Colombia's state oil company Ecopetrol (NYSE: EC) reported Q3 net profits of 3.93tn pesos (US$1.72bn), up 123% from 1.76tn pesos posted in the same quarter last year.
Revenues for the quarter rose 55% to 6.31tn pesos compared to 4.07tn pesos in 3Q07. Ebitda was up 66% to 4.62tn pesos compared to 2.87tn pesos in the year-ago period.
"Ecopetrol's strong year-over-year growth was driven by a combination of increased oil and natural gas production, which resulted in higher export as well as higher selling prices," Ecopetrol CEO Javier Gutiérrez said in a statement released Monday.
Ecopetrol produced 441,000boe/d in 3Q08 compared to 392,000boe/d in the same period last year, receiving an average of US$118/b for oil compared to US$76/b.
The company is expecting further production increases in 2009, Gutiérrez said in a conference call with investors and analysts.
"We are in the process of establishing our goals, but as a general reference, it's going to increase," the CEO said.
The increases are expected to come from both new exploration and development wells.
Ecopetrol acquired a total of 949km of new seismic data in the three-month period and has drilled eight exploratory wells year-to-date.
The company had completed 433 development wells as of September and expects to end the year having drilled over 600, up from the planned 518, another company official said in the conference call.
The company's Barrancabermeja plant, meanwhile, refined 235,700b/d in the third quarter compared to 227,580b/d in 3Q07.
"During this period of volatile oil prices, Ecopetrol's exceptionally strong balance sheet gives us the financial flexibility to execute our long-term strategic growth plan while maintaining our disciplined approach to capital investments and our commitment to improving operating margins and maximizing cash generation," Gutiérrez said in the statement.
Ecopetrol's profits for the first nine months of the year reached 9.58tn pesos compared to 3.79tn pesos for the same period of 2007.
2009 CAPEX
Ecopetrol is likely to increase 2009 capex despite the downward trend in oil prices, Gutiérrez told the conference call.
Capex spending this year is on track to reach 10.2tn pesos, the company reported in its Q3 financial results.
Ecopetrol will submit its investment plan to its board next month for review and an exact plan should be announced in January, according to Gutiérrez.
"We're going to obtain approval next month, but as a very general reference, we are planning to increase capex," he said, adding the company was on track to complete most of its 2008 investment plan by the end of the year.
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