Ecopetrol reported a 7.8% decline in net profit for Q4 2023, impacted by lower oil prices and a stronger U.S. dollar. The net profit reached 3.9 trillion pesos ($945 million), with total sales stable at 34.8 trillion pesos. For the full year, profits fell 22% to 14.9 trillion pesos, and total production decreased nearly 4% year-on-year.
Ecopetrol, Colombia’s majority state-owned oil producer, reported a net profit decrease of 7.8% in the fourth quarter due to falling oil prices and a robust U.S. dollar. The company’s net profit for the period from October to December reached 3.9 trillion pesos, equivalent to $945 million, marking a decline compared to the same quarter in 2022. In addition, Ecopetrol’s total sales for the quarter remained stagnant at 34.8 trillion pesos, unchanged from the previous year.
For the entire fiscal year, Ecopetrol experienced a significant profit drop of approximately 22%, with total earnings plummeting to 14.9 trillion pesos, or about $3.6 billion. Moreover, the company’s overall production of oil and gas in the fourth quarter decreased by nearly 4% year-on-year, averaging 730,100 barrels of oil equivalent per day (boepd). The Colombian government presently holds an 88.5% stake in Ecopetrol, affirming its dominant position in the enterprise.
In summary, Ecopetrol’s financial performance in the fourth quarter has been adversely affected by declining oil prices and currency fluctuations. With a significant drop in both quarterly and annual profits, alongside decreased production levels, the company faces important challenges moving forward. As the government continues to control the majority of the shares, stakeholders will be watching closely for future developments.
Original Source: www.tradingview.com
