Ecopetrol S.A. (EC) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 9, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Juan and I'll be your operator for today. Welcome to Ecopetrol's Earnings Conference Call, in which we will discuss the main financial and operational results for the third quarter of 2022. All lines have been muted. There will be a question-and-answer session at the end of presentation.

Before we begin it is important to mention that the comments in this call by Ecopetrol's senior management include projections of the company's future performance. These projections do not constitute any commitment as to future results, nor do they take into account risks or uncertainties that could materialize. As a result, Ecopetrol assumes no responsibility in the event that future results are different from the projections shared on this conference call.

This call will be led by Mr. Felipe Bayon, CEO of Ecopetrol; Yeimy Baez, VP of Low Emission Solutions; Alberto Consuegra, COO; and Jaime Caballero, CFO.

Thank you for your attention. Mr. Bayon you may begin your conference.

Felipe Bayon

Good morning and welcome to the third quarter 2022 earnings conference call. The Ecopetrol group continues to deliver solid operating and strategic results that are joined up by a successful commercial strategy and a disciplined financial management in a year in which we have delivered historical results.

Firstly, I want to thank more than 18,000 direct employees of Ecopetrol and as well as our allies and contractors and partners who jointly look to make the impossible possible for the benefit of millions of Colombians and those in the areas in which we operate.

In the first nine months of the year, we achieved a net income of COP26.6 trillion and an EBITDA of COP59.2 trillion, which equates to an EBITDA margin of 50%. The net income for these nine months is 59% higher than the whole 2021 net income and 150% higher than the one observed for the same period in the last year.

From this quarter's results, I would like to highlight the following milestones. The gas discoveries in the Caribbean in the Gorgon-2 in which we partner with Shell and Shell as the operator and the Uchuva-1 well with Petrobras, the operator, both exploratory wells and the announcement by our subsidiary Hocol of the successful drilling of the Coralino-1 well, proven the presence of gas in a structure close to the Arrecife discovery in the Department of Cordoba. All this is to reiterate Colombia's potential for gas, the hydrocarbon of the energy transition.