abandoned. Additionally, an evaluation of drilling results of the well Logan-1, drilled in the third quarter of the year and operated by Statoil on the U.S. Gulf Coast, was completed, proving evidence of hydrocarbons.
During the fourth quarter of 2011, Savia Perú drilled the well Pozo Punta Amarillo (PA1-1X), which is currently being tested. By the close of the fourth quarter of 2011, the appraisal well Itauna-2 was still being drilled in Brazil.
| International Drilling A3/A2 wells | ||||
| 4Q 2011 | ||||
| Location | Number of wells | Hydrocarbon Presence | In evaluation | Dry |
| Peru / Savia | 1 | 0 | 1 | 0 |
| Brazil / Ecopetrol do Brasil | 2 | 0 | 0 | 2 |
| c. | Production |
Production Corporate Group:
Our consolidated gross production was 724.1 MBOED in 2011, up by 17.6% compared to 2010. For the fourth quarter of 2011 our consolidated production was 741.7 MBOED, an increase of 13.9% with respect to the fourth quarter of 2010. During the fourth quarter of 2011 restrictions were caused by: 1) the harsh rain season, 2) operating difficulties and, 3) limitations in transportation availability.
In 2011, Ecopetrol S.A.’s gross production accounted for 92.5% of the group’s production, Hocol’s for 4.3%, Equión’s for 2.0%, Savia’s for 1.0% and Ecopetrol América’s for 0.3%.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 17 |
| Corporate Group´s Production | ||||||||||||||||||||||||
| Ecopetrol S.A. gross oil and gas production (mboed) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 581.9 | 511.1 | 13.9 | % | 569.8 | 481.9 | 18.2 | % | ||||||||||||||||
| Natural Gas | 103.1 | 100.3 | 2.8 | % | 100.3 | 97.6 | 2.8 | % | ||||||||||||||||
| Total | 685.0 | 611.4 | 12.0 | % | 670.1 | 579.5 | 15.6 | % | ||||||||||||||||
| Hocol (mboed) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 29.9 | 29.3 | 2.0 | % | 30.3 | 25.9 | 17.0 | % | ||||||||||||||||
| Natural Gas | 0.6 | 1.0 | -40.0 | % | 0.5 | 1.1 | -54.5 | % | ||||||||||||||||
| Total | 30.5 | 30.3 | 0.7 | % | 30.8 | 27.0 | 14.1 | % | ||||||||||||||||
| Savia (mboed)* | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 6.5 | 6.4 | 1.6 | % | 6.0 | 6.4 | -6.3 | % | ||||||||||||||||
| Natural Gas | 0.7 | 1.2 | -41.7 | % | 1.0 | 1.0 | 0.0 | % | ||||||||||||||||
| Total | 7.2 | 7.6 | -5.3 | % | 7.0 | 7.4 | -5.4 | % | ||||||||||||||||
| Equion (mboed) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 10.3 | N/A | 8.2 | N/A | ||||||||||||||||||||
| Natural Gas | 6.7 | N/A | 6.1 | N/A | ||||||||||||||||||||
| Total | 17.0 | - | N/A | 14.3 | - | N/A | ||||||||||||||||||
| Ecopetrol America-K2 (mboed) | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 1.8 | 1.8 | 0.0 | % | 1.7 | 1.7 | 0.0 | % | ||||||||||||||||
| Natural Gas | 0.2 | 0.2 | 0.0 | % | 0.2 | 0.2 | 0.0 | % | ||||||||||||||||
| Total | 2.0 | 2.0 | 0.0 | % | 1.9 | 1.9 | 0.0 | % | ||||||||||||||||
| Corporate Group | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Crude Oil | 630.4 | 548.6 | 14.9 | % | 616.0 | 515.9 | 19.4 | % | ||||||||||||||||
| Natural Gas | 111.3 | 102.7 | 8.4 | % | 108.1 | 99.9 | 8.2 | % | ||||||||||||||||
| Total Group's production | 741.7 | 651.3 | 13.9 | % | 724.1 | 615.8 | 17.6 | % | ||||||||||||||||
| * Production for the fourth quarter and full year 2010 was revised to in order to show production on field instead of sold volumes | ||||||
Production of Ecopetrol S.A.:
Ecopetrol S.A.’s gross crude and gas production equivalent in 2011 was 670.1 MBOED, an increase of 15.6% compared to 2010. Ecopetrol S.A.’s gross crude and gas production equivalent for the fourth quarter of 2011 rose 12.0%, compared to the same period of 2010 from 611.4 MBOED in the fourth quarter of 2010 to 685.0 MBOED in the fourth quarter of2011.
| Production per type of crude* | ||||||||||||||||||||||||
| 4Q 2011 | 4Q 2010 | Δ (%) | 2011 | 2010 | Δ (%) | |||||||||||||||||||
| Light crudes | 63.3 | 53.3 | 18.8 | % | 60.9 | 48.0 | 26.9 | % | ||||||||||||||||
| Medium crudes | 227.3 | 222.4 | 2.2 | % | 230.6 | 223.6 | 3.1 | % | ||||||||||||||||
| Heavy crudes | 291.3 | 235.4 | 23.7 | % | 278.3 | 210.4 | 32.3 | % | ||||||||||||||||
| Total | 581.9 | 511.1 | 13.9 | % | 569.8 | 482.0 | 18.2 | % | ||||||||||||||||
| *Does not include subsidiary companies | ||||||||||||||||||||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 18 |
In 2011, heavy crude production represented 48.8% of crude oil production compared to 43.7% the previous year. During the fourth quarter of 2011, heavy crude production represented 50.1%, compared to 46.1% in the same period of the previous year. For this type of hydrocarbon the most important assets in the direct operation were Castilla and Chichimene, which reached an average annual production of 109.8 MBOD and 32.3 MBOD, respectively. In partnership operations, the assets with greatest participation were Rubiales and Quifa (in partnership with Metapetroleum) , which contributed 113.2 MBOD of gross production for Ecopetrol, and Nare (in partnership with Mansarovar) whose gross production for Ecopetrol was 16.1 MBOD.
The following projects are also worth mentioning: 1) launch of a pilot of the STAR technology in the Quifa field; 2) start of an air injection project in the Chichimene field; 3) and expansion of production and heavy crude treatment facilities in the Llanos Orientales region.
Regarding light crude, during the fourth quarter of 2011 water injection began in the Bonanza field, bringing the total number of fields with secondary recovery to four in the Mid-Magdalena region. In the same area, four pilot water injections were launched in 2011.
Gas sales during 2011 grew by 2.9%, reaching a yearly average production of 100.4 MBOED. During the fourth quarter of 2011, the increase was 5.3% compared to the same period in 2010, led mainly by an average yearly contribution by the Guajira field of 63.7 MBOED, and by the Cusiana field of 24.1 MBOED. During the fourth quarter of 2011, volumes were incorporated with the opening of the Gilbraltar gas plant (1.3 MBOED).
The following is a summary of production development wells per region:
| Development wells for the year | ||||||||||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||||||||||
| Region | Direct | In partnership | Total | Direct | In partnership | Total | ∆ (%) | |||||||||||||||||||||
| Magdalena | 120 | 366 | 486 | 58 | 322 | 380 | 27.9 | % | ||||||||||||||||||||
| Central | 171 | 202 | 373 | 121 | 200 | 321 | 16.2 | % | ||||||||||||||||||||
| North east | 4 | 7 | 11 | - | 5 | 5 | 120.0 | % | ||||||||||||||||||||
| Catatumbo Orinoquia | 14 | 44 | 58 | - | 23 | 23 | 152.2 | % | ||||||||||||||||||||
| South | 4 | 22 | 26 | 12 | 40 | 52 | -50.0 | % | ||||||||||||||||||||
| Minor fields | - | 3 | 3 | - | - | - | N/A | |||||||||||||||||||||
| Total | 313 | 644 | 957 | 191 | 590 | 781 | 22.5 | % | ||||||||||||||||||||
| Development wells 4Q | ||||||||||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||||||||||
| Region | Direct | In partnership | Total | Direct | In partnership | Total | ∆ (%) | |||||||||||||||||||||
| Magdalena | 28 | 83 | 111 | 19 | 109 | 128 | -13.3 | % | ||||||||||||||||||||
| Central | 36 | 38 | 74 | 47 | 59 | 106 | -30.2 | % | ||||||||||||||||||||
| Nororiental | 1 | 1 | 2 | - | 1 | 1 | 100.0 | % | ||||||||||||||||||||
| Catatumbo Orinoquia | 4 | 12 | 16 | - | 12 | 12 | 33.3 | % | ||||||||||||||||||||
| South | 3 | 7 | 10 | 3 | 9 | 12 | -16.7 | % | ||||||||||||||||||||
| Minor fields | - | - | - | - | - | - | N/A | |||||||||||||||||||||
| Total | 72 | 141 | 213 | 69 | 190 | 259 | -17.8 | % | ||||||||||||||||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 19 |
Lifting Costs of Ecopetrol S.A.:
The lifting cost per barrel produced by Ecopetrol S.A. was US$10.28 (based on methodology approved by theU.S. Securities and Exchange Commission,which does not include royalties in the calculation of per-barrel cost) for the year 2011, an increase of US$0.80 per barrel compared to 2010, as the net result of:
| · | Higher costs of associated operation (related with windfall profit clauses, new determinations of commercial viability and increase in water management volumes, among others), offset by the lower costs of the direct operation due to optimization initiatives. (+US$2,14 per barrel). |
| · | Revaluation of the peso versus the dollar (+US$0.28 per barrel). |
| · | Higher volume produced (- US$1.62 per barrel). |
| d. | Refining and petrochemicals |
Barrancabermeja refinery:
| Refinery runs* | ||||||||||||||||||||||||
| Mbod | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Barrancabermeja | 217.6 | 234.6 | (7.2 | %) | 226.0 | 225.3 | 0.3 | % | ||||||||||||||||
* Includes volumes used in the refinery, not total volumes received.
Throughput at the refinery increased 0.3% in 2011 compared to 2010, while the utilization factor dropped from 78.2% to 77.0%, due to a scheduled maintenance on a cracking unit during the fourth quarter. When comparing the fourth quarter of 2011 with the same period of the prior year there is a reduction in throughput of 7.2%, which allowed for adequate management of gasoil inventories during the UOP II cracking plant stoppage.
Regarding the modernization project: 1) Ecopetrol’s Board of Directors approved the project; 2) the pillars of the Great Barrancabermeja Social Agreement were drawn up to assure the adequate environment conditions during the implementation of the project; 3) the selection process for preparation of the site was opened; 4) the main equipment purchases were awarded with long-term deliveries; and 5) the securing of environmental permits reached 85% completion.
The master plan for industrial services was 41% completed by the end of 2011.
Costs and margins of the Barrancabermeja refinery:
Operating cash cost for the Barrancabermeja refinery in 2011 was US$5.89 per barrel, US$0.22 more per barrel than in 2010 (US$5.67 per barrel) as a net result of:
| · | Lower cost due to decreased throughput (- US$0.02 per barrel). |
| · | Higher costs due to: 1) maintenance on scheduled stoppages, and 2) higher cost of catalysts (+ US$0.08 per barrel) |
| · | Higher cost due to revaluation of the peso versus the U.S. dollar (+US$0.16 per barrel) |
The gross refining margin for 2011 was US$11.22 per barrel, a 40.1% improvement over the US$8.01 gross refining margin reached in 2010. This growth is due to better spreads between crude and products.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 20 |
Reficar S.A. (Cartagena Refinery):
| Refinery runs* | ||||||||||||||||||||||||
| Mbod | 4Q 2011 | 4Q 2010 | ∆ (%) | 2011 | 2010 | ∆ (%) | ||||||||||||||||||
| Cartagena | 76.4 | 36.2 | 111.0 | % | 76.8 | 67.0 | 14.6 | % | ||||||||||||||||
* Includes volumes used in the refinery, not total volumes received.
The refinery’s crude throughput rose 14.6% in 2011 compared to the previous year, while the utilization factor increased from 77.4% in 2010 to 84.2% in 2011 because of increased runs at the visbreaking unit in 2011 that resulted from a maintenance shutdown. Throughput increased 111% in the fourth quarter of 2011 compared to the same period of the prior year, while the utilization factor increased from 57.1% to 84.0% due to major maintenance at the crude unit in the fourth quarter of 2010.
The Expansion and Modernization Project at the refinery was 53.7% complete at the end of 2011. On December 30, 2011, a US$3,500 million financing for the project was committed with export credit agencies (US Eximbank, SACE and EKN) and a group of commercial banks. Ecopetrol granted a guarantee for the payment on any potential defaults of Reficar S.A.
| e. | Transportation |
Transported volumes:
In the fourth quarter of 2011, an average of 1,231.8 MBOD was transported, (305.7 MBOD of refined products and 926.1 MBOD of crude). There was an increase of 178.5 MBOD compared to the average daily volume transported in the same quarter of 2010 (1,053.3 MBOD) led mainly by the increase in crude transport. The higher volume transported during the fourth quarter of 2011, compared to the same period of 2010, was mainly caused by the following factors:
Crude oil:
Increase in transport capacity of the following facilities:
| · | Cusiana-El Porvenir-Coveñas (Ocensa) system. |
| · | Vasconia–Coveñas ODC (210 MBOD in fourth quarter 2011, compared to 186 MBOD in the same period of 2010) |
| · | Rubiales–Monterrey (ODL) to 340 MBOD (340 MBOD in fourth quarter 2011, compared to 160 MDOD in fourth quarter 2010) |
| · | Increased use of the Vasconia unloading facility in order to maximize ODC and Northern Zone corridor use |
| · | Use of the Caño Limón–Coveñas system in the Ayacucho–Coveñas sector with heavy crude during the repair of the systems. |
Refined products:
| · | Optimization of operations by injection of drag reducer agents in the 12” and 16” Galan Salgar lines. |
| · | Increased transport capacity of the Pozos Colorados–Galán to 90 MBOD multipurpose pipeline, in order to meet motor gasoline and solvent requirements in Colombia. |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 21 |
In 2011, an average of 1,204.5 MBOD were transported, of which 288.9 MBOD were to refined products and 915.6 MBOD to crude. There was an increase of 168.6 MBOD (16%) compared to the average daily volume transported in 2010 (1,035.8 MBOD). Higher volumes transported corresponded mainly to an increase in crude transports due to heavy crude development in the Llanos region, specifically the fields of Chichimene, Castilla, Rubiales, Quifa and Piriri.
Regarding capacity increases, 245 MBOD were added in 2011 to the main systems, 345 MBOD to afferent lines, 53 MBOD to multi-purpose lines, 65 MBOD to unloading facilities, 300 MBOD to export facilities and 570 MBO to storage, driven by the implementation of the following projects:
Oil pipelines:
Increase in crude evacuation capacity of the following systems:
| · | Caño Limon-Coveñas and Ayacucho–Coveñas to 240 MBOD |
| · | Araguaney-Monterrey–Porvenir by 55 MBOD |
| · | Castilla–Apiay by 105 MBOD |
| · | Apiay–Porvenir by 50 MBOD |
| · | Vasconia–GRB–Galán by 25 MBOD |
| · | 18” Galán–Ayacucho Line to 72 MBOD |
Multipurpose pipelines:
| · | The Andean Multipurpose Pipeline began operations with solvent transport capacity from Sutamarchán to Apiay of 53 MBOD |
Export Infrastructure:
| · | Increase in export capacity to 770 MBOD with the operation of the single buoys TLU1 and TLU3, and optimization of the pumping system at the Coveñas Terminal. |
| · | Increase in capacity to accommodate at the Cartagena Maritime Dock ships of up to 12,000 dead weight tons (DWT) or the equivalent of approximately 120 Kbls of LPG/Butane. |
Storage facilities:
| · | Construction of two storage tanks at Banadía with 50 KB each |
| · | Increase of 170 KB to 490 KB with construction of a tank at Altos del Porvenir |
| · | Construction of two storage tanks at Ayacucho for refined products |
| · | Refurbishment of approximately 600 KB equivalent of storage |
Unloading facilities:
| · | Increase in capacity of the Araguaney unloading facility by 5 MBOD |
| · | Operation of the Ayacucho (20 MBOD) and Banadía (40 MBOD) unloading facilities at full capacity. |
Transportation costs:
The Barrel/Kilometer Transported cost for 2011 was COP$8.03/BKM, COP$0.38/BKM below that of 2010 (COP$8.41/BKM), due to:
| · | Lower costs associated with greater volumes transported (an increase of 12%) compared to the same period of 2010 (COP$-1.82/BKM). |
| · | Higher costs as the net result of: 1) higher raw processing materials, fuel and energy costs associated with the logistics of managing larger volumes, 2) higher maintenance costs for meeting additional geotechnical requirements associated with heavy rain conditions, 3) operating contracts associated with higher transported volumes, 4) assumption of the total cost of operating the Caño Limón–Coveñas line and higher ecurity costs (COP$+1.44/BKM). |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 22 |
Bicentenario Pipeline:
As of December 31, 2011, construction of phase 0 (Banadía unloading facility) had been completed and phase I of the construction Project (Araguaney-Banadía pipeline) was 43.5% complete.
Incidents:
During fourth quarter 2011, transport infrastructure was affected by the harsh weather conditions in Colombia: On December 11 and 23, respectively, both the Caño Limon–Coveñas oil pipeline and Salgar-Cartago multipurpose pipeline caved in under the weight of the rain-drenched ground and mudslides.
These incidents caused spills that affected nearby water supplies, homes and communities with loss of human lives in the municipality of Dosquebradas (Risaralda Province) in the case of the Salgar-Cartago multipurpose pipeline.
Given the requirement to maintain technical, human an economic efforts in order to try to anticipate potential incidents that may impact transportation infrastructure and the regions where it is located, a high level initiative was structured and two existing ones will be enhanced: The Dosquebradas project, the Integrity Program and the Contingency Program.
The Dosquebradas Project aims to achieve physical stabilization and reestablishment of the social conditions of the people affected in the Dosquebradas municipality after the abovementioned incident. The Integrity Program will strengthen the existing Integrity Model to turn it into an international benchmark. Finally, the program to strengthen the contingency attention system seeks to minimize potential consequences for the population, community and environment in the event of loss of containment in infrastructure, according to the responsibility model that corresponds to communities and different authorities.
| f. | Biofuels |
Ecodiesel Colombia S.A.:
During 2011, 99.9 thousand tons of biofuel were sold and 25.2 thousand tons during the fourth quarter, 15% more than in the fourth quarter of 2010. 79% of the production was sold to the Barrancabermeja refinery for its 2% blending process with diesel, and the remaining 21% was sold to wholesalers, positioning Ecodiesel as a relevant player in the value chain of national bio fuels. The Company’s income for 2011 was COP$291 billion and COP$71.7 billion in the fourth quarter, 27% higher than in the same period of the previous year.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 23 |
Bioenergy S.A.:
The Bioenergy Project was 18.5% complete at the end of 2011 (14.5% industrial component and 29.8% agricultural component). During 2011, 1,407 hectares of sugar cane were sown.
III. Organizational Consolidation, Social Corporate Responsibility and Corporate Governance
| a. | Organizational consolidation |
Health, Safety and Environmental Performance (HSE):
In 2011, the Lost Time Accident Frequency Index was 1.02 accidents per million man hours, the historical minimum and an improvement over the 1.56 accidents per million man hours of the previous year. In the last quarter, there were 0.94 accidents per man hours worked. In 2011, 147 accidents were reported, 34% lower than in 2010. 41 environmental accidents were reported during the year due to operational causes, the same number than in 2010.
Phase 3 of the project “Atmospheric Emissions Management System” and phase 2 of the project “Water and Waste Management System” were endorsed, leveraging the compliance of the environmental strategy regarding quality of air and eco-efficiency.
As part of the Biodiversity component of our environmental strategy, The Second National Call for Biodiversity was launched with a COP$7,000 million investment and a total of 12 selected initiatives, 8 presented by foundations and 4 by educational institutions that seek the preservation, restoration, management and sustainable use of the Colombian wetlands’ biodiversity.
Science and technology:
In 2011, by means of the application of technological solutions, business-certified economic benefits were generated in the amount of US$445 million in initiatives such as an extension of the foothill exploration concept to other areas of Colombia and Peru, development of methodologies for petro-physical characterization with information gleaned from horizontal wells, and application of chemical injection processes in various pilots, among others.
In 2011, 3 new patents were granted, bringing the total to 30 granted and 24 still current; 7 copyrights were registered, making the total 127; and 2 new trade marks were granted, bringing the total for Ecopetrol to 33. For the second consecutive year, Ecopetrol was nominated for the global MAKE (Most Admired Knowledge Enterprises) award for its outstanding work in knowledge management.
Additionally, methodologies were implemented for the evaluation of chemical and thermal recovery technologies, consolidation of blend formulas for transportation and production of heavy crude integrating colloidal stability factors with viscosity and density parameters, and evaluation of additives for emulsion breaking in the treatment of crude oil and waters in Ecopetrol’s producing fields.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 24 |
Among Ecopetrol’s most outstanding contributions in 2011 to the promotion of science and technology in Colombia, was the launch of scholarships for high-level studies and support for the consolidation of the country’s science and technology parks, Maloka y Neomundo, through a COP$1,100 million contribution.
Savings and avoided costs:
As a result of the application of supply strategies, total savings were obtained in 2011 in the amount of COP$381 billion, or 2.6% of the total managed. The savings came from the application of: 1) negotiation options (40%), 2) aggregation of demand (40%), 3) savings in procurement (11%), 4) tariff exemptions (7%), and 5) renegotiation of tariffs (2%).
| b. | Corporate responsibility |
Social investment:
In 2011, Ecopetrol invested COP$214 billion in social investment projects, 34% more than in 2010. Every COP$1 invested by Ecopetrol was matched by COP$6.14 from other entities. As part of the process of improving the civic processes of follow-up and social control of royalty investments, the Company provided guidance in the drafting of the work plans of the royalty investment follow-up committees (CSIR) of Córdoba, Sucre, Huila, Magdalena Medio and Meta.
Recognitions:
On November 22, 2011, the results of the corporate reputation business monitor (MERCO – Colombia) were presented in which for the fourth straight year, Ecopetrol was ranked in the first place in corporate reputation in Colombia, and for the first time was chosen the most responsible Company in the country.
Ecopetrol’s CEO, Mr. Javier Gutiérrez, was named “Leader with the Best Reputation.” This top honor, according to MERCO, was based on the quality of the commercial products, economic results, internal reputation, international dimension and innovation. Also taken into consideration was the effect that the brand had on the opinions of the various groups surveyed.
Stakeholders:
The following were the key highlights regarding stakeholders during the fourth quarter of 2011:
| · | Relationship Protocols with stakeholders |
| · | National and regional stakeholder monitoring reports |
| · | Second human rights and company forum in Colombia |
| · | Start-up of Teleiguanas service (phone booths where any one can call Ecopetrol free of charge) |
| · | Public accountability hearing in Aguazul (Casanare) |
| · | Sixth provider meeting |
| · | IV maritime client roundtable |
| · | Implementation of the center of shared services of Ecopetrol for financial, procurement, contractual, real state, human resources and IT matters. |
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 25 |
| c. | Corporate Governance |
Extraordinary General Shareholders Meetings:
On October 12, 2011, Mr. Roberto Steiner was appointed as minority shareholder representative on the Board of Directors, replacing Mr. Mauricio Cárdenas, who was named Minister of Mines and Energy. It also approved the appointment of Federico Rengifo as non-independent member of the corporate entity. In the Extraordinary shareholders meeting of August 3rd of 2011, Mr. Amilkar Acosta was appointed to replace Mr. David Rojas (R.I.P).
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 26 |
IV. Consolidated Financial results of Ecopetrol3
The following are Ecopetrol’s consolidated financial statements:
| Consolidated Income Statement | ||||||||||||||||||||||||
| (COP$ Billion) | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 2011* | 2010* | ∆ (%) | ||||||||||||||||||
| Local Sales | 6,027.6 | 4,336.2 | 39.0 | % | 21,577.3 | 16,136.6 | 33.7 | % | ||||||||||||||||
| Export Sales | 12,341.5 | 6,866.2 | 79.7 | % | 42,412.9 | 23,883.9 | 77.6 | % | ||||||||||||||||
| Sales to free trade zone | - | - | 0.0 | % | - | - | 0.0 | % | ||||||||||||||||
| Sales of services | 482.6 | 441.7 | 9.3 | % | 1,762.1 | 1,947.8 | (9.5 | %) | ||||||||||||||||
| Total Sales | 18,851.7 | 11,644.1 | 61.9 | % | 65,752.3 | 41,968.3 | 56.7 | % | ||||||||||||||||
| Variable Costs | 7,818.0 | 4,174.5 | 87.3 | % | 28,047.1 | 18,613.7 | 50.7 | % | ||||||||||||||||
| Fixed Costs | 2,857.1 | 2,301.7 | 24.1 | % | 8,618.0 | 7,345.3 | 17.3 | % | ||||||||||||||||
| Cost of Sales | 10,675.1 | 6,476.2 | 64.8 | % | 36,665.1 | 25,959.0 | 41.2 | % | ||||||||||||||||
| Gross profit | 8,176.6 | 5,167.9 | 58.2 | % | 29,087.2 | 16,009.3 | 81.7 | % | ||||||||||||||||
| Operating Expenses | 778.6 | 1,216.2 | (36.0 | %) | 3,396.2 | 3,130.5 | 8.5 | % | ||||||||||||||||
| Operating Profit | 7,398.0 | 3,951.7 | 87.2 | % | 25,691.0 | 12,878.8 | 99.5 | % | ||||||||||||||||
| Non Operating Loss | (607.3 | ) | (147.5 | ) | 311.7 | % | (2,049.5 | ) | (1,386.2 | ) | 47.9 | % | ||||||||||||
| Income tax | 2,239.7 | 1,107.5 | 102.2 | % | 7,955.7 | 3,238.7 | 145.6 | % | ||||||||||||||||
| Minority interest | 113.2 | (5.1 | ) | (2,319.6 | %) | 233.4 | 107.5 | 117.1 | % | |||||||||||||||
| Net Income | 4,437.8 | 2,701.8 | 64.3 | % | 15,452.4 | 8,146.4 | 89.7 | % | ||||||||||||||||
| EBITDA | 7,952.0 | 4,632.2 | 71.7 | % | 30,021.1 | 16,699.5 | 79.8 | % | ||||||||||||||||
| EBITDA Margin | 42 | % | 40 | % | 46 | % | 40 | % | ||||||||||||||||
* Not audited, for illustration purposes only
In 2011, the highest individual contributions tototal sales (before eliminations) came from the Cartagena Refinery with COP$ 7,647 billion, Hocol with COP$ 3,932 billion and Equión with COP$ 2,079 billion.
In the fourth quarter of 2011, higher contributions came also from Refinería de Cartagena with COL$2,596 billion, Hocol with COL$1,231 billion and Equión with COL$684 billion.
1 For purposes of consolidation of fourth quarter 2011, in addition to Ecopetrol’s results, those of the following subsidiaries have been included:
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., Reficar S.A., Oleoducto Bicentenario, Ecopetrol Capital A.G., Ecopetrol Transportation Investments Ltd., Equión Energía Limited (since January 24, 2011) and Ecopetrol Global Capital SLU.
The consolidated financial statements for the fourth quarter of 2010 include the following affiliates: 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., Reficar S.A., and Oleoducto Bicentenario, , Ecopetrol Capital A.G. and Ecopetrol Transportation Investments Ltd.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 27 |
In year 2011, the main contributions from subsidiaries to consolidatednet income came from Hocol with COP$630 billion, Equion with COP$426 billion, and Ocensa with COP$82 billion. The highest net loss was recorded by Ecopetrol America Inc. in the amount of COP$ 197 billion, mainly driven by the Cobra well which was proved dry and by seismic, and other studies undertaken.
In the fourth quarter, higher net income came from Equión (COP$266 billion) and Hocol (COP$203 billion). Ecopetrol America Inc. and Ecopetrol do Brazil reported net losses in the amount of COP$90 billion and COP$47 billion respectively.
Ecopetrol del Peru, Ecopetrol do Brasil, Ecopetrol America and Bioenergy have not reported earnings yet since they are either in the pre-operational stage or are carrying out exploratory activities that have not yielded production, with the exception of Ecopetrol America which has a production of around two thousand barrels per day of oil equivalent. In line with the foregoing, subsidiaries in the crude and product transport business report earnings for the consolidated corporate group by lowering transport costs.
In the year 2011, under the equity participation method, Offshore International Group (Savia Perú) contributed with COP$ 79 billion to the Group’s net income, Invercolsa with COP$ 60 billion and Transgas contributed a net loss of COP$3 billion.
In the fourth quarter, under the equity participation method, Offshore International Group (Savia Perú) contributed with COP$ 12 billion to the Group’s net income, Invercolsa with COP$ 18 billion, and Transgas contributed COP$24 billion.
| Consolidated Net Income per segment 2011 | ||||
| Segment | COP$ Billion | |||
| Exploration and Production | 584.6 | |||
| Refining & Petrochemicals | (173.0 | ) | ||
| Transportation | 58.4 | |||
| Corporate | 82.0 | |||
| Total | 552.0 | |||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 28 |
| Consolidated Balance Sheet | ||||||||||||
| (COP$ Billion) | December 31, 2011 | December 31, 2010 | Δ (%) | |||||||||
| Current Assets | 19,037.3 | 12,629.7 | 50.7 | % | ||||||||
| Long Term Assets | 73,240.1 | 56,139.7 | 30.5 | % | ||||||||
| Total Assets | 92,277.4 | 68,769.4 | 34.2 | % | ||||||||
| Current Liabilities | 15,752.4 | 10,042.6 | 56.9 | % | ||||||||
| Long Term Liabilities | 19,583.5 | 16,912.6 | 15.8 | % | ||||||||
| Total Liabilities | 35,335.9 | 26,955.2 | 31.1 | % | ||||||||
| Equity | 54,688.9 | 41,328.2 | 32.3 | % | ||||||||
| Minority interest | 2,252.6 | 486.0 | 363.5 | % | ||||||||
| Total Liabilities and Shareholders´ Equity | 92,277.4 | 68,769.4 | 34.2 | % | ||||||||
| Debit Memorandum accounts | 130,221.9 | 119,039.6 | ||||||||||
| Credit Memorandum accounts | 111,784.6 | 96,981.0 | ||||||||||
V. Presentation of results
On February 16, 2012, Ecopetrol’s management will host two webcasts to review results for the fourth quarter and full year 2011:
| Spanish | English |
February 16, 2012 | February 16, 2012 |
| 1:30 p.m. Bogota-Lima | 3:00 p.m. Bogota-Lima |
| 1:30 p.m. New York-Toronto | 3:00 p.m. New York-Toronto |
The webcast will be available on Ecopetrol’s website: www.ecopetrol.com.co
Please access the presentation 10 minutes beforehand in order to download any necessary software. A copy of the webcast will remain available for one year following the live presentation.
About Ecopetrol S.A.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) is the largest company in Colombia as measured by revenue, profit, assets and shareholder equity. Ecopetrol also is the country’s only vertically integrated oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast. Its subsidiaries include the following companies: Propilco, Black Gold Re Ltd., Ecopetrol Oleo e Gas do Brasil Ltda., Ecopetrol America Inc., Ecopetrol del Perú S.A., Hocol, Equión Energía Limited, Andean Chemicals Limited, COMAI, Bioenergy S.A., ODL Finance S.A., ECP Global Energy, Ecopetrol Transportation Company, Ocensa S.A., Oleoducto de Colombia, Refinería de Cartagena, Ecopetrol Transportation Investment, Ecopetrol Capital AG and Oleoducto Bicentenario de Colombia S.A.S. Ecopetrol S.A. is one of the 40 largest oil companies in the world and one of the four largest in Latin America. The Company is majority owned by the Republic of Colombia (88.5%), and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL, on the New York Stock Exchange (NYSE), Bolsa de Valores de Lima (BVL) under the symbol EC and the Toronto Stock Exchange (TSX) under the symbol ECP. The Company divides its operations into four business segments that include exploration and production, transportation, refining and petrochemicals, and supply and marketing.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 29 |
For more information about Ecopetrol, please visit www.ecopetrol.com.co
Forward-looking statement
This release may contain forward-looking statements related to the prospects of the business, estimates for operating and financial results, and growth forecasts for Ecopetrol. These are projections and, as such, are based exclusively on the expectations of the management concerning the future of the Company 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, performance of the Colombian economy and industry, among others, therefore, they are subject to change without prior notice.
Contact Information:
Director of Investor Relations
Alejandro Giraldo
Telephone: +571-234-5190
E-mail: investors@ecopetrol.com.co
Media relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
E-mail: mauricio.tellez@ecopetrol.com.co
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 30 |
VI. Exhibits
Unaudited Income Statement
Ecopetrol S.A.
| COP$ Million | ||||||||||||||||||||||||||||
| 4Q-2011 | 4Q-2010 | ∆ (%) | 3Q-2011 | 2011 | 2010 | ∆ (%) | ||||||||||||||||||||||
| Income | ||||||||||||||||||||||||||||
| Local Sales | 4,787,573 | 3,557,612 | 34.6 | % | 4,414,933 | 17,704,866 | 13,428,646 | 31.8 | % | |||||||||||||||||||
| Export Sales | 9,266,890 | 5,672,627 | 63.4 | % | 7,933,934 | 31,475,732 | 18,164,288 | 73.3 | % | |||||||||||||||||||
| Sales to free trade zone | 1,530,298 | 571,559 | 167.7 | % | 1,339,827 | 5,613,158 | 3,695,121 | 51.9 | % | |||||||||||||||||||
| Sale of Services | 403,455 | 397,864 | 1.4 | % | 379,099 | 1,483,320 | 1,373,116 | 8.0 | % | |||||||||||||||||||
| Total Income | 15,988,216 | 10,199,662 | 56.8 | % | 14,067,793 | 56,277,076 | 36,661,171 | 53.5 | % | |||||||||||||||||||
| Cost of Sales | ||||||||||||||||||||||||||||
| Variable Costs | - | - | ||||||||||||||||||||||||||
| Purchase of Hydrocarbons | 3,563,405 | 2,038,064 | 74.8 | % | 2,888,638 | 12,033,313 | 8,447,320 | 42.5 | % | |||||||||||||||||||
| Amortization and Depletion | 15,495 | (41,967 | ) | 136.9 | % | 486,979 | 2,262,560 | 2,011,754 | 12.5 | % | ||||||||||||||||||
| Imported products | 1,873,549 | 1,051,085 | 78.2 | % | 1,581,397 | 6,265,906 | 3,919,466 | 59.9 | % | |||||||||||||||||||
| Hydrocarbon Transportation Services | 335,418 | 224,530 | 49.4 | % | 301,364 | 1,121,932 | 779,412 | 43.9 | % | |||||||||||||||||||
| Inventories | (363,333 | ) | (154,077 | ) | 135.8 | % | 94,394 | (522,162 | ) | (148,234 | ) | 252.3 | % | |||||||||||||||
| Other | 609,443 | 118,146 | 415.8 | % | 147,519 | 1,202,700 | 441,764 | 172.2 | % | |||||||||||||||||||
| Fixed Costs | ||||||||||||||||||||||||||||
| Depreciation | 286,544 | 252,914 | 13.3 | % | 288,993 | 1,132,520 | 858,538 | 31.9 | % | |||||||||||||||||||
| Contracted Services | 783,204 | 652,201 | 20.1 | % | 589,389 | 2,395,713 | 2,023,103 | 18.4 | % | |||||||||||||||||||
| Maintenance | 456,811 | 375,008 | 21.8 | % | 267,359 | 1,198,449 | 963,137 | 24.4 | % | |||||||||||||||||||
| Labor Costs | 364,886 | 302,953 | 20.4 | % | 286,523 | 1,136,059 | 1,025,690 | 10.8 | % | |||||||||||||||||||
| Other | 436,189 | 235,563 | 85.2 | % | 218,433 | 1,030,200 | 916,635 | 12.4 | % | |||||||||||||||||||
| Total Cost of Sales | 8,361,611 | 5,054,420 | 65.4 | % | 7,150,988 | 29,257,190 | 21,238,585 | 37.8 | % | |||||||||||||||||||
| Gross Profits | 7,626,605 | 5,145,242 | 48.2 | % | 6,916,805 | 27,019,886 | 15,422,586 | 75.2 | % | |||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Administration | 178,794 | 116,649 | 53.3 | % | 161,272 | 631,891 | 450,466 | 40.3 | % | |||||||||||||||||||
| Selling expenses | 481,289 | 242,954 | 98.1 | % | 337,937 | 1,479,240 | 1,015,084 | 45.7 | % | |||||||||||||||||||
| Exploration and Projects | (52,899 | ) | 334,160 | (115.8 | %) | 203,495 | 847,897 | 748,334 | 13.3 | % | ||||||||||||||||||
| Operating Income | 7,019,421 | 4,451,479 | 57.7 | % | 6,214,101 | 24,060,858 | 13,208,702 | 82.2 | % | |||||||||||||||||||
| Non Operating Income (expenses) | ||||||||||||||||||||||||||||
| Financial Income | 1,447,046 | 1,166,450 | 24.1 | % | 1,295,202 | 4,910,696 | 4,224,992 | 16.2 | % | |||||||||||||||||||
| Financial Expenses | (1,319,596 | ) | (1,133,341 | ) | 16.4 | % | (1,310,734 | ) | (5,350,168 | ) | (4,127,592 | ) | 29.6 | % | ||||||||||||||
| Interest expenses | (153,788 | ) | (54,144 | ) | 184.0 | % | (55,532 | ) | (278,636 | ) | (64,396 | ) | 332.7 | % | ||||||||||||||
| Non Financial Income | 580,598 | 424,977 | 36.6 | % | 354,042 | 1,478,225 | 929,404 | 59.1 | % | |||||||||||||||||||
| Non Financial Expenses | (1,069,442 | ) | (547,089 | ) | 95.5 | % | (372,127 | ) | (2,558,234 | ) | (2,103,966 | ) | 21.6 | % | ||||||||||||||
| Results from Subsidiaries | (21,033 | ) | (472,223 | ) | 95.5 | % | 134,341 | 552,148 | (641,169 | ) | 186.1 | % | ||||||||||||||||
| Income before income tax | 6,483,206 | 3,836,109 | 69.0 | % | 6,259,293 | 22,814,889 | 11,425,975 | 99.7 | % | |||||||||||||||||||
| Provision for Income Tax | 2,050,593 | 1,094,030 | 87.4 | % | 2,062,581 | 7,366,556 | 3,079,878 | 139.2 | % | |||||||||||||||||||
| Minority interest | ||||||||||||||||||||||||||||
| Net Income | 4,432,613 | 2,742,079 | 61.7 | % | 4,196,712 | 15,448,333 | 8,346,097 | 85.1 | % | |||||||||||||||||||
| EBITDA | 7,463,865 | 4,664,165 | 60.0 | % | 7,092,306 | 27,879,620 | 16,358,448 | 70.4 | % | |||||||||||||||||||
| EBITDA MARGIN | 47 | % | 46 | % | 50 | % | 50 | % | 45 | % | ||||||||||||||||||
| EARNINGS PER SHARE | $ | 107.81 | $ | 67.75 | 59.1 | % | $ | 103.68 | $ | 379.97 | $ | 206.22 | 84.3 | % |
In 2010 only for comparative purposes, in the cost of sales internal reclasifications were made between accounts de amortización y agotamiento -Costo variable y Otros -Costo fijo.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 31 |
Unaudited Income Statement
Ecopetrol Consolidated
| COP$ Million | 4Q-2011* | 4Q-2010 * | ∆ (%) | 3Q-2011* | 2011 | 2010 | ∆ (%) | |||||||||||||||||||||
| Income | ||||||||||||||||||||||||||||
| Local Sales | 6,027,645 | 4,336,171 | 39.0 | % | 5,333,970 | 21,577,323 | 16,136,596 | 33.7 | % | |||||||||||||||||||
| Export Sales | 12,341,453 | 6,866,213 | 79.7 | % | 10,579,496 | 42,412,885 | 23,883,886 | 77.6 | % | |||||||||||||||||||
| Sales to free trade zone | - | - | 0.0 | % | - | - | - | 0.0 | % | |||||||||||||||||||
| Sale of Services | 482,606 | 441,682 | 9.3 | % | 381,206 | 1,762,060 | 1,947,829 | (9.5 | %) | |||||||||||||||||||
| Total Income | 18,851,704 | 11,644,066 | 61.9 | % | 16,294,672 | 65,752,268 | 41,968,311 | 56.7 | % | |||||||||||||||||||
| Cost of Sales | ||||||||||||||||||||||||||||
| Variable Costs | ||||||||||||||||||||||||||||
| Purchase of Hydrocarbons | 3,843,310 | 2,525,799 | 52.2 | % | 3,757,229 | 14,750,481 | 10,365,306 | 42.3 | % | |||||||||||||||||||
| Amortization and Depletion | 133,869 | 19,830 | 575.1 | % | 616,134 | 2,767,615 | 2,301,086 | 20.3 | % | |||||||||||||||||||
| Imported products | 2,716,832 | 1,585,325 | 71.4 | % | 2,254,830 | 8,840,450 | 5,680,601 | 55.6 | % | |||||||||||||||||||
| Hydrocarbon Transportation Services | 300,704 | 194,220 | 54.8 | % | 137,129 | 898,508 | 540,555 | 66.2 | % | |||||||||||||||||||
| Inventories | (262,786 | ) | (141,028 | ) | 86.3 | % | 39,383 | (551,718 | ) | (251,431 | ) | 119.4 | % | |||||||||||||||
| Other | 1,086,107 | (9,600 | ) | (11,413.6 | %) | 9,769 | 1,341,755 | (22,439 | ) | 6,079.6 | % | |||||||||||||||||
| Fixed Costs | ||||||||||||||||||||||||||||
| Depreciation | 464,916 | 466,498 | (0.3 | %) | 453,905 | 1,809,546 | 1,548,797 | 16.8 | % | |||||||||||||||||||
| Contracted Services | 810,402 | 630,560 | 28.5 | % | 601,128 | 2,460,754 | 1,952,314 | 26.0 | % | |||||||||||||||||||
| Maintenance | 567,779 | 502,217 | 13.1 | % | 358,242 | 1,593,327 | 1,384,088 | 15.1 | % | |||||||||||||||||||
| Labor Costs | 388,999 | 319,495 | 21.8 | % | 308,669 | 1,219,219 | 1,084,149 | 12.5 | % | |||||||||||||||||||
| Other | 625,008 | 382,917 | 63.2 | % | 336,179 | 1,535,119 | 1,375,975 | 11.6 | % | |||||||||||||||||||
| Total Cost of Sales | 10,675,140 | 6,476,233 | 64.8 | % | 8,872,597 | 36,665,056 | 25,959,001 | 41.2 | % | |||||||||||||||||||
| Gross Profits | 8,176,564 | 5,167,833 | 58.2 | % | 7,422,075 | 29,087,212 | 16,009,310 | 81.7 | % | |||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Administration | 245,725 | 176,028 | 39.6 | % | 227,910 | 1,018,917 | 603,523 | 68.8 | % | |||||||||||||||||||
| Selling expenses | 444,054 | 243,683 | 82.2 | % | 256,736 | 1,123,916 | 739,828 | 51.9 | % | |||||||||||||||||||
| Exploration and Projects | 88,815 | 796,538 | (88.8 | %) | 311,640 | 1,253,416 | 1,787,117 | (29.9 | %) | |||||||||||||||||||
| Operating Income | 7,397,970 | 3,951,584 | 87.2 | % | 6,625,789 | 25,690,963 | 12,878,842 | 99.5 | % | |||||||||||||||||||
| Non Operating Income (expenses) | ||||||||||||||||||||||||||||
| Financial Income | 1,653,381 | 1,391,693 | 18.8 | % | 4,191,432 | 8,322,362 | 4,706,491 | 76.8 | % | |||||||||||||||||||
| Financial Expenses | (1,605,927 | ) | (1,235,134 | ) | 30.0 | % | (4,255,793 | ) | (8,811,442 | ) | (4,522,792 | ) | 94.8 | % | ||||||||||||||
| Interest expenses | (178,840 | ) | (8,584 | ) | 1,983.4 | % | (93,019 | ) | (415,222 | ) | (145,910 | ) | 184.6 | % | ||||||||||||||
| Non Financial Income | 679,167 | 430,893 | 57.6 | % | 355,735 | 1,634,883 | 966,714 | 69.1 | % | |||||||||||||||||||
| Non Financial Expenses | (1,155,045 | ) | (726,408 | ) | 59.0 | % | (403,036 | ) | (2,780,112 | ) | (2,390,728 | ) | 16.3 | % | ||||||||||||||
| Income before income tax | 6,790,706 | 3,804,044 | 78.5 | % | 6,421,108 | 23,641,432 | 11,492,617 | 105.7 | % | |||||||||||||||||||
| Provision for Income Tax | �� | 2,239,731 | 1,107,502 | 102.2 | % | 2,191,670 | 7,955,721 | 3,238,650 | 145.6 | % | ||||||||||||||||||
| Minority interest | 113,214 | (5,064 | ) | (2,335.7 | %) | 76,484 | 233,377 | 107,496 | 117.1 | % | ||||||||||||||||||
| Net Income | 4,437,761 | 2,701,606 | 64.3 | % | 4,152,954 | 15,452,334 | 8,146,471 | 89.7 | % | |||||||||||||||||||
| EBITDA | 7,952,045 | 4,632,184 | 71.7 | % | 7,627,677 | 30,021,133 | 16,699,494 | 79.8 | % | |||||||||||||||||||
| EBITDA MARGIN | 42 | % | 40 | % | 47 | % | 46 | % | 40 | % |
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. Therefore, the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol's financial statements though they do adjust to the methodology defined for this purpose.
This statement is not audited
For comparative purposes reclasifications were made in the first quarter of 2010 in financial income and expensesregarding OCENSA's fx difference
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 32 |
Balance Sheet
Unaudited
| Ecopetrol S.A. | Ecopetrol Consolidated | |||||||||||||||||||||||
| December 31, 2011 | December 31, 2011 | ∆ (%) | December 31, 2011 | December 31, 2011 | ∆ (%) | |||||||||||||||||||
| COP$ Million | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Current Assets | ||||||||||||||||||||||||
| Cash and cash equivalents | 4,303,043 | 1,592,083 | 170.3 | % | 6,585,628 | 3,726,778 | 76.7 | % | ||||||||||||||||
| Investments | 1,263,937 | 264,765 | 377.4 | % | 1,531,911 | 327,782 | 367.4 | % | ||||||||||||||||
| Accounts and notes receivable | 5,256,982 | 2,607,294 | 101.6 | % | 4,635,834 | 2,736,592 | 69.4 | % | ||||||||||||||||
| Inventories | 2,395,929 | 1,880,818 | 27.4 | % | 2,761,605 | 2,192,088 | 26.0 | % | ||||||||||||||||
| Other | 2,604,195 | 3,152,233 | (17.4 | %) | 3,522,335 | 3,646,398 | (3.4 | %) | ||||||||||||||||
| Total Current Assets | 15,824,086 | 9,497,193 | 66.6 | % | 19,037,313 | 12,629,638 | 50.7 | % | ||||||||||||||||
| Non Current Assets | ||||||||||||||||||||||||
| Investments | 17,353,028 | 12,336,060 | 40.7 | % | 5,474,805 | 5,177,491 | 5.7 | % | ||||||||||||||||
| Accounts and notes receivable | 2,034,167 | 2,154,256 | (5.6 | %) | 407,929 | 372,273 | 9.6 | % | ||||||||||||||||
| Property, plant and equipment, net | 19,119,854 | 14,816,573 | 29.0 | % | 30,033,380 | 22,266,258 | 34.9 | % | ||||||||||||||||
| Natural and environmental properties, Net | 13,753,201 | 11,003,159 | 25.0 | % | 15,440,787 | 11,774,539 | 31.1 | % | ||||||||||||||||
| Resources delivered to administration | 283,504 | - | 0.0 | % | - | - | 0.0 | % | ||||||||||||||||
| Other | 16,883,334 | 15,318,756 | 10.2 | % | 21,883,172 | 16,549,157 | 32.2 | % | ||||||||||||||||
| Total Non Current Assets | 69,427,088 | 55,628,804 | 24.8 | % | 73,240,073 | 56,139,718 | 30.5 | % | ||||||||||||||||
| Total Assets | 85,251,174 | 65,125,997 | 30.9 | % | 92,277,386 | 68,769,356 | 34.2 | % | ||||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||||||
| Current Liabilities | ||||||||||||||||||||||||
| Financial obligations | 452,692 | 695,505 | (34.9 | %) | 831,594 | 1,079,169 | (22.9 | %) | ||||||||||||||||
| Accounts payable and related parties | 4,171,148 | 4,159,469 | 0.3 | % | 4,374,890 | 4,062,602 | 7.7 | % | ||||||||||||||||
| Estimated liabilities and provisions | 1,199,646 | 932,883 | 28.6 | % | 1,695,193 | 1,151,297 | 47.2 | % | ||||||||||||||||
| Other | 7,994,837 | 3,500,769 | 128.4 | % | 8,850,760 | 3,749,510 | 136.1 | % | ||||||||||||||||
| Total Current Liabilities | 13,818,323 | 9,288,626 | 48.8 | % | 15,752,437 | 10,042,578 | 56.9 | % | ||||||||||||||||
| Long Term Liabilities | ||||||||||||||||||||||||
| Financial obligations | 5,718,463 | 5,918,710 | (3.4 | %) | 7,969,978 | 7,833,715 | 1.7 | % | ||||||||||||||||
| Labor and pension plan obligations | 3,180,270 | 2,806,043 | 13.3 | % | 3,190,229 | 2,814,021 | 13.4 | % | ||||||||||||||||
| Estimated liabilities and provisions | 3,984,580 | 3,337,377 | 19.4 | % | 4,084,829 | 3,398,603 | 20.2 | % | ||||||||||||||||
| Other | 3,538,500 | 2,247,365 | 57.5 | % | 4,338,427 | 2,866,307 | 51.4 | % | ||||||||||||||||
| Total Long Term Liabilities | 16,421,813 | 14,309,495 | 14.8 | % | 19,583,463 | 16,912,646 | 15.8 | % | ||||||||||||||||
| Total Liabilities | 30,240,136 | 23,598,121 | 28.1 | % | 35,335,900 | 26,955,224 | 31.1 | % | ||||||||||||||||
| Minoritary Interest | 2,252,631 | 485,951 | 363.6 | % | ||||||||||||||||||||
| Equity | 55,011,038 | 41,527,876 | 32.5 | % | 54,688,855 | 41,328,181 | 32.3 | % | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | 85,251,174 | 65,125,997 | 30.9 | % | 92,277,386 | 68,769,356 | 34.2 | % | ||||||||||||||||
| Memorandum Debtor Accounts * | 122,266,344 | 116,788,822 | 130,221,873 | 119,039,595 | ||||||||||||||||||||
| Memorandum Creditor Accounts * | 103,461,130 | 92,600,806 | 111,784,599 | 96,981,023 | ||||||||||||||||||||
Notes
* Under Colombian GAAP, these accounts represent facts or circumstances from which rights or obligations could derive and affect the Company, however, these accounts are not included in the Balance Sheet.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 33 |
| Unaudited Cash Flow Statement | ||||||||||||||||||||||||||||
| Ecopetrol S.A. | ||||||||||||||||||||||||||||
| COP$ million | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 3Q 2011 * | 2011 | 2010 | ∆ (%) | |||||||||||||||||||||
| Cash flow provided by operating activities: | ||||||||||||||||||||||||||||
| Net income | 4,432,613 | 2,742,078 | 61.7 | % | 4,196,712 | 15,448,333 | 8,346,097 | 85.1 | % | |||||||||||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | - | - | 0.0 | % | - | - | - | 0.0 | % | |||||||||||||||||||
| Depreciation, depletion and amortization | 927,255 | 250,834 | 269.7 | % | 1,088,944 | 4,594,483 | 3,324,840 | 38.1 | % | |||||||||||||||||||
| Net provisions | 211,883 | (95,310 | ) | 322.3 | % | (13,545 | ) | 150,854 | (18,857 | ) | 900.0 | % | ||||||||||||||||
| Disposal of property, plant and equipment | (2,320 | ) | (168,913 | ) | 98.6 | % | 1,921 | - | 38,945 | -100.0 | % | |||||||||||||||||
| Loss for disposal of property, plant and equipment | 418 | 3,371 | -87.6 | % | - | 418 | 3,395 | -87.7 | % | |||||||||||||||||||
| Loss for disposal of natural and environmental resources | - | 9,110 | -100.0 | % | - | - | 39,668 | -100.0 | % | |||||||||||||||||||
| Loss for disposal of other assets | 12 | 287,918 | -100.0 | % | 20 | 300 | 287,918 | -99.9 | % | |||||||||||||||||||
| Income (loss) from equity method on affiliated companies | 21,031 | 472,224 | -95.5 | % | (134,340 | ) | (552,148 | ) | 641,168 | -186.1 | % | |||||||||||||||||
| Net changes in operating assets and liabilities: | - | - | 0.0 | % | - | - | - | 0.0 | % | |||||||||||||||||||
| Accounts and notes receivable | 1,607,939 | (781,745 | ) | 305.7 | % | (1,619,376 | ) | (2,071,923 | ) | (320,460 | ) | 546.5 | % | |||||||||||||||
| Inventories | (375,343 | ) | (160,200 | ) | 134.3 | % | 59,917 | (563,619 | ) | (149,307 | ) | 277.5 | % | |||||||||||||||
| Deferred and other assets | 132,934 | (218,145 | ) | 160.9 | % | (169,525 | ) | (1,579,232 | ) | (793,658 | ) | 99.0 | % | |||||||||||||||
| Accounts payable and related parties | (2,280,447 | ) | (1,439,881 | ) | 58.4 | % | (366,410 | ) | (133,719 | ) | 651,791 | -120.5 | % | |||||||||||||||
| Taxes payable | 1,919,131 | 1,016,996 | 88.7 | % | 1,602,787 | 5,401,192 | 1,250,952 | 331.8 | % | |||||||||||||||||||
| Labor obligations | (117,336 | ) | (22,709 | ) | 416.7 | % | 31,218 | (97,256 | ) | (29,661 | ) | 227.9 | % | |||||||||||||||
| Estimated liabilities and provisions | 50,384 | (428,199 | ) | 111.8 | % | 35,810 | (7,496 | ) | (293,100 | ) | 97.4 | % | ||||||||||||||||
| Cash provided by operating activities | 6,528,154 | 1,467,429 | 344.9 | % | 4,714,133 | 20,590,187 | 12,979,731 | 58.6 | % | |||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||||
| Payment for purchase of Companies, net of cash acquired | - | (2,000 | ) | 100.0 | % | (55,809 | ) | (868,954 | ) | (1,163,131 | ) | 0.0 | % | |||||||||||||||
| Purchase of investment securities | (2,027,495 | ) | (4,369,467 | ) | 53.6 | % | (71,606 | ) | (11,685,030 | ) | (11,808,784 | ) | 1.0 | % | ||||||||||||||
| Redemption of investment securities | 1,035,728 | 3,660,021 | -71.7 | % | (1,150,681 | ) | 8,420,670 | 9,604,385 | -12.3 | % | ||||||||||||||||||
| Sale of property, plant and equipment | - | 4,751 | -100.0 | % | - | - | 4,751 | 0.0 | % | |||||||||||||||||||
| Investment in natural and environmental resources | (1,386,313 | ) | (1,329,834 | ) | -4.2 | % | (785,202 | ) | (3,566,030 | ) | (3,474,200 | ) | 2.6 | % | ||||||||||||||
| Additions to property, plant and equipment | (1,739,619 | ) | (1,642,784 | ) | 5.9 | % | (1,808,792 | ) | (6,109,240 | ) | (4,341,012 | ) | 40.7 | % | ||||||||||||||
| Net cash used in investing activities | (4,117,699 | ) | (3,679,313 | ) | 11.9 | % | (3,872,090 | ) | (13,808,585 | ) | (11,177,991 | ) | 23.5 | % | ||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||||
| Financial obligations | (387,572 | ) | 1,601,477 | -124.2 | % | 151,475 | (440,939 | ) | 1,192,762 | -137.0 | % | |||||||||||||||||
| Received from associates - capitalization | 1,750,189 | (31 | ) | 0.0 | % | 478,467 | 2,228,683 | 525 | 0.0 | % | ||||||||||||||||||
| Dividends | (1,942,683 | ) | (1,221,044 | ) | 59.1 | % | (1,994,449 | ) | (5,858,386 | ) | (3,689,940 | ) | 58.8 | % | ||||||||||||||
| Net cash used in financing activities | (580,066 | ) | 380,402 | -252.5 | % | (1,364,507 | ) | (4,070,642 | ) | (2,496,653 | ) | 63.0 | % | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 1,830,389 | (1,831,482 | ) | 199.9 | % | (522,464 | ) | 2,710,960 | (694,913 | ) | 490.1 | % | ||||||||||||||||
| Cash and cash equivalents at the beginnig of the year | 2,472,654 | 3,423,565 | -27.8 | % | 2,995,118 | 1,592,083 | 2,286,996 | -30.4 | % | |||||||||||||||||||
| Cash and cash equivalents at the end of the year | 4,303,043 | 1,592,083 | 170.3 | % | 2,472,654 | 4,303,043 | 1,592,083 | 170.3 | % | |||||||||||||||||||
NOTES:
* Not audited, for illustration purposes only.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 34 |
| Unaudited Cash Flow Statement | ||||||||||||||||||||||||||||
| Ecopetrol Consolidated | ||||||||||||||||||||||||||||
| COP$ million | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 3Q 2011 * | 2011 | 2010 | ∆ (%) | |||||||||||||||||||||
| Cash flow provided by operating activities: | ||||||||||||||||||||||||||||
| Net income | 4,437,761 | 2,701,607 | 64.3 | % | 4,152,954 | 15,452,334 | 8,146,471 | 89.7 | % | |||||||||||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 1,270,254 | 869,922 | 46.0 | % | 1,389,785 | 5,849,166 | 4,348,095 | 34.5 | % | |||||||||||||||||||
| Net provisions | 193,519 | 50,991 | 279.5 | % | (6,933 | ) | 141,137 | 179,916 | (21.6 | %) | ||||||||||||||||||
| Disposal of property, plant and equipment | 418 | 3,395 | 1,921 | 418 | 3,395 | |||||||||||||||||||||||
| Loss for disposal of property, plant and equipment | (2,320 | ) | (168,937 | ) | 98.6 | % | - | - | 38,945 | (100.0 | %) | |||||||||||||||||
| Loss for disposal of natural and environmental resources | - | 9,110 | - | - | 39,668 | |||||||||||||||||||||||
| Loss for disposal of other assets | 12 | 287,918 | 20 | 300 | 287,918 | |||||||||||||||||||||||
| Income (loss) from equity method on affiliated companies | (53,055 | ) | (27,374 | ) | 93.8 | % | (8,675 | ) | (141,275 | ) | (82,772 | ) | 70.7 | % | ||||||||||||||
| Net changes in operating assets and liabilities: | ||||||||||||||||||||||||||||
| Accounts and notes receivable | 1,861,684 | 1,789,258 | (4.0 | %) | (1,256,620 | ) | (1,263,731 | ) | 794,512 | (259.1 | %) | |||||||||||||||||
| Inventories | (209,456 | ) | (131,445 | ) | 59.3 | % | (28,881 | ) | (620,874 | ) | (129,823 | ) | 378.2 | % | ||||||||||||||
| Deferred and other assets | (1,674,074 | ) | 1,275,069 | (231.3 | %) | 55,058 | (2,224,662 | ) | 698,423 | (418.5 | %) | |||||||||||||||||
| Accounts payable and related parties | (2,394,614 | ) | (937,795 | ) | 155.3 | % | (4,316 | ) | 219,486 | 1,248,736 | (82.4 | %) | ||||||||||||||||
| Taxes payable | 2,827,276 | (1,856,199 | ) | 252.3 | % | 1,821,745 | 5,090,247 | (618,441 | ) | 923.1 | % | |||||||||||||||||
| Labor obligations | (108,374 | ) | (19,631 | ) | 452.1 | % | 47,036 | (68,063 | ) | (26,737 | ) | 154.6 | % | |||||||||||||||
| Estimated liabilities and provisions | 704,266 | 564,643 | 24.7 | % | (344,467 | ) | 956,692 | (571,495 | ) | 267.4 | % | |||||||||||||||||
| Cash provided by operating activities | 6,853,297 | 4,410,532 | 55.4 | % | 5,818,627 | 23,391,175 | 14,356,811 | 62.9 | % | |||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||||
| Payment for purchase of Companies, net of cash acquired | - | - | 0.0 | % | (55,809 | ) | (868,954 | ) | (1,163,131 | ) | 25.3 | % | ||||||||||||||||
| Purchase of investment securities | (2,027,495 | ) | (4,369,467 | ) | (53.6 | %) | (71,606 | ) | (11,685,030 | ) | (11,808,784 | ) | 1.0 | % | ||||||||||||||
| Redemption of investment securities | 1,604,767 | 4,415,408 | (63.7 | %) | (879,199 | ) | 9,373,897 | 10,578,201 | (11.4 | %) | ||||||||||||||||||
| Sale of property, plant and equipment | - | 4,751 | (100.0 | %) | - | - | 4,751 | |||||||||||||||||||||
| Investment in natural and environmental resources | (1,503,637 | ) | (1,501,324 | ) | 0.2 | % | (1,026,393 | ) | (4,862,867 | ) | (3,874,824 | ) | 25.5 | % | ||||||||||||||
| Additions to property, plant and equipment | (3,253,370 | ) | (2,914,120 | ) | 11.6 | % | (2,969,425 | ) | (10,478,657 | ) | (6,445,151 | ) | 62.6 | % | ||||||||||||||
| Net cash used in investing activities | (5,179,735 | ) | (4,364,752 | ) | (18.7 | %) | (5,002,432 | ) | (18,521,611 | ) | (12,708,938 | ) | 45.7 | % | ||||||||||||||
| Cash flows financing activities: | ||||||||||||||||||||||||||||
| Minority interest | 1,032,299 | (466,854 | ) | 321.1 | % | 128,403 | 1,766,680 | (455,360 | ) | 488.0 | % | |||||||||||||||||
| Financial obligations | (157,817 | ) | 1,638,974 | (109.6 | %) | (117,505 | ) | (109,191 | ) | 2,761,449 | (104.0 | %) | ||||||||||||||||
| Received from associates - capitalization | 1,750,189 | (31 | ) | 0.0 | % | 478,467 | 2,228,683 | 525 | 0.0 | % | ||||||||||||||||||
| Dividends | (1,981,183 | ) | (1,320,932 | ) | 100.0 | % | (1,994,449 | ) | (5,896,886 | ) | (3,789,828 | ) | 55.6 | % | ||||||||||||||
| Net cash used in financing activities | 643,488 | (148,843 | ) | 532.3 | % | (1,505,084 | ) | (2,010,714 | ) | (1,483,214 | ) | 35.6 | % | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 2,317,050 | (103,063 | ) | 2,348.2 | % | (688,889 | ) | 2,858,850 | 164,659 | 1,636.2 | % | |||||||||||||||||
| Cash and cash equivalents at the beginnig of the year | 4,268,578 | 3,829,841 | 11.5 | % | 4,957,467 | 3,726,778 | 3,562,119 | 4.6 | % | |||||||||||||||||||
| Cash and cash equivalents at the end of the year | 6,585,628 | 3,726,778 | 76.7 | % | 4,268,578 | 6,585,628 | 3,726,778 | 76.7 | % | |||||||||||||||||||
Notes
* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements t the end of each fiscal year, therefore the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol's financial statement, though they do adjust to the methodology defined for this purpose.
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 35 |
| Calculation and Reconciliation of EBITDA | ||||||||||||||||||||||||||||
| Ecopetrol S.A. | ||||||||||||||||||||||||||||
| COP$ Millions | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 3Q 2011* | 2011 | 2010 | ∆ (%) | |||||||||||||||||||||
| EBITDA CALCULATION | ||||||||||||||||||||||||||||
| Operating income | 7,019,420 | 4,451,479 | 57.7 | % | 6,214,100 | 24,060,858 | 13,208,702 | 82.2 | % | |||||||||||||||||||
| Plus: Depreciations, depletions and amortizations | 444,445 | 212,686 | 109.0 | % | 878,206 | 3,818,762 | 3,149,746 | 21.2 | % | |||||||||||||||||||
| UNCONSOLIDATED EBITDA | 7,463,865 | 4,664,165 | 60.0 | % | 7,092,306 | 27,879,620 | 16,358,448 | 70.4 | % | |||||||||||||||||||
| RECONCILIATION NET INCOME TO EBITDA | - | - | 0.0 | % | - | - | - | 0.0 | % | |||||||||||||||||||
| Net Income | 4,432,613 | 2,742,078 | 61.7 | % | 4,196,712 | 15,448,333 | 8,346,097 | 85.1 | % | |||||||||||||||||||
| Depreciations, depletions and amortizations | 444,445 | 212,686 | 109.0 | % | 878,206 | 3,818,762 | 3,149,746 | 21.2 | % | |||||||||||||||||||
| Financial income | (1,447,046 | ) | (1,166,449 | ) | 24.1 | % | (1,295,202 | ) | (4,910,696 | ) | (4,224,992 | ) | 16.2 | % | ||||||||||||||
| Financial expenses | 1,473,384 | 1,187,485 | 24.1 | % | 1,366,265 | 5,628,804 | 4,191,988 | 34.3 | % | |||||||||||||||||||
| Non financial income | (580,597 | ) | (424,977 | ) | 36.6 | % | (354,043 | ) | (1,478,225 | ) | (929,404 | ) | 59.1 | % | ||||||||||||||
| Non financial expenses | 1,069,442 | 547,089 | 95.5 | % | 372,127 | 2,558,234 | 2,103,966 | 21.6 | % | |||||||||||||||||||
| Results in subsidiaries | 21,031 | 472,223 | -95.5 | % | (134,340 | ) | (552,148 | ) | 641,168 | -186.1 | % | |||||||||||||||||
| Provision for income tax | 2,050,593 | 1,094,030 | 87.4 | % | 2,062,581 | 7,366,556 | 3,079,879 | 139.2 | % | |||||||||||||||||||
| UNCONSOLIDATED EBITDA | 7,463,865 | 4,664,165 | 60.0 | % | 7,092,306 | 27,879,620 | 16,358,448 | 70.4 | % | |||||||||||||||||||
| Ecopetrol Consolidated | ||||||||||||||||||||||||||||
| COP$ Millions | 4Q 2011 * | 4Q 2010 * | ∆ (%) | 3Q 2011* | 2011 | 2010 | ∆ (%) | |||||||||||||||||||||
| EBITDA CALCULATION | ||||||||||||||||||||||||||||
| Operating income | 7,397,969 | 3,951,585 | 87.2 | % | 6,625,789 | 25,690,963 | 12,878,842 | 99.5 | % | |||||||||||||||||||
| Plus: Depreciations, depletions and amortizations | 751,784 | 813,812 | -7.6 | % | 1,178,258 | 5,033,025 | 4,185,799 | 20.2 | % | |||||||||||||||||||
| Minority interest | (197,708 | ) | (133,214 | ) | 48.4 | % | (176,370 | ) | (702,855 | ) | (365,147 | ) | ||||||||||||||||
| CONSOLIDATED EBITDA | 7,952,045 | 4,632,183 | 71.7 | % | 7,627,677 | 30,021,133 | 16,699,494 | 79.8 | % | |||||||||||||||||||
| RECONCILIATION NET INCOME TO EBITDA | - | - | 0.0 | % | - | - | - | |||||||||||||||||||||
| Net income | 4,437,761 | 2,701,607 | 64.3 | % | 4,152,954 | 15,452,334 | 8,146,472 | 89.7 | % | |||||||||||||||||||
| Depreciations, depletions and amortizations | 751,784 | 813,812 | -7.6 | % | 1,178,258 | 5,033,025 | 4,185,799 | 20.2 | % | |||||||||||||||||||
| Financial income | (1,653,381 | ) | 1,560,803 | -205.9 | % | (4,282,750 | ) | (8,322,362 | ) | (4,706,491 | ) | 76.8 | % | |||||||||||||||
| Financial expenses | 1,784,766 | (1,708,778 | ) | -204.4 | % | 4,360,585 | 9,226,664 | 4,668,702 | 97.6 | % | ||||||||||||||||||
| Non financial income | (679,168 | ) | (430,893 | ) | 57.6 | % | (264,417 | ) | (1,634,884 | ) | (966,714 | ) | 69.1 | % | ||||||||||||||
| Non financial expenses | 1,155,046 | 726,408 | 59.0 | % | 391,263 | 2,780,113 | 2,390,728 | 16.3 | % | |||||||||||||||||||
| Minority interest on net income | 113,214 | (5,065 | ) | -2335.2 | % | 76,484 | 233,377 | 107,495 | 117.1 | % | ||||||||||||||||||
| Provision for income taxes | 2,239,731 | 1,107,502 | 102.2 | % | 2,191,670 | 7,955,721 | 3,238,650 | 145.6 | % | |||||||||||||||||||
| Minority interest on Ebitda | (197,708 | ) | (133,213 | ) | 48.4 | % | (176,370 | ) | (702,855 | ) | (365,147 | ) | ||||||||||||||||
| CONSOLIDATED EBITDA | 7,952,045 | 4,632,183 | 71.7 | % | 7,627,677 | 30,021,133 | 16,699,494 | 79.8 | % | |||||||||||||||||||
* Not audited, for illustration purposes only
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 36 |
VII. Subsidiaries results
Note: Financial statements of subsidiaries are not audited.
Exploration and Production
| 1. | Hocol: |
| Income Statement | ||||||||||||||||
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Local Sales | 2.9 | 4.8 | 9.1 | 27.8 | ||||||||||||
| Export Sales | 1,228.1 | 652.2 | 3,922.5 | 2,446.4 | ||||||||||||
| Sales of services | - | - | - | - | ||||||||||||
| Total Sales | 1,231.0 | 657.0 | 3,931.6 | 2,474.1 | ||||||||||||
| Variable Costs | 742.5 | 379.1 | 2,412.9 | 1,564.6 | ||||||||||||
| Fixed Costs | 115.8 | 101.3 | 438.6 | 314.7 | ||||||||||||
| Cost of Sales | 858.3 | 480.3 | 2,851.4 | 1,879.4 | ||||||||||||
| Gross profit | 372.7 | 176.6 | 1,080.2 | 594.8 | ||||||||||||
| Operating Expenses | 62.4 | 125.5 | 170.7 | 283.7 | ||||||||||||
| Operating Profit | 310.3 | 51.1 | 909.4 | 311.1 | ||||||||||||
| Profit/(Loss) before taxes | 280.9 | 50.2 | 915.2 | 268.8 | ||||||||||||
| Income tax | 78.1 | (0.3 | ) | 285.3 | 36.0 | |||||||||||
| Net Income/Loss | 202.8 | 50.5 | 629.9 | 232.8 | ||||||||||||
| EBITDA | 359.2 | 73.3 | 1,179.5 | 503.3 | ||||||||||||
| EBITDA margin | 29 | % | 11 | % | 30 | % | 20 | % | ||||||||
| Balance Sheet | ||||||||
| (COP$ Billion) | December 31, 2011 | December 31, 2010 | ||||||
| Current Assets | 1,400.7 | 931.2 | ||||||
| Long Term Assets | 1,613.5 | 1,417.2 | ||||||
| Total Assets | 3,014.2 | 2,348.4 | ||||||
| Current Liabilities | 557.2 | 566.8 | ||||||
| Long Term Liabilities | 178.4 | 145.3 | ||||||
| Deferred taxes | - | - | ||||||
| Total Liabilities | 735.6 | 712.1 | ||||||
| Equity | 2,278.6 | 1,636.3 | ||||||
| Total Liabilities and Shareholders´ Equity | 3,014.2 | 2,348.4 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 37 |
| 2. | Savia Perú |
Income Statement
| US$ million | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Local Sales | 149.0 | 88.5 | 416.6 | 318.8 | ||||||||||||
| Sales of services | 6.1 | 1.2 | 11.5 | 1.8 | ||||||||||||
| Total Sales | 155.0 | 89.7 | 428.1 | 320.6 | ||||||||||||
| Variable Costs | 22.5 | 38.5 | 134.8 | 132.1 | ||||||||||||
| Fixed Costs | 42.3 | 18.0 | 78.4 | 53.4 | ||||||||||||
| Cost of Sales | 64.7 | 56.5 | 213.2 | 185.5 | ||||||||||||
| Gross profit | 90.3 | 33.2 | 214.9 | 135.1 | ||||||||||||
| Operating Expenses | 45.6 | 8.7 | 75.0 | 61.3 | ||||||||||||
| Operating Profit | 44.7 | 24.5 | 139.9 | 73.8 | ||||||||||||
| Profit/(Loss) before taxes | 43.3 | 7.9 | 136.3 | 74.1 | ||||||||||||
| Income tax | 4.0 | 1.8 | 16.6 | 18.2 | ||||||||||||
| Deferred taxes | 1.8 | 4.0 | 20.9 | 9.1 | ||||||||||||
| Net Income/Loss | 37.5 | 2.1 | 98.8 | 46.8 | ||||||||||||
| EBITDA | 87.5 | 42.4 | 212.2 | 117.2 | ||||||||||||
| EBITDA margin | 59 | % | 48 | % | 51 | % | 37 | % | ||||||||
Balance Sheet
| US$ million | As of December 31, 2011 | As of December 31, 2010 | ||||||
| Current Assets | 237.5 | 221.7 | ||||||
| Long Term Assets | 583.7 | 399.9 | ||||||
| Total Assets | 821.2 | 621.6 | ||||||
| Current Liabilities | 254.2 | 65.6 | ||||||
| Long Term Liabilities | 79.8 | 126.8 | ||||||
| Deferred taxes | 42.1 | 20.4 | ||||||
| Total Liabilities | 376.1 | 212.8 | ||||||
| Equity | 445.2 | 408.8 | ||||||
| Total Liabilities and Shareholders´ Equity | 821.2 | 621.6 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 38 |
| 3. | Equión |
| Income Statement | ||||||||||||
| (COP$ Billion) | 4Q 2011 | 3Q 2011 | 2011 | |||||||||
| Local Sales | 53.4 | 43.3 | 150.3 | |||||||||
| Export Sales | 629.1 | 431.8 | 1,924.6 | |||||||||
| Sales of services | 1.3 | 1.0 | 3.9 | |||||||||
| Total Sales | 683.8 | 476.1 | 2,078.7 | |||||||||
| Variable Costs | 317.6 | 256.2 | 1,022.1 | |||||||||
| Fixed Costs | 56.6 | 34.8 | 144.7 | |||||||||
| Cost of Sales | 374.1 | 291.0 | 1,166.8 | |||||||||
| Gross profit | 309.7 | 185.1 | 911.9 | |||||||||
| Operating Expenses | 13.5 | 22.1 | 160.8 | |||||||||
| Operating Profit | 296.1 | 163.1 | 751.1 | |||||||||
| Profit/(Loss) before taxes | 364.2 | 151.4 | 699.1 | |||||||||
| Income tax | 98.0 | 63.9 | 272.6 | |||||||||
| Net Income/Loss | 266.2 | 87.5 | 426.5 | |||||||||
| EBITDA | 179.1 | 101.0 | 458.7 | |||||||||
| EBITDA margin | 26 | % | 21 | % | 22 | % | ||||||
Balance Sheet
| (COP$ Billion) | As of December 31, 2011 | As of September 30, 2011 | ||||||
| Current Assets | 1,061.1 | 850.9 | ||||||
| Long Term Assets | 2,112.1 | 1,126.7 | ||||||
| Total Assets | 3,173.2 | 1,977.6 | ||||||
| Current Liabilities | 800.1 | 763.7 | ||||||
| Long Term Liabilities | 154.4 | 159.5 | ||||||
| Total Liabilities | 954.5 | 923.2 | ||||||
| Equity | 2,218.7 | 1,054.4 | ||||||
| Total Liabilities and Shareholders´ Equity | 3,173.2 | 1,977.6 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 39 |
Refining and petrochemicals
| 1. | Propilco |
| Sales volume (tons) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Polypropylene | 93,646 | 101,755 | 376,707 | 404,759 | ||||||||||||
| Polypropylene marketing for COMAI | 4,397 | 2,319 | 13,019 | 9,782 | ||||||||||||
| Total | 98,043 | 104,073 | 389,726 | 414,542 | ||||||||||||
Income Statement
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Local Sales | 152.0 | 177.5 | 703.5 | 679.0 | ||||||||||||
| Export Sales | 186.4 | 162.6 | 778.2 | 652.3 | ||||||||||||
| Sales of services | - | - | - | - | ||||||||||||
| Total Sales | 338.4 | 340.2 | 1,481.7 | 1,331.3 | ||||||||||||
| Variable Costs | 289.0 | 267.6 | 1,248.5 | 1,133.7 | ||||||||||||
| Fixed Costs | 28.0 | 24.9 | 106.6 | 87.9 | ||||||||||||
| Cost of Sales | 317.0 | 292.5 | 1,355.1 | 1,221.6 | ||||||||||||
| Gross profit | 21.4 | 47.6 | 126.6 | 109.6 | ||||||||||||
| Operating Expenses | 25.7 | 23.8 | 99.6 | 93.7 | ||||||||||||
| Operating Profit | (4.2 | ) | 23.8 | 27.0 | 15.9 | |||||||||||
| Profit/(Loss) before taxes | 3.4 | 24.7 | 38.3 | 72.5 | ||||||||||||
| Income tax | 1.6 | 2.8 | 6.5 | 7.1 | ||||||||||||
| Minority interest | - | - | - | - | ||||||||||||
| Net Income/Loss | 1.8 | 21.9 | 31.8 | 65.4 | ||||||||||||
| EBITDA | 8.33 | 36.70 | 77.86 | 59.99 | ||||||||||||
| EBITDA margin | 2 | % | 11 | % | 5 | % | 5 | % | ||||||||
Balance Sheet
| As of | As of | |||||||
| COP$ Billion | December 31, 2011 | December 31, 2010 | ||||||
| Current Assets | 633.7 | 531.5 | ||||||
| Long Term Assets | 540.9 | 530.8 | ||||||
| Total Assets | 1,174.6 | 1,062.3 | ||||||
| Current Liabilities | 362.6 | 394.5 | ||||||
| Long Term Liabilities | 155.8 | 31.8 | ||||||
| Total Liabilities | 518.4 | 426.3 | ||||||
| Equity | 656.2 | 636.0 | ||||||
| Total Liabilities and Shareholders´ Equity | 1,174.6 | 1,062.3 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 40 |
| 2. | Reficar |
| Sales (MBOD) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Local | 45.4 | 39.3 | 43.0 | 40.2 | ||||||||||||
| Exports | 55.6 | 23.3 | 55.5 | 42.4 | ||||||||||||
| Total | 101.0 | 62.6 | 98.5 | 82.6 | ||||||||||||
Income Statement
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Local Sales | 1,226.6 | 839.4 | 3,518.9 | 2,551.3 | ||||||||||||
| Export Sales | 1,368.9 | 514.4 | 4,127.9 | 2,351.5 | ||||||||||||
| Sales of services | - | - | - | - | ||||||||||||
| Total Sales | 2,595.5 | 1,353.7 | 7,646.7 | 4,902.8 | ||||||||||||
| Variable Costs | 2,569.2 | 1,274.2 | 7,299.1 | 4,628.5 | ||||||||||||
| Fixed Costs | 103.0 | 150.8 | 272.9 | 315.6 | ||||||||||||
| Cost of Sales | 2,672.3 | 1,425.0 | 7,572.0 | 4,944.1 | ||||||||||||
| Gross profit | (76.8 | ) | (71.2 | ) | 74.7 | (41.3 | ) | |||||||||
| Operating Expenses | 31.8 | 20.8 | 128.2 | 61.3 | ||||||||||||
| Operating Profit | (108.6 | ) | (92.0 | ) | (53.5 | ) | (102.6 | ) | ||||||||
| Non Operating income | 109.3 | 28.8 | 247.0 | 79.2 | ||||||||||||
| Non Operating expenses | (203.3 | ) | (193.5 | ) | (350.5 | ) | (273.7 | ) | ||||||||
| Profit/(Loss) before taxes | (202.5 | ) | (256.7 | ) | (157.1 | ) | (297.1 | ) | ||||||||
| Income tax | 1.5 | 2.7 | 4.9 | 8.1 | ||||||||||||
| Minority interest | - | - | - | - | ||||||||||||
| Net Income/Loss | (204.0 | ) | (259.4 | ) | (162.0 | ) | (305.2 | ) | ||||||||
| EBITDA | (71.22 | ) | (18.23 | ) | 65.85 | 50.29 | ||||||||||
| EBITDA margin | -3 | % | -1 | % | 1 | % | 1 | % | ||||||||
Balance Sheet
| COP$ Billion | December 31, 2011 | December 31, 2010 | ||||||
| Current Assets | 1,307.3 | 733.3 | ||||||
| Long Term Assets | 5,753.7 | 3,468.6 | ||||||
| Total Assets | 7,061.0 | 4,201.9 | ||||||
| Current Liabilities | 2,494.3 | 1,077.8 | ||||||
| Long Term Liabilities | 2,006.1 | 397.6 | ||||||
| Total Liabilities | 4,500.4 | 1,475.4 | ||||||
| Equity | 2,560.6 | 2,726.5 | ||||||
| Total Liabilities and Shareholders´ Equity | 7,061.0 | 4,201.9 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 41 |
Transportation
| 1. | Ocensa |
| Transported volumes (MBOD) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Cusiana-Porvenir | 129.3 | 51.6 | 152.3 | 52.3 | ||||||||||||
| Porvenir-Vasconia | 573.8 | 471.9 | 563.3 | 458.1 | ||||||||||||
| Vasconia-Coveñas | 393.8 | 268.2 | 367.7 | 271.2 | ||||||||||||
| Coveñas-Export Port | 389.0 | 271.61 | 365.1 | 269.5 | ||||||||||||
Income Statement
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Sales of services | 138.8 | 66.0 | 857.3 | 1,110.6 | ||||||||||||
| Total Sales | 138.8 | 66.0 | 857.3 | 1,110.6 | ||||||||||||
| Cost of Sales | 199.6 | 193.4 | 716.8 | 679.8 | ||||||||||||
| Gross profit | (60.9 | ) | (127.3 | ) | 140.5 | 430.8 | ||||||||||
| Operating Expenses | 19.0 | 20.2 | 67.8 | 53.9 | ||||||||||||
| Operating Profit | (79.9 | ) | (147.6 | ) | 72.8 | 376.9 | ||||||||||
| Profit/(Loss) before taxes | (91.2 | ) | (22.1 | ) | 5.3 | 366.6 | ||||||||||
| Income tax | 1.3 | (7.0 | ) | 5.3 | 89.1 | |||||||||||
| Minority interest | - | - | - | - | ||||||||||||
| Net Income/Loss | (92.5 | ) | (15.1 | ) | 0.0 | 277.5 | ||||||||||
| EBITDA | 15.65 | 171.56 | 298.96 | 487.58 | ||||||||||||
| EBITDA margin | 11 | % | 260 | % | 35 | % | 44 | % | ||||||||
Balance Sheet
| As of | As of | |||||||
| COP$ Billion | December 31, 2011 | December 31, 2010 | ||||||
| Current Assets | 784.7 | 937.6 | ||||||
| Long Term Assets | 3,828.2 | 1,203.3 | ||||||
| Total Assets | 4,612.9 | 2,140.9 | ||||||
| Current Liabilities | 347.4 | 458.9 | ||||||
| Long Term Liabilities | 920.8 | 1,101.4 | ||||||
| Total Liabilities | 1,268.2 | 1,560.3 | ||||||
| Equity | 3,344.7 | 580.6 | ||||||
| Total Liabilities and Shareholders´ Equity | 4,612.9 | 2,140.9 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 42 |
| 2. | ODL |
| 4Q 2011 | 4Q 2010 | 2011 | 2010 | |||||||||||||
| Transported volumes (MBOD) | 220.5 | 146.6 | 208.1 | 137.9 | ||||||||||||
Income Statement
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Sales of services | 122.7 | 58.6 | 380.5 | 180.3 | ||||||||||||
| Total Sales | 122.7 | 58.6 | 380.5 | 180.3 | ||||||||||||
| Variable Costs | 22.0 | 5.3 | 62.2 | 24.1 | ||||||||||||
| Fixed Costs | 70.0 | 27.8 | 188.5 | 99.0 | ||||||||||||
| Cost of Sales | 92.0 | 33.1 | 250.7 | 123.1 | ||||||||||||
| Gross profit | 30.6 | 25.5 | 129.8 | 57.2 | ||||||||||||
| Operating Expenses | 4.8 | 2.9 | 15.0 | 7.7 | ||||||||||||
| Operating Profit | 25.9 | 22.7 | 114.8 | 49.6 | ||||||||||||
| Profit/(Loss) before taxes | 14.0 | 22.4 | 86.3 | 22.6 | ||||||||||||
| Income tax | 1.1 | 1.0 | 4.3 | 4.0 | ||||||||||||
| Minority interest | - | - | - | - | ||||||||||||
| Net Income/Loss | 12.9 | 21.4 | 82.0 | 18.6 | ||||||||||||
| EBITDA | 32.1 | 27.6 | 128.1 | 75.9 | ||||||||||||
| EBITDA margin | 26 | % | 47 | % | 34 | % | 42 | % | ||||||||
Balance Sheet
| COP$ Billion | December 31, 2011 | December 31, 2010 | ||||||
| Current Assets | 361.3 | 412.5 | ||||||
| Long Term Assets | 1,780.1 | 1,441.7 | ||||||
| Total Assets | 2,141.4 | 1,854.2 | ||||||
| Current Liabilities | 146.7 | 110.9 | ||||||
| Long Term Liabilities | 1,316.9 | 1,303.8 | ||||||
| Total Liabilities | 1,463.6 | 1,414.7 | ||||||
| Equity | 677.8 | 439.5 | ||||||
| Total Liabilities and Shareholders´ Equity | 2,141.4 | 1,854.2 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 43 |
Biofuels
| 1. | Ecodiesel |
| Ventas (KBPED) | IV. trim. 11 | IV. trim. 10 | 2011 | 2010 | ||||||||||||
| Biodiesel | 2.0 | 1.5 | 2.0 | 0.8 | ||||||||||||
| Glicerina | 0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||
| Total | 2.1 | 1.7 | 2.1 | 0.8 | ||||||||||||
Income Statement
| (COP$ Billion) | 4Q 2011 | 4Q 2010 | 2011 | 2010 | ||||||||||||
| Domestic sales | 98.0 | 56.7 | 290.9 | 94.9 | ||||||||||||
| Sales of services | - | - | - | - | ||||||||||||
| Total Sales | 98.0 | 56.7 | 290.9 | 94.9 | ||||||||||||
| Variable Costs | 91.4 | 50.5 | 269.8 | 85.4 | ||||||||||||
| Fixed Costs | - | - | - | - | ||||||||||||
| Cost of Sales | 91.4 | 50.5 | 269.8 | 85.4 | ||||||||||||
| Gross profit | 6.6 | 6.2 | 21.1 | 9.5 | ||||||||||||
| Operating Expenses | 4.1 | 0.7 | 13.1 | 1.5 | ||||||||||||
| Operating Profit | 2.6 | 5.5 | 8.0 | 8.0 | ||||||||||||
| Profit/(Loss) before taxes | 0.00 | 3.80 | 0.00 | 3.70 | ||||||||||||
| Income tax | - | - | - | - | ||||||||||||
| Minority interest | - | - | - | - | ||||||||||||
| Net Income | 0.00 | 3.80 | 0.00 | 3.70 | ||||||||||||
| EBITDA | 6.4 | 5.5 | 20.8 | 8.0 | ||||||||||||
| EBITDA margin | 7 | % | 10 | % | 7 | % | 8 | % |
| Balance Sheet | ||||||||
| COP$ Billion | As of December 31, 2011 | As of December 31, 2010 | ||||||
| Current Assets | 47.9 | 26.0 | ||||||
| Long Term Assets | 90.3 | 102.7 | ||||||
| Total Assets | 138.2 | 128.7 | ||||||
| Current Liabilities | 54.9 | 47.2 | ||||||
| Long Term Liabilities | 61.9 | 56.5 | ||||||
| Total Liabilities | 116.8 | 103.7 | ||||||
| Equity | 21.4 | 25.0 | ||||||
| Total Liabilities and Shareholders´ Equity | 138.2 | 128.7 | ||||||
Ecopetrol Investor Relations. Phone Number: 2345190, e-mail: investors@ecopetrol.com.co
www.ecopetrol.com.co
| 44 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: February 15, 2012
| Ecopetrol S.A. | |||
| By: | /s/ Adriana M. Echeverri | ||
| Name: | Adriana M. Echeverri | ||
| Title: | Chief Financial Officer | ||
| 45 |