Ecopetrol(US:EC)2023-03-29 21:13Financial Performance - Ecopetrol reported a total revenue of COP 66.5 trillion for the fiscal year ended December 31, 2022, representing a 45% increase compared to the previous year[14]. - The company achieved a net income of COP 22.3 trillion, which is a 60% increase year-over-year[14]. - Ecopetrol's debt-to-equity ratio improved to 0.4, reflecting a strong financial position and effective capital management[14]. Production and Reserves - Ecopetrol's production activities in Colombia reached an average of 724,000 barrels of oil equivalent per day (boe/d), a 5% increase from the previous year[14]. - Oil and gas production reached 709.5 mboed in 2022, an increase from 679.0 mboed in 2021[35]. - Proved oil and gas reserves stood at 2,011 mmboe in 2022, slightly up from 2,002 mmboe in 2021[35]. - The average daily crude oil production in Colombia by Ecopetrol S.A. was 492.8 thousand bopd in 2022, representing a year-on-year increase of 1.4%[155]. - Natural gas production reached an average of 132.7 thousand boepd in 2022, marking a 6% increase compared to 2021[162]. Investment and Future Plans - The company plans to invest COP 25 trillion in its 2023 investment plan, focusing on energy transition and sustainability initiatives[14]. - The 2023 investment plan allocates between USD 5.6 and USD 6.6 billion, with approximately USD 4.3 billion dedicated to hydrocarbon production and exploration[66][69]. - Ecopetrol plans to invest over USD 200 million in green hydrogen projects and CO2 capture initiatives over the next three years[59]. - The company plans to invest between USD 5.2 and USD 6.0 billion annually by 2040, focusing on enhanced recovery technologies and new activities in the Piedemonte Llanero region[51]. Market Expansion and Sales - The company is expanding its market presence in the United States and Europe, targeting a 15% increase in international sales by 2025[14]. - Local sales of refined products increased by 13% in 2022 compared to 2021, driven by strong gasoline and jet fuel sales[46]. - Jet fuel demand surged by 40% in 2022, while diesel and gasoline demand grew by 13% and 12%, respectively[46]. Environmental and Sustainability Initiatives - Ecopetrol is investing in new technologies for carbon capture and storage, aiming to reduce its carbon footprint by 30% by 2030[14]. - The Ecopetrol Group aims to achieve net-zero carbon emissions (scopes 1 and 2) by 2050 and a 50% reduction in total emissions (scopes 1, 2, and 3) by the same year[49]. - The company published its long-term strategy, "2040 Strategy: Energy that Transforms," on February 8, 2022, focusing on sustainable value generation[48]. Operational Developments - The company is realigning its corporate operational divisions into three main segments: Hydrocarbons, Low Emissions Solutions, and Transmission and Toll Roads[90]. - The new operational model for the Upstream segment aims to enhance integration and synergies with subsidiaries, concluded with the creation of the Upstream Vice-presidency[100]. - As of December 31, 2022, Ecopetrol S.A. was the largest operator and producer of crude oil and natural gas in Colombia, holding the largest exploration acreage position in the country[109]. Exploration Activities - Ecopetrol's exploration activities led to the discovery of 1.2 billion barrels of oil equivalent in new reserves during the year[14]. - In 2022, Ecopetrol S.A. and its subsidiaries drilled 28 wells in Colombia, with 8 successful wells and 12 dry wells[115]. - The company purchased 2,639 km² of 3D seismic information in the Llanos Orientales and began the Flamencos 3D program, acquiring 311 km² of 3D seismic data[129]. Job Creation and Community Impact - The long-term TESG targets include generating approximately 230 thousand new non-oil related jobs by 2040 and contributing to the education of two million young Colombians[62].