Post Earnings Coverage as Ecopetrol Reported a Robust Q1 Results on Higher Crude Prices
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LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Ecopetrol S.A. (NYSE: EC). The Company posted its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 11, 2017. The Bogotá, Colombia's-based Company reported a 27.5% y-o-y growth in total sales, while its net income surged 144.1% y-o-y. Register with us now for your free membership at:
One of Ecopetrol's competitors within the Major Integrated Oil & Gas space, Statoil ASA (NYSE: STO), reported on May 04, 2017, its adjusted earnings of USD 3.3 billion and an IFRS net operating income of USD 4.3 billion in Q1 2017. AWS will be initiating a research report on Statoil in the coming days.
Today, AWS is promoting its earnings coverage on EC; touching on STO. Get our free coverage by signing up to:
In Q1 FY17, Ecopetrol total sales was COP13.37 trillion which came in above COP10.49 trillion recorded at the end of Q1 FY16. During the quarter, the Company benefitted from higher weighted average basket of crude, gas and products, which helped the Company to boost up its sale by COP4.81 trillion. Furthermore, the cost of sales during the reported stood at COP9.15 trillion versus COP7.45 trillion in Q1 FY16.
The petroleum Company reported gross profit of COP4.23 trillion in Q1 FY17, rising 39.0% from COP3.04 trillion in Q1 FY16. In the reported quarter, the Company's net income attributable to owners of Ecopetrol came in at COP886 billion compared to COP363 billion in Q1 FY16. EBITDA for Q1 FY17 was COP5.81 trillion versus COP4.14 trillion in Q1 FY16. Additionally, EBITDA margin improved during Q1 FY17 to 43.5% from 39.5% in Q1 FY16.
During the reported quarter, total sales volume were 944.2 thousand barrels of oil equivalents per day (MBOED) compared to 988.7 MBOED in Q1 FY16. Local sales accounted for 385.2 MBOED in Q1 FY17 compared to 392.2 MBOED in the last year's same quarter. Moreover, total export sales during Q1 FY17 was 559.0 MBOED compared to 596.5 MBOED in Q1 FY16.
Segment Performance
During Q1 FY17, Exploration and Production segment's total sales came in at COP8.10 trillion versus COP5.62 trillion in Q1 FY16. The segment reported operating profit of COP1.60 trillion in Q1 FY17 against operating loss of COP637 billion in Q1 FY16. Furthermore, the segment's EBITDA came in at COP3.32 trillion, or 41.0% of the segment's sales, in Q1 FY17 compared to COP971 billion, or 17.3% of the segment's sales, in Q1 FY16.
Ecopetrol's Refining & Petrochemicals segment's total sales for the reported quarter were COP6.99 trillion, which came in above the COP5.29 trillion recorded in a year ago comparable quarter. The segment's operating profit for Q1 FY17 stood at COP131 billion compared to COP95 billion in Q1 FY16. Additionally, the segment's EBITDA for Q1 FY17 stood at COP558 billion, or 8.0% of the segment's sales, versus COP580 billion, or 11.0% of the segment's sales, in the prior year's comparable period.
For the reported period, Transport and Logistics segment's total sales fell to COP2.50 trillion from COP3.13 trillion in Q1 FY16. The segment's operating profit for Q1 FY17 was COP1.57 trillion, which also came in below the COP2.05 trillion reported in Q1 FY16. Moreover, the segment's EBITDA came in at COP1.94 trillion, or 77.5% of the segment's sales, in Q1 FY17 versus COP2.50 trillion, or 79.9% of the segment's sale, in the previous year's comparable quarter.
Cash Matters
In the quarter ended on March 31, 2017, Ecopetrol generated COP4.46 trillion in cash from operating activities compared to COP3.80 trillion in the prior year's same quarter. The Company's cash and cash equivalents balance stood at COP8.17 trillion as on March 31, 2017, compared to COP8.41 trillion at the close of books on December 31, 2016. Furthermore, the Company reported loans and borrowings of COP46.32 trillion as on March 31, 2017, compared with COP48.10 trillion as on December 31, 2016.
Outlook
In its perspective for full year FY17, Ecopetrol expects average production volume of 715 MBOED.
Stock Performance
On Tuesday, May 30, 2017, Ecopetrol's stock closed the trading session at $9.36, dropping 2.40% from its previous closing price of $9.59. A total volume of 613.35 thousand shares have exchanged hands. Ecopetrol's stock price surged 3.77% in the past three months, 14.99% in the previous six months and 2.74% in the previous twelve months. Furthermore, on a year to date basis, the stock gained 3.43%. Shares of the company have a PE ratio of 26.90. The stock has a dividend yield of 1.71% and currently has a market cap of $19.12 billion.
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