Ecopetrol Reports Nearly 8% Drop in Fourth Quarter Profits Amid Market Challenges

Ecopetrol’s net profit declined by 7.8% in the fourth quarter, reaching 3.9 trillion pesos ($945 million), influenced by lower oil prices and a stronger dollar. Annual profits fell 22% to 14.9 trillion pesos ($3.6 billion). Oil and gas production dropped nearly 4% in the fourth quarter to 730,100 boepd.

Ecopetrol, Colombia’s state-controlled oil producer, has reported a 7.8% decrease in net profit for the fourth quarter due to a decline in oil prices and a stronger U.S. dollar. The company’s net profit for the period amounted to 3.9 trillion pesos (approximately $945 million), remaining steady from the same quarter in 2022. Total quarterly sales reached 34.8 trillion pesos, showing no change compared to the previous year.

For the entire fiscal year, Ecopetrol’s net profit plummeted by about 22%, concluding at 14.9 trillion pesos (around $3.6 billion), indicative of the challenging market dynamics. Furthermore, the fourth-quarter production of oil and gas fell by nearly 4% year-on-year, equating to a daily output of 730,100 barrels of oil equivalent per day (boepd). Notably, the Colombian government retains an 88.5% share ownership in Ecopetrol.

In summary, Ecopetrol has experienced a decline in profits for the fourth quarter and overall fiscal year due to lower oil prices and currency fluctuations. The reduction in production further highlights the challenges faced by the energy sector. The company’s financial performance indicates a need for strategic adjustments as it navigates a volatile market environment.

Original Source: www.tradingview.com