Summary by Moomoo AI
Ecopetrol's net income fell 39.8% to COP 8.7 trillion in H1 2024, with revenues declining 12.7% to COP 63.9 trillion despite higher average Brent prices of US$83.4/bl. The decline was primarily driven by Colombian peso appreciation against the US dollar and lower sales volumes. Cost of sales decreased 10.4% to COP 39.6 trillion due to lower variable costs.The company received significant FEPC payments, with COP 7.8 trillion in cash and COP 5.1 trillion in government bonds during H1 2024, strengthening its financial position. The cumulative FEPC receivable balance stood at COP 12.8 trillion as of July 2024, with additional payments scheduled. Production remained stable with increased output from the Permian basin offsetting natural field declines.Key operational highlights include decreased domestic fuel demand due to price increases and lower economic activity. The company maintained its 2024 capital expenditure guidance of US$5.5-6.6 billion. Two board members resigned in August 2024 due to disagreements over business decisions. The effective tax rate increased to 44.2% from 31.9% in the previous year.
