Ecopetrol experienced a 7.8% drop in fourth-quarter net profits due to lower oil prices and a stronger U.S. dollar, reporting 3.9 trillion pesos ($945 million). The company’s total sales remained flat at 34.8 trillion pesos. Overall annual profits fell 22% to 14.9 trillion pesos, with production down by nearly 4% to 730,100 boepd.
Ecopetrol, Colombia’s state-controlled oil company, reported a 7.8% reduction in net profits for the fourth quarter of the year. This decline is attributed to weakening oil prices and a stronger U.S. dollar. In monetary terms, Ecopetrol’s net profit amounted to 3.9 trillion pesos, equivalent to approximately $945 million, for the period from October to December, remaining unchanged from the same timeframe in 2023.
In terms of annual performance, Ecopetrol’s overall net profit dropped about 22% compared to 2023, totaling 14.9 trillion pesos, or about $3.6 billion. The total revenue during the fourth quarter reached 34.8 trillion pesos, maintaining the same level as in the prior year’s quarter.
Furthermore, the company experienced a nearly 4% decline in its total oil and gas production, which settled at 730,100 barrels of oil equivalent per day (boepd) in the last quarter. The Colombian government’s involvement is significant, as it retains a majority stake of 88.5% in the company.
In summary, Ecopetrol’s latest financial results reflect a significant decline in profit due to external market pressures, specifically lower oil prices and currency fluctuations. The company’s production levels also saw a downturn. These trends indicate challenging conditions for the firm, underscoring the impact of global oil market dynamics on national resources.
Original Source: www.tradingview.com
