Ecopetrol Posts Interim Results, Maintains Growth Above 12%

  • In the third quarter of 2009, Ecopetrol S.A.'s ("Ecopetrol" or the "Company") average production of oil and gas increased by 12.9%* to reach 514.4 MBOED; in September the Company's monthly production (excluding the Company's subsidiaries Petro-tech and Hocol), came to 527.2 thousand BOE/D.
  • The Company met its accumulated September goal of drilling 12 exploratory wells, with an exploration success rate of 42%.
  • Volume sold increased by 17.6%*, driven by increased production and purchases of hydrocarbons.
  • Unconsolidated operating profit in the third quarter of 2009 was COP$2,224.2 billion, compared to COP$2,132.3 billion in the second quarter of the same year.
  • Unconsolidated net income in the third quarter of 2009 came to COP$1,193.5 billion, equivalent to COP$29.49 per share.
  • Unconsolidated accumulated net income as of September of 2009 was COP$3,564.8 billion, equivalent to COP$88.08 per share.
  • We continued improving the safety and reliability of our operations
  • A 5-year collective labor agreement was signed with the Company's three labor unions.
  • The Llanos Orientales oil pipeline ("ODL") started operations.

* Results for the third quarter of 2009 as compared to results for the third quarter of 2008

Ecopetrol has posted its unaudited interim financial results, both unconsolidated and consolidated(1), for the third quarter 2009 and cumulative for the nine months ended September 2009, prepared and filed in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica - RCP) of the Colombian General Accounting Office, in Colombian pesos (COP$).

(1) Under the Public Accountancy Legal Framework (Regimen de Contabilidad Publica en Colombia - RPC), companies are only obliged to consolidate their financial statements at the close of each fiscal year. Therefore, the figures presented in this report do not constitute a formal consolidation of the financial statements of Ecopetrol, but are adjusted in accordance with the methodology defined for such purpose.

Ecopetrol's CEO, Javier Gutierrez, highlighted, "Results for the third quarter of 2009 have benefited from the growing production levels of crude and gas, which in September reached 527.2 thousand BOE/D, as well as higher prices for our crude and products. All of the above resulted in a 10.2% increase in our revenues and a 56.6% rise in net income, compared to the second quarter of 2009. Although the revaluation of the Colombian peso continued to generate non-operating losses in financial investment portfolios in the third quarter of 2009, its impact was partially offset by the effect of dollar denominated liabilities resulting from the successful US $1.5 billion bond placement in July 2009."

Gutierrez also emphasized, "In line with our objective of producing one million barrels of oil equivalent in 2015, we are maintaining production growth above 12%, we started operations in the Llanos Orientales pipeline with our partner Pacific Rubiales Energy and completed the first phase of the Apiay-Porvenir pipeline, which will enable us to transport growing quantities of Rubiales and Castilla heavy crudes at competitive costs, and we are moving ahead with the consolidation of acquisitions made in the first half of 2009."