Ecopetrol SA has announced its audited financial results, both consolidated and unconsolidated, for the fourth quarter and full year 2014, prepared and filed in Colombian pesos in accordance with the Public Accountancy Legal Framework or Colombia’s General Accounting Office. Net proven reserves of crude oil, condensate and natural gas owned by the company, including its interest in affiliates and subsidiaries, as of December 31, 2014, were 2084 million boe, a 5.7% increase compared to 1972 million boe in 2013. The reserve replacement ration in 2014 was 146%, up from the 139% reported in 2013. The reserves/production ration increased to 8.6 years.
In the fourth quarter of last year, the production recovery trend was reinforced, with growth of 1.4% compared to the third quarter 2014, reaching 765.1 million boe, thanks to improved environment conditions and continued development of projects at the Castilla and Chichimene fields. For the full year 2014, average production was 755.4 million boe, a decline of 4.2% versus 2013, due to environment, public order and operating issues that were particularly challenging in the second quarter. Net income for last year was COP$7813 billion, 41% below 2013, primarily the result of the drop in sale prices, lower volumes sold and the cost increase.
Javier Gutierrez, Ecopetrol CEO said, “In 2014, we obtained important achievements, such as the discoveries in offshore exploratory blocks; the strengthening of the transportation segment, which continues the optimisation needed to achieve competitive margins at the level of the best in the industry; and the generation of positive EBITDA in the refining segment as we enter the final phase of the Cartagena refinery project. Affiliates of the corporate group contributed to the positive results. Ecopetrol America Inc. reached a production of 7.7 million boe/d in the fourth quarter of 2014, thereby beginning to generate revenues that will allow its future sustainability. As far as petrochemicals, Propilco significantly increased its earnings, benefitting from better international prices of raw material and higher volumes of propylene supply from the Barrancabermeja refinery.
“The corporate group’s average yearly production was 755.4 million boe/d, 33 million boe/d below that of the previous year, due to operating environment situations, attacks, environmental constraints, offset by the increase in production of affiliates and subsidiaries. The average sales price of the basked of Ecopetrol crude, gas and products was US$10/6 /bbl lower than in 2013, which coupled with a 7% devaluation of the average exchange rate, had a significant impact on our financial results.”
Of the refining sector Gutierrez said, “in refining, we obtained 96.3% completion of the Cartagena refinery modernisation project.”
Edited from press release by Claira Lloyd