Ecopetrol, Colombia’s state-owned oil company, reported a 7.8% drop in fourth-quarter profits, attributed to lower oil prices and a stronger U.S. dollar. The net profit for the quarter reached 3.9 trillion pesos ($945 million), with total sales remaining flat. Annual profits fell about 22% to 14.9 trillion pesos ($3.6 billion), while fourth-quarter production declined nearly 4% year-on-year, averaging 730,100 boepd.
Colombia’s majority state-owned oil producer, Ecopetrol, has reported a net profit decrease of 7.8% for the fourth quarter, largely attributed to lower oil prices and a strengthening U.S. dollar. The net profit for this period amounted to 3.9 trillion pesos (approximately $945 million), seeing no change in total sales, which remained at 34.8 trillion pesos compared to the same quarter in the previous year.
For the entire fiscal year, Ecopetrol recorded a significant net profit decline of roughly 22%, culminating in 14.9 trillion pesos (approximately $3.6 billion) compared to the profits generated in 2023. Additionally, the company’s total oil and gas production dropped nearly 4% year-on-year in the fourth quarter, averaging 730,100 barrels of oil equivalent per day (boepd).
It is noteworthy that Colombia’s government holds 88.5% of Ecopetrol’s shares, underscoring the company’s critical role within the national economy.
In summary, Ecopetrol experienced a notable decline in profits in the fourth quarter due to unfavorable market conditions, including reduced oil prices and currency fluctuations. The company’s overall annual performance also reflected substantial profit reduction, while production levels decreased slightly. These challenges highlight the volatility faced by oil producers in the current global economic environment.
Original Source: www.tradingview.com
