Ecopetrol Cites Strong Capital Structure Exiting 2009

Ecopetrol announced its non audited unconsolidated and consolidated financial results for the fourth quarter and full year 2009 in Colombian pesos (COP$), prepared and filed in accordance with the Regimen de Contabilidad Publica (Regime of Public Accounting or RCP) of the National Accounting Office.

  • Ecopetrol and its affiliated companies had gross proved reserves of 1,878 MBOE and a reserves replacement rate of 359%.
  • Ecopetrol's group gross crude oil and natural gas production for 2009 increased by 17% from 447 KBPED to 520.6 KBPED. During the fourth quarter of 2009, production increased by 26.4%* from 455.7 KBPED to 575.9 KBPED.
  • Sales volumes in 2009 increased by 18.8% compared to 2008, and by 24%* in the fourth quarter of 2009.
  • Unconsolidated operating profit for 2009 was COP$8,083 billion for the full year 2009 and COP$2,706 billion during the fourth quarter.
  • Unconsolidated net profit was COP$5,256 billion, or COP$129.87 per share, for the full year 2009 and COP$1,691 billion during the fourth quarter.
  • Consolidated net profit was COP$5,132 billion for the full year 2009 and COP$1,721 billion during the fourth quarter.

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

Javier Gutierrez, Chief Executive Officer of Ecopetrol, said, "I am very pleased with 2009's results. We ended the year with great achievements in the execution of our growth strategy: we strengthened our balance of reserves, ending the year with 1,878 mm BOE, a 35.5% increase when compared to 2008, we increased the Group's production by 17%, made advances in the development of key projects, including the expansion of our heavy crude transportation capacity and the fuel hydro-treatment project and started to deliver cleaner diesel, which shows our commitment to improving the quality of air and the environment."

Gutierrez added, "Our Group grew with the acquisition of four companies, the expansion of our international activity with 25 new exploration blocks outside Colombia, and our commercial operation was strengthened with the increase of crude and product exports to Europe, Africa and Asia.

"Additionally, the strength of our financial results allowed us to raise COP$ 5.4 trillion in the Colombian and international markets in order to finance our capex investments. Our company continues to have strong cash flow generation, as well as a solid capital structure. These strengths were one of the elements considered by Moody's when rating our international bonds as investment grade."