Ecopetrol S.A. Reflects on 2024 Success and 2025 Objectives
Ecopetrol S.A. Reports Outstanding Results for 2024
2024 concluded with an impressive operational performance at Ecopetrol S.A., showcasing remarkable growth and profitability that aligns with our strategic goals. We are excited to unveil our robust financial and investment plan for 2025, which is a product of meticulous preparation across the Ecopetrol Group, with the objective of generating sustainable value for our shareholders. Optimizations led by our efficiency program resulted in historical EBITDA improvements of COP 5.3 trillion.
Impressive Financial Highlights
During the year, we reported earnings of COP 133.3 trillion, with net income hitting COP 14.9 trillion, and an outstanding EBITDA of COP 54.1 trillion, reflecting an EBITDA margin of 41%. Notably, the gross debt/EBITDA ratio was 2.2 times, and our return on capital employed (ROACE) stood at an impressive 10.2%. Our investments totaled USD 6.1 billion, with a significant portion directed towards organic initiatives.
Major Advances in Hydrocabon Production
In the hydrocarbons sector, we achieved 104% reserve replacement, integrating 260 MBPE. The consolidated reserves replacement ratio is currently at 111% and an impressive 121% in our operations in the country. A strategic transaction with Repsol, which led us to become the sole owner of the CPO-09 field, contributed to an additional reserve of 32 MBPE. Our average reserve life is estimated at 7.6 years, with 7.8 years for liquids and 6.7 years for gas. Furthermore, we continued to advance in our Joint Venture in the Permian, enhancing our production to a positive level of 746 kboed, exceeding annual expectations.
Strengthening Our Position Through Strategic Marketing
This robust performance was bolstered by a strong commercial strategy. Our crude oil inventory realization allowed us to close the year without inventories in transit. The accounting differential of the crude oil basket improved to USD 6.5/bl compared to USD 8.7/bl the previous year. This advancement is attributable to our geographic diversification, which has reinforced our trading operations across various global markets.
Efforts in Energy Transition Initiatives
In our commitment to energy transition, we achieved a significant energy optimization of 4.17 PJ, resulting in reduced carbon emissions amounting to 349,735 tons of CO2e and generating savings of around COP 128 billion across Ecopetrol's operations. Additionally, Phase III of the Coral project received approval, enabling the production of up to 880 tons of green hydrogen daily at our Cartagena Refinery.
Future 2025 Projections
As we look towards 2025, our aim is to enhance value and profitability for our shareholders while maintaining strict capital discipline. We are dedicated to driving efficiencies and solidifying our traditional business sectors as we transition towards sustainable energy sources. Our path forward is anchored in strong corporate governance and a solid institutional framework.
Conclusion and Appreciation
As we reflect on the outstanding achievements of 2024, I extend my heartfelt thanks to all employees of Ecopetrol Group for their unwavering commitment and hard work. I encourage everyone to continue fostering our goals in the year ahead.
Ricardo Roa Barragán
President of Ecopetrol S.A.
Frequently Asked Questions
What were Ecopetrol's total revenues for 2024?
Total revenues for Ecopetrol in 2024 amounted to COP 133.3 trillion.
How much net income did the company report for the year?
The net income reported for 2024 was COP 14.9 trillion, showcasing a strong financial performance.
What is the significance of the 104% reserve replacement?
A 104% reserve replacement indicates that Ecopetrol has successfully replaced more oil reserves than it produced, maintaining sustainability and long-term viability in its hydrocarbon operations.
What key strategies will Ecopetrol implement in 2025?
In 2025, Ecopetrol aims to enhance shareholder value through strict capital discipline and operational efficiencies while reinforcing its traditional business sectors and advancing energy transition initiatives.
What impact has the Coral project had on Ecopetrol's sustainability efforts?
The Coral project supports Ecopetrol's sustainability goals by producing green hydrogen, significantly lowering carbon emissions, and contributing to operational savings.
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