Ecopetrol SA · BVC:ECOPETROL
Ecopetrol SA — Q2 2013 Earnings Presentation
26 slides from Ecopetrol SA's earnings presentation, Aug 1, 2013
Slide 1: Financial & Operational Results 2nd Quarter 2013
FINANCIAL & OPERATIONAL RESULTS 2nd Quarter 2013 Aug 1, 2013 Barrancabermeja Refinery
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
Management Participants Javier Gutierrez Camilo Marulanda CEO of Ecopetrol CEO of Cenit Hector Manosalva Enrique Velasquez Executive VP of E&P VP of Exploration Pedro Rosales Alberto Vargas Executive VP of Downstream Financial Comptroller Alejandro Giraldo Adriana Echeverri CFO (a) and Investor VP o
Slide 4: Agenda
Agenda 1. Highlights for the second quarter of 2013 2. Results per business segment 3. Financial results 4. Organizational consolidation 5. Outlook for the 3Q 2013 4
Slide 5: Highlights in the 2Q 2013
Highlights in the 2Q 2013 Production • Average production of 778 MBOED in 2Q and 785 MBOED in 1H • One hydrcarbon discovery in Colombia (Cusuco 1) • Competitive bids for three blocks in the Brazil Bidding Round Exploration • Acquisition of 31.5% of Gunflint (U.S. Gulf of Mexico) • 66% exploratory su
Slide 6: Agenda
Agenda 1. Highlights for the second quarter of 2013 2. Results per business segment 3. Financial results 4. Organizational consolidation 5. Outlook for the 3Q 2013 6
Slide 7: Strategic Plan 2013
Strategic Plan 2013 Capex (US$ million) Segment Key projects in 1H 2013 3,199 • Wells drilled* Exploratory: 4 Exploration & Appraisals: 11 2,331 Strats: 9 Production 1,746 • Facilities to manage fluids in Castilla and Chichimene fields 1,747 1,606 • Barrancabermeja refinery 1,224 114 Downstrea
Slide 8: Exploration
Exploration Castilla field A3/A2 Exploratory activity in Colombia Ecopetrol + net interests (Number of wells) Drilled Successful 2nd quarter Ecopetrol 1 1 Hocol* 1 0 Total 2 1 1st semester Ecopetrol 4 3 Hocol* 2 1 Total 6 4 Highlights: • 66% exploratory success rate in Colombia in 1H/2013 • One hydr
Slide 9: Production
Production Production: Ecopetrol + net interests Pumpjack in Apiay Field (thousand barrels of oil equivalent / day) 762 778 753 785 2 1 2 1 8 18 6 18 7 18 6 18 25 21 27 21 709 732 699 739 2Q-2012 2Q-2013 . 1H-2012 1H-2013 Ecopetrol Hocol Savia Equion EC America Production of main fields (thousand ba
Slide 10: Transport
Transport Bicentenario pipeline Transported volumes by pipeline Transported volumes by trucks building site (thousand barrels per day) (thousand barrels per day) 1,184 1,148 223 240 925 944 105 107 3 3 44 23 58 81 2Q-2012 2Q-2013 2Q-2012 2Q-2013 Products Crude Refined Naphta Crude Highlights: • Incr
Slide 11: Cenit: new transport model starting April 1, 2013
Cenit: new transport model starting April 1/ 2013 Operational Financial • Revenue sources • Dividends from Cenit • Client of Cenit (transportation of • Service fees from operations and crude and products) maintenance contracts Ecopetrol • Contractor of Cenit for the operation • Transportation costs
Slide 12: Refining & Petrochemicals
Refining & Petrochemicals Refinery runs Highlights (thousand barrels of crude per day) 218 220 • Progress in key projects: 73 73 Modernization C/gena Refinery: 83% Modernization B/meja Refinery: 16% B/bermeja Cartagena Industrial services plan B/meja: 74% Gross refining margin (US$ per barrel)
Slide 13: Sales & Marketing
Sales & Marketing Tanker in Coveñas port Sales Volumes Crude export destinations* (thousand barrels equiv./day) (% total exported volumes) 903 953 6% 6% 2Q 62% 19% 7% 535 567 2012 2% 81 73 2Q 51% 34% 6% 7% 287 313 2013 2Q-2012 2Q-2013 U.S. Asia Central America Europe Other Local Free trade zone Expo
Slide 14: Agenda
Agenda 1. Highlights for the second quarter of 2013 2. Results per business segment 3. Financial results 4. Organizational consolidation 5. Outlook for the 3Q 2013 14
Slide 15: Financial results of Ecopetrol S.A.
* Financial 200.0 results of Ecopetrol S.A. 110.9 107.1 109.0 114.3 105.1 Crude Prices (US$/BOE) 100.7 102.7 94.2 Products 101.2 99.6 Gas 27.6 0.0 27.0 27.8 28.4 28.1 5.7 953 903 848 902 885 Products 268 30% 271 269 274 29% 265 97 10% 79 92 9% Sales 75 85 Gas (MBOED) 538 508 552 532 587 62% 60% Crud
Slide 16: Financial results of Ecopetrol S.A.
* Financial 8.0 results of Ecopetrol S.A. 50% 39% 36% 35% Operating 32% 32% income and 5.8 5.5 Margin 5.1 4.9 (COP$ tn) 4.6 3.0 0% 50% 52% 70% 48% 8.0 46% 40% EBITDA 7.7 7.4 7.3 and margin** 6.5 20% 6.0 (COP$ tn) 3.0 -30% 30% 4.5 25% 25% Net income 23% 24% 25% 3.7 3.7 21% and margin 3.5 (COP$ tn) 3.
Slide 17: P&L 2Q/2013: Ecopetrol S.A.
P&L 2Q/2013: Ecopetrol S.A. Revenues Income Statement (COP$ trillion) • Higher production (+$0.67 tn) (COP$ trillion) 14.8 15.3 • Higher average exchange rate (+$0.35 tn), • Lower average prices Revenues 15.3 2Q-2012 2Q-2013 Variable Costs • Higher transport costs due to the change Variable Costs 7.
Slide 18: Cost Control Initiatives
Cost Control Initiatives Lifting Cost (US$ per barrel) Range: 10.68 – 10.85 E&P • Subsoil maintenance 11.53 • Infrastructure maintenance • Power consumption • Operational Support 2012 2013 (f) Refining Cash Cost (US$ per barrel) Downstream Range: 6.33 – 6.69 • Infrastructure maintenance • Catalyzers
Slide 19: Cash Flow and Balance Sheet: Ecopetrol S.A.
Cash Flow and Balance Sheet: Ecopetrol S.A. * Initial Sources Uses Final 16.0 0.6 0.2 25.4 15.1 Cash flow 2Q/2013 8.6 3.1 (COP$ trillion) 3.0 4.2 Initial Cash Operations Other FX Diff Cash Available Operations Capex Dividends Ending Cash Assets Liabilities Debt Ratios** Stocks 98.4 2.3 Other short t
Slide 20: Ecopetrol S.A. and Consolidated Financials
Ecopetrol S.A. and Consolidated Financials Subsidiaries*: (COP$ tn) Revenue (COP$ trillion) • Reficar: $1.9 16.5 17.6 • Cenit: $0.6 • Equión: $0.6 2Q-2012 2Q-2013 • Hocol: $0.5 45% 43% • Cenit: $0.4 Ebitda (COP$ trillion) • Equión: $0.3 7.4 7.5 • Hocol: $0.2 2Q-2012 2Q-2013 22% 19% Net Income • Ceni
Slide 21: Agenda
Agenda 1. Highlights for the second quarter of 2013 2. Results per business segment 3. Financial results 4. Organizational consolidation 5. Outlook for the 3Q 2013 21
Slide 22: Organizational consolidation
Organizational consolidation HSE Accident Frequency Index Highlights: (Accidents / mn labor hours) 0.84 • Two patents (1 Colombia and 1 Mexico) 0.72 • Public hearings and meetings with communities and municipalities in Colombia 2Q 2012 2Q 2013 22
Slide 23: Agenda
Agenda 1. Highlights for the second quarter of 2013 2. Results per business segment 3. Financial results 4. Organizational consolidation 5. Outlook for the 3Q 2013 23
Slide 24: Outlook for 3Q-2013
Outlook for 3Q-2013 • Drilling campaign • Colombia: Exploration Ecopetrol S.A.: 3 A3 wells, 5 Strats wells Subsidiaries: 2 A1 wells • International: 1 A1 well and 1 A3 well in the US GoM • Drilling campaign of development wells to reach the 798 MBOED in 2013 Production • Environmental license fo
Slide 25: Investor Relations
Investor Relations • Phone (+ 571) 234 5190 • Email investors@ecopetrol.com.co • Website www.ecopetrol.com.co 25 25
Slide 26: Restricted use notice
Para uso restringido en Ecopetrol S.A. Todos los derechos reservados. Ninguna parte de esta presentación puede ser reproducida o utilizada en ninguna forma o por ningún medio sin permiso explícito de Ecopetrol S.A.