Operational and Financial Results 3rd Quarter of 2014 Nov. 4/ 2014
Transcription
Operational and Financial Results 3rd Quarter of 2014 Nov. 4/ 2014
Operational and Financial Results 3rd Quarter of 2014 Nov. 4/ 2014 Disclaimer 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 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 purpose without the prior written consent of Ecopetrol. 2 Management Participants Javier Gutiérrez Magda Manosalva CEO CFO Ecopetrol Ecopetrol Hector Manosalva Adriana Echeverri VP of Development and Production VP of Growth & Strategy Ecopetrol Ecopetrol Pedro Rosales Alberto Vargas VP of Downstream Financial Comptroller Ecopetrol Ecopetrol Max Torres Alejandro Giraldo VP of Exploration Investor Relations Officer Ecopetrol Ecopetrol Rafael Guzmán Technical VP Ecopetrol Thomas Rueda CEO (Interim) Cenit 3 Agenda 1. Highlights 2. Operational Update 3. Financials 4. Outlook for 4Q 2014 5. Q&A 4 Highlights Exploration • 1 discovery in the Gulf of Mexico (U.S.): Leon Well • 5 blocks awarded in 2014 ANH Colombia Round • Mr. Max Torres appointed as Exploration Vice-President Production • Increase in production vs. 2Q 2014: +2.8% (+20 mboed) • Record production in Chichimene of 66 mboed (Sep) • Beginning of two new non-thermal recovery pilots Midstream • Vasconia-Galán pipeline capacity increase : + 60 mbd • Increase in crude transported: +5.2% vs. 3Q/2013 Downstream • First crude export to South Korea and diversification in Asian and European markets • Downstream segment Ebitda: COP 334 bn • Reficar modernization: 94.7% progress Financial • International bond offering for USD 1.2 bn • Moody´s and Fitch maintained ratings (Baa2/stable and BBB/stable respectively) Organizational • New four year collective labor agreement Consolidation 5 Investment (Jan – Sep 2014)* (US$ million) Allocation Key projects 5,593 • • • Facilities in Rubiales, Quifa and Casabe fields Expansion of Acacias Station Water treatment facility in Chichimene field Downstream: 24% • • Cartagena refinery modernization Industrial Services Master Plan in B/meja refinery Exploration: 16% • • Drilling ( 23 exploratory and 2 strats. ) Seismic data • Pipeline capacity increase projects Galán Sebastobol : +60 mbd S. Fern. – Mont,: + 40 mbd (2014) and + 110 (2016) Ocensa : + 35 mbd Ayacucho – Coveñas: +25 mbd Caño Limón – Coveñas : (optimization to 250 mbd) • • R&D IT Production: 48% 2.687 1.327 Midstream: 11% 875 629 Other 1% 76 6 * Includes Opex and Capex cash flows allocated to investment projects Upstream Exploration Highlights: A3 Wells (Jan-Sep) Country Drilled Success Evaluation Dry • 1 discovery in the GoM (U.S.): Leon Well Colombia (EC + Hocol) 17 1 4 12 • 5 blocks awarded in 2014 ANH Round (1 off shore) U.S. (Gulf of Mexico) 5 2 0 3 • Statoil begun drilling the Jacaré wildcat well (Angola) Angola 1 0 0 1 • 17 wildcat wells drilled in Colombia (Jan-Sep) Total 23 3 4 15 Production Ecopetrol + Net Interests (mboed) * 755 734 51 49 685 Highlights: • Production growth : +~20 mboed vs. 2Q/2014 • Record production in Chichimene: 66 mboed • License approvals 704 • 2Q-2014 • Environmental license for Caño Sur • Transfer of industrial water to third parties Beginning of two non-thermal recovery pilots 3Q-2014 Ecopetrol S.A. Net Interests 7 * Includes royalties and net interests in production from Hocol, Equión, Ecopetrol América Inc. and Savia Secondary Recovery Pilots (Non Thermal) Pilots per Regions in 2014 Schedule (as of Sep 30) 1Q 8 3Q 4Q Beginning of six pilots in 2014 Mid Mag & Catatumbo 5 South 4 Llanos 4 WF: CEOR: WAG: H&P : 2Q Highlights 2 Water flooding Chemical enhanced oil recovery Water alternating gas Huff & Puff 1 1 1 2 3 3 • 3Q: Two pilots started • Palo Grande (CEOR) • Provincia (H&P) • Oct: 1 pilot in Casabe (CEOR) Tertiary Recovery (Thermal recovery in heavy oil fields) Pilots in Colombia: Teca-Cocorná 2013 2014 2015 2016 2017 2018 2019 2020 2021 onwards Air Injection Chichimene Other fields Steam Injection Teca-Cocorná Pilot construction and start up Chichimene Air Injection Pilot (ECO-GSAI): • Facilities construction: 75% progress • Key equipment: built, imported and delivered 9 Full implementation Chichimene Mid & Downstream Midstream Volumes Transported by Cenit (mbd) 1,174 1,232 243 252 • Increase in transported volumes : + 5% vs. 3Q/2013 • Rising volumes in Ayacucho - Covenas oil line (increasing volumes from Bicentenario pipeline) 980 932 3Q-2013 Crude Oil Refining Highlights: 3Q-2014 Products • Less attacks to pipelines • Stronger financial results (higher crude-product spread) B/meja Gross Refining Margin (USD / Bl) • 15,5 • 10,2 Oper. Profit: COP 173 bn (vs - 297 in 3Q/2013) Ebitda: COP 334 bn (vs. 35 in 3Q/2013) • Reficar modernization project: • 3Q-2013 Sales 3Q-2014 • Crude Exports Destinations (mbd) 454 9 25 35 43 154 475 15 18 37 84 176 10 145 3Q-2013 3Q-2014 Consolidated revenues in line with 2013 despite lower prices, production and higher discounts in 2014 • Local sales: + 11% vs. 3T/2013 • Gas: higher local demand • Oil: higher sales to subsidiaries • Exports: +2% vs. 3T/2013 • Increase in crude exports to Asia and Europe • Contract for crude exports to South Korea Latam Europe Asia 189 • Others West Cost (USA) Gulf of Mex (USA) 94.7% progress Mechanical completion of 16 units Net Income Drivers* 3,97 Net Income (COP tn) +0.33 -0.60 3Q-2013 Price 1. Price Decrease 11 2.36 -0.94 FX -0.25 Transport Fees -0.16 Affiliates Others 3Q-2014 • Lower sales prices (crude, product and gas) due to decrease in benchmarks and higher discounts 2. COP/USD Devaluation • Non operational loss: mark to market of USD liabilities. (future revenues should increase due to COP devaluation) 3. Higher Pipeline Fees • Bicentenario pipeline shipping fee (operating Nov. 2013) • Increase in pipeline shipping fees (starting Jul. 2014) 4. Lower Subsidiaries Profit • Losses of E&P subsidiaires (mainly U.S. and Brazil ) 5. Other • Lower tax provision and other expenses * Ecopetrol S.A. (Unconsolidated) Income Statement Drivers (COP$ Tn) * 16,22 +0.05 -0.40 Revenues 3Q-2013 -1.15 Volumes -0.14 Price Other FX 7,85 Variable costs Volume 2,35 Fixed costs 3Q-2013 0,31 3Q-2013 Non operational 12 (-) -$0.53 (+) +$0.23 (-) +$0.49 (-) -$0.93 (-) 3Q-2014 -0.21 Prices +0.16 -0.12 Depletion of fields +0.26 +0.01 Stocks Others 3Q-2014 2,58 +0.11 -0.05 SG&A -$1.64 7,33 -0.47 3Q-2013 14,58 3Q/2014 vs. 3Q 2013 Tran. Fees Maint. +0.27 +0.12 Provisions Exploratory Expenses Other +0.10 0,80 Other 3Q-2014 -0.61 0.32 -0.65 -0,16 -0,12 3Q-2013 FX (Valuation of USD Liab.) Affiliates Others * Ecopetrol S.A. (Unconsolidated) 3Q-2014 3Q-2014 Key Financial Results (COP$ tn) * 50% 8.2 38% 3Q/2014 vs 3Q/2013 5.5 Ebitda and Ebitda Margin -$2.7 3Q-2013 3Q-2014 6.0 3.3 Pre-Tax Income 3Q-2013 -$2.8 3Q-2014 2.1 0.9 Income Tax 3Q-2013 -$1.1 3Q-2014 25% Net Income and Net Margin 13 * Ecopetrol S.A. (Unconsolidated) 4.0 16% 2.4 3Q-2013 3Q-2014 -$1.6 4Q 2014 Outlook Exploration • • Finalize drilling of 4 wildcats and complete the 2014 drilling campaign Assessment of wildcats: Colombia: Orca (offshore) and Nueva Esperanza (CPO-09) International: Jacaré (Angola) • • 18 mboed production growth in Chichimene and Castilla fields new wells water & crude handling facilities 13 non-thermal recovery pilots started in 2014 • Start operation of Delta 35 project in Ocensa • Reficar modernization project: Mechanical completion and reception of 29 out of 31 Process Units Begin pre-commissioning process • Finalize transition to IFRS (starting Jan. 1/2015) Production Midstream Downstream Financial 14 Investor Relations • Phone (+ 571) 234 5190 • Email [email protected] • Website www.ecopetrol.com.co 15 15 Ecopetrol S.A. All rights reserved. The re production of this presentation is forbidden without the written authorization of Ecopetrol S.A.