Ecopetrol (EC) Q2 2024 earnings summary

Executive summary

• Achieved record operational metrics: production reached 758,000 boe/d, the highest in nine years, with transported volumes at 1,152,000 b/d and refinery throughput at 426,000 b/d, maintaining operational availability above 96%.

• Offshore gas discovery in Uchuva-2 confirmed, supporting future gas development in the Colombian Caribbean.

• Permian Basin set a monthly production record of 100,000 boe/d; strong performance across all business lines.

• Strong cash position and robust cost control despite external pressures such as FX, inflation, and fuel price effects.

• Continued progress in ESG and TESG, including CO2 reduction, energy efficiency, social gas connections, and water reuse achievements.

Financial highlights

• Revenue for H1 2024 reached COP 63.9 trillion; EBITDA COP 28.3 trillion; net profit COP 7.4 trillion; EBITDA margin at 44%.

• ROACE for H1 2024 was 13%, above the annual target; net profit would have been COP 10.7 trillion excluding externalities.

• FEPC receivable balance reduced by 61% year-over-year, improving cash flow.

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

• Cost efficiencies of COP 1.9 trillion achieved, supporting cost optimization.

Outlook and guidance

• No changes to CapEx or production guidance; CapEx expected up to $6 billion (COP 23–27 trillion) for 2024.

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

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

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

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