Ecopetrol Reports 7.8% Drop in Fourth Quarter Profits Due to Oil Price Declines

Ecopetrol’s fourth-quarter profits decreased by 7.8% due to lower oil prices and a stronger U.S. dollar, totaling 3.9 trillion pesos ($945 million). Overall annual profits fell by 22% to 14.9 trillion pesos ($3.6 billion), while oil and gas production declined nearly 4% to 730,100 boepd.

Ecopetrol, Colombia’s state-controlled oil producer, reported a 7.8% decline in net profit for the fourth quarter, primarily due to lower oil prices and the strengthening of the U.S. dollar. In the last quarter of the fiscal year, the company’s net profit reached 3.9 trillion pesos (approximately $945 million), unchanged from the previous year’s comparison period. Total sales for the same quarter remained steady at 34.8 trillion pesos compared to the prior year.

Throughout the entire year, Ecopetrol’s net profit decreased by around 22% compared to the profits of the previous year, amounting to 14.9 trillion pesos ($3.6 billion). The firm is largely owned by the Colombian government, which holds 88.5% of its shares. Additionally, the company’s oil and gas production in the fourth quarter fell nearly 4% year-on-year, totaling approximately 730,100 barrels of oil equivalent per day (boepd).

In summary, Ecopetrol experienced significant profit declines in both the fourth quarter and the entirety of the last fiscal year, primarily driven by external factors such as fluctuating oil prices and currency strength. With government ownership and a slight drop in production, these results underline current challenges facing the company in the competitive energy market.

Original Source: www.tradingview.com