• Revenue: COP98.5 trillion for the first nine months of 2024.

• EBITDA: COP42.3 trillion with a margin of 43%.

• Net Income: COP11 trillion, normalized to COP16 trillion excluding external factors.

• Production: 752,000 barrels of oil equivalent per day.

• Refining Throughput: 418,000 barrels per day, a historic high.

• Debt Management: Successful liability management transaction of $1.75 billion.

• Cash Position: COP18.8 trillion at the end of the third quarter.

• Exploration CapEx: $330 million, the highest in the last four years.

• Midstream EBITDA: COP8.3 trillion, contributing 20% to total EBITDA.

• Refining Gross Margin: Decreased to $7 per barrel.

• Transmission and Roads Revenue: COP11.5 trillion, with an 8% increase.

• Investments: Execution rate of 86% by the third quarter, with significant focus on hydrocarbons and energy transition.

• Gross Debt to EBITDA Ratio: 2.1 times, excluding ISA's debt, 1.5 times.

• Warning! GuruFocus has detected 5 Warning Signs with EC.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ecopetrol SA (NYSE:EC) achieved a production of 752,000 barrels of oil equivalent per day, the highest in nine years.

• The company reported revenues of COP98.5 trillion, EBITDA of COP42.3 trillion, and a net profit of COP11 trillion for the first nine months of 2024.

• Ecopetrol SA (NYSE:EC) successfully executed a liability management transaction in the international market, raising $1.75 billion with strong investor interest.

• The company achieved a cumulative reduction of 1.89 million tons of CO2 equivalent in Scope 1 and 2 emissions since 2020.

• Ecopetrol SA (NYSE:EC) has invested over COP341 billion in sustainable territorial development, benefiting 38,000 students through various projects.

Negative Points

• The refining gross margin decreased significantly to $7 per barrel, impacted by international fuel price drops and scheduled maintenance.

• The company's net income for the third quarter of 2024 decreased by approximately COP3.8 trillion compared to the same period last year.

• Ecopetrol SA (NYSE:EC) faced challenges with deferred production due to social unrest, impacting production levels.

• The Midstream segment's EBITDA decreased compared to the first nine months of 2023, mainly due to external effects like exchange rate and inflation.

• The company experienced a reduction in refining EBITDA by 72% compared to the same period in 2023, affected by external factors and operational challenges.

Q & A Highlights

Q: What was the impact on the net profit of the quarter with the adjustment made on the tax, and what would have been the true impact? Also, could you provide more information about Ecopetrol's regasification projects in Colombia? A: The adjustment on the tax surcharge from 13% to 10% had an impact of COP500 billion on the profit. Without this adjustment, the profit for the third quarter would have been close to COP3.1 trillion. Regarding the regasification projects, Ecopetrol is currently assessing pre-conceptual designs and permits. The project size is being analyzed, considering factors like gas import needs and transportation restrictions, with an expected capacity of 200 to 300 million cubic feet.