- Ecopetrol’s net income for the 1Q was COP4.01 trillion, experiencing a 29% y/y decrease, which falls short of the estimated COP4.59 trillion.
- There was a 19% y/y decrease in sales, with a total of COP31.30 trillion, below the estimated COP33.19 trillion.
- Ecopetrol’s Ebitda was COP14.24 trillion which, interestingly, surpasses the estimate of COP13.38 trillion despite a 20% y/y decrease.
- The Ebitda margin slightly contracted to 45.5% from 45.9% y/y.
- Oil and gas output increased by 3% y/y, equating to 741.1 mboe/d.
- The average oil price per barrel rose by 6.1% y/y to $73.50.
- Ecopetrol’s Capex stood at COP4.28 trillion.
- The company expanded its gas supply in the country by signing a gas exploration agreement in the Piedemonte Norte with Parex and highlighting the commercial potential of the Arrecife gas field in Cordoba.
- Ecopetrol increased its production target for 2024, aiming for between 730,000 and 735,000 barrels of oil equivalent per day, up from a previous target of 725,000 to 730,000 as outlined in its 2024 financial plan.
- The quarterly results were negatively affected by inflation and the “El Nino” weather phenomenon which impacted revenue, cost, and expense levels.
- Sales in Colombia, representing 45% of total sales, fell by 5% in the quarter compared to 1Q 2023.
- International sales, accounting for 55% of the total sales, dropped by 5.8% compared to the previous quarter, largely due to a 6.4% decrease in crude oil exports as a result of a lower volume available for export due to higher refinery loadings.
- The company’s stock current status is 0 buys, 10 holds, and 1 sell.
A look at Ecopetrol Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Ecopetrol is showing a positive long-term outlook as it received high scores in Dividend and Growth factors. This indicates that the company is performing well in terms of distributing dividends to its shareholders and is experiencing strong growth potential. Additionally, Ecopetrol scored moderately in Resilience, implying a certain level of stability in the face of economic challenges. However, the scores for Value and Momentum were lower, suggesting some room for improvement in terms of the company’s valuation and market momentum.
Ecopetrol SA, an integrated oil company operating in Colombia, has interests in oil-producing fields across various regions of the country. Along with owning refineries, fuel export and import ports, and an extensive transportation network of pipelines and polyducts throughout Colombia, Ecopetrol plays a significant role in the country’s oil industry. The company’s strong Dividend and Growth scores point towards its potential for future development and consistent returns for investors, while its Resilience score indicates a degree of stability despite market uncertainties.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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