Colombia’s state-controlled oil company Ecopetrol reported a 17.4% decline in net income for the second quarter compared to the same period last year, affected by fluctuating market conditions.
The company’s net income dropped to $839 million (3.376 trillion Colombian pesos) from $1 billion (4.087 trillion pesos) in the second quarter of 2023. Operating income fell by 9.2%, though Ecopetrol’s core earnings margin remained strong at 43%. This performance was driven by increased production, transportation volumes, and stable refinery throughput.
Ecopetrol noted that despite the boost from improved crude oil spreads and higher Brent prices, external factors still influenced the results. The downstream sector faced a tough environment, similar to other integrated energy companies during the quarter.
Colombia aims to increase its oil production to 1 million barrels per day by encouraging more activity in less utilized exploration blocks.
In a related development, Brazil’s state-controlled Petrobras also reported a financial shift in the second quarter, moving from profit to a net loss. Petrobras attributed the loss to unfavorable exchange rates and a one-off tax charge. The net loss was about $470 million, but the company would have posted a net profit of $5.4 billion without the tax charge, which it presented positively.
Petrobras highlighted its lowest debt level since 2008, at $26.3 billion, and a 12.5% increase in first-half capital expenditure, reaching $6.4 billion. However, investment plans for the full year have been revised downward to between $13.5 billion and $14.5 billion, down from an earlier projection of $18.5 billion.
Additionally, Petrobras and Ecopetrol recently confirmed a natural gas discovery at the Uchuva-2 well off Colombia’s coast. This deepwater well follows the 2022 discovery at the nearby Uchuva-1 well.