Ecopetrol Announces Results for the Third Quarter of 2010 and the Nine-Month Period Ended September 30, 2010

Oct 26, 2010, 20:00 ET from Ecopetrol S.A.

BOGOTA, Colombia, Oct. 26 /PRNewswire-FirstCall/ --

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  • Production for the Ecopetrol Corporate Group for the quarter was 632.1 MBOED, up 16.4% compared to the same period last year.
  • Ecopetrol S.A.'s Net income for the quarter reached COL$1.7 trillion, and COL$5.6 trillion between January and September of 2010, increasing 42.7% and 57.2% respectively compared to 2009.  
  • EBITDA margin increased to 46% during the quarter and 44% for the nine-month period ended September 30, 2010.
  • The hydro-treatment plant began producing diesel and gasoline according to the highest international quality standards.
  • A new subsidiary was incorporated for the construction of the Oleoducto Bicentenario.

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) ("Ecopetrol" or the "Company") announced today its unaudited unconsolidated and consolidated financial results for the third quarter of 2010 and the nine-month period ended September 30, 2010, prepared and filed in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica – RCP) of the Colombian General Accounting Office and in Colombian pesos (COL$)

This current report on Form 6-k is hereby incorporated by reference into the Company's registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission on February 12, 2010.

The table below sets forth the highlights of Ecopetrol's financial results for the periods indicated.

Highlights of Ecopetrol's financial results

Unconsolidated

Consolidated

(COP$ Billion)

3Q 2010

3Q 2009

%

Nine-month period ended Sep 30, 2010

Nine-month period ended Sep 30, 2009

%

3Q 2010

3Q 2009

%

Nine-month period ended Sep 30, 2010

Nine-month period ended Sep 30, 2009

%

Total sales

8,586.7

7,370.0

16.5%

26,461.5

19,168.3

38.0%

9,892.2

8,901.8

11.1%

30,324.2

21,418.4

41.6%

Operating profit

2,865.9

2,224.1

28.9%

8,757.3

5,377.5

62.9%

2,767.4

2,330.3

18.8%

8,927.2

5,493.8

62.5%

Operating margin

33%

30%

33%

28%

28%

26%

29%

26%

EBITDA

3,952.1

3,037.6

30.1%

11,694.3

7,474.4

56.5%

4,033.0

3,212.4

25.5%

12,067.3

8,102.0

48.9%

EBITDA margin

46%

41%

44%

39%

41%

36%

40%

38%

Net Income

1,702.4

1,193.4

42.7%

5,604.1

3,564.9

57.2%

1,723.5

1,109.8

55.3%

5,444.8

3,410.6

59.6%

Net margin

20%

16%

21%

19%

17%

12%

18%

16%

Earnings per share (COP$)

42.06

29.49

138.46

88.08

Ecopetrol's CEO, Javier Gutierrez, said: "The third quarter's results were very important for our strategic plan. Beside the production growth above 16%, the discovery of hydrocarbons in two exploratory wells and the acquisition of a 51% interest in BP in Colombia are evidence that we are headed in the right direction to strengthen our E&P business.

The start in operations of the hydro-treatment plant which allows us to supply cleaner fuels with the highest international standards, the advances in the structuring of the Oleoducto Bicentenario project, and the beginning of production and transportation of biodiesel were also relevant facts during the quarter. As we had anticipated, today we are reporting important achievements. Another important milestone was the listing of the company's ADR on the Toronto Stock Exchange, allowing us to continue strengthening our presence in the international capital markets. With this new instrument, Canadian investors with growing interest in Colombia and Ecopetrol are now able to follow our results and strategy more closely.

In summary, it was a positive quarter for the Company, which gives us confidence in achieving the goals for 2010, and accomplishing the objectives set for 2015 and 2020."

See the full report on Ecopetrol's website: http://www.ecopetrol.com.co

Contact us for any additional information:

Investor Relations  

Alejandro Giraldo  

Phone: +571-234-5190  

Email: investors@ecopetrol.com.co

Media Relations (Colombia)

Mauricio Tellez  

Phone: +571-2345377  

Fax: +571-2344480  

Email: mtellez@ecopetrol.com.co  

Website: www.ecopetrol.com.co

SOURCE Ecopetrol S.A.



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