CORPORATE GROUP FINANCIAL AND OPERATIONAL RESULTS November, 2016 3Q 2016
Cautionary Statement 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 Ecopetrol’s Business. Said projections and statements include references to estimates or expectations of the company regarding its future and operational results. Potential investors and the market in general should be aware that the information provided herein does not constitute any guarantee of its performance, risks or uncertainties that may occur or materialize. Real results, may fluctuate and differ from those provided herein due to several factors outside of the control of the Company. Neither Ecopetrol nor its advisors, officers, employees, directors or agents, make any representation nor shall assume any responsibility in the event actual performance of the Company differs from what is provided herein. Moreover, Ecopetrol, its advisors officers, employees, directors or agents shall not have any obligation whatsoever to update, correct amend or adjust this presentation based on the information attained or events occurred after its disclosure. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Ecopetrol. Neither this presentation nor any of its contents may be used for any other purposes without the prior written consent of Ecopetrol. 2
Juan Carlos Echeverry MANAGEMENT CEO PARTICIPANTS Felipe Bayón María Fernanda Suárez Executive VP VP of Strategy and Finance Héctor Manosalva Max Torres VP of Development and VP of Exploration Production Patricia Zuluaga Luisa Lafaurie VP of Commercialization and CEO Cenit Marketing (A) Adolfo Tomas Hernández Rafael Guzmán VP of Refining and Industrial Technical VP Processes María Catalina Escobar Carlos Alberto Vargas Head of Corporate Finance and VP of Transformation Investor Relations
Basket differential in line with the 2020 strategy Crude Prices (USD/bbl) USD 60 BRENT ECP BASKET 51 USD 50 47 47 12 9 9 39 38 38 USD 40 USD 30 USD 20 USD 10 USD 0 3Q-2015 2Q-2016 3Q-2016 Commercial reaction capacity in a challenging environment USD/bbl differential 4
Operational excellence reflected in quarterly figures FINANCIAL OPERATIONAL 3Q PRODUCTION EBITDA 40% (MBOED) 723 MARGIN START OF GUNFLINT 11.8 SAVINGS GOAL PRODUCTION (MAX MBOED) EXCEEDED (COP) 1.9 Tn DAYS OF DRILLING 6 days RUBIALES SOLID CASH ACTIVE 17 7.7 Tn POSITION (COP) RECOVERY PILOTS 5
Exceeded goal for structural efficiencies Exceeded 2016 goal of COP 1.6 trillion Figures in Billions (COP) 1,934 73 80 181 339 203 Structural 564 1,595 Non-Structural 339 495 Opex Dilución O&M Filiales Transporte Ingreso/Caja Capex Total Manageable O&M Upstream Revenue Total Dilution Capex Gestionable Transporte Upstream Eficiencias Opex Transportation Transportation Cash Efficiencies 6 levers comprise 80% of cumulative efficiencies (2015-2016) 3.4 Total Total general Figures in Trillions (COP) Other (33 Levers) Otras (33 Palancas) 0.7 Perforation & Facilities 0.2 Perforación & Facilidades 0.2 Upstream Transportation Transporte del Upstream 0.3 0.4 Maintenance Mantenimiento 0.6 Procurement Strategy Abastecimiento O&M Midstream O&M Midstream 1.0 O&M: Operations and Maintenance Dilución Dilution 6
Better level of production to meet the 2016 goal Profitable production Ecopetrol S.A. Subsidiaries Successful receipt of Rubiales and Cusiana 723 4% Reactivation of Caño Sur (September 2016) 695 51 Start of production at Gunflint – US GOM mboed 48 Production Investment 672 With increasing due to 647 less Flexible depending resumption of on price level activity 2Q 2016 3Q 2016 Rubiales – successful operation Zero HSE incidents Successful operational and environmental continuity Reduction of 25% in days of drilling , from 8 to 6 Reduction of drilling cost by 20% versus 2015 7 HSE: Health, Safety and Environment
Optimization of processes is reflected in production indicators Lifting Cost (USD/bbl) Dilution & Transportation Cost Savings close to USD 400 MM -14% (reduction of 20% in dilution factor vs 2014) Days of Drilling** 36 34 7.4 -38% -42% 6.4 26 26 5.8 21 21 -25% Record Record 8 6 16 12 Record 6 Castilla Chichimene Rubiales 2015 Jan-Sep 2016 LTM* 2014 2015 2016 * LTM: Last 12 months - 1 Oct. 2015 – 30 Sep. 2016 ** Data as of October 30, 2016 8
Improved recovery key in addition to production and reserves Decreasing costs are important to facilitate expansions and incorporate reserves at business plan prices Chichimene – Llanos – Direct Operation Castilla – Llanos – Direct Operation Chichimene Water Injection Pilot Castilla K1 Water Injection Pilot 7500 2300 6500 2100 Start-up of 1900 Crude Rate (BOD) Crude Rate (BOD) water injection Start-up of 5500 pilot water injection 1700 pilot 4500 1500 1300 3500 1100 2500 900 1500 700 500 500 ago-11 jul-12 jun-13 may-14 abr-15 mar-16 mar-10 nov-10jul-11mar-12 nov-12jul-13mar-14 nov-14jul-15mar-16 82% increase in production rate in pilot area Increase in production rate of (2,404 BOD) 60% in pilot area (800 BOD) 9
Exploration Preparing 2017 exploration campaign OFFSHORE COLOMBIA 4Q: Evaluation of PURPLE ANGEL WELL TO ECOPETROL AMÉRICA 3Q: North projects in mature INITIATE DRILLING WARRIOR WELL, INITIATED America fields DRILLING – OPERATOR Siluro Molusco Exploratory activity GoM ANADARKO Bullerengue zone in progress YDSN Gorgon SEISMIC exploration activity Purple Angel Cantagallo – Llanito - Galan zone for Q4 2016 PLAYÓN Offshore 2017 Arauca BORANDA Cusiana-Cupiagua-Recetor NISCOTA Castilla-Chichimene – Akacias-Apiay Brazil PAYERO-1 Guando Rubiales – Sabanero Chimú CARDÓN SEISMIC Pegaso NOGAL Sucumbios-Rumiyaco ONSHORE COLOMBIA (3Q) SEISMIC • IN DRILLING PAYERO-1 WELL • IN DRILLING BORANDA WELL (Oct.) ECOPETROL BRASIL 3Q: • NOGAL SEISMIC COMPLETED PROCESSING 854 Km2 ACQUISITION OF 88 Km 2D 3D- SEISMIC • CARDON SEISMIC ACQUISITION POT-M-567 BLOCK 214 Km 2D • START OF 3D SEISMIC ACQUISITION AT YDSN - HOCOL 10
Midstream Identifying opportunities for optimization Volumes transported* Midstream revenue (mbod) (COP Tn) -15% -10% Refined Crude 248 258 265 2.86 2.57 2.43 947 869 811 3Q 2015 2Q2016 3Q 2016 3Q 2015 2Q 2016 3Q 2016 Less revenue vs. 3Q 2015 due to lower volumes associated with the decline in country’s production Transportation system under modification to support higher-viscosity crude to Coveñas * Volumes transported correspond to group’s companies and third parties. 11
Downstream Commissioning continues Refinery runs at B/meja Gross Refining Margin (USD/bbl) B/meja (USD/bbl) +2% -20% 16.7 216 213 13.5 13.4 208 3Q 2015 2Q 2016 3Q 2016 3Q 2015 2Q 2016 3Q 2016 Cartagena Refinery: 5 units completed performance tests Barrancabermeja Refinery: Lower international price differential on products compared to crude Increase in yield of medium distillates due to implementation of improvements in operating methods 12
Best EBITDA of the last 5 quarters EBITDA performance (COP Tn) $7,000 39.5% 40.1% 38.5% 36.1% 40% $6,000 35% 4.70 4.89 4.52 $5,000 30% 24.1% 7% 4.14 18% 13% 25% $4,000 15% 35% 3.08 20% 1% $3,000 43% 45% 15% 61% $2,000 68% 10% 58% $1,000 44% 37% 05% 24% 31% $0 00% 3Q15 4Q15 1Q16 2Q16 3Q16 Downstream Midstream Upstream Márgen EBITDA EBITDA Margin Demonstrated operating capacity 13 *LTM: Last Twelve Months
Financial results leveraged by operational excellence 3Q Income Statement (COP Tn) (4.70) (1.97) 12.18 (2.07) (0.90) (0.85) 2.54 (1.24) 0.23 (0.22) izat… exp… Sales 2016 Varia costs Fixed costs eciati Oper ating Expe Oper ating Profi Finan Inco contr olling Profi 2016 Depr on/A mort nses Non- Inter nue/ reve me tax Non- Net 3Q ble cial 3Q est t t Sales Variable Fixed Deprec./ Expenses Oper. Financial Income Net controlling Costs* Costs* Amort Oper. Income Result tax Income interest Cumulative results (COP Tn) Sales Costs 8.74 Savings and efficiencies mitigated the 39.4% effect on costs by: Reversion of Rubiales field Operation of Cartagena Refinery 19.2% Seasonality of costs (greater execution 13.55 2H 2016) 4.0% 6.62 Non-recurring impacts 1.38 Margin Operating EBITDA Net Income 14 *Does not include depreciation and amortization Income ** Includes Financial Result and share of profit in companies
Financial results Solid cash generation 3Q cash flow (COP Tn) 6.47 (0.63) (1.13) (3.30) (1.88) 0.27 7.91 7.71 Operating Caja inicial Flujo Pago de Inversion Inversión Actividades Efecto Caja final 3T Initial Portfolio Cash Flow Tax CAPEX Financing FX Final cash 3T 2016 Operación impuestos* CAPEX portafolio de variación 2016 cash and other before payment* investment activities effect 3Q 2016 antes de títulos y financiación TRM 3Q 2016 investments Taxes impuestos otros * Includes income and wealth tax 15
Recommend
More recommend
