Ecopetrol Announces Its Results for the First Quarter of 2014
| · | Net income and Ebitda increased compared with the fourth quarter of 2013, however, they were affected by lower production, price decreases and increase in variable costs. |
| · | Corporate Group’s subsidiaries and affiliates reported higher income. |
| · | One discovery of hydrocarbons in Colombia. |
BOGOTA, April 30, 2014. Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results1, both consolidated and unconsolidated, for the first quarter of 2014. The financial results were prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública, RCP) of Colombia’s General Accounting Office.
Summary of Ecopetrol S.A.’s financial results
| Unconsolidated |
| (COP$ Billion) | | 1Q 2014 * | | | 4Q 2013* | | | Var. % | | | 1Q 2013* | | | Var. % ** | |
| Total sales | | | 15,741.7 | | | | 16,201.3 | | | | (2.8 | %) | | | 14,771.8 | | | | 6.6 | % |
| Operating profit | | | 4,552.6 | | | | 4,077.4 | | | | 11.7 | % | | | 5,145.3 | | | | (11.5 | %) |
| Net Income | | | 3,225.9 | | | | 2,629.7 | | | | 22.7 | % | | | 3,495.7 | | | | (7.7 | %) |
| Earnings per share (COP$) | | | 78.46 | | | | 63.96 | | | | 22.7 | % | | | 85.02 | | | | (7.7 | %) |
| EBITDA | | | 7,704.6 | | | | 5,268.4 | | | | 46.2 | % | | | 7,746.0 | | | | (0.5 | %) |
| EBITDA Margin | | | 49 | % | | | 33 | % | | | | | | | 52 | % | | | | |
| Consolidated |
| (COP$ Billion) | | 1Q 2014 * | | | 4Q 2013* | | | Var. % | | | 1Q 2013* | | | Var. % ** | |
| Total sales | | | 18,262.0 | | | | 17,960.2 | | | | 1.7 | % | | | 16,745.7 | | | | 9.1 | % |
| Operating profit | | | 5,882.8 | | | | 4,209.7 | | | | 39.7 | % | | | 5,553.9 | | | | 5.9 | % |
| Net Income | | | 3,287.4 | | | | 2,426.5 | | | | 35.5 | % | | | 3,411.7 | | | | (3.6 | %) |
| EBITDA | | | 7,793.0 | | | | 4,901.4 | | | | 59.0 | % | | | 7,596.5 | | | | 2.6 | % |
| EBITDA Margin | | | 43 | % | | | 27 | % | | | | | | | 45 | % | | | | |
* Not audited
** Between 1Q 2014 and 1Q 2013
1Some figures in this release are presented in U.S. dollars (US$), as indicated. The financial results in the main body of this report have been rounded to one decimal place. Figures presented in COP$ billion are equivalent to COP$1 thousand million (COP$1,000,000,000). Additionally, some 2013 figures have been reclassified to be comparable to those of 2014.
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In the opinion of Ecopetrol S.A.’s CEO, Javier Gutiérrez:
The financial results of the first quarter of 2014 were better compared with those from the fourth quarter of 2013. The unconsolidated net income as well as the Ebitda increased 22.7% and 46.2% respectively.
The results of the first quarter of 2014 reflected the difficult operating conditions: there were 33 attacks on infrastructure, and blockades by some communities in different regions across Colombia. Due to this situation, we have experienced delays in execution of some E&P projects. In midstream, the operation of the Bicentenario oil pipeline has remained disrupted since February 20 and in the Caño Limon – Coveñas pipeline since March 25. As a consequence, average production reached 765.7 mboed falling 3.2% compared to the first quarter of 2013, and 1.8% compared to the last quarter of 2013.
The dollar sales price of crudes, products and gas declined 8.1%, 5.3% and 16.3%, respectively, versus the same period of 2013, as the result of international market conditions.
Higher variable costs were generated due to higher transportation fees, the cost of transporting by truck, increased purchases of ultra-low sulfur content diesel and diluent, among others.
The better results for the companies of the Corporate Group, came from the Midstream and Upstream segments, the latter posting a 5.0% growth in production.
We had several highlights during the quarter such as the discovery in the well Tibirita 1A in Llanos Orientales, the 11 most competitive bids for the blocks in Lease 231 in the Gulf of Mexico (U.S.), the 55 thousand barrel increase in the capacity of the San Fernando–Monterrey transport system, the achievement of 89% completion in the Reficar modernization project, and the two patents in Colombia for the production of biofuels. Additionally we also highlight the progress in projects such as the water flooding pilot in the Galan field and the CEOR pilot at the Yariguí field.
We are advancing in the initiatives to improve operating conditions, and the progress in the capex plan, including close cooperation and coordination with Government agencies such as the Military Forces, the Labor Ministry and Local governments. We have a dedicated multidisciplinary team with the objective of prioritizing and implementing the key projects.
As a closing, I would like to reiterate our commitment to overcome the operational difficulties and move forward with the projects that will allow us to continue along the path of growth.”
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Ecopetrol presents its results for the first quarter of 2014
Table of Contents
| I. | Financial Results | 4 |
| a. | Availability of Crude, Natural Gas and Refined Products | 4 |
| b. | Sales Volumes | 5 |
| c. | Crude, Refined Product and Natural Gas Prices | 6 |
| d. | Financial Results | 7 |
| e. | Cash Flow | 10 |
| f. | Balance Sheet | 10 |
| II. | Consolidated Financial Results | 12 |
| b. | Segment results | 13 |
| III. | Operating Results | 15 |
| a. | Investment plan | 15 |
| b. | Exploration | 15 |
| c. | Production | 17 |
| d. | Refining | 18 |
| e. | Transportation | 19 |
| IV. | Organizational Consolidation and Corporate Governance | 21 |
| a. | Organizational consolidation | 21 |
| b. | Corporate Responsibility | 21 |
| V. | First Quarter of 2014 Conference Calls | 23 |
| VI. | Additional Exhibits | 24 |
| VII. | Exhibits of Subsidiary Results and Shareholder Interest | 30 |
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| a. | Availability of Crude, Natural Gas and Refined Products |
The availability of Ecopetrol S.A. crude, natural gas and refined products was the following:
Ecopetrol S.A. (unconsolidated)*
| 1) Crude Oil (mbod) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| (+) Net Production** | | | 504.4 | | | | 524.3 | | | | (3.8 | %) |
| (+) Purchases*** | | | 180.0 | | | | 197.6 | | | | (8.9 | %) |
| (+) Diluent | | | 78.7 | | | | 64.7 | | | | 21.6 | % |
| Total | | | 763.1 | | | | 786.6 | | | | (3.0 | %) |
| 2) Natural Gas (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| (+) Net Production** | | | 107.3 | | | | 102.7 | | | | 4.5 | % |
| (+) Purchases*** | | | 2.2 | | | | 10.9 | | | | (79.8 | %) |
| Total | | | 109.5 | | | | 113.6 | | | | (3.6 | %) |
| 3) Refined Products (mbd) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| (+) Production | | | 227.0 | | | | 219.7 | | | | 3.3 | % |
| (+) Local Purchase | | | 12.2 | | | | 14.0 | | | | (12.9 | %) |
| (+) Imports | | | 121.2 | | | | 100.4 | | | | 20.7 | % |
| Total | | | 360.4 | | | | 334.1 | | | | 7.9 | % |
* Does not include variation in inventories
** Does not include royalties
*** Includes royalties purshased from the National Hydrocarbon Agency (Agencia Nacional de Hidrocarburos, ANH), royalties from Ecopetrol and other companies, and local purchases from third parties
The main results of the first quarter of 2014 were:
| · | Lower crude production (-19.9 mbod): see explanation on page 17. |
| · | Lower purchases of crude oil (-17.6 mbod): |
| o | Decreased royalty purchases driven by lower production in Colombia. |
| o | Decreased purchases from third parties due to: 1) lower transport capacity in the country’s southern region and 2) operational problems in crude fields operated by third parties. |
| · | Lower purchases of gas (-8.7 mboed): |
| o | Decreased royalty purchases in accordance with Resolution No. 877 of September 25, 2013, which establishes the cash collection by ANH from royalties and compensations due to the development of gas fields in lieu of in-kind payments of royalties. |
| o | Decreased purchases from third parties due to: 1) less availability of gas from the Payoa field operated by Petrosantander, and 2) higher quantity of gas owned by Ecopetrol for sale. |
| · | Decreased local purchases of refined products (-1.8 mbod): less availability of Reficar S.A. fuel as a result of the scheduled shut down of the Cartagena refinery starting March 3rd. |
| o | Increased imports (+20.8 mbod) of the following products: |
| o | Diluent: 1) increased inventories, and 2) decreased deliveries of naphtha produced at Barrancabermeja due to higher production of gasoline and jet fuel. |
| o | Diesel and Jet fuel: increased demand in Colombia. |
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| o | Industrials and Petrochemicals: imports of lubricants bases and other products for local supply. |
Ecopetrol S.A. (unconsolidated)
Sales volume
| Local sales volume (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Crude Oil | | | 56.2 | | | | 22.9 | | | | 145.4 | % |
| Natural Gas | | | 80.4 | | | | 59.9 | | | | 34.2 | % |
| Gasoline | | | 71.5 | | | | 70.6 | | | | 1.3 | % |
| Medium Distillates | | | 118.6 | | | | 111.1 | | | | 6.8 | % |
| LPG and propane | | | 15.0 | | | | 14.2 | | | | 5.6 | % |
| Fuel oil | | | 3.4 | | | | 1.9 | | | | 78.9 | % |
| Industrial and Petrochemical | | | 16.1 | | | | 11.9 | | | | 35.3 | % |
| Total Local Sales | | | 361.2 | | | | 292.5 | | | | 23.5 | % |
| Export sales volume (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Crude Oil | | | 448.7 | | | | 432.8 | | | | 3.7 | % |
| Products | | | 58.0 | | | | 56.3 | | | | 3.0 | % |
| Natural Gas | | | 19.8 | | | | 21.6 | | | | (8.3 | %) |
| Total Export Sales | | | 526.5 | | | | 510.7 | | | | 3.1 | % |
| Sales to free trade zone (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Crude Oil | | | 38.0 | | | | 76.0 | | | | (50.0 | %) |
| Products | | | 2.7 | | | | 3.0 | | | | (10.0 | %) |
| Natural Gas | | | 5.4 | | | | 3.2 | | | | 68.8 | % |
| Total sales to free trade zone | | | 46.1 | | | | 82.2 | | | | (43.9 | %) |
| | | | | | | | | | | | | |
| Total sales volume | | | 933.8 | | | | 885.4 | | | | 5.5 | % |
b.1) Market in Colombia: Sales to the Colombian market comprised 44% of total sales in the first quarter of 2014 (39% excluding sales to free trade zones):
The increase of 34.5%in local sales volumes in the first quarter of 2014 is explained mainly by:
| o | Crude (+33.3 mbod): increase in sales to affiliates Hocol and Equión, thus making use of transportation synergies. |
| · | Natural Gas (+20.5 mboed): 1) increased availability of gas driven by the change in collection (collected in cash instead of in kind), 2) increased thermal generation owing to higher energy costs, and 3) increased sales to the industrial sector. |
| o | Medium distillates (+7.5 mbod): increase in demand for diesel and jet fuel. |
| o | Industrial and Petrochemical products (+4.2mbod): higher asphalt sales. |
b.2)International market: Sales to the international market comprised 56% of total sales in the first quarter of 2014 (61% including sales to free trade zones):
The 3.1% higher exported volume in first quarter 2014 is explained as the net effect of:
| · | Crude (+15.9 mbod): decreased deliveries to Reficar S.A. as a result of the shutdown of the crude unit, the current refinery´s last operating unit, starting March 3 of 2014. The decrease in deliveries caused an increase in the availability of crude for export. |
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| · | Products (+1.7 mbod): higher fuel oil production in the Barrancabermeja refinery due to a higher feedstock. |
| · | Natural Gas (-1.8 mboed): greater thermal supply to local market and less availability of Gibraltar and Guajira gas. |
However, sales volumes to free trade zones fell 43.9% due to:
| o | Crude (-38.0 mbod): as a result of a general scheduled shutdown at the Cartagena refinery to ensure the new refinery’s mechanical completion by December 2014. |
The market diversification evidences the progress of the strategy of increasing the share in crude exports to Asia and Europe. There was also a growth in exports of fuel oil to the U.S. Gulf Coast and the Eastern Coast.
| Export destinations - Crudes |
| Destination | | 1Q 2014 | | | 1Q 2013 | |
| Asia | | | 44.4 | % | | | 34.2 | % |
| U.S. Gulf Coast | | | 25.4 | % | | | 41.7 | % |
| Europe | | | 14.4 | % | | | 7.6 | % |
| U.S. West Coast | | | 11.2 | % | | | 7.0 | % |
| Central America / Caribbean | | | 2.5 | % | | | 3.5 | % |
| South America | | | 2.1 | % | | | 4.7 | % |
| U.S. East Coast | | | 0.0 | % | | | 1.3 | % |
| | | | 100.0 | % | | | 100.0 | % |
| Export destinations - Products |
| Destination | | 1Q 2014 | | | 1Q 2013 | |
| Central America / Caribbean | | | 36.5 | % | | | 38.5 | % |
| Asia | | | 24.8 | % | | | 45.2 | % |
| U.S. West Coast | | | 14.2 | % | | | 0.0 | % |
| U.S. East Coast | | | 13.6 | % | | | 16.3 | % |
| U.S. Gulf Coast | | | 10.8 | % | | | 0.0 | % |
| South America | | | 0.1 | % | | | 0.0 | % |
| | | | 100.0 | % | | | 100.0 | % |
| c. | Crude, Refined Product and Natural Gas Prices |
Prices of crude references
(Average, US$/Bl) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | | | ∆ ($) | |
| Brent | | | 107.9 | | | | 112.8 | | | | (4.3 | %) | | ($ | 4.9 | ) |
| MAYA | | | 89.3 | | | | 102.7 | | | | (13.0 | %) | | ($ | 13.4 | ) |
| WTI | | | 98.7 | | | | 96.5 | | | | 2.3 | % | | $ | 2.2 | |
Sales price
(US$/Bl) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | | | ∆ ($) | | | Sales
Volume
1Q 2014 | |
| Crude oil basket | | | 94.4 | | | | 102.7 | | | | (8.1 | %) | | | (8.3 | ) | | | 542.9 | |
| Products basket | | | 108.3 | | | | 114.3 | | | | (5.2 | %) | | | (6.0 | ) | | | 285.1 | |
| Natural gas basket | | | 27.7 | | | | 33.1 | | | | (16.3 | %) | | | (5.4 | ) | | | 105.6 | |
Crudes:
Between the first quarter of this year and the same period of last year, the sale price of the crude basket fell by US$8.3 per barrel as a result of:
| · | The lower price of heavy and medium crudes (Maya crude fell US$13.5 per barrel and Brent fell US$4.8 per barrel) owing to an increase in the availability of Canadian crude in the U.S. Gulf Coast. The prices of medium crudes decreased due to higher exports from Iran and development of new fields in Irak. |
During the first quarter of the year, the crude oil export basket of Ecopetrol was indexed to Brent (66%) and Maya (34%).
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Products:
During the first quarter of 2014, the price of the product sales basket decreased US$6 per barrel versus the same period for last year, owing to lower international prices of fuels.
Natural gas:
During the first quarter of 2014, sale prices were reduced by US$5.4 per barrel equivalent due to the lower sales prices of Guajira and Cusiana-Cupiagua gas as a result of the price de-regulation (CREG Resolution of Aug. 15 / 2013).
| Unconsolidated Income Statement | | | |
| (COP$ Billion) | | 1Q 2014* | | | 1Q 2013* | | | ∆ ($) | | | ∆ (%) | |
| Local Sales | | | 5,839.8 | | | | 4,660.7 | | | | 1,179.1 | | | | 25.3 | % |
| Export Sales | | | 8,752.8 | | | | 8,248.2 | | | | 504.6 | | | | 6.1 | % |
| Sales to free trade zone | | | 773.2 | | | | 1,409.5 | | | | (636.3 | ) | | | (45.1 | %) |
| Sales of services | | | 375.9 | | | | 453.4 | | | | (77.5 | ) | | | (17.1 | %) |
| Total Sales | | | 15,741.7 | | | | 14,771.8 | | | | 969.9 | | | | 6.6 | % |
| Variable Costs | | | 8,060.2 | | | | 6,781.2 | | | | 1,279.0 | | | | 18.9 | % |
| Fixed Costs | | | 1,885.8 | | | | 1,731.0 | | | | 154.8 | | | | 8.9 | % |
| Cost of Sales | | | 9,946.0 | | | | 8,512.2 | | | | 1,433.8 | | | | 16.8 | % |
| Gross profit | | | 5,795.7 | | | | 6,259.6 | | | | (463.9 | ) | | | (7.4 | %) |
| Operating Expenses | | | 1,243.1 | | | | 1,114.3 | | | | 128.8 | | | | 11.6 | % |
| Operating Profit | | | 4,552.6 | | | | 5,145.3 | | | | (592.7 | ) | | | (11.5 | %) |
| Non Operating Profit/Loss | | | 371.0 | | | | 151.2 | | | | 219.8 | | | | 145.4 | % |
| Income tax | | | 1,697.7 | | | | 1,800.8 | | | | (103.1 | ) | | | (5.7 | %) |
| Net Income | | | 3,225.9 | | | | 3,495.7 | | | | (269.8 | ) | | | (7.7 | %) |
| | | | | | | | | | | | | | | | | |
| Earnings per share (COP$) | | | 78.46 | | | | 85.02 | | | | (6.56 | ) | | | (7.7 | %) |
| EBITDA | | | 7,704.6 | | | | 7,746.0 | | | | (41.40 | ) | | | (0.5 | %) |
| EBITDA Margin | | | 49 | % | | | 52 | % | | | | | | | | |
* Not audited
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
The following is an explanation of the main variations in results:
Total salesin the first quarter of 2014 increased 6.6% (+COP$969.9 billion) despite the 8.5% reduction in average sale price compared to the same period of 2013. This was a result of:
| o | Devaluation of the COP$/US exchange rate: +COP$1,551 billion. |
| o | Higher refined product sales volumes (+48.4 mboed): +COP$378 billion. |
| o | Decrease in the average basket of US$8.5 per barrel: -COP$882 billion. |
Cost of sales in first quarter of 2014 increased 16.8% compared to the same period of 2013. This quarter is not comparable with the same quarter of 2013 given that by March of 2013 only the profit center scheme in Ocensa had been implemented and the Cenit model began operations in April.
| o | Variable costs: increase of 19% (+COP$1,279 billion) owing to: |
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| o | Cost of hydrocarbon transport (+COP$674 billion) due to: 1) payment of fees for transporting by oil pipelines and multipurpose pipelines to Cenit, 2) payment of the fee for transportation through Bicentenario pipeline, 3) higher transport payment via oil pipeline to Ocensa and ODC (Oleoducto de Colombia) due to the change in business model from cost center to profit center with fees regulated by the Ministry of Mines starting February of 2013, and 4) greater use of tanker trucks to transport diluent and crude. |
| o | Crude, gas and refined product purchases (+COP$124 billion): owing to the combined effect of: |
| § | Devaluation of 11.9% in the average exchange rate for the year compared to the average rate of the same period of last year: +COP$568 billion |
| § | Net effect of lower average purchase price of –USD 6.4 per barrel due to lower international benchmark prices: -COP$445 billion. |
| o | Amortization and depletion of fields caused by the increase in investments in 2013 and the first quarter of 2014: +COP$113 billion. |
| o | Variation in inventory corresponding to higher sales in first quarter 2014 (5% more than in the same period of 2013): +COP$299 billion |
| o | Variable costs compared to the first quarter of 2013 due to a decrease of process materials for treatment as chemicals and catalysts, and lower energy consumption caused by the decrease in the production of direct fields: -COP$14 billion. |
| o | Fixed costs:increase of 9% (+COP$155 billion) as a consequence of: |
| o | Ecopetrol contracted services owing to the higher cost of IT professional services, contracts relating to the pipeline infrastructure integrity plan, higher surveillance costs and other services: +COP$77 billion. |
| o | Well and pipeline maintenance: +COP$71 billion. |
| o | Labor costs due to an increase in personnel, the 3.66% wage increase starting July 2013, and employee retention policy increases: +COP$41 billion. |
| o | Partnership contracted services: +COP$32 billion. |
| o | Depreciations due to the transfer of transport assets to Cenit in April of 2013: -COP$41 billion |
Operating expensesincreased by COP$128 billion (+11%) compared to the same period a year ago, primarily as a result of:
| · | Higher exploratory expenditures: +COP$176 billion. |
| · | Reversal of provisions: COP -$32 billion. |
| · | Others (mainly decrease in amortizations of intangible assets): -COP$16 billion. |
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Theoperating margin in the first quarter of 2014 was 29% in comparison to 35% in the same period of 2013.
Thenon-operating result improved by COP$219.8 billion, which was the net result of:
| · | Increased income of affiliates and subsidiaries: +COP$470 billion. The results of those companies (recorded by means of the equity method) increased from a profit of COP$154 billion in the first quarter of 2013 to a profit of COP$624 billion in the same period of 2014. This increase was the result of: |
| o | Midstream (+COP$378 billion): higher earnings generated by the fees set by the Ministry of Mines and Energy in Ocensa and ODC, and from the start-up of Cenit operations beginning in the second quarter of 2013. |
| o | Upstream (+COP$73 billion): mostly from an increase in production and volumes sold by Equion Energía Limited (+COP$58 billion) and Hocol S.A. (+COP$12 billion). |
| o | Downstream (+COP$16 billion): decrease in recorded losses, primarily the COP$2 billion income recorded by Propilco compared to its COP$9 billion loss in the first quarter of last year, and the increased earnings of Bioenergy resulting from a non-operating income of COP$6 billion (penalty to a contractor). |
| Equity Method: Net income per segment |
| (COP$ billion) |
| | | 1Q 2014 | | | 1Q 2013 | |
| Upstream | | | 123.0 | | | | 50.0 | |
| Midstream | | | 594.0 | | | | 216.0 | |
| Downstream | | | (111.0 | ) | | | (128.0 | ) |
| Corporate | | | 18.0 | | | | 16.0 | |
| Total | | | 624.0 | | | | 154.0 | |
| · | Decreased expenditures on retiree health and education: COP +$21 billion. |
| · | Exchange rate difference due to the devaluation of the COP in 2014 (mark to market of dollar denominated liabilities and net balance in dollars): COP -$143 billion. |
| · | Lower balance of securities portfolio: COP -$52 billion. |
| · | Increased interest expenditures owing to higher level of indebtedness: COP -$62 billion. |
| · | Lower dividends received in 2014 compared to 2013: COP -$12 billion. |
The 5.7% decrease (+COP$103 billion) inincome tax in the first quarter 2014 from the same period of 2013 is explained principally by the lower income during the first quarter of 2014. The effective tax rate was 34.5% compared to 34.0% in the same quarter of 2013.
Net income for the quarter reached COP$3,225 billion, 7.7% lower than in the first quarter of 2013.EBITDA in first quarter 2014 fell by 0.5% compared to the same period of 2013, andEBITDA margin was 49%, compared to 52% in the first quarter of the prior year.
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| COP$ Billion* | | 1Q 2014 | | | 1Q 2013 | |
| Initial Cash | | | 5,105.4 | | | | 10,693.1 | |
| Cash generated from operations (+) | | | 15,461.0 | | | | 14,799.4 | |
| Cash used in operations (-) | | | (11,396.4 | ) | | | (10,284.8 | ) |
| Capex (-) | | | (3,104.8 | ) | | | (2,980.9 | ) |
| Acquisitions (-) | | | - | | | | - | |
| Dividend payments (-) | | | (1,309.9 | ) | | | (3,915.4 | ) |
| Equity offering (+) | | | - | | | | - | |
| New debt (+) | | | 84.6 | | | | - | |
| Other inflows (+/-) | | | 313.2 | | | | 173.1 | |
| Fx differences (+) | | | 185.8 | | | | 104.1 | |
| Final Cash | | | 5,338.9 | | | | 8,588.6 | |
*For reporting purposes, balances in US$ are converted to COP$ monthly using the average exchange rate. The initial cash balance for each quarter is estimated based on the average rate for the first month and the final balance is estimated based on the average rate for the last month of the quarter.
As of March 31, 2014, Ecopetrol had COP$5,339 billion in cash and portfolio investments (35.8% denominated in U.S. dollars).
Unconsolidated Balance Sheet
| (COP$ Billion) | | March 31, 2014 | | | December 31, 2013 | | | ∆ $ | | | ∆ (%) | |
| Current Assets | | | 22,967.4 | | | | 21,744.4 | | | | 1,223.0 | | | | 5.6 | % |
| Long Term Assets | | | 92,689.5 | | | | 92,296.8 | | | | 392.7 | | | | 0.4 | % |
| Total Assets | | | 115,656.9 | | | | 114,041.2 | | | | 1,615.7 | | | | 1.4 | % |
| Current Liabilities | | | 27,236.2 | | | | 18,562.9 | | | | 8,673.3 | | | | 46.7 | % |
| Long Term Liabilities | | | 23,952.1 | | | | 23,683.8 | | | | 268.3 | | | | 1.1 | % |
| Total Liabilities | | | 51,188.3 | | | | 42,246.7 | | | | 8,941.6 | | | | 21.2 | % |
| Equity | | | 64,468.6 | | | | 71,794.5 | | | | (7,325.9 | ) | | | (10.2 | %) |
| Total Liabilities and Equity | | | 115,656.9 | | | | 114,041.2 | | | | 1,615.7 | | | | 1.4 | % |
| | | | | | | | | | | | | | | | | |
| Debit Memorandum accounts | | | 137,518.3 | | | | 132,941.5 | | | | | | | | | |
| Credit Memorandum accounts | | | 98,985.3 | | | | 97,288.0 | | | | | | | | | |
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
In the first quarter of 2014, assets increased by +COP$1,615.7 billion due mainly
| a) | Increases incurrent assets of +COP$1,223.0: |
| · | Higher advances, payments and deposits (+COP$756.6 billion) stemming especially from: 1) advance payments and self-withholding industry and trade tax, sales tax and income tax for equity (CREE) to government entities of +COP$611.7 billion; and 2) advance payments for hydrocarbon transport services of +COP$69.7 billion. |
| · | Higher accounts receivables (+COP$465.9 billion) from: 1) dividends and interest stakes of +COP$767.7 billion, and 2) offset by lower accounts receivable of –COP$323.3 billion. |
| · | Net effect of reduction in temporary investments (-COP$32.1 billion) from the redemption and sale of securities, required to meet April’s local currency outflows. |
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| b) | Non-current assets increase of +COP$392.7 billion, as a result of: |
| · | Increase in non-current investments of +COP$1,501 billion from: 1) Equity investments of +COP$1,361 billion, notably the capitalizations, carried out during the first quarter of the year in Andean Chemical for +COP$537 billion, Cartagena Refinery for +COP$289 billion, Ecopetrol Global Energy for +COP$109 billion; 2) higher long term investment; and 3) greater investment in securities for +COP$24 billion. |
| · | Amortization of the equity tax and surcharge for the year 2014 for –COP$476.4 billion. |
| · | Decline in other assets of –COP$166 billion explained by: 1) goodwill amortizations of –COP$57.9 billion, and 2) a decline in intangibles from the transfer of assignment of rights to Cenit for –COP$90 billion. |
| · | Decline in natural resources and environment of -COP$454.6 billion, the net effect of amortization of fields –COL$881 billion and capitalizations and additions of natural resources of +COP$426 billion mainly in the following fields: Pauto, Rubiales, Cusiana, Caño Limón, Quifa Suroeste, Castilla Norte, Infantas, Castilla, Cupiagua, and Peguita. |
At the close of the first quarter, liabilities represented 44% of assets, an increase of COP$8,941 billion from December 31, 2013, that was prinicipally the result of:
| · | Higher accounts payable of COP$8,494.9 billion, mainly because of the payment of a shareholder dividend of COP$10,690 billion. This increase is partially offset by the final 2012 dividend payment to the Colombian Government made in January 2014 for COP$1,309 billion. |
| · | Higher taxes, contributions and rates of +COP$367 billion, due to especially the increase in the income tax provision of +COP331 billion (in February, the first income tax payment was made for –COP$1,367 billion). |
| · | Increase in financial obligations of +COP$262.1 billion: 1) additional disbursement of the Eximbank facility for +COP$85.9 billion, and 2) higher local currency value of dollar denominated debt bonds due to COP devaluation, +COP$145.9 billion. |
| · | Decrease in short-term financial obligations of –COP$-134 billion due to: 1) the first interest payment on the international bond issue in 2013 for –COP$-146 billion; 2) the interest payment on the local bond issue in February for –COP$-31 billion; 3) accrual of quarterly interests on financial liabilities, +COP$79 billion. |
In comparison to December 2013, equity dropped by COP$7,325.9 billion to COP$64,468.6 billion. This decline is mainly the result of accrual of dividends in accordance with the 2013 earnings distribution of COP$10,690.3 billion, which was partially offset by earnings generated in the quarter of COP$3,325.8 billion.
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| II. | Consolidated Financial Results2 |
| a. | Income Statement and Balance sheet |
Consolidated Income Statement
| (COP$ Billion) | | 1Q 2014* | | | 1Q 2013* | | | ∆ ($) | | | ∆ (%) | |
| Local Sales | | | 5,879.5 | | | | 5,708.8 | | | | 170.7 | | | | 3.0 | % |
| Export Sales | | | 11,735.0 | | | | 10,479.5 | | | | 1,255.5 | | | | 12.0 | % |
| Sales of services | | | 647.5 | | | | 557.4 | | | | 90.1 | | | | 16.2 | % |
| Total Sales | | | 18,262.0 | | | | 16,745.7 | | | | 1,516.3 | | | | 9.1 | % |
| Variable Costs | | | 8,431.1 | | | | 7,756.8 | | | | 674.3 | | | | 8.7 | % |
| Fixed Costs | | | 2,411.2 | | | | 2,062.9 | | | | 348.3 | | | | 16.9 | % |
| Cost of Sales | | | 10,842.3 | | | | 9,819.7 | | | | 1,022.6 | | | | 10.4 | % |
| Gross profit | | | 7,419.7 | | | | 6,926.0 | | | | 493.7 | | | | 7.1 | % |
| Operating Expenses | | | 1,536.9 | | | | 1,372.1 | | | | 164.8 | | | | 12.0 | % |
| Operating Profit | | | 5,882.8 | | | | 5,553.9 | | | | 328.9 | | | | 5.9 | % |
| Non Operating Profit/Loss | | | (230.6 | ) | | | (31.6 | ) | | | (199.0 | ) | | | 629.7 | % |
| Income tax | | | 2,111.2 | | | | 1,994.8 | | | | 116.4 | | | | 5.8 | % |
| Minority interest | | | 253.6 | | | | 115.8 | | | | 137.8 | | | | 119.0 | % |
| Net Income | | | 3,287.4 | | | | 3,411.7 | | | | (124.3 | ) | | | (3.6 | %) |
| | | | | | | | | | | | | | | | | |
| EBITDA | | | 7,793.0 | | | | 7,596.5 | | | | 196.5 | | | | 2.6 | % |
| EBITDA Margin | | | 43 | % | | | 45 | % | | | | | | | | |
* Not audited
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
Consolidated Balance Sheet
| (COP$ Billion) | | March 31, 2014 | | | December 31, 2013 | | | ∆ $ | | | Δ (%) | |
| Current Assets | | | 30,406.0 | | | | 28,509.0 | | | | 1,897.0 | | | | 6.7 | % |
| Long Term Assets | | | 104,098.9 | | | | 103,918.9 | | | | 180.0 | | | | 0.2 | % |
| Total Assets | | | 134,504.9 | | | | 132,427.9 | | | | 2,077.0 | | | | 1.6 | % |
| Current Liabilities | | | 31,559.7 | | | | 22,302.6 | | | | 9,257.1 | | | | 41.5 | % |
| Long Term Liabilities | | | 35,161.0 | | | | 34,432.4 | | | | 728.6 | | | | 2.1 | % |
| Total Liabilities | | | 66,720.7 | | | | 56,735.0 | | | | 9,985.7 | | | | 17.6 | % |
| Equity | | | 63,053.2 | | | | 71,119.2 | | | | (8,066.0 | ) | | | (11.3 | %) |
| Minority interest | | | 4,731.0 | | | | 4,573.7 | | | | 157.3 | | | | 3.4 | % |
| Total Liabilities and Equity | | | 134,504.9 | | | | 132,427.9 | | | | 2,077.0 | | | | 1.6 | % |
| | | | | | | | | | | | | | | | | |
| Debit Memorandum accounts | | | 157,551.7 | | | | 152,210.7 | | | | | | | | | |
| Credit Memorandum accounts | | | 100,831.2 | | | | 111,774.6 | | | | | | | | | |
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
2 For purposes of consolidation of the first quarter, besides Ecopetrol, S.A. results, those of the following subsidiaries have been included:
Ecopetrol Oleo e Gas Do Brasil, Ecopetrol América Inc, Ecopetrol del Perú S.A., Hocol S.A., Hocol Petroleum Limited, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Pipelines Limited, Oleoducto de Colombia, Ocensa S.A., Reficar, Oleoducto Bicentenario, Ecopetrol Capital A.G., Equión Energía Limited, Ecopetrol Global Capital SLU, Cenit Transporte y Logística de Hidrocarburos S.A.S. (“Cenit”).
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The highest contributions tototal sales among individual subsidiaries (without the effect of eliminations) during the first quarter of 2014 came from Hocol with COP$1,317.3 billion, Cartagena Refinery (Reficar) with COP$1,139.9 billion, Cenit with COP$746.5 billion, Ocensa with COP$699.6 billion, Equión with COP$648.6 billion, Propilco with COP$384.3 billion, and Bicentenario with COP$205.9 billion.
Thehighest earningsof the companies of the group came from Cenit with COP$593 billion, Ocensa with COP$409 billion, Equion with COP$168 billion, Hocol with COP$104 billion, O. Bicentenario with COP$56 billion and ODC with COP$57 billion. The highest net losses were reported by Ecopetrol América Inc. with COP$-64 billion, Refinería de Cartagena with COP$-58 billion and Ecopetrol Oleo e Gas do Brasil with COP$-18 billion.
Ecopetrol del Perú, Ecopetrol Oleo & Gas do Brasil, Ecopetrol América and Bioenergy have still not reported earnings either because they are in the pre-operating stage or have been conducting exploratory activities with no production to date (with the exception of Ecopetrol America).
In midstream, the financial results of all affiliates are consolidated at the business group level. Therefore, the financial information presented for Cenit corresponds to its individual results, and the earnings of the other transportation companies are accounted under the equity method.
By means of the asset participation method, Offshore International Group generated income of COP$13.5 billion, Ecodiesel of COP$1 billion, and Transgas of COP$0.7 billion, and Invercolsa of COP$-0.3 billion.
Quarterly Results by Segment
| | | | E&P | | | Refining & Petrochem. | | | Transportation and Logistics | | | Eliminations | | | Ecopetrol Consolidated | |
| COP$ Billion | | | 1Q 2014 | | | 1Q 2013 | | | 1Q 2014 | | | 1Q 2013 | | | 1Q 2014 | | | 1Q 2013 | | | 1Q 2014 | | | 1Q 2013 | | | 1Q 2014 | | | 1Q 2013 | |
| Local Sales | | | | 1,919.1 | | | | 2,113.8 | | | | 5,377.2 | | | | 5,441.9 | | | | 259.9 | | | | 320.5 | | | | (1,676.8 | ) | | | (2,167.4 | ) | | | 5,879.5 | | | | 5,708.8 | |
| Export Sales | | | | 10,595.7 | | | | 9,892.4 | | | | 1,823.0 | | | | 1,940.0 | | | | 9.7 | | | | 1.8 | | | | (693.4 | ) | | | (1,354.8 | ) | | | 11,735.0 | | | | 10,479.5 | |
| Sales of services | | | | 16.3 | | | | 15.3 | | | | 25.7 | | | | 27.3 | | | | 1,672.3 | | | | 1,011.0 | | | | (1,066.9 | ) | | | (496.2 | ) | | | 647.5 | | | | 557.4 | |
| Total Sales | | | | 12,531.1 | | | | 12,021.5 | | | | 7,225.9 | | | | 7,409.2 | | | | 1,941.9 | | | | 1,333.3 | | | | (3,437.1 | ) | | | (4,018.4 | ) | | | 18,261.9 | | | | 16,745.6 | |
| Variable Costs | | | | 5,452.7 | | | | 4,676.4 | | | | 6,401.2 | | | | 7,052.2 | | | | 121.0 | | | | 79.8 | | | | (3,543.8 | ) | | | (4,051.7 | ) | | | 8,431.1 | | | | 7,756.8 | |
| Fixed Costs | | | | 1,318.2 | | | | 1,122.4 | | | | 454.6 | | | | 385.3 | | | | 638.4 | | | | 555.2 | | | | - | | | | 0.0 | | | | 2,411.2 | | | | 2,062.9 | |
| Cost of Sales | | | | 6,770.9 | | | | 5,798.8 | | | | 6,855.7 | | | | 7,437.5 | | | | 759.4 | | | | 635.0 | | | | (3,543.8 | ) | | | (4,051.6 | ) | | | 10,842.3 | | | | 9,819.7 | |
| Gross profit | | | | 5,760.2 | | | | 6,222.7 | | | | 370.2 | | | | (28.3 | ) | | | 1,182.5 | | | | 698.3 | | | | 106.7 | | | | 33.3 | | | | 7,419.6 | | | | 6,925.9 | |
| Operating Expenses | | | | 1,071.9 | | | | 793.1 | | | | 344.4 | | | | 339.8 | | | | 120.7 | | | | 239.3 | | | | (0.1 | ) | | | (0.0 | ) | | | 1,536.9 | | | | 1,372.1 | |
| Operating Profit | | | | 4,688.3 | | | | 5,429.6 | | | | 25.8 | | | | (368.1 | ) | | | 1,061.8 | | | | 459.0 | | | | 106.8 | | | | 33.3 | | | | 5,882.7 | | | | 5,553.8 | |
| Non Operating Loss | | | | (83.2 | ) | | | 143.1 | | | | (104.8 | ) | | | (134.3 | ) | | | (46.8 | ) | | | (29.8 | ) | | | 4.2 | | | | (10.7 | ) | | | (230.6 | ) | | | (31.6 | ) |
| Income tax benefits (expense) | | | | (1,684.3 | ) | | | (1,876.0 | ) | | | 39.3 | | | | 75.1 | | | | (476.2 | ) | | | (193.9 | ) | | | 10.0 | | | | - | | | | (2,111.1 | ) | | | (1,994.8 | ) |
| Minority interest | | | | (82.5 | ) | | | (26.4 | ) | | | (0.3 | ) | | | 0.3 | | | | (170.7 | ) | | | (89.6 | ) | | | - | | | | - | | | | (253.6 | ) | | | (115.8 | ) |
| Net Income | | | | 2,838.3 | | | | 3,670.3 | | | | (40.1 | ) | | | (427.0 | ) | | | 368.1 | | | | 145.7 | | | | 121.0 | | | | 22.6 | | | | 3,287.4 | | | | 3,411.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| EBITDA | | | | 6,268.5 | | | | 7,058.9 | | | | 360.4 | | | | (87.3 | ) | | | 1,057.7 | | | | 592.2 | | | | 106.4 | | | | 32.7 | | | | 7,793.0 | | | | 7,596.5 | |
| EBITDA Margin | | | | 50.0 | % | | | 58.7 | % | | | 5.0 | % | | | (1.2 | %) | | | 54.5 | % | | | 44.4 | % | | | (3.1 | %) | | | (0.8 | %) | | | 42.7 | % | | | 45.4 | % |
Upstream
Earnings for the first quarter of 2014 increased 4% compared to the same period of last year due primarily to: 1) a 38 thousand barrels per day rise in crude volumes sold (581 thousand barrels in first quarter of 2014 in comparison to 543 thousand barrels in the same period of last year), and 2) the 11% devaluation of the average COP/USD exchange rate.
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Cost of sales in the first quarter rose 17% due to:
| · | A 17% increase in variable costs stemming from: a) higher purchases of naphtha due to a reduction in deliveries from the Barrancabermeja refinery; b) Higher transportation costs with the change in model to a benefit center charging the fees set by the Ministry of Mines for Ocensa and ODC in February 2013, and payment of the transport fee to Cenit, which began operations in April of 2013, and to Bicentenario oil pipeline, which began operations in November of 2013; c) Higher field amortization and depletion costs spurred by the increase in investments made in 2013 and since the beginning of 2014. |
| · | Growth of 17% in fixed costs due to increased services to wells in Caño Limón and an increase in subsoil maintenance costs in Castilla and Chichimene. |
Operating expenditures were up by 35% and were mainly the result of:
| · | The hiring in 2014 of security services to protect production fields. |
| · | Increased expenditures on unloading and filling facilities since the beginning of 2014 billed by Cenit. |
| · | Larger expenditures on studies and projects due to increased exploration activities. |
As a result of the above, net income decreased 23% compared to the first quarter of 2013.
Downstream
Earnings in first quarter 2014 decreased 2% compared to the same period of the previous year. This was the result primarily of lower fuel prices, in line with international prices, and lower volumes sold by Reficar because of the scheduled shutdown at the Cartagena refinery.
Cost of sales of the segment decreased 8% owing to lower raw material prices (crude and imported products). The 18% increase in fixed costs was generated by an increase in non-deductible VAT registration and greater depreciation as a result of capitalizations of Barrancabermeja refinery projects.
Operating expenditures during the first quarter of 2014 were 1.4% higher than in 2013, comprised primarily of taxes, especially the equity tax. As a result, net loss was reduced 91%.
Midstream
Earnings for first quarter 2014 increased 46% due mainly to the new business model of Ocensa and Oleoducto de Colombia (changing from cost to profit centers). The start of operations of the Bicentenario oil pipeline in November of 2013 also increased the segment’s earnings in the first quarter of 2014.
The segment’s cost of sales rose 20% owing primarily to higher variable costs associated with higher volumes transported, mainly from heavy crude. The 15% increase in fixed costs is primarily due to the start of operations of the Bicentenario pipeline in November of 2013.
As the result of the above, net income in first quarter 2014 rose COP$222 billion compared with the same period of 2013.
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Ecopetrol´s Capex:
Capex (US$ million)
1Q 2014 |
| Segment | | Ecopetrol S.A. | | | Affiliates and
Subsidiaries** | | | Total | | | Allocation
by segment | |
| Production | | | 585.3 | | | | 87.0 | | | | 672.3 | | | | 43.0 | % |
| Refining, Petrochemicals and Biofuels | | | 49.3 | | | | 449.0 | | | | 498.3 | | | | 31.9 | % |
| Exploration | | | 83.5 | | | | 140.0 | | | | 223.5 | | | | 14.3 | % |
| Transportation | | | 10.7 | * | | | 146.0 | | | | 156.7 | | | | 10.0 | % |
| Corporate | | | 12.9 | | | | 0.0 | | | | 12.9 | | | | 0.8 | % |
| Supply and Marketing | | | 0.3 | | | | 0.0 | | | | 0.3 | | | | 0.0 | % |
| Total | | | 742.0 | | | | 822.0 | | | | 1,564.0 | | | | 100.0 | % |
* Cenit reimburses Ecopetrol these investments
** Prorated according to Ecopetrol’s stake
During the first quarter of 2014, the corporate group made investments of US$1,564.0 million (47.7% in Ecopetrol S.A. and 52.6% in affiliates and subsidiaries).
Capex was allocated primarily to the following projects:
1) Production: drilling activities primarily in the Orinoquia region, and the construction of facilities, mainly in Castilla, Chichimene and Rubiales fields.
2) Downstream: Modernization project at the Cartagena refinery.
3) Exploration: acquisition of information by means of seismic programs and drilling of exploratory, stratigraphic and appraisal wells.
4) Midstream: optimizing the transport capacity of the Caño Limón–Coveñas pipeline and construction of facilities, mainly in the San Fernando Monterrey system, Ayacucho station and Bicentenario pipeline.
Exploration in Colombia (Ecopetrol and Hocol):
| A3 Drilling in Colombia |
| 1Q 2014 |
| Company | | Drilled | | | Hydrocarbon
Presence* | | | In evaluation | | | Dry | |
| Ecopetrol S.A. | | | 5 | | | | 1 | | | | 2 | | | | 2 | |
| Hocol S.A. | | | 2 | | | | 0 | | | | 0 | | | | 2 | |
| Total | | | 7 | | | | 1 | | | | 2 | | | | 4 | |
*geological success
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In addition to the drilling of seven exploratory wells (A3), during the first quarter of 2014 five stratigraphic and two appraisal wells (A1) were drilled. The following is a summary of the successful exploratory well drilled during the first quarter of 2014:
| Quarter | | | Basin | | | Operator | | Block | | Well | |
| 1 | | | | Llanos | | | Ecopetrol S.A. | | Caño Sur | | | Tibirita-1A | |
International exploration:
Ecopetrol América Inc:
During the first quarter of 2014, the well Aleatico #1 was drilled, which was sealed and abandoned because of operational issues. At the end of the first quarter, the company was drilling four exploratory wells: Deep Nansen (begun in 2013 and operated by Anadarko and in which Ecopetrol has 15% interest), Aleatico #2 (operated by Shell and in which Ecopetrol has 28.5% interest), Leon (operated by Repsol and in which Ecopetrol has 40% interest), and K2 Exploration Tail (operated by Anadarko and in which Ecopetrol has a 9.2% interest).
Ecopetrol America Inc. placed the most competitive bids for 11 blocks in the "Central Planning Area Lease Sale 231" round held in New Orleans (U.S.A.), partnering with Murphy Exploration and Production -USA in 7 blocks, and together with Murphy Exploration and Production USA and Venari Offshore LLC in 4 blocks.
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Ecopetrol´s gross production (including interests in affiliates and subsidiaries)
Gross* Oil and Gas Production
| Ecopetrol S.A. (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | | | ∆ (bls) | |
| Crude Oil | | | 587.8 | | | | 620.1 | | | | (5.2 | %) | | | (32.3 | ) |
| Natural Gas** | | | 129.3 | | | | 124.4 | | | | 3.9 | % | | | 4.9 | |
| Total | | | 717.1 | | | | 744.5 | | | | (3.7 | %) | | | (27.4 | ) |
| Hocol (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆(%) | | | ∆(bls) | |
| Crude Oil | | | 22.5 | | | | 21.5 | | | | 4.7 | % | | | 1.0 | |
| Natural Gas | | | 0.2 | | | | 0.0 | | | | N.D. | | | | 0.2 | |
| Total | | | 22.7 | | | | 21.5 | | | | 5.6 | % | | | 1.2 | |
| Savia (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆(%) | | | ∆(bls) | |
| Crude Oil | | | 6.0 | | | | 5.5 | | | | 9.1 | % | | | 0.5 | |
| Natural Gas | | | 0.5 | | | | 0.2 | | | | 150.0 | % | | | 0.3 | |
| Total | | | 6.5 | | | | 5.7 | | | | 14.0 | % | | | 0.8 | |
| Equion (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆(%) | | | ∆(bls) | |
| Crude Oil | | | 9.9 | | | | 11.0 | | | | (10.0 | %) | | | (1.1 | ) |
| Natural Gas | | | 7.7 | | | | 6.5 | | | | 18.5 | % | | | 1.2 | |
| Total | | | 17.6 | | | | 17.5 | | | | 0.6 | % | | | 0.1 | |
| Ecopetrol America-K2 (mboed) | | 1Q 2014 | | | 1Q 2013 | | | ∆(%) | | | ∆(bls) | |
| Crude Oil | | | 1.6 | | | | 1.4 | | | | 14.3 | % | | | 0.2 | |
| Natural Gas | | | 0.2 | | | | 0.2 | | | | 0.0 | % | | | 0.0 | |
| Total | | | 1.8 | | | | 1.6 | | | | 12.5 | % | | | 0.2 | |
| Ecopetrol including affiliates and subsidiares | | 1Q 2014 | | | 1Q 2013 | | | ∆(%) | | | ∆(bls) | |
| Crude Oil | | | 627.8 | | | | 659.5 | | | | (4.8 | %) | | | (31.7 | ) |
| Natural Gas | | | 137.9 | | | | 131.3 | | | | 5.0 | % | | | 6.6 | |
| Total Group's production | | | 765.7 | | | | 790.8 | | | | (3.2 | %) | | | (25.1 | ) |
* Gross production includes royalties
** Gas production includes white products
Ecopetrol S.A. production:
During the first quarter of 2014, the corporate group production fell by 3.2% compared to the same period of 2013, as a result of: 1) blockages to operations from communities, 2) lower availability of pipeline capacity due to terrorist attacks and pipeline maintenance, and 3) delays in the development of facilities of key projects.
Ecopetrol S.A. production per type of crude:
| Production per type of crude* | | | |
| mbod | |
| | | 1Q 2014 | | | 1Q 2013 | | | Δ (%) | |
| Light | | | 46.0 | | | | 52.3 | | | | (12.0 | %) |
| Medium | | | 210.7 | | | | 218.7 | | | | (3.7 | %) |
| Heavy | | | 331.1 | | | | 349.1 | | | | (5.2 | %) |
| Total | | | 587.8 | | | | 620.1 | | | | (5.2 | %) |
| *Does not include subsidiaries | |
Lifting cost of Ecopetrol S.A.:
Lifting cost per equivalent barrel (produced by Ecopetrol S.A.) during the first quarter of 2014 was US$9.72 (based on the U.S. SEC methodology, which does not include royalties), US$0.34 per barrel more than in the same period of last year. This change was the net result of:
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| · | Higher costs (+US$1.27 per barrel) due to: 1) windfall profit clause which increased the cost of operations in partnership, 2) management and disposal of water, and 3) well maintenance. |
| · | Higher costs (+US$0.22 per barrel) owing to the lower volume of crude produced. |
| · | Lower costs (-US$1.15 per barrel) from devaluation of the COP/USD exchange rate. |
d.1)Barrancabermeja Refinery:
| | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Refinery runs* (mbod) | | | 223.2 | | | | 216.8 | | | | 3.0 | % |
| Utilization factor (%) | | | 81.9 | % | | | 79.9 | % | | | 2.5 | % |
| * Includes volumes loaded in the refinery, not total volumes received. | |
Both the refinery’s throughput and utilization factors in the first quarter of 2014 increased compared to the same period of last year because of increased availability and the operational stability of the units.
By the end of the first quarter of this year, the modernization project was 18.4% complete, with detailed engineering making 7.7% progress and material purchases and contracting of services making 12.1% progress.
The Industrial Services Master Plan reached 86.0% completion as of March 31, 2014, among whose highlights was the continuation of the construction of works at the Cogeneration Unit, which is expected to be operational by the first quarter of 2015.
Costs and margins of the Barrancabermeja Refinery
The cash operating cost of the refinery for the first quarter of 2014 was US$5.71 per barrel, US$0.59 per barrel less that in the same period of last year, which was the result of:
| · | Devaluation of the COP/USD exchange rate: -US$0.67 per barrel. |
| · | Lower costs from higher throughput at the refinery: -US$0.17 per barrel. |
| · | Higher operational costs associated with higher throughput: +US$0.25 per barrel. |
| | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Refining Margin (USD/bl) | | | 16.3 | | | | 15.6 | | | | 4.5 | % |
Gross refining margin in the first quarter of 2014 rose compared to the same period of the prior year given that the prices of crude had a greater reduction than the product prices.
d.2)Reficar (Cartagena Refinery):
| | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Refinery runs* (mbod) | | | 42.3 | | | | 75.7 | | | | (44.1 | %) |
| Utilization factor (%) | | | 21.6 | % | | | 80.5 | % | | | (73.2 | %) |
| * Includes volumes loaded in the refinery, not total volumes received. | |
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Throughput at the refinery decreased in the first quarter of 2014 as a consequence of the scheduled shutdown of the crude unit since March as required by the modernization project.
The refinery's utilization factor in the first quarter of 2014 declined because of the scheduled shutdown of the cracking and the viscosity reduction units in January and February, and the crude unit shutdown in March, in order to facilitate the delivery of the new refinery under safe operational conditions.
| | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Refining Margin (USD/bl) | | | 4.8 | | | | 6.0 | | | | (20.0 | %) |
Gross refining margin in the first quarter of 2014 decreased compared to the same period of last year mainly because of the reduction in product yield of more valuable products such as diesel and gasoline (from 32% to 19% and from 35% to 29%, respectively).
As of March 31, 2014, the expansion and modernization project was 88.9% complete. The progress in each of the work streams was as follows:
| Work Streams | | Percentage | |
| Detail engineering | | | 100.0 | % |
| Procurement | | | 99.9 | % |
| Module construction | | | 100.0 | % |
| Construction (began October 2011) | | | 76.1 | % |
| Transported volumes (mbod) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | |
| Crude | | | 952.5 | | | | 956.3 | | | | (0.4 | %) |
| Refined Products | | | 247.6 | | | | 238.1 | | | | 4.0 | % |
| Total | | | 1,200.1 | | | | 1,194.4 | | | | 0.5 | % |
In the first quarter of 2014, the total volume of crude transported by Cenit’s system and those of its affiliates fell slightly by 0.4% compared to the same quarter of last year, primarily due to: 1) lower volumes transported through the Ocensa and Oleoducto de Colombia systems due to the decrease in production, and 2) the impact on transportation operations of the Caño Limón–Coveñas and Transandino oil pipeline attacks. Out of the total volume of crude transported by oil pipeline, approximately 74.9% was Ecopetrol’s crude.
As for refined products, the volumes transported by Cenit S.A.S and affiliates during the first quarter of the year increased 4.0% compared to the same period of last year, as a result of a higher volume of naphtha, used for diluting heavy crude, transported by the Pozos Colorados – Galán system. Out of the total volume of products transported by multipurpose pipelines, 49.8% belonged to Ecopetrol.
Main Projects:
San Fernando–Monterrey: increase of transport capacity from 225 to 280 mbod.
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Cost per barrel transported:
Ecopetrol’s cost per barrel transported during the first quarter of 2014 was US$6.11 per barrel, a decrease of US$0.48 per barrel compared to US$6.59 per barrel in the same period of 2013, as a result of:
| · | Lower costs due to higher volumes transported: -US$2.12/barrel. |
| · | Lower costs from the COP/USD exchange rate: -US$0.73/barrel. |
| · | Higher costs due to the change to profit center from cost center of transportation affiliates and subsidiaries since March of 2013: +US$3.33 per barrel. |
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| IV. | Organizational Consolidation and Corporate Governance |
| a. | Organizational consolidation |
Health, safety and environment:
| HSE* | | 1Q 2014 | | | 1Q 2013 | |
| Accident frequency index (accidents per million labor hours) | | | 0.97 | | | | 1.06 | |
| Environmental incidents | | | 9 | | | | 5 | |
*Results are subject to change after the end of the quarter given that certain accidents and incidents could be reclassified depending on the final results of the investigations.
Science and technology:
During the first quarter of 2014, the Superintendent of Industry and Trade granted Ecopetrol on behalf of the Colombian government two patents relating to the processes for producing biofuels.
Recognitions:
| · | Ecopetrol was a finalist among the most admired companies worldwide for its management of knowledge, placing 26th out of the 150 companies nominated, an improvement of two spots at the global level since last year and three spots among oil and gas companies nominated. |
| · | For a second consecutive year, Ecopetrol was awarded the first place in the Social Business Responsibility category of the Accenture Innovation awards. |
| b. | Corporate Responsibility |
Social investment:
In the first quarter of 2014, social investment amounted to COP$5,685 million, and were allocated as follows: 1) COP$2,975 million for citizenship and democracy, 2) COP$2,362 million for education and culture, and 3) COP$348 million for regional competitiveness.
The following are some of the highlights of the programs implemented:
| · | 214 families benefited from the project to supply drinkable water to the village of Yarima, municipality of San Vicente de Chucurí in Colombia. |
| · | 289 people received training through the Training for the Future program. |
| · | 43 companies have been strengthened in Cartagena and Barrancabermeja. |
General Shareholder Meeting:
On March 26 of 2014, the General Shareholder Meeting was held with the participation of more than 12,000 shareholders. The main approvals were: 1) report of Ecopetrol’s external auditors, 2) appointment of Pricewaterhouse Coopers as external auditor for the fiscal year 2014, 3) approval of unconsolidated and consolidated financial statements as of December 31 of 2013, 4) approval of the earnings distribution project (dividend of COP$260 per share payable in one installment to minority shareholders starting April 28), and 5) election of the Board of Directors for the period 2014–2015, as follows:
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Representatives from the Government of Colombia:
| · | Minister of Finance and Public Credit (currently Mr. Mauricio Cardenas) |
| · | Minister of Mines and Energy (currently Mr. Amilkar Acosta) |
| · | Director of the National Planning Department (currently Ms. Tatyana Orozco) |
Independent representatives:
| · | Luis Fernando Ramírez Acuña |
| · | Horacio Ferreira Rueda (representative of hydrocarbons producing provinces) |
| · | Roberto Steiner Sampedro (representative of the minority shareholders) |
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| V. | First Quarter of 2014 Conference Calls |
Ecopetrol’s management will hold two conference calls to review the first quarter of 2014 results:
| Spanish | English |
| May 2, 2014 | May 2, 2014 |
| 10:00 a.m. Bogota | 11:30 a.m. Bogota |
| 11:00 a.m. New York / Toronto | 12:30 p.m. New York / Toronto |
The webcast will be available on Ecopetrol’s website:www.ecopetrol.com.co
Please access the site 10 minutes in advance in order to download the necessary software.
About Ecopetrol S.A.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) is the largest company in Colombia based on revenue, profit, assets and net equity. Ecopetrol is the only vertically integrated crude oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast. Its subsidiaries include: Andean Chemicals Limited, Bioenergy S.A, Bionergy Zona Franca S.A.S, Black Gold Re Ltd, Cenit Transporte y Logística de Hidrocarburos S.A.S, COMAI, Ecopetrol América Inc, Ecopetrol del Perú S.A, Ecopetrol Oleo e Gas do Brasil Ltda, Ecopetrol Capital AG, Ecopetrol Global Energy, Ecopetrol Global Capital S.L.U, Ecopetrol Pipelines International Limited, Equión Energía Limited, Hocol Petroleum Limited, Hocol S.A., ODL Finance S.A, Oleoducto de los Llanos Orientales S.A- ODL, PROPILCO, Oleoducto Bicentenario de Colombia S.A.S, Oleoducto Central S.A - Ocensa , Oleoducto de Colombia S.A, Refinería de Cartagena S.A, Santiago Oil Company and Colombia Pipelines Limited. Ecopetrol S.A. is one of the 50 largest oil companies in the world and one of the four main oil companies 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) under the ticker EC, and on the Toronto Stock Exchange (TSX) under the symbol ECP. The company has three business segments: 1) exploration and production 2) transport and 3) refining and petrochemicals.
Forwarding-Looking Statements
This news release may contain forward-looking statements related to the prospects of the business, estimate for operating and financial results, and growth forecasts for Ecopetrol. These are projections, and, as such, are based solely on the expectations of management with regard to the company’s future and its continuous use of capital to finance the company’s investment plan. Such forward-looking statements depend essentially on changes in market conditions, government regulations, competitive pressures, performance of the Colombian economy and the industry, among others; therefore, they are subject to change without prior notice.
Contact Information:
Investor Relations Director
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
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VI. Additional Exhibits
Income Statement
Ecopetrol S.A.
| COP$ Million | | 1Q 2014* | | | 1Q 2013* | | | 4Q 2013* | |
| Income | | | | | | | | | | | | |
| Local Sales | | | 5,839,825 | | | | 4,660,719 | | | | 5,327,057 | |
| Export Sales | | | 8,752,838 | | | | 8,248,181 | | | | 8,898,526 | |
| Sales to free trade zone | | | 773,156 | | | | 1,409,533 | | | | 1,116,503 | |
| Sale of Services | | | 375,872 | | | | 453,380 | | | | 859,219 | |
| Total Income | | | 15,741,691 | | | | 14,771,813 | | | | 16,201,305 | |
| Cost of Sales | | | | | | | | | | | | |
| Variable Costs | | | | | | | | | | | | |
| Purchase of Hydrocarbons | | | 2,907,044 | | | | 3,297,233 | | | | 3,159,294 | |
| Amortization and Depletion | | | 919,104 | | | | 806,166 | | | | 131,765 | |
| Imported products | | | 2,449,141 | | | | 1,935,257 | | | | 2,505,807 | |
| Hydrocarbon Transportation Services | | | 1,397,160 | | | | 722,774 | | | | 1,301,089 | |
| Inventories and other | | | 387,720 | | | | 19,775 | | | | 291,099 | |
| | | | | | | | | | | | | |
| Fixed Costs | | | | | | | | | | | | |
| Depreciation | | | 316,032 | | | | 357,472 | | | | 314,770 | |
| Contracted Services | | | 662,653 | | | | 553,378 | | | | 925,995 | |
| Maintenance | | | 364,203 | | | | 293,248 | | | | 697,358 | |
| Labor Costs | | | 330,454 | | | | 289,281 | | | | 319,816 | |
| Other | | | 212,494 | | | | 237,614 | | | | 428,941 | |
| Total Cost of Sales | | | 9,946,005 | | | | 8,512,198 | | | | 10,075,934 | |
| Gross Profits | | | 5,795,686 | | | | 6,259,615 | | | | 6,125,371 | |
| Operating Expenses | | | | | | | | | | | | |
| Administration | | | 145,240 | | | | 155,319 | | | | 525,496 | |
| Selling and operational expenses | | | 852,658 | | | | 889,945 | | | | 1,278,968 | |
| Exploration and Projects | | | 245,161 | | | | 69,068 | | | | 243,499 | |
| Operating Income/Loss | | | 4,552,627 | | | | 5,145,283 | | | | 4,077,408 | |
| Non Operating Income (expenses) | | | | | | | | | | | | |
| Financial Income | | | 1,314,483 | | | | 819,014 | | | | 712,519 | |
| Financial Expenses | | | (1,296,101 | ) | | | (590,878 | ) | | | (642,464 | ) |
| Interest expenses | | | (148,368 | ) | | | (85,740 | ) | | | (156,668 | ) |
| Non Financial Income | | | 52,317 | | | | 50,293 | | | | (59,813 | ) |
| Non Financial Expenses | | | (175,992 | ) | | | (195,163 | ) | | | (188,587 | ) |
| Results from Subsidiaries | | | 624,611 | | | | 153,678 | | | | 181,364 | |
| | | | | | | | | | | | | |
| Income before income tax | | | 4,923,577 | | | | 5,296,487 | | | | 3,923,759 | |
| Provision for Income Tax | | | 1,697,749 | | | | 1,800,806 | | | | 1,294,098 | |
| Minority interest | | | | | | | | | | | | |
| Net Income | | | 3,225,828 | | | | 3,495,681 | | | | 2,629,661 | |
| | | | | | | | | | | | | |
| EBITDA | | | 7,704,576 | | | | 7,745,954 | | | | 5,268,436 | |
| EBITDA MARGIN | | | 49 | % | | | 52 | % | | | 33 | % |
| EARNINGS PER SHARE | | $ | 78.46 | | | $ | 85.02 | | | $ | 63.96 | |
* Unaudited
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
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Income Statement
Ecopetrol Consolidated
| COP$ Million | | 1Q 2014* | | | 1Q 2013* | | | 4Q 2013* | |
| Income | | | | | | | | | | | | |
| Local Sales | | | 5,879,480 | | | | 5,708,771 | | | | 5,981,860 | |
| Export Sales | | | 11,734,951 | | | | 10,479,493 | | | | 11,128,813 | |
| Sale of Services | | | 647,466 | | | | 557,364 | | | | 849,556 | |
| Total Income | | | 18,261,897 | | | | 16,745,628 | | | | 17,960,229 | |
| Cost of Sales | | | | | | | | | | | | |
| Variable Costs | | | | | | | | | | | | |
| Purchase of Hydrocarbons | | | 3,761,399 | | | | 4,006,293 | | | | 3,671,180 | |
| Amortization and Depletion | | | 1,039,950 | | | | 937,110 | | | | 127,237 | |
| Imported products | | | 3,066,189 | | | | 2,545,075 | | | | 3,306,441 | |
| Hydrocarbon Transportation Services | | | 350,642 | | | | 294,235 | | | | 339,308 | |
| Inventories and other | | | 212,944 | | | | (25,896 | ) | | | 225,333 | |
| | | | | | | | | | | | | |
| Fixed Costs | | | | | | | | | | | | |
| Depreciation | | | 511,182 | | | | 425,630 | | | | 502,746 | |
| Contracted Services | | | 695,406 | | | | 560,493 | | | | 962,219 | |
| Maintenance | | | 480,781 | | | | 370,026 | | | | 932,674 | |
| Labor Costs | | | 351,956 | | | | 309,644 | | | | 340,484 | |
| Other | | | 371,853 | | | | 397,111 | | | | 610,716 | |
| Total Cost of Sales | | | 10,842,302 | | | | 9,819,721 | | | | 11,018,338 | |
| Gross Profits | | | 7,419,595 | | | | 6,925,907 | | | | 6,941,891 | |
| Operating Expenses | | | | | | | | | | | | |
| Administration | | | 297,961 | | | | 224,431 | | | | 701,340 | |
| Selling and operational expenses | | | 872,900 | | | | 995,221 | | | | 1,368,228 | |
| Exploration and Projects | | | 365,998 | | | | 152,417 | | | | 662,658 | |
| Operating Income/Loss | | | 5,882,736 | | | | 5,553,838 | | | | 4,209,665 | |
| Non Operating Income (expenses) | | | | | | | | | | | | |
| Financial Income | | | 1,569,986 | | | | 927,055 | | | | 861,896 | |
| Financial Expenses | | | (1,542,513 | ) | | | (707,739 | ) | | | (759,597 | ) |
| Interest expenses | | | (208,368 | ) | | | (125,543 | ) | | | (198,482 | ) |
| Non Financial Income | | | 128,723 | | | | 68,450 | | | | 97,663 | |
| Non Financial Expenses | | | (192,944 | ) | | | (199,807 | ) | | | (213,319 | ) |
| Results from Subsidiaries | | | 14,478 | | | | 5,955 | | | | 63,470 | |
| Income before income tax | | | 5,652,098 | | | | 5,522,209 | | | | 4,061,296 | |
| Provision for Income Tax | | | 2,111,150 | | | | 1,994,804 | | | | 1,479,253 | |
| Minority interest | | | 253,567 | | | | 115,780 | | | | 155,538 | |
| Net Income | | | 3,287,381 | | | | 3,411,625 | | | | 2,426,505 | |
| | | | | | | | | | | | | |
| EBITDA | | | 7,792,966 | | | | 7,596,480 | | | | 4,901,448 | |
| EBITDA MARGIN | | | 43 | % | | | 45 | % | | | 27 | % |
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. Not audited.
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
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Balance Sheet
| | | Ecopetrol S.A. | | | Ecopetrol Consolidated | |
| COP$ Million | | March 31, 2014 | | | December 31, 2013 | | | March 31, 2014 | | | December 31, 2013 | |
| | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
| Current Assets | | | | | | | | | | | | |
| Cash and cash equivalents | | | 4,722,884 | | | | 3,901,277 | | | | 9,511,484 | | | | 8,841,438 | |
| Investments | | | 615,537 | | | | 1,469,255 | | | | 1,330,673 | | | | 1,659,308 | |
| Accounts and notes receivable | | | 6,813,050 | | | | 6,347,082 | | | | 6,426,445 | | | | 6,176,891 | |
| Inventories | | | 2,602,048 | | | | 2,560,491 | | | | 3,293,102 | | | | 3,259,399 | |
| Other | | | 8,213,918 | | | | 7,466,275 | | | | 9,844,335 | | | | 8,572,062 | |
| Total Current Assets | | | 22,967,437 | | | | 21,744,380 | | | | 30,406,039 | | | | 28,509,098 | |
| Non Current Assets | | | | | | | | | | | | | | | | |
| Investments | | | 36,719,227 | | | | 35,218,103 | | | | 1,693,845 | | | | 1,587,598 | |
| Accounts and notes receivable | | | 1,599,460 | | | | 1,594,709 | | | | 540,144 | | | | 520,056 | |
| Property, plant and equipment, net | | | 20,250,706 | | | | 20,286,196 | | | | 46,041,973 | | | | 44,998,680 | |
| Natural and environmental properties, Net | | | 17,063,685 | | | | 17,518,335 | | | | 21,261,797 | | | | 21,456,659 | |
| Resources delivered to administration | | | 315,737 | | | | 314,395 | | | | 390,556 | | | | 478,745 | |
| Other | | | 16,740,718 | | | | 17,365,110 | | | | 34,170,558 | | | | 34,877,158 | |
| Total Non Current Assets | | | 92,689,533 | | | | 92,296,848 | | | | 104,098,873 | | | | 103,918,896 | |
| Total Assets | | | 115,656,970 | | | | 114,041,228 | | | | 134,504,912 | | | | 132,427,994 | |
| | | | | | | | | | | | | | | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | |
| Current Liabilities | | | | | | | | | | | | | | | | |
| Financial obligations | | | 207,877 | | | | 342,410 | | | | 748,134 | | | | 774,559 | |
| Accounts payable and related parties | | | 16,832,439 | | | | 8,337,525 | | | | 18,236,939 | | | | 9,539,934 | |
| Estimated liabilities and provisions | | | 1,691,007 | | | | 1,722,243 | | | | 2,378,960 | | | | 2,515,005 | |
| Other | | | 8,504,910 | | | | 8,160,751 | | | | 10,195,669 | | | | 9,473,129 | |
| Total Current Liabilities | | | 27,236,233 | | | | 18,562,929 | | | | 31,559,701 | | | | 22,302,627 | |
| Long Term Liabilities | | | | | | | | | | | | | | | | |
| Financial obligations | | | 12,240,060 | | | | 11,977,888 | | | | 22,090,642 | | | | 21,423,992 | |
| Labor and pension plan obligations | | | 4,354,346 | | | | 4,277,831 | | | | 4,354,346 | | | | 4,277,831 | |
| Estimated liabilities and provisions | | | 4,935,050 | | | | 4,914,864 | | | | 5,290,159 | | | | 5,163,819 | |
| Other | | | 2,422,646 | | | | 2,513,191 | | | | 3,425,865 | | | | 3,566,774 | |
| Total Long Term Liabilities | | | 23,952,102 | | | | 23,683,774 | | | | 35,161,012 | | | | 34,432,416 | |
| Total Liabilities | | | 51,188,335 | | | | 42,246,703 | | | | 66,720,713 | | | | 56,735,043 | |
| Minority Interest | | | | | | | - | | | | 4,731,000 | | | | 4,573,748 | |
| Equity | | | 64,468,635 | | | | 71,794,525 | | | | 63,053,199 | | | | 71,119,203 | |
| | | | | | | | - | | | | | | | | | |
| Total Liabilities and Shareholders' Equity | | | 115,656,970 | | | | 114,041,228 | | | | 134,504,912 | | | | 132,427,994 | |
| | | | | | | | | | | | | | | | | |
| Memorandum Debtor Accounts * | | | 137,518,284 | | | | 132,941,485 | | | | 157,551,650 | | | | 152,210,701 | |
| Memorandum Creditor Accounts * | | | 98,985,288 | | | | 97,287,957 | | | | 100,831,200 | | | | 111,774,620 | |
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. |
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Cash Flow Statement
Ecopetrol S.A.
| COP$ million | | 1Q 2014 * | | | 1Q 2013* | | | 4Q 2013* | |
| | | | | | | | | | |
| Cash flow provided by operating activities: | | | | | | | | | | | | |
| Net income | | | 3,225,828 | | | | 3,495,681 | | | | 2,629,665 | |
| Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | | | | | |
| Depreciation, depletion and amortization | | | 1,329,428 | | | | 1,260,275 | | | | 529,107 | |
| Foreign Exchange | | | 93,976 | | | | (48,617 | ) | | | 36,726 | |
| Provision for income tax | | | - | | | | - | | | | (105,502 | ) |
| Net provisions | | | 53,923 | | | | 108,482 | | | | 498,011 | |
| Disposal of property, plant and equipment | | | - | | | | 10,748 | | | | (1,381 | ) |
| Recovery of Property, Plant and equipment | | | - | | | | - | | | | (37,246 | ) |
| Loss for Good Will | | | - | | | | - | | | | 353,012 | |
| Loss (gain) valuation of Investments | | | (1,556 | ) | | | (153,678 | ) | | | (1,567 | ) |
| Loss (Income) from equity method on affiliated companies | | | (624,611 | ) | | | (150,045 | ) | | | (181,363 | ) |
| Net changes in operating assets and liabilities: | | | | | | | | | | | | |
| Accounts and notes receivable | | | (337,296 | ) | | | (1,113,724 | ) | | | (3,370,805 | ) |
| Inventories | | | (43,158 | ) | | | (393,163 | ) | | | 59,513 | |
| Deferred and other assets | | | 659,193 | | | | 408,111 | | | | 24,589 | |
| Accounts payable and related parties | | | (1,057,286 | ) | | | (683,977 | ) | | | (323,988 | ) |
| Taxes payable | | | 297,434 | | | | 263,469 | | | | 2,547,861 | |
| Labor obligations | | | (21,262 | ) | | | (27,062 | ) | | | (250,327 | ) |
| Estimated liabilities and provisions | | | (115,302 | ) | | | 20,686 | | | | 423,039 | |
| Cash provided by operating activities | | | 3,459,311 | | | | 2,997,186 | | | | 2,829,344 | |
| | | | | | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | | | | | |
| Payment for purchase of Companies, net of cash acquired | | | 1,764 | | | | - | | | | 45,648 | |
| Purchase of investment securities | | | (1,471,607 | ) | | | (3,473,540 | ) | | | (548,191 | ) |
| Dividends Received | | | - | | | | - | | | | 17,559 | |
| Redemption of investment securities | | | 1,002,920 | | | | 4,046,184 | | | | 2,399,603 | |
| Sale of property, plant and equipment | | | - | | | | - | | | | - | |
| Sale of natural resources | | | - | | | | - | | | | - | |
| Investment in natural and environmental resources | | | (502,757 | ) | | | (468,117 | ) | | | (1,399,840 | ) |
| Additions to property, plant and equipment | | | (462,888 | ) | | | (635,984 | ) | | | (242,805 | ) |
| Net cash generated by investing activities | | | (1,432,568 | ) | | | (531,457 | ) | | | 271,974 | |
| | | | | | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | | | | | |
| Financial obligations | | | 61,299 | | | | (47,994 | ) | | | 172,235 | |
| Capitalization | | | 43 | | | | - | | | | - | |
| Dividends | | | (1,309,852 | ) | | | (3,915,436 | ) | | | (6,118,116 | ) |
| Net cash used in financing activities | | | (1,248,510 | ) | | | (3,963,430 | ) | | | (5,945,881 | ) |
| | | | | | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | 778,233 | | | | (1,497,701 | ) | | | (2,844,563 | ) |
| Foreign Exchange in cash and cash equivalents | | | 43,374 | | | | 22,556 | | | | (5,353 | ) |
| Cash and cash equivalents at the beginning of the year | | | 3,901,277 | | | | 5,260,111 | | | | 6,751,193 | |
| Cash and cash equivalents at the end of the year | | | 4,722,884 | | | | 3,784,966 | | | | 3,901,277 | |
NOTES:
* Not audited
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Cash Flow Statement
Ecopetrol Consolidated
| COP$ million | | 1Q 2014 * | | | 1Q 2013* | | | 4Q 2013* | |
| | | | | | | | | | |
| Cash flow provided by operating activities: | | | | | | | | | | | | |
| Net income | | | 3,287,378 | | | | 3,411,625 | | | | 2,426,504 | |
| Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | | | | | |
| Minority interest | | | 253,567 | | | | 115,780 | | | | 155,537 | |
| Depreciation, depletion and amortization | | | 1,728,028 | | | | 1,674,653 | | | | 685,147 | |
| Foreign Exchange | | | 105,523 | | | | - | | | | 34,341 | |
| Provision for income tax | | | (31,509 | ) | | | - | | | | (133,073 | ) |
| Net provisions | | | 68,918 | | | | 16,270 | | | | (6,133,358 | ) |
| Loss for disposal of property, plant and equipment | | | 95,955 | | | | 10,748 | | | | 352,314 | |
| Recovery of Property, Plant and equipment | | | - | | | | - | | | | (37,246 | ) |
| Loss for Good Will | | | - | | | | - | | | | 353,012 | |
| Loss (gain) valuation of Investments | | | (4,630 | ) | | | - | | | | 15,163 | |
| Loss (Income) from equity method on affiliated companies | | | (14,478 | ) | | | (5,955 | ) | | | (63,470 | ) |
| Net changes in operating assets and liabilities: | | | | | | | | | | | | |
| Accounts and notes receivable | | | (2,365,212 | ) | | | (884,563 | ) | | | (5,153,980 | ) |
| Inventories | | | (35,332 | ) | | | (367,576 | ) | | | (231,160 | ) |
| Deferred and other assets | | | 783,376 | | | | 490,709 | | | | 240,693 | |
| Accounts payable and related parties | | | (732,271 | ) | | | (799,255 | ) | | | 1,243,416 | |
| Taxes payable | | | 674,089 | | | | 200,846 | | | | 10,079,590 | |
| Labor obligations | | | (42,479 | ) | | | (49,479 | ) | | | (238,567 | ) |
| Estimated liabilities and provisions | | | (136,025 | ) | | | 272,022 | | | | 253,524 | |
| Cash provided by operating activities | | | 3,634,898 | | | | 4,085,825 | | | | 3,848,387 | |
| | | | | | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | | | | | |
| Payment for purchase of Companies, net of cash acquired | | | - | | | | - | | | | - | |
| Purchase of investment securities | | | (783,790 | ) | | | (3,451,649 | ) | | | (5,933 | ) |
| Dividends Received | | | - | | | | - | | | | 41,189 | |
| Redemption of investment securities | | | 1,135,170 | | | | 4,371,961 | | | | 3,018,842 | |
| Sale of property, plant and equipment | | | 5,502 | | | | - | | | | (4,963 | ) |
| Sale of natural resources | | | - | | | | - | | | | - | |
| Investment in natural and environmental resources | | | (927,620 | ) | | | (866,406 | ) | | | (1,991,233 | ) |
| Additions to property, plant and equipment | | | (1,239,307 | ) | | | (1,805,456 | ) | | | (1,775,004 | ) |
| Net cash used in investing activities | | | (1,810,045 | ) | | | (1,751,550 | ) | | | (717,102 | ) |
| | | | | | | | | | | | | |
| Cash flows financing activities: | | | | | | | | | | | | |
| Minority interest | | | - | | | | 8,758 | | | | - | |
| Financial obligations | | | 118,104 | | | | 747,645 | | | | 76,069 | |
| Capitalization | | | 43 | | | | - | | | | - | |
| Dividends | | | (1,341,273 | ) | | | (3,848,860 | ) | | | (5,956,948 | ) |
| Net cash used in financing activities | | | (1,223,126 | ) | | | (3,092,457 | ) | | | (5,880,879 | ) |
| | | | | | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | 601,727 | | | | (758,182 | ) | | | (2,749,594 | ) |
| Foreign Exchange in cash and cash equivalents | | | 68,319 | | | | - | | | | (29,082 | ) |
| Cash and cash equivalents at the beginnig of the year | | | 8,841,438 | | | | 7,940,690 | | | | 11,620,114 | |
| Cash and cash equivalents at the end of the year | | | 9,511,484 | | | | 7,182,508 | | | | 8,841,438 | |
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. Not audited.
Some 2013 figures were reclassified for the sake of comparison with 2014 figures
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Reconciliation of EBITDA
Ecopetrol S.A.
| COP$ Millions | | 1Q 2014 * | | | 1Q 2013 * | | | 4Q 2013* | |
| RECONCILIATION NET INCOME TO EBITDA | | | | | | | | | | | | |
| Net Income | | | 3,225,828 | | | | 3,495,681 | | | | 2,629,661 | |
| Depreciations, depletions and amortizations | | | 1,329,428 | | | | 1,260,275 | | | | 529,108 | |
| Net Interest | | | 90,684 | | | | 28,241 | | | | 43,806 | |
| Interest, Tax, Depreciations and Amortizations in subsidiaries | | | 722,156 | | | | 510,851 | | | | 517,340 | |
| Other Taxes | | | 638,731 | | | | 650,100 | | | | 254,423 | |
| Provision for income tax | | | 1,697,749 | | | | 1,800,806 | | | | 1,294,098 | |
| UNCONSOLIDATED EBITDA | | | 7,704,576 | | | | 7,745,954 | | | | 5,268,436 | |
Ecopetrol Consolidated
| COP$ Millions | | 1Q 2014 * | | | 1Q 2013 * | | | 4Q 2013* | |
| RECONCILIATION NET INCOME TO EBITDA | | | | | | | | | | | | |
| Net income | | | 3,287,381 | | | | 3,411,625 | | | | 2,426,505 | |
| Depreciations, depletions and amortizations | | | 1,728,028 | | | | 1,479,308 | | | | 776,589 | |
| Net Interest | | | 126,435 | | | | 71,544 | | | | 50,790 | |
| Minority interest | | | (196,346 | ) | | | (135,837 | ) | | | (153,590 | ) |
| Other Taxes | | | 736,318 | | | | 775,036 | | | | 321,902 | |
| Provision for income tax | | | 2,111,150 | | | | 1,994,804 | | | | 1,479,252 | |
| CONSOLIDATED EBITDA | | | 7,792,966 | | | | 7,596,480 | | | | 4,901,448 | |
* Not audited
Some 2013figures were reclassified for the sake of comparison with 2014 figures
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
| VII. | Exhibits of Subsidiary Results and Shareholder Interest |
Note: The financial results of subsidiary companies have not been audited.
Exploration and Production
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Local Sales | | | 22.5 | | | | 0.1 | |
| Export Sales | | | 1,294.8 | | | | 770.9 | |
| Sales of services | | | - | | | | - | |
| Total Sales | | | 1,317.3 | | | | 771.0 | |
| Variable Costs | | | 975.1 | | | | 516.6 | |
| Fixed Costs | | | 128.1 | | | | 88.8 | |
| Cost of Sales | | | 1,103.2 | | | | 605.4 | |
| Gross profit | | | 214.1 | | | | 165.6 | |
| Operating Expenses | | | 45.8 | | | | 22.6 | |
| Operating Profit | | | 168.3 | | | | 143.0 | |
| Non operating, net | | | (12.6 | ) | | | (5.0 | ) |
| Profit/(Loss) before taxes | | | 155.7 | | | | 138.0 | |
| Income tax | | | 51.3 | | | | 46.6 | |
| Net Income/Loss | | | 104.4 | | | | 91.4 | |
| | | | | | | | | |
| TOTAL EBITDA * | | | 275.0 | | | | 240.8 | |
| EBITDA margin | | | 20.9 | % | | | 31.2 | % |
| EBITDA to EC GROUP** | | | 275.0 | | | | 240.8 | |
* Total EBITDA of the company under COLGAAP
**EBITDA (COLGAAP) contribution to EC group
Balance Sheet
| (COP$ Billion) | | As of March 31,
2014 | | | As of December
31, 2013 | |
| Current Assets | | | 1,413.7 | | | | 1,131.9 | |
| Long Term Assets | | | 2,377.0 | | | | 2,394.0 | |
| Total Assets | | | 3,790.7 | | | | 3,525.9 | |
| Current Liabilities | | | 1,228.8 | | | | 1,080.5 | |
| Long Term Liabilities | | | 238.8 | | | | 236.6 | |
| Total Liabilities | | | 1,467.6 | | | | 1,317.1 | |
| Equity | | | 2,323.1 | | | | 2,208.8 | |
| Total Liabilities and Shareholders´ Equity | | | 3,790.7 | | | | 3,525.9 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Income Statement
| US$ million | | 1Q 2014 | | | 1Q 2013 | |
| Export Sales | | | 93.3 | | | | 88.3 | |
| Total Sales | | | 93.3 | | | | 88.3 | |
| Variable Costs | | | 25.9 | | | | 27.9 | |
| Fixed Costs | | | 18.7 | | | | 21.9 | |
| Cost of Sales | | | 44.6 | | | | 49.8 | |
| Gross profit | | | 48.7 | | | | 38.5 | |
| Operating Expenses | | | 15.1 | | | | 16.6 | |
| Operating Profit | | | 33.6 | | | | 21.9 | |
| Profit/(Loss) before taxes | | | 33.6 | | | | 21.9 | |
| Income tax | | | 90.0 | | | | 5.8 | |
| Deferred taxes | | | 1.4 | | | | 1.8 | |
| Net Income/Loss | | | 23.2 | | | | 14.4 | |
| | | | | | | | | |
| EBITDA | | | 51.4 | | | | 43.6 | |
| EBITDA margin | | | 55 | % | | | 49 | % |
Balance Sheet
| US$ million | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 202.3 | | | | 190.6 | |
| Long Term Assets | | | 799.4 | | | | 699.3 | |
| Total Assets | | | 1,001.7 | | | | 889.8 | |
| Current Liabilities | | | 295.9 | | | | 238.9 | |
| Long Term Liabilities | | | 88.8 | | | | 117.0 | |
| Total Liabilities | | | 384.7 | | | | 355.9 | |
| Equity | | | 617.0 | | | | 534.0 | |
| Total Liabilities and Shareholders´ Equity | | | 1,001.7 | | | | 889.8 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Local Sales | | | 72.6 | | | | 48.4 | |
| Export Sales | | | 576.0 | | | | 389.7 | |
| Total Sales | | | 648.6 | | | | 438.1 | |
| Variable Costs | | | 404.7 | | | | 268.8 | |
| Fixed Costs | | | 29.1 | | | | 30.2 | |
| Cost of Sales | | | 433.8 | | | | 299.0 | |
| Gross profit | | | 214.8 | | | | 139.1 | |
| Operating Expenses | | | 22.8 | | | | 17.4 | |
| Operating Profit | | | 192.0 | | | | 121.7 | |
| Non operating, net | | | 52.1 | | | | 21.3 | |
| Profit/(Loss) before taxes | | | 244.1 | | | | 143.0 | |
| Income tax | | | 75.7 | | | | 89.1 | |
| Net Income/Loss | | | 168.4 | | | | 53.9 | |
| | | | | | | | | |
| TOTAL EBITDA * | | | 303.0 | | | | 199.0 | |
| EBITDA margin | | | 46.7 | % | | | 45.4 | % |
| EBITDA to EC GROUP** | | | 155.0 | | | | 101.5 | |
* Total EBITDA of the company under COLGAAP
**EBITDA (COLGAAP) contribution to EC group
Balance Sheet
| (COP$ Billion) | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 2,536.0 | | | | 1,981.2 | |
| Long Term Assets | | | 1,845.2 | | | | 1,850.6 | |
| Total Assets | | | 4,381.2 | | | | 3,831.8 | |
| Current Liabilities | | | 1,217.8 | | | | 848.8 | |
| Long Term Liabilities | | | 186.5 | | | | 172.9 | |
| Total Liabilities | | | 1,404.3 | | | | 1,021.7 | |
| Equity | | | 2,976.9 | | | | 2,810.1 | |
| Total Liabilities and Shareholders´ Equity | | | 4,381.2 | | | | 3,831.8 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Refining and Petrochemical
| Sales volume (tons) | | 1Q 2014 | | | 1Q 2013 | |
| Polypropylene | | | 91,033.4 | | | | 86,000.6 | |
| Polypropylene marketing for COMAI | | | 3,119.8 | | | | 2,854.0 | |
| Polyethylene marketing | | | 5,218.3 | | | | 3,908.3 | |
| Total | | | 99,371.5 | | | | 92,762.9 | |
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Local Sales | | | 149.7 | | | | 155.2 | |
| Export Sales | | | 234.6 | | | | 159.5 | |
| Total Sales | | | 384.3 | | | | 314.7 | |
| Variable Costs | | | 321.5 | | | | 269.1 | |
| Fixed Costs | | | 27.6 | | | | 28.0 | |
| Cost of Sales | | | 349.1 | | | | 297.1 | |
| Gross profit | | | 35.2 | | | | 17.6 | |
| Operating Expenses | | | 35.9 | | | | 25.5 | |
| Operating Profit | | | (0.7 | ) | | | (7.9 | ) |
| Non operating, net | | | 4.5 | | | | 1.3 | |
| Profit/(Loss) before taxes | | | 3.8 | | | | (6.6 | ) |
| Income tax | | | 1.4 | | | | 0.7 | |
| Net Income/Loss | | | 2.4 | | | | (7.3 | ) |
| | | | | | | | | |
| TOTAL EBITDA * | | | 22.7 | | | | 15.0 | |
| EBITDA margin | | | 5.9 | % | | | 4.8 | % |
| EBITDA to EC GROUP** | | | 22.7 | | | | 15.0 | |
* Total EBITDA of the company under COLGAAP
**EBITDA (COLGAAP) contribution to EC group
Balance Sheet
| COP$ Billion | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 740.5 | | | | 705.4 | |
| Long Term Assets | | | 509.4 | | | | 518.6 | |
| Total Assets | | | 1,249.9 | | | | 1,224.0 | |
| Current Liabilities | | | 482.9 | | | | 448.6 | |
| Long Term Liabilities | | | 71.5 | | | | 81.2 | |
| Total Liabilities | | | 554.4 | | | | 529.8 | |
| Equity | | | 695.5 | | | | 694.2 | |
| Total Liabilities and Shareholders´ Equity | | | 1,249.9 | | | | 1,224.0 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
| Sales Volume (mbd) | | 1Q 2014 | | | 1Q 2013 | |
| Local | | | 35.1 | | | | 49.4 | |
| International | | | 38.9 | | | | 51.6 | |
| Total | | | 74.0 | | | | 101.0 | |
Ecopetrol sales price to Free
Trade Zone*
(US$/Bl) | | 1Q 2014 | | | 1Q 2013 | | | ∆ (%) | | | Sales volume
(mboed)
1Q 2014 | |
| Crudes sold to free trade zone | | | 102.1 | | | | 108.5 | | | | (5.9 | %) | | | 38.0 | |
| Products sold to free trade zone | | | 98.0 | | | | 103.0 | | | | (4.9 | %) | | | 2.7 | |
| Gas sold to free trade zone | | | 30.8 | | | | 33.1 | | | | (6.9 | %) | | | 5.4 | |
* Free trade zone = Reficar
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Local Sales | | | 515.9 | | | | 1,013.1 | |
| Export Sales | | | 624.0 | | | | 925.1 | |
| Total Sales | | | 1,139.9 | | | | 1,938.2 | |
| Variable Costs | | | 1,091.8 | | | | 1,896.4 | |
| Fixed Costs | | | 40.4 | | | | 61.0 | |
| Cost of Sales | | | 1,132.2 | | | | 1,957.4 | |
| Gross profit | | | 7.7 | | | | (19.2 | ) |
| Operating Expenses | | | 60.0 | | | | 59.1 | |
| Operating Profit | | | (52.3 | ) | | | (78.3 | ) |
| Non Operating income | | | 51.7 | | | | 21.7 | |
| Non Operating expenses | | | (57.1 | ) | | | (60.7 | ) |
| Profit/(Loss) before taxes | | | (57.7 | ) | | | (117.3 | ) |
| Income tax | | | 0.7 | | | | 0.6 | |
| Net Income/Loss | | | (58.4 | ) | | | (117.9 | ) |
| | | | | | | | | |
| TOTAL EBITDA* | | | 6.7 | | | | (57.80 | ) |
| EBITDA margin | | | 0.6 | % | | | (3.0 | %) |
| EBITDA to EC GROUP** | | | 6.7 | | | | (57.8 | ) |
* EBITDA (COLGAAP) contribution to EC group
** Total EBITDA of the company under COLGAAP
Balance Sheet
| COP$ Billion | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 1,472.8 | | | | 1,842.2 | |
| Long Term Assets | | | 13,964.4 | | | | 13,059.3 | |
| Total Assets | | | 15,437.2 | | | | 14,901.5 | |
| Current Liabilities | | | 971.0 | | | | 1,322.4 | |
| Long Term Liabilities | | | 9,576.1 | | | | 9,014.3 | |
| Total Liabilities | | | 10,547.1 | | | | 10,336.7 | |
| Equity | | | 4,890.1 | | | | 4,564.8 | |
| Total Liabilities and Shareholders´ Equity | | | 15,437.2 | | | | 14,901.5 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Transport
The financial information presented corresponds to Cenit individually, recognizing application of the participation method to the earnings of the other transport companies of the business group.
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Sales of services | | | 746.5 | | | | - | |
| Total Sales | | | 746.5 | | | | - | |
| Variable Costs | | | 28.1 | | | | - | |
| Fixed Costs | | | 427.9 | | | | - | |
| Cost of Sales | | | 456.0 | | | | - | |
| Gross profit | | | 290.5 | | | | - | |
| Operating Expenses | | | 22.0 | | | | 5.1 | |
| Operating Profit | | | 268.5 | | | | (5.1 | ) |
| Non operating, net | | | 395.3 | | | | 131.1 | |
| Profit/(Loss) before taxes | | | 663.8 | | | | 126.0 | |
| Income tax | | | 70.8 | | | | - | |
| Net Income/Loss | | | 593.0 | | | | 126.0 | |
| | | | | | | | | |
| TOTAL EBITDA * | | | 756.8 | | | | 126.1 | |
| EBITDA margin | | | 101.4 | % | | | 0.0 | % |
| EBITDA to EC GROUP** | | | 756.8 | | | | 126.1 | |
* Total EBITDA of the company under COLGAAP
**EBITDA (COLGAAP) contribution to EC group
Balance Sheet
| COP$ Billion | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 1,218.90 | | | | 1,085.00 | |
| Long Term Assets | | | 20,810.30 | | | | 20,267.10 | |
| Total Assets | | | 22,029.20 | | | | 21,352.10 | |
| Current Liabilities | | | 1,932.00 | | | | 1,150.10 | |
| Long Term Liabilities | | | 132.30 | | | | 116.90 | |
| Total Liabilities | | | 2,064.30 | | | | 1,267.00 | |
| Equity | | | 19,964.90 | | | | 20,085.10 | |
| Total Liabilities and Shareholders´ Equity | | | 22,029.2 | | | | 21,352.1 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
Biofuels
| Sales volume (mboed) | | 1Q 2014 | | | 1Q 2013 | |
| Biodiesel | | | 2.3 | | | | 2.1 | |
| Glycerin | | | 0.2 | | | | 0.2 | |
| Total | | | 2.5 | | | | 2.3 | |
Income Statement
| (COP$ Billion) | | 1Q 2014 | | | 1Q 2013 | |
| Domestic sales | | | 78.2 | | | | 66.2 | |
| Sales of services | | | - | | | | - | |
| Total Sales | | | 78.2 | | | | 66.2 | |
| Variable Costs | | | 66.7 | | | | 55.5 | |
| Fixed Costs | | | - | | | | - | |
| Cost of Sales | | | 66.7 | | | | 55.5 | |
| Gross profit | | | 11.5 | | | | 10.7 | |
| Operating Expenses | | | 2.8 | | | | 2.2 | |
| Operating Profit | | | 8.7 | | | | 8.5 | |
| Non operating, net | | | (0.5 | ) | | | (1.3 | ) |
| Profit/(Loss) before taxes | | | 8.2 | | | | 7.2 | |
| Income tax | | | 1.4 | | | | 0.3 | |
| Net Income | | | 6.7 | | | | 6.9 | |
| | | | | | | | | |
| EBITDA | | | 10.2 | | | | 9.9 | |
| EBITDA margin | | | 13.0 | % | | | 14.9 | % |
Balance Sheet
| COP$ Billion | | As of March 31,
2014 | | | As of December 31,
2013 | |
| Current Assets | | | 68.2 | | | | 66.7 | |
| Long Term Assets | | | 89.0 | | | | 80.5 | |
| Total Assets | | | 157.2 | | | | 147.2 | |
| Current Liabilities | | | 55.6 | | | | 63.9 | |
| Long Term Liabilities | | | 29.9 | | | | 45.8 | |
| Total Liabilities | | | 85.4 | | | | 109.7 | |
| Equity | | | 71.8 | | | | 37.5 | |
| Total Liabilities and Shareholders' Equity | | | 157.2 | | | | 147.2 | |
| Dirección de Relacionamiento con el Inversionista Tel: 2345190, correo electrónico: investors@ecopetrol.com.co www.ecopetrol.com.co |
