Ecopetrol(US:EC)2025-11-14 15:02Financial Data and Key Metrics Changes - The company reported an EBITDA of COP 12.3 trillion for the third quarter, with an EBITDA margin of 41% and a net income of COP 2.6 trillion, reflecting a recovery in the refining segment and strict operational expense control [27][28] - Year-to-date investment reached nearly $4.2 billion, representing 72% of the annual target, fully aligned with the strategic roadmap [8][36] - Cumulative EBITDA for the year reached COP 36.7 trillion, demonstrating strong adaptability through a commercial strategy that leveraged favorable product and crude differentials [28][29] Business Line Data and Key Metrics Changes - The exploration and production segment achieved a total accumulated production of 751,000 barrels of oil equivalent per day, in line with the target range of 740,000-750,000 [12][66] - The midstream segment transported an average of 1,118,000 barrels per day, reflecting a 1% increase compared to the third quarter of 2024 [15] - Refining operations reached a throughput of approximately 429,000 barrels per day, marking the second highest quarterly level in the segment's history [16][17] Market Data and Key Metrics Changes - The company reported a 15% decline in Brent prices year-to-date, impacting overall financial performance [27] - The average production from the Permian Basin was reported at 106,000 barrels of oil equivalent per day, contributing 14% to the total production [13] Company Strategy and Development Direction - The company is focused on reinforcing core business operations, maintaining financial discipline, and advancing strategic projects driven by energy transition and security [4] - A commitment to sustainability is evident, with a reduction of greenhouse gas emissions by 379,000 tons of CO2 equivalent and an increase in renewable energy capacity to 234 megawatts [8][9] - The company is exploring divestment options for non-priority assets while seeking partnerships to maximize value in higher profitability assets [77][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current challenging environment, emphasizing the importance of operational and financial stability [27][38] - The company anticipates a more challenging price environment in 2026, focusing on maintaining low lifting costs and strict capital discipline [36][37] Other Important Information - The company has achieved COP 4.1 trillion in efficiencies this year, exceeding its target by 40% [30] - The company received ISO 37001 certification, reflecting its commitment to ethical business conduct and compliance with international anti-bribery standards [9] Q&A Session Summary Question: Clarification on the potential sale of the Permian asset - Management clarified that there is no formal instruction or political request to sell the Permian asset, and any decision will be rigorously analyzed by the board of directors [41] Question: Risk of a senior management member being on the OFAC list - The company has a robust compliance system in place to monitor risks and ensure operational continuity [42][44] Question: Impact of exchange rate fluctuations - A COP 100 variation in the exchange rate can affect net profit by COP 700 billion, with current rates positively impacting EBITDA [51][52] Question: Government assistance for the Sirius project - The company is working closely with the government to facilitate the Sirius project, with ongoing consultations expected to conclude by July 2026 [54][55] Question: Potential default due to DIAN embargo - The company has taken measures to protect its rights and has been meeting its financial obligations, with no current risk of default [58][60] Question: Production growth outlook for 2026 - The company aims to maintain production levels similar to 2025, despite oil price volatility [66] Question: Refining margins and EBITDA drivers - The improvement in refining margins is attributed to operational efficiency, cost management, and maximizing high-value products [68][82]