Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Q1 2015 Earnings Presentation
14 slides from Ecopetrol Sa's earnings presentation, May 13, 2015
Slide 1: Operational and Financial Results 1Q – 2015
Ecopetrol Corporate Group Operational and Financial Results 1Q – 2015 MAY 13TH 2015
Slide 2: Disclaimer
Disclaimer This document was prepared by Ecopetrol S.A. with the purpose of providing the market and interested parties certain financial and other information of the Company. This document may include strategy discussions and forward-looking statements regarding the probable development of Ecopetro
Slide 3: Management Participants
Management Participants Juan Carlos Echeverry Bernardo Castro CEO VP of Commercial and Marketing Camilo Marulanda Magda Manosalva Executive VP CFO Héctor Manosalva Adriana Echeverri VP of Development and Production VP of Growth & Strategy Pedro Rosales Alberto Vargas VP of Refining and Industrial Pr
Slide 4: Agenda
Agenda 1. Market overview 2. Highlights 3. Operational Update 4. Financials 5. Outlook for 2Q 2015 6. Q&A 4
Slide 5: Market Overview
Market Overview Oil Prices USD/COP Average* $ 3,000 USD 120 107.9 2,480 Brent $ 2,500 USD 100 2,180 89.3 MAYA 2,000 77 $ 2,000 USD 80 67.2 $ 1,500 USD 60 54.8 43.9 $ 1,000 USD 40 $ 500 USD 20 USD 0 $0 1Q-2014 4Q-2014 1Q-2015 1Q-2014 4Q-2014 1Q-2015 * Rounded Quarterly Average • Prices of crude refer
Slide 6: First Quarter Highlights
First Quarter Highlights Upstream Midstream/Downstream Financials • Average consolidated • B/meja refinery 1Q 2015 • Net Income* of COP$0.16 Tn production of 773.4 mboed. margins US$18.2/Bl vs. and Ebitda of COP$3.15 Tn +1% vs. 1Q 2014 and 4Q US$16.3/Bl in 1Q 2014 2014 • Standard and Poor´s • Refica
Slide 7: Upstream Performance
Upstream Performance Production: Ecopetrol + Net Interests* (mboed) • Growth between 1Q-2015 and 1Q-2014: + 1% • Chichimene: +69%, to 80 mbod in 1Q 773 2015 766 755 765 51 • Castilla: +14%, to 118 mbod in 1Q 49 734 52 51 2015 49 • Subsidiaries and affiliates’: +6%, mainly due to Ecopetrol America In
Slide 8: Midstream and Downstream Performance
Midstream and Downstream Performance Volumes Transported by Cenit (mbd) Midstream Crude Oil Products • Higher crude volumes transported as a result of lower 1,233 1,274 1,200 1,274 number of attacks to infrastructure vs. 1Q 2014 257 253 248 253 • Increase in transported products, mainly naphtha, for
Slide 9: Income Statement Drivers (COP$Tn)
Income Statement Drivers (COP$Tn) 17.97 Effect in 12.30 Δ 1Q 2014 – 1Q 2015 Net Income + 0.21 + 2.10 + 0.24 Total Sales - 8.22 -5.67 (-) 1Q 2014 Volumes Price FX Other 1Q-2015 8.62 6.40 + 0.32 + 0.62 Variable - 2.77 - 0.30 - 0.09 -2.22 (+) Costs 1Q-2014 Volumes Prices FX Stocks Other 1Q-2015 2.15 2.
Slide 10: Key Financial Results (COP$ Tn)
Key Financial Results (COP$ Tn) Margin % Δ 1Q 2014 – 1Q 2015 44% 7.9 26% 3.2 Ebitda and -$4.7 Ebitda Margin 1Q-2014 1Q-2015 6.2 Pre-Tax Income 0.8 -$5.4 1Q-2014 1Q-2015 2.1 Income Tax -$1.6 0.5 1Q-2014 1Q-2015 22% 3.9 Net Income* and Net Margin 2% -$3.7 0.2 1Q-2014 1Q-2015 10 * Net Income attributab
Slide 11: Costs and Expenses Optimization
Costs and Expenses Optimization 1Q-2015 2015 Long term • Cost reduction of • Total expected savings of • Currently Ecopetrol is US$0.63/bl due to US$3.56 Bn (2015 budget defining long term saving optimization strategies out vs. 2014 budget executed ) targets of a total decrease of US$2.32/bl in lift
Slide 12: Variation of Net Income by Segment (COP$Tn)
Variation of Net Income by Segment (COP$Tn) E&P Refining & Petro. Transport Lower total sales mainly Improvement of the Higher transported due to 54% drop in gross margin but lower volumes to third parties export crude oil basket operational result and FX by Cenit, Ocensa and losses ODL. Positive ef
Slide 13: Second Quarter Outlook
Second Quarter Outlook Upstream Midstream /Refining Financials/Other • Ongoing development • Start of operation of • Implementation of IFRS campaign to maintain 1Q natural gas power units at standards 2015 ’s production levels Cartagena refinery • Announcement of the • Approved the development • Com
Slide 14: Q&A
Q&A 14