Ecopetrol Third Quarter Net Profit Reaches $ 983.4 Million Thanks To Improving Oil Prices


Band Oliver Griffin

BOGOTA, November 9 (Reuters)Colombian state-owned oil company Ecopetrol’s ECO.CN third quarter net profit jumped to 3.81 trillion pesos ($ 983.4 million) on rising crude prices and structural changes being implemented to address recent industry challenges, the company said on Tuesday.

Earnings before interest, taxes, depreciation and amortization increased 97% to 10.4 trillion pesos.

“Third quarter 2021 results confirm Ecopetrol’s technical, operational and financial ability to take advantage of the favorable pricing environment,” Ecopetrol Managing Director Felipe Bayon said in a statement.

“They also demonstrate the benefits of the structural adjustments that we have implemented in response to recent challenges,” he added.

The net profit figure was the best recorded by the company in the past decade, Ecopetrol said.

Basket prices of crude in the third quarter rose 77% to $ 68 per barrel, Ecopetrol reported, from $ 38.40 per barrel a year earlier.

The company posted a profit of 855 billion pesos and an EBITDA of 5.25 trillion pesos in the third quarter of 2020.

Total third-quarter 2021 sales rose 89.3 percent to 23.3 trillion pesos, from 12.3 trillion pesos a year earlier, the company said.

Production in the third quarter of 2021 increased slightly to 683,600 barrels of oil equivalent per day (bpd), from 680,900 bpd a year earlier, Ecopetrol reported.

In the first nine months of this year, production fell 3.5% to an average of 673,600 bpd, the company said, after domestic unrest disrupted production in the second quarter.

Average daily production for the year is now estimated at around 680,000 bp, he added.

Petroleos Mexicanos from Mexico PEMX.UL reported a third-quarter loss of $ 3.7 billion at the end of October, citing higher tax payments and foreign exchange losses, while Brazilian company Petrobras PETR4.SA made quarterly profit of approximately $ 5.3 billion.

($ 1 = 3,874.41 Colombian pesos)

(Reporting by Oliver Griffin; Additional reporting by Julia Symmes Cobb; Editing by Chris Reese and Peter Cooney)

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