FINANCIAL AND OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2008 February 18, 2009
Management Participants in todays conference call Javier Gutierrez, Chief Executive Officer Adriana Echeverri, Chief Financial Officer Nelson Navarrete, EVP of Exploration & Production Pedro Rosales, EVP of Downstream Mauricio…
Fourth Quarter and Full Year 2008 Highlights Continued strong financial and operating performance, supported by increased production across all product categories Increased exploration in Colombia and entered into important joint…
Improved Operating Results Driven by Increased Production, Market Prices and Cost Controls Ebitda and Ebitda Margin (COL Trillion) 5
Significant Growth in Production Oil & Gas Production Increased by 10.4% in Q4*; Annual Production up 12.6%** Production evolution (MBOED) Key drivers: 399 Increase in production of heavy crude oils from Llanos Orientales…
Refinery Operations The conversion factor for the refinery was 78% in the fourth quarter of 2008. Refinery runs and utilization in Barrancabermeja Refinery (MBOD and Utilization %) 243 (97%) 232 232 234 230 (94%) 227 (93%) (93%)…
Fourth Quarter and Full Year 2008 Total Sales (COL Trillion) 33.90 32.75 12.30 36.3% 11.57 35.3% 22.32 22.33 6.32 28.3% 6.33 28.3% 21.18 64.7% 21.60 63.7% 6.95 6.14 16.00 71.7% 16.00 71.7% 2.21 31.8% 2.10 34.2%…
Volume Trends, Domestic & International Total Q4 sales increased by 14.6% International accounted for 42.4%, up from 31.8% in 2007 Total Sales Volume (MBOED) 573 547 500 462 474 433 448 420 243 42.4% 216 39.5% 159 31.8% 148…
WTI Reference Price Trends Market prices impact Q408 and full year financial results 170 160 150 140 130 120 110 Average WTI Full year 2008 100 USD 99.7/Bl 90 Average Basket of ECP exported US/Bl 80 crude price Full…
Cost of Sales and Operating Expenses Variable costs accounted for 63.1% in 2008, up from 52.6% in 2007 Costs driven by higher purchases of hydrocarbons, higher costs of services and maintenance contracts and increased labor costs Cost…
Lifting, Refining & Transportation Ecopetrols costs remained below the industry average Low lifting costs due to focus on onshore production Lifting Costs (US/BOE) Refining Costs (US/Bl) 8,3 5,7 7,2 4,8 5,2 3,9 3,5 3,3 2005…
SG&A Expenses 2008 SG&A increased as seismic activity almost doubled and the cost of evaluating E&P opportunities outside of Colombia increased SG&A Expenses (COL Trillion) 2.45 2.12 1.49 1.49 2.07 84.5% 1.75 82.5% 0.82…
Non Operating Results 2008 Non operating profit driven by exchange rate fluctuation, asset revaluations and returns on portfolio investments 2007 (COL Trillion) 2007-4Q 2007 Total ECP 2007 Consolidated 7.95 7.94 6.77 -1.18 6.76 -1.18…
Key Acquisitions and Other Equity Investments Investment of COL9.42 trillion, (US4.8 billion); E&P comprised 53% Upstream acquisition of K2; downstream investment in Propilco; value-added products such as Bioenergy Investment (US…
Balance Sheet Strong Balance Sheet, No Financial Debt and the Capacity to Fund Growth by Leveraging Capital Structure Consolidated Balance sheet (COL Trillion) 55.7% 49.5% 71.1% 40.7% 35.2% 35.8% 64.8% 64.2% 59.3% 50.5% 44.3%…
Important E&P Activity in Q4 2008 Hydrocarbons found in the Quifa-5 Well (Colombia) Awarded 4 blocks in Llanos Orientales and Middle Magdalena Valley (Colombia). Joint exploration agreements reached in the U.S. Gulf Coast with:…
Growing International Portfolio Diversifies Risk Investment in international exploration increased by 41.4% Local Exploration Projects International Exploration Projects Offshore Caribbean Round Tayrona Caribbean Round GULF OF…
Investments in Refining, Fuel Quality, and Transportation Barrancabermeja hydro-treatment project is 60% completed Pipeline projects underway Modernization program in Cartagena Refinery Participating in project to produce…
2009 Investment Plan of US6.2 billion: 29% Increase vs. 2008 2,72 1,05 0,81 0,87 0,60 0,18 Exploration Production Refining and Transportation Other Acquisitions Petrochemicals Investments 21
Production Capex Of US2.7bn for 2009 Production capex 2009 4% In progress Investment (USDmn) Direct Partnerships 23% Seismic Activity Drilling 32% Main fields (60%) 890 567 Casabe 32% 227 - 9% Rubiales - 270 Plants and…
Exploration Capex of US1.0bn for 2009 Exploration Drilling Seismic , G&G USD998 mn USD732 mn USD 218 mn 32 G&G Seismic 34 186 6.27 2 8 No. of wells KM Equiv. 732 24 7 1.53 Drilling 3 4 Local International…
2008: A Year of Significant Achievement Financial Increased Profitability Unique Balance Sheet Strength Operating Continued industry-leading production increases Exploration successes Improved International Profile Joint…
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