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Press release from PR Newswire

Ecopetrol Announces Its Results for the Second Quarter and First Half of 2012

Tuesday, July 24, 2012

Ecopetrol Announces Its Results for the Second Quarter and First Half of 201219:42 EDT Tuesday, July 24, 2012- The consolidated average production (Ecopetrol S.A. including interests in affiliates and subsidiaries) in the second quarter of 2012 increased by 4.8% compared to the second quarter of 2011. - Revenues, operating income, EBITDA(1) and net income of Ecopetrol S.A. in the second quarter of 2012 increased by 6.7%, 7.0%, 2.6% and 7.6%, respectively, compared to the second quarter of 2011. - Ecopetrol S.A.'s net income for the second quarter was COP$3,675.3 billion, equivalent to COP$89.39 per share. - Revenues, operating income, EBITDA(1) and net income of Ecopetrol S.A. in the first semester of 2012 increased by 15.0%, 17.3%, 13.2% and 17.6%, respectively, compared to the first semester of 2011. (1) Earnings before taxes, interest, depreciation and amortizationsBOGOTA, Colombia, July 24, 2012 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results, both consolidated and unconsolidated, for the second quarter and first half of 2012, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica - RCP) of Colombia's General Accounting Office. (Logo: http://photos.prnewswire.com/prnh/20090209/ARM001LOGO )Some figures in this report are presented in U.S. dollars (US$) where indicated. The tables shown in the body of the report have been rounded to one digit. Figures presented in COP$ billion are equivalent to COP$ one thousand million. Ecopetrol S.A. Financial Results Highlights Unconsolidated(COP$ Billion)2Q 2012 *2Q 2011 *Var. %1H 2012*1H 2011*Var. %Total sales14,796.013,868.46.7%30,241.526,304.715.0%Operating profit6,001.15,609.27.0%12,905.610,999.917.3%Net Income3,675.33,414.37.6%8,018.76,818.917.6%Earnings per share (COP$)89.3984.366.0%195.02168.4815.8%EBITDA7,056.66,880.92.6%15,175.913,407.113.2%EBITDA Margin48%50%50%51%Consolidated(COP$ Billion)2Q 2012 *2Q 2011 *Var. %1H 2012*1H 2011*Var. %Total sales16,509.216,264.81.5%34,537.230,689.512.5%Operating profit6,185.06,059.82.1%13,699.211,756.816.5%Net Income3,657.13,751.4(2.5%)7,931.26,861.615.6%EBITDA7,456.37,617.5(2.1%)16,235.514,525.111.8%EBITDA Margin45%47%47%47%* Not audited, for illustration purposes onlyIn the opinion of Ecopetrol S.A.'s CEO, Javier Gutierrez:"In the second quarter of 2012, Ecopetrol S.A., including its subsidiaries and affiliates, achieved key milestones in its strategic plan despite certain operational restrictions and fall of international hydrocarbon prices. With specific reference to this quarter, I highlight the following results:  First, the growth in sales, net income and EBITDA compared to the second quarter of 2011. These results are the product of strong operations that helped sustain growth in volumes produced and sold. Production growth was complemented by some effective cost control initiatives that allowed net margins and EBITDA to remain almost unchanged despite the drop in sales prices of crude and products in the past twelve months.The second major milestone is the continued improvement in Health, Safety and Environment (HSE), as a result of permanent quality and safety initiatives throughout our operations. Finally, the third major milestone is the incorporation of Cenit S.A.S., a wholly owned subsidiary. This new company is specialized in hydrocarbon transport and logistics in Colombia, and will allow the country to expand and strengthen its network of oil and product lines as well as storage facilities,  meeting the challenge of rising production of the oil and gas companies operating in our country, including Ecopetrol.In summary, during this second quarter, Ecopetrol, including its subsidiaries and affiliates, maintained the growing trend of its operations despite some difficulties in the business environment, both locally and internationally. This is a clear evidence of the decision and effort of our companies to achieve the goals set in our strategic plan."The complete report is available in www.ecopetrol.com.coEcopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 50 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and is entering into the biofuels business.This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice. Contact us for any additional information:Investor RelationsAlejandro GiraldoPhone: +571-234-5190Email: investors@ecopetrol.com.coMedia Relations (Colombia)Mauricio TellezPhone: + 571-2345377Fax: +571-2344480Email: mtellez@ecopetrol.com.coSOURCE Ecopetrol S.A.