Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Q2 2009 Earnings Presentation
23 slides from Ecopetrol Sa's earnings presentation, Aug 4, 2009
Slide 1: Financial and Operating Results for the Second Quarter 2009
FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER 2009 August 4, 2009 1
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 in Today's Conference Call
MANAGEMENT PARTICIPANTS IN TODAY’S CONFERENCE CALL • Javier Gutierrez, Chief Executive Officer • Adriana Echeverri, Chief Financial Officer • Nelson Navarrete, EVP of Exploration & Production • Alvaro Vargas, EVP of Growth and Strategy • Camilo Marulanda, VP of Supply and Marketing • Mauricio Echeve
Slide 4: Agenda
AGENDA • Highlights of the second quarter 2009 • Strategic plan achievements • Financial results for the second quarter 2009 • Outlook for the second semester of 2009 4
Slide 5: Agenda
AGENDA • Highlights of the second quarter 2009 • Strategic plan achievements • Financial results for the second quarter 2009 • Outlook for the second semester of 2009 5
Slide 6: Highlights of the Second Quarter 2009
HIGHLGHTS OF THE SECOND QUARTER 2009 • Organic average production in June of 504.2 MBOED • Production increase of 9.7%* • 16.4% * growth in volume sold • Revenues of COP$6,68 trillion • Operational income of COP$2.1 trillion**, an increase of 109% vs 1Q 09 • Net income of COP$ 0.76 trillion** (COP$
Slide 7: Agenda
AGENDA • Highlights of the second quarter 2009 • Strategic plan achievements • Financial results for the second quarter 2009 • Outlook for the second semester of 2009 7
Slide 8: Ecopetrol's Strategic Plan
ECOPETROL´S STRATEGIC PLAN Main strategic goals Progress 2008-09 CAPEX 2008-20151 2007 2008 2015 Total US$ 60 trillion • Production of 504 mboed 10 Acquisitions Production 399 447 1,000 • International operation in (MBOED) 16 Peru, Brasíl y Gulf of México Production Upstream (US) 12 Exploration & Re
Slide 9: Upstream Progress in 2009
UPSTREAM PROGRESS IN 2009 • Internationalization strategy > Brazil: • Participation Agreement with Anadarko to explore in BMC-29, an offshore concession located in the Campos Basin • 248 seismic kilometers acquired > Peru: • Authorization to enter into a license agreement with Talisman for hydrocarb
Slide 10: Upstream Progress in 2009
UPSTREAM PROGRESS IN 2009 • Oil and gas production increased by 9,7%* in 2Q-09 Production (MBOED) 2006-2009 Production (MBOED) 2Q/09 9,7% 488 MBPD Apr-09 May-09 Jun-09 2009-2Q 2008-2Q % 447 445 458 385 399 93 Crude Oil 385 392 408 395 359 10.0% 85 86 82 69 72 Natural 325 362 359 376 395 Gas 89 95 96
Slide 11: Downstream Progress in 2009
DOWNSTREAM PROGRESS IN 2009 • Acquisition of 51% interest in Refineria de Cartagena closed • Progress in Cartagena Master Plan cost synergy analysis with Refining Barrancabermeja’s refinery upgrade • 82% progress in Hydro-treatment project in Barrancabermeja • On May 20 became the operator of Oleodu
Slide 12: Downstream Progress in 2009
DOWNSTREAM PROGRESS IN 2009 Refinery Runs (MBOD) Gross Refining Margin (USD$/Bl)* Product Breakdown – 2Q 09 Barrancabermeja Refinery 8.0 1% 233 214 6% (92%) (86%) 7% 33% 21% 3.4 79 79 (98%) (98%) 32% Gasoline Med. Dest Fuel Oil LPG and ethylene 2008-2Q 2009-2Q 2008-2Q 2009-2Q Barrancabermeja Cartage
Slide 13: Progress in Organizational Consolidation 2009
PROGRESS IN ORGANIZATIONAL CONSOLIDATION 2009 • Plans for technical competence development completed for 100% of employees • Work plans to improve corporate work environment Human talent • Strengthening of leadership style • Prevented cost in supply chain of 5.18% of managed amounts thanks to Supply
Slide 14: Investment Plan Progress 2009
INVESTMENT PLAN PROGRESS 2009 CAPEX investment 1st half 2009 (USD Bn) Investment highlights 2Q/09 Progress 61% * • Acquisitions 3.81 Cartagena Refinery Finalized acquisition of 51% share in 0.07 Others Cartagena Refinery for a total amount of US$ 549 million Hocol 2.35 Acquisitions Finalized 100% ac
Slide 15: Progress in Financing Plan 2009
PROGRESS IN FINANCING PLAN 2009 Loan facility Financing Syndicated loan with 11 local banks Amount COP 2.2 trillion Term 7 years (including two year grace period) Interest DTF + 4% T.A. semi-annual Capital payments Semi-annual with two year grace period Guarantees Coverage: 1.2 times. Stock pledge o
Slide 16: Agenda
AGENDA • Highlights of the second quarter 2009 • Strategic plan achievements • Financial results for the second quarter 2009 • Outlook for the second semester of 2009 16
Slide 17: Sales Volume Trends. Domestic & International
SALES VOLUME TRENDS. DOMESTIC & INTERNATIONAL • Total Q2 sales increased by 16.4%* • Higher share of international sales, from 39.2% in 2Q 08 to 47.2% in 2Q 09 Total sales volume (MBOED) 633 547 543 462 474 299 47,2% 39.5% 216 213 39.2% 148 31.2% 174 37.8% 326 68,8% 331 60,5% 330 60,8% 334 52.8% 288
Slide 18: Operating Results
OPERATING RESULTS * Total revenues (COP$ Trillion) Operating costs and expenses (COP$ Trillion) Operating income (COP$ Trillion) 9.42 5.04 4.38 6.69 4.55 2.13 2008-2Q 2009-2Q 2008-2Q 2009-2Q 2008-2Q 2009-2Q Non operating revenues (COP$ Trillion) Net income (COP$ Trillion) Ebitda (COP$ Trillion) and
Slide 19: Sales, Cost of Sales and Operating Expenses
SALES*, COST OF SALES* AND OPERATING EXPENSES * Total sales (COP$ Trillion) Cost of sales (COP$ Trillion) 9.42 4.71 4.00 1.23 26.3% 3.36 35.7% 6.69 1.33 33.2% 3.02 45.1% 3.47 73.7% 6.06 64.3% 2.67 66.8% 3.67 54.9% 2008-2Q 2009-2Q 2008-2Q 2009-2Q Export sales Local sales + services Variable costs Fix
Slide 20: Segment Results
SEGMENT RESULTS Domestic sales (COP$ Trillion) International sales (COP$ Trillion) 2.61 1.58 2.51 2.37 1.81 1.05 0.94 0.49 0.52 0.78 0.91 0.55 0.53 0.4 E&P Refining Transportation Sales and Corporate Marketing -2.22 E&P Refining Sales and Marketing 2009-1Q 2009-2Q -3.03 2009-1Q 2009-2Q Operating inc
Slide 21: Balance Sheet
BALANCE SHEET * • Strong balance sheet and capacity to fund growth Balance Sheet (COP$ Trillion) 13.53 28.9% 25.62 48.0% 21.93 21.29 44.3% 43.8% 21.3 50.5% 48.1 48.15 53.35 50.11 42.14 34.62 71.1% 28.20 26.81 55.7% 27.73 52.0% 56.2% 20.84 49.5% Assets Liabilities Equity Assets June 2009 (COP$ Trilli
Slide 22: Agenda
AGENDA • Highlights of the second quarter 2009 • Strategic plan achievements • Financial results for the second quarter 2009 • Outlook for the second semester of 2009 22
Slide 23: Outlook for the Second Semester of 2009
OUTLOOK FOR THE SECOND SEMESTER OF 2009 • Execute the exploration strategy, locally and internationally • Maintain focus on production growth according to strategic plans • Fully execute the investment plan for 2009 • Evaluate additional financing opportunities for the investment plan • Full complia