Ecopetrol Presents its Results for the First Quarter of 2010

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USA - English

-- We experienced a 27% increase in our group's production compared to the first quarter of 2009, the greatest increase since the beginning of our growth strategy.

-- Our income, operating profit and Ebitda kept growing. Ebitda margin is the highest in the last seven quarters and operating margin is the highest in the last six quarters.

-- Organic investment increased 31% compared to the first quarter of 2009 and our estimated financing needs for fiscal year 2010 decreased.

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Ecopetrol S.A.

Apr 26, 2010, 08:05 ET

BOGOTA, April 26 /PRNewswire-FirstCall/ -- Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL; BVL: EC) (hereinafter, "Ecopetrol" or the "Company") announced today its unaudited results for the first quarter of 2010, prepared and filed in accordance with the Regime of Public Accounting (Regimen de Contabilidad Publica or RCP) of the National Accounting Office, in Colombian pesos (COP$).

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The table below presents some of the highlights of Ecopetrol's financial results for the quarter ended March 31, 2010 as compared to the quarter ended March 31, 2009:

                  Highlights of Ecopetrol's financial results

                                                   Unconsolidated
    (COP$ Billion)                      1Q 2010  1Q 2009    %   4Q 2009    %
    Total sales                         8,741.6  5,112.8   71%  8,505.7    3%
    Operating profit                    3,198.2  1,020.9  213%  2,706.1   18%
    Net Income                          2,096.7  1,609.3   30%  1,691.4   24%
    Earnings per share (COP$)             51.80    39.76   30%     41.8   24%
    EBITDA                              4,106.5  1,629.2  152%  2,963.6   39%

    EBITDA Margin                           47%      32%            35%


                                                   Consolidated(1)
    (COP$ Billion)                      1Q 2010  1Q 2009    %   4Q 2009    %
    Total sales                        10,217.8  5,240.1   95%  8,986.0   14%
    Operating profit                    3,616.6  1,062.6  240%  2,379.5   52%
    Net Income                          1,954.3  1,608.4   22%  1,721.5   14%
    Earnings per share (COP$)               -        -     -        -     -
    EBITDA                              4,454.7  1,755.6  154%  3,327.8   34%

    EBITDA Margin                           44%      34%            37%

Ecopetrol's CEO, Javier Gutierrez, declared that: "We are very proud of our financial and operating results for the first quarter of 2010. The aggregate production of the corporate group increased 27% when compared to the first quarter of 2009, reaching an average of 586.4 Mboed. Additionally, our revenues were 71% higher in the first quarter of 2010 as compared to the first quarter of 2009, driven largely by an increase in oil prices. Net income amounted to COP$2.1 trillion. Ebitda and operational margins were the highest in seven and six quarters respectively."

See the full report on Ecopetrol's website: http://www.ecopetrol.com.co

(1) Under the Regime of Public Accounting (Regimen de Contabilidad Publica en Colombia - RCP), companies are only required to present consolidated financial statements at the end of each fiscal year. Therefore, the interim consolidated figures presented in this report do not constitute a formal consolidation of the financial statements of Ecopetrol for such quarters, but are adjusted in accordance with the methodology used to present the annual consolidated financial statements.

Ecopetrol is the largest company in Colombia, one of the world's 40 largest, and among the four largest in Latin America. Apart from Colombia -- where it is responsible for over 60% of the nation's oil production -- it has a presence in exploration and production activities in Brazil, Peru, and the United States (Gulf of Mexico). Ecopetrol has the two largest refineries in Colombia, most of that nation's oil and poli-product pipelines, and is significantly increasing its share in biofuels.

This release contains statements relative to business prospects, estimates of production and financial results, and declarations associated to Ecopetrol's growth prospects. All these are projections, and as such are based only in expectations of Ecopetrol's high executives with reference to the future of the company and its constant access to capital to finance the company's commercial plan. The materialization of such estimates in the future depends on market conditions, regulations, competition and Colombian economy and industry performance, among other factors, due to which they are subject to change without prior notice.

    For further information, please contact the following:

    Investors Relations Office
    Alejandro Giraldo
    Phone: +571-234-5190
    E-mail: [email protected]

    Media Relations (Colombia)
    Mauricio Tellez
    Phone: +571-2345377
    Fax: +571-2344480
    E-mail: [email protected]

    Website: www.ecopetrol.com.co

SOURCE Ecopetrol S.A.