Ecopetrol announced today the financial results of the Ecopetrol Group for the first quarter of 2024
Ecopetrol announced the financial results of the Ecopetrol Group for the first quarter of 2024. Despite challenges like energy cost increases and lower refined product prices, the company maintained operational resilience. They achieved COP 31.3 trillion in revenue, COP 14.2 trillion in EBITDA, and a net profit of COP 4.0 trillion. Notably, the company increased production targets for 2024 and made advancements in environmental initiatives, social investments, and corporate governance.
Ecopetrol achieved a net profit of COP 4.0 trillion in 1Q24.
The company recorded COP 31.3 trillion in revenue for the first quarter of 2024.
Ecopetrol maintained an EBITDA margin of 45% in line with the average of the last 8 years.
The company increased its production targets for 2024 to a range between 730 and 735 Kboed.
Innovative initiatives like the launch of the first solar farm in a refinery in Latin America showcase commitment to renewable energy.
Quarterly results were affected by exogenous factors like lower exchange rates, inflation, and the 'El Niño' phenomenon.
Product spreads were narrower, impacting the financial performance in 1Q24.
There was a decrease in total sales by 19.4% compared to 1Q23.
Net income attributable to owners of Ecopetrol decreased by 29.1% compared to 1Q23.
Gross income decreased by 23.9% in the first quarter of 2024.
Insights
We began 2024 with outcomes that highlight our operational prowess and our initiatives to achieve a fair energy transition.
During the 1Q24, we navigated an environment impacted by exogenous variables, with increased energy costs, inflationary pressures, the revaluation of the Colombian peso, and lower prices for refined products. Despite these challenges, the Ecopetrol Group was able to maintain operational resilience thanks to market diversification, efficiency maximization, and the application of planning, optimization, and cost-saving measures in our operations, thus achieving favorable results and generating a competitive level of profitability in the industry.
For the first quarter of the year, we recorded
Regarding the Fuel Price Stabilization Fund, it is worth noting the sustained decrease in the pace of accumulation of the accounts receivable, which has been consistently decreasing each year until reaching a decrease of
In the Hydrocarbons business line, we highlight the strength of our traditional business with the increase in volumes compared to 1Q23, closing the quarter's production at 741 kboed (+22 kboed as compared to 1Q23), transported volumes of 1,118 kbd (+28 kbd as compared to 1Q23) and refining throughputs at 428 kbd (+16 kbd as compared to 1Q23), with the operational availability of our refineries at
In addition to these results, strong commercial management allowed us to capitalize on the market's margins and opportunities, achieving an improvement of
We highlight the successful sale of 16.7 million barrels of crude oil and products by Ecopetrol US Trading, our commercial subsidiary in
In the Low-Emission Solutions business line, natural gas and liquified petroleum gas ("LPG") accounted for
Also, during this quarter, in the Transmission and Toll Roads business line, Interconexión Eléctrica S.A. ("ISA") was awarded six expansions of the transmission networks and two connection contracts in
We would like to draw attention to the following technology, environment, social and governance ("TESG") results:
In the environmental component, we lowered greenhouse gas emissions by 50.3 thousand tons of CO2e during the quarter, accumulating 1.54 million metric tons of CO2e since 2020. In 1Q24, we utilized 39.6 million cubic meters of recycled water for our activities, representing a
In the social dimension, we invested
In corporate governance, during the 1Q24 we highlight the holding of the General Shareholder's Meeting where new members of the Board of Directors were elected. These members, with diversity in age, gender, and experience, aim to safeguard the company's traditional business while reaffirming their commitment to advancing towards a fair and responsible energy transition. In April, we filed the corresponding Form 20-F for the year 2023 with the Security Exchange Commission, wherein our Board of Directors reaffirmed its commitment to the 2040 strategy.
Under the innovation and technology agenda, participation in the Tenth Antarctic Expedition came to an end under the terms of the Ecopetrol-National Navy agreement. During the expedition, gas measurements and particulate matter sampling were conducted, and the collected data will be utilized in studies on the production of offshore energy from renewable sources.
Ecopetrol's priority for the upcoming quarters of 2024 will continue to be caring for our workers, upholding TESG, and demonstrating our commitment to ethics and transparency. We will continue to make decisive progress in our goal of advancing the transition to low-emission energies while guaranteeing
Ricardo Roa Barragan
President, Ecopetrol S.A.
In 1Q24, the Ecopetrol Group generated a net income of
Billion (COP) | 1Q 2024 | 1Q 2023 | ∆ ($) | ∆ (%) | |
Total sales | 31,302 | 38,854 | (7,552) | (19.4 %) | |
Depreciation and amortization | 3,452 | 3,009 | 443 | 14.7 % | |
Variable cost | 10,821 | 15,348 | (4,527) | (29.5 %) | |
Fixed cost | 4,790 | 4,422 | 368 | 8.3 % | |
Cost of sales | 19,063 | 22,779 | (3,716) | (16.3 %) | |
Gross income | 12,239 | 16,075 | (3,836) | (23.9 %) | |
Operating and exploratory expenses | 2,437 | 2,354 | 83 | 3.5 % | |
Operating income | 9,802 | 13,721 | (3,919) | (28.6 %) | |
Financial income (loss), net | (2,002) | (1,506) | (496) | 32.9 % | |
Share of profit of companies | 197 | 342 | (145) | (42.4 %) | |
Income before income tax | 7,997 | 12,557 | (4,560) | (36.3 %) | |
Income tax | (2,921) | (5,593) | 2,672 | (47.8 %) | |
Net income consolidated | 5,076 | 6,964 | (1,888) | (27.1 %) | |
Non-controlling interest | (1,064) | (1,304) | 240 | (18.4 %) | |
Net income attributable to owners of Ecopetrol | 4,012 | 5,660 | (1,648) | (29.1 %) | |
EBITDA | 14,238 | 17,842 | (3,604) | (20.2 %) | |
EBITDA Margin | 45.5 % | 45.9 % | - | (0.4 %) |
The financial information included in this report has not yet to be audited. It is expressed in billions or trillions of Colombian pesos (COP) or US dollars (USD), or thousands of barrels of oil equivalent per day (kboed) or tons, as noted. Certain figures in this report were rounded to the nearest decimal place for presentation purposes.
Forward-looking statements: This release contains statements that may be considered forward-looking statements concerning Ecopetrol's business, operational and financial results, and prospects for growth. These are forward-looking statements and, as such, are based solely on management's expectations regarding Ecopetrol's future and its ongoing access to capital to fund Ecopetrol's business plan. Such forward-looking statements depend primarily on changes in market conditions, government regulations, competitive pressures, and the performance of the Colombian economy and the industry, to mention a few. Therefore, they are subject to change without notice.
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SOURCE Ecopetrol S.A.
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