Rubiales Falls After Defeat in Ecopetrol Dispute: Bogota MoverChristine Jenkins
Pacific Rubiales Energy Corp., the Latin American non-state oil producer with the biggest market capitalization, dropped after losing a dispute with Ecopetrol SA that will cut its portion of the output at a shared field.
The stock fell 3.7 percent to 41,200 pesos at the close in Bogota, its fifth daily drop. Rubiales was the worst performer on the Colcap index, which was little changed.
The company took a $61 million charge on net income after an arbitrator in the dispute over Quifa SW field ruled yesterday in favor of Ecopetrol. Under the contract, Rubiales’s 60 percent stake in the field falls according to a high-price clause that assigns additional production to Ecopetrol.
Rubiales reported a net loss of $24 million in the fourth quarter after the provisions for the arbitration, compared with a profit of $81 million in the same quarter a year earlier.
The company would have had a profit in the quarter excluding the charge, Chief Financial Officer Carlos Perez said today on a conference call.