Ecopetrol Announces Its Results for the Second Quarter of 2013

- Financial results were in line with the higher production of heavy crude oil, lower international prices of hydrocarbons and expected increase in costs.

- In the first half of 2013, Ecopetrol´s net income was COP$6.7 trillion, and in the second quarter of 2013 it was COP$3.2 trillion.

- In the first half of 2013 the average production (Ecopetrol S.A. including interests in affiliates and subsidiaries) was 785.1 mboed[1], rising 4.3% compared to the first half of 2012. In the second quarter of 2013 the average production was 778.1 mboed, with an increase of 2.1% compared to the second quarter of 2012.

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Ecopetrol S.A.

Jul 31, 2013, 09:10 ET

BOGOTA, Colombia, July 31, 2013 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results, both consolidated and unconsolidated, for the second quarter of 2013, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica, RCP) of Colombia's General Accounting Office.

(Logo: http://photos.prnewswire.com/prnh/20090209/ARM001LOGO )

Some figures in this release are presented in U.S. dollars (US$) where indicated. The exhibits in this release have been rounded to one decimal place. Figures presented in COP$ billion are equivalent to COP$1 thousand million. Some 2012 figures have been reclassified to be comparable to those of 2013.

Ecopetrol S.A. Financial Results
Unconsolidated
(COP$ Billion)	2Q 2013*	1Q 2013*	Var. %	2Q 2012	Var. % **	Jan-Jun 2013*	Jan-Jun 2012	Var. %
Total sales	15,322.7	14,771.8	3.7%	14,796.0	3.6%	30,094.6	30,241.5	(0.5%)
Operating profit	4,907.1	5,145.3	(4.6%)	5,760.3	(14.8%)	10,052.5	12,080.3	(16.8%)
Net Income	3,253.8	3,495.7	(6.9%)	3,675.2	(11.5%)	6,749.6	8,018.7	(15.8%)
Earnings per share (COP$)	79.13	85.02	(6.9%)	89.39	(11.5%)	164.15	195.02	(15.8%)
EBITDA	7,302.1	7,746.0	(5.7%)	7,426.8	(1.7%)	15,048.0	16,043.3	(6.2%)
EBITDA Margin	48%	52%		50%		50%	53%


Consolidated
(COP$ Billion)	2Q 2013 *	1Q 2013*	Var. %	2Q 2012	Var. % **	Jan-Jun 2013*	Jan-Jun 2012	Var. %
Total sales	17,595.6	16,745.6	5.1%	16,509.2	6.6%	34,341.3	34,537.2	(0.6%)
Operating profit	5,927.2	5,553.8	6.7%	5,993.5	(1.1%)	11,481.1	12,847.1	(10.6%)
Net Income	3,407.5	3,411.6	(0.1%)	3,657.2	(6.8%)	6,819.2	7,931.2	(14.0%)
EBITDA	7,516.1	7,596.5	(1.1%)	7,420.9	1.3%	15,112.6	15,997.6	(5.5%)
EBITDA Margin	43%	45%		45%		44%	46%

* Not audited
** Between 2Q 2013 and 2Q 2012
Some figures of 2012 were reclassified to be comparable with 2013

In the opinion of Ecopetrol's CEO, Javier Gutierrez:

"In the second quarter of 2013, our company continued its growth trend and generated strong results, demonstrating that its business strategy is solid and that the organization is resilient in responding quickly to changing conditions and challenges, such as the downward trend of crude prices in comparison with 2012, transport limitations, and communities blocking operations.

I would specifically like to highlight the following events in each of our areas:

In exploration, we reported one hydrocarbon discovery at the Cusuco-1 well on Block CPO-10 located in the Meta province in Colombia, in which Ecopetrol holds a 100% stake. The well produced crude of 13.8° API with water cuts of 4%. This is Ecopetrol's third discovery in Colombia during 2013, and led to an exploratory success rate in Colombia in the first half of 2013 of 75%. Also, during the first half of the year our affiliate Hocol drilled two exploratory wells of which one was successful and the other was undergoing evaluation at the end of June.

Additionally we submitted competitive bids for 3 blocks in the Brazil exploratory round, and acquired 31.5% of the Gunflint field on the U.S. Gulf of Mexico. Production of our largest fields rose more than 10% on average.

Regarding transport, on April 1 the contracts between Ecopetrol and Cenit were signed, marking the beginning of a new era in this segment's business model, which will bring important benefits for our company and for the hydrocarbons sector in Colombia. As a result of this new model, we began paying transport tariffs regulated by the Ministry of Mines and Energy on the main oil pipelines. These higher transport costs are expected to be offset in the future by the higher earnings to be generated by our affiliate Cenit. Additionally, as of June 30th the laying of the regular line of the Bicentenario pipeline was completed.

In the Refining segment I highlight the progress made in the Reficar modernization project.

Financial results were in line with our expectations and reflect the increase in production of heavy crude oil, the lower international prices of hydrocarbons and the expected increases in transport costs. We continued carrying out the cost control initiatives in our operations, especially well maintenance, energy consumption, supply and refinery maintenance.

We signed a new loan agreement for COP$1.84 trillion, of which COP$1.55 trillion were earmarked for liability management, prepaying an outstanding syndicated loan disbursed in 2009 (extending the term by 5 years and reducing the interest rate by 1.5%). The remaining COP$284 billion will be used to finance our investment plan.

Another highlight was Standard and Poor´s upgrade of our company´s foreign currency rating from BBB- to BBB.

In Health, Safety and Environment (HSE) we maintained the improving trend of the last years, operating within industry standards.

To conclude, I would like to emphasize that we reaffirm our 2013 goals, undertaking measures to mitigate risks, and having moderate cost increases."

The complete report is available at www.ecopetrol.com.co

^[1] Thousands of barrels of oil equivalent per day

Contact us for any additional information:

Investor Relations
Alejandro Giraldo
Phone: +571-234-5190
Email: [email protected]

SOURCE Ecopetrol S.A.