Ecopetrol – EC – Announces Its Results for the Second Quarter and First Half of 2012

Ecopetrol S.A. (NYSE: EC) announced its unaudited financial results, both consolidated and unconsolidated, for the second quarter and first half of 2012, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública – RCP) of Colombia’s General Accounting Office.

• The consolidated average production (Ecopetrol S.A. plus interests in affiliates and subsidiaries) in the second quarter of 2012 increased by 4.8% compared to the second quarter of 2011.
• Revenues, operating income, EBITDA1 and net income of Ecopetrol S.A. in the second quarter of 2012 increased by 6.7%, 7.0%, 2.6% and 7.6%, respectively, compared to the second quarter of 2011.
• EC.’s net income for the second quarter was COP$3,675.3 billion, equivalent to COP$89.39 per share.
• EC – Revenues, operating income, EBITDA1 and net income of Ecopetrol S.A. in the first semester of 2012 increased by 15.0%, 17.3%, 13.2% and 17.6%, respectively, compared to the first semester of 2011.

Ecopetrol S.A.’s CEO, Javier Gutiérrez stated: “In the second quarter of 2012, Ecopetrol S.A., including its subsidiaries and affiliates, achieved key milestones in its strategic goals despite certain operational restrictions and lower international hydrocarbon prices. With specific reference to this quarter, I highlight the following results:

• First, the growth in sales, net income and EBITDA compared to the second quarter of 2011. These results are the product of strong operations that helped sustain growth in volumes produced and sold. Production growth was complemented by some effective cost control initiatives that allowed net margins and EBITDA to remain almost unchanged despite the drop in sales prices of crude and products in the past twelve months.
• The second major milestone is the continued improvement in Health, Safety and Environment (HSE), as a result of permanent quality and safety initiatives throughout our operations.
• Finally, the third major milestone is the incorporation of Cenit S.A.S., a wholly owned subsidiary specialized in hydrocarbon transport and logistics in Colombia, that will allow the country to expand and strengthen its network of oil and product lines as well as storage facilities, meeting the challenge of rising production of the oil and gas companies operating in our country, including Ecopetrol.

About Ecopetrol S.A. – EC

Ecopetrol S.A. (EC) is the largest company in Colombia based on revenue, profits, assets and net equity. Ecopetrol is the only Colombian vertically integrated crude oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.