Ecopetrol S.A., the Colombian national oil company, reported its unaudited interim condensed consolidated financial statements for the first half of 2024, indicating a mixed financial performance amid a favorable crude oil price environment. The company's financial results, filed with the U.S. Securities and Exchange Commission (SEC) in a Form 6-K report for October 2024, showed a 12.7% decrease in total revenues compared to the same period in 2023. Despite higher Brent oil prices averaging $83.4 per barrel, which was an increase from the previous year, the company faced a 39.8% drop in net income for the period. The decrease in revenues was attributed to the depreciation of the Colombian peso against the U.S. dollar and a 3.3% decrease in sales volume. Ecopetrol's...Show More

Ecopetrol S.A., the Colombian national oil company, reported its unaudited interim condensed consolidated financial statements for the first half of 2024, indicating a mixed financial performance amid a favorable crude oil price environment. The company's financial results, filed with the U.S. Securities and Exchange Commission (SEC) in a Form 6-K report for October 2024, showed a 12.7% decrease in total revenues compared to the same period in 2023. Despite higher Brent oil prices averaging $83.4 per barrel, which was an increase from the previous year, the company faced a 39.8% drop in net income for the period. The decrease in revenues was attributed to the depreciation of the Colombian peso against the U.S. dollar and a 3.3% decrease in sales volume. Ecopetrol's cost of sales saw a 10.4% decrease, primarily due to lower purchase costs of crude oil, gas, and refined products. The company's operating income also declined by 20.4%, with financial results experiencing a 15.3% increase in expenses, mainly due to higher interest expenses and other financial costs. The effective income tax rate increased to 44.2% in 2024 from 31.9% in 2023. The company's liquidity position was strengthened by payments from the Fuel Price Stabilization Fund (FEPC) and dividends received from subsidiaries. Ecopetrol's capital expenditures for 2024 are projected to be between $5.5 billion and $6.6 billion, primarily funded through internal cash generation. The report also mentioned public investigations into alleged irregularities in the financing of Gustavo Petro's 2022 presidential campaign, with Ecopetrol's CEO Ricardo Roa Barragán serving as the campaign manager. Additionally, two board members resigned due to disagreements with certain business decisions. Looking forward, Ecopetrol is aligning its operations with its 2040 Strategy, focusing on low emissions solutions and updating its financial reporting model to reflect this strategic vision.