- Net income fell to 787 billion pesos in second quarter
- Average estimate among analysts was 995 billion pesos
Ecopetrol SA, Colombia’s state-controlled oil producer, reported profit that missed analysts’ estimates as slumping crude prices overshadowed efforts to lower costs.
Net income fell to 787 billion Colombian pesos ($269 million) in the second quarter from 1.51 trillion pesos in the same period last year, the Bogota-based producer said Tuesday in a statement distributed by PRNewswire. The average estimate among four analysts tracked by Bloomberg was 995 billion pesos.
“April marked my first year leading Ecopetrol,” Chief Executive Officer Juan Carlos Echeverry said in the statement. “A year characterized by a sharp drop in oil prices, challenging the oil and gas industry. We also witnessed a strong El Nino weather phenomenon, the closure of the border with Venezuela and attacks on transport infrastructure.”
Net income more than doubled from the first quarter as crude recovered and operational costs declined. The company posted 392 billion pesos in savings for the quarter and is targeting 1.6 trillion pesos for 2016.
Ecopetrol now operates more than 500,000 barrels per day having taken over the Rubiales and Cusiana fields mid-year. The company is reviewing its 2017-2020 business plan and expects to present updated medium-term goals no later than October.