Ecopetrol Reports Positive Net Income, Flat Output in Q2

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Ecopetrol (Bogotá, Columbia), the Colombian state company, recorded a net income of 1.8 trillion Colombian pesos (around US$446 million) during the second quarter of this year, almost half of the net income from the same period last year. This was partly the outcome of lower crude and fuel prices.

On the upstream front, the company had an output of 755,500 barrels of oil equivalent per day (BOE/d), flat compared to the volumes in Q2 last year. The company's Permian division recorded another strong quarter with an output of 115,500 BOE/d, 17.6% more year-on-year. This unit helped offset lower production from Colombia.

Some of the volume drops in Colombia were the outcome of maturing fields, as well as social unrest in the Rubiales and Caño Sur assets from indigenous communities, and inactivity of the Bicentenario pipeline due to sabotage and attacks.

Despite this, the company still forecasts production between 740,000 BOE/d and 750,000 BOE/d.

By the end of Q2, Ecopetrol drilled six of the 10 exploration wells planned for the year. Two of those were successful, two are under evaluation, and the remaining two did not contain commercial manifestations of hydrocarbons.

On the upstream front, the company's two refineries processed crude at a pace of 413,300 barrels per day (BBL/d) during the quarter, slightly lower than the 424,400 BBL/d obtained last year. This was mainly due to a lower crude runs from the Barrancabermeja refinery, which dropped by 4.1%.

During the quarter, Ecopetrol continued to expand its renewable electricity matrix to 402 megawatts (MW) by the end of the first half of the year. Out of those, 208 MW are in operation, another 95 MW are in construction, and the remainder are in execution. The company also purchased 228 MW of renewable power in the wholesale energy market during that period.

At the same time, during Q2, Ecopetrol closed important agreements and acquisitions in renewable energy in La Guajira.

This year, the company has set a goal to reach a renewable portfolio of 900 MW, including power purchases in the local market.

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