Ecopetrol’s profits fell 7.8% in Q4 2023 due to lower oil prices and a stronger U.S. dollar, with net profits at 3.9 trillion pesos ($945 million). Yearly profits dropped 22% to 14.9 trillion pesos ($3.6 billion), and production declined nearly 4% year-on-year to 730,100 boepd. The Colombian government holds 88.5% of Ecopetrol’s shares.
Colombia’s majority state-owned oil company, Ecopetrol, has announced a decline in profits for the fourth quarter, reporting a 7.8% drop impacted by lower oil prices and a stronger U.S. dollar. The net profit for the period was recorded at 3.9 trillion pesos, approximately $945 million, remaining unchanged from the total sales of 34.8 trillion pesos in the year-ago quarter.
In terms of yearly performance, the company observed a more significant downturn, with net profits for the entire year falling by around 22% compared to 2023, amounting to 14.9 trillion pesos, or $3.6 billion. Additionally, Ecopetrol’s total oil and gas production for the fourth quarter decreased nearly 4% year-on-year, settling at 730,100 barrels of oil equivalent per day.
Colombia’s government retains substantial ownership with 88.5% of Ecopetrol’s shares. The figures indicate a challenging environment for Ecopetrol, reflective of the broader difficulties within the oil sector due to fluctuating commodity prices and currency dynamics.
Ecopetrol has faced significant challenges resulting in a notable decline in both quarterly and annual profits, affected by external factors such as oil price fluctuations and currency strength. With a decrease in production also evident, the company is navigating through a difficult economic landscape, warranting attention as it adapts to these market changes.
Original Source: www.tradingview.com
