Ecopetrol (EC) Q2 2024 earnings summary

Executive summary

• Achieved record production of up to 758,000 boe/d in 2Q24, the highest in nine years, and record transported volumes of up to 1,152,000 b/d, with refinery throughput at 426,000 b/d and operational availability at 96%.

• Maintained strong operational performance and cash position despite external challenges such as FX, inflation, and lower refined product prices.

• Advanced energy transition and TESG initiatives, including emissions reductions, water reuse, and launch of the Colombian Institute of Petroleum and Transition Energy.

• Confirmed extension of the Uchuva gas discovery and set new production records in the Permian, with monthly output reaching 100,000 boe/d.

• Dividend payments in 1H24 totaled up to COP 12.2 trillion, with significant distributions to both minority and majority shareholders.

Financial highlights

• 1H24 revenue reached up to COP 63.9 trillion; EBITDA up to COP 28.3 trillion; net profit up to COP 7.4 trillion, with EBITDA margin at 44%.

• ROACE for 1H24 was up to 13%, exceeding annual targets; net profit would have been higher excluding externalities.

• FEPC receivable balance reduced by up to 66% year-over-year, improving liquidity and cash flow.

• Achieved COP 1.9 trillion in efficiencies, supporting cost optimization and competitiveness.

• Operating cash flow generation of COP 23.1 trillion, with significant collections from FEPC.

Outlook and guidance

• No changes to CapEx or production guidance; CapEx to remain up to $6 billion (COP 23–27 trillion) for 2024, with 47% executed in 1H24.

• Second half to focus on intensive investment in exploration, offshore gas development, and energy transition projects.

• Projected year-end FEPC balance between COP 8-10 trillion, subject to market fluctuations.

• Lifting costs expected to remain between $12-$13 per barrel for 2024.

• Continued emphasis on cost control, efficiency maximization, and sustainable financial management.