Q3 2024 Ecopetrol SA Earnings Call
Good morning, My name is Natalia and I'll be your operator today welcome to Ecopetrol earnings Conference call.
Which we will discuss the main financial and operating results as of the third quarter of 2024.
Will be a question and answer session at the end of the presentation.
Before we begin it is important to mention that the comments in this call by Ecopetrol Senior management include projections of the company's future performance. These projections do not constitute any commitment as to future results, nor do they take into account risks or uncertainties that could materially.
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As a result, Ecopetrol assumes no responsibility in the event that future results are different from the projections shared on this conference call.
The call will be led by Mr. Ricardo ROA C E O of Ecopetrol Rafael Guzman obscene executive Vice President of hydrocarbons, Camilo article CFO, and David <unk> Executive Vice President of transition energies.
Speaker Change: Thank you for your attention Mr. Shaw you may begin your conference.
Speaker Change: Welcome to the operational and financial results call of the Ecopetrol group.
Speaker Change: September 2024, I am pleased to report that we have maintained solid growth across all of our operational segments, reflecting the commitment and dedication of our team as well as a company if you sell each others seen operation and unveiled our mountain challenges.
Speaker Change: By the end of September 2020 fold, we achieved a reduction of 752000 barrels of oil equivalent a few years, we have not seen in the last nine years.
Speaker Change: Generally we transported a breath of 1.126 million barrels per day and reached their highest.
Speaker Change: Let me know if refining.
Speaker Change: In the history of our refineries with Alberta shows 418000 barrels per day.
Speaker Change: In terms of production I would like to highlight the startup operations.
Speaker Change: Although total station, which received the first barrel of crude oil from the CSP trigger this facility will be able to purchase up to 15000 barrels of crude oil and 60000 barrels of water and 700000 cubic feet of gas daily.
Speaker Change: <unk> term it could reach up to 50000 barrels of crude oil per day, and sugar and production and reserves for the coming years.
Speaker Change: Guardant, they're all tourists proration I spent all day positive ruling from the Santa Margarita Curt.
Speaker Change: We shall Loews has to continue our operations at the studios to one crucial for the country's energy security.
Speaker Change: In the transportation segment, we Sucessfully security by equation of all our foods overcoming the challenge.
Speaker Change: During the quarter.
Speaker Change: You mean, the highest transport volumes in the last five years.
Speaker Change: For refining we reached piece pretty high throughput and continued the warranty fuel supply for the country, while progressing on the accretion of our annual planned shutdown on major maintenance planned at our refineries.
Speaker Change: Also highlight the sucessfully preparation and execution of the industrial production test for the sustainable aviation fuels sub demonstrating our commitment to cleaner operations.
Speaker Change: Let's move to the next slide please.
Speaker Change: Right the breast suet fern external factors, such exchange rate and inflation, our operational and financial performance placed us at historically high levels for the last nine years. The company. We closed the first nine months of the year with revenues of 98.
Speaker Change: Five trillion pesos, an EBITDA of 42.3 trillion business.
Speaker Change: Net profit up 11 trillion pesos for normalized excluding external factors.
Speaker Change: It would be 16 point all three benches.
Speaker Change: Increase of nearly 10% compared to the same period in 2023.
Speaker Change: The EBITDA margin of 43% demonstrates our strong ability to maintain profitability in a challenging environment.
Speaker Change: This quarter, we achieved a.
Speaker Change: Thought he could sell about 1 million barrels of oil equivalent barrel.
Today, maintaining our efficiency with a single digit crude differential.
Regarding depth.
I'd like to highlight the successful <unk>.
Speaker Change: Management transaction executed in the international market. So the one point $75 billion Albert subscription was 2.6 times with participation from over 200 in best source from DNA as states reopen in Asia and Latin.
Speaker Change: These transactions Shorewood, Ecopetrol strong credit profile with the lowest spread.
Speaker Change: Coupon obtained by the company in the last two years finitely receivable accounts from the fuel price stabilization fund.
Speaker Change: 65% lower compared to the same period last year, although in better conditions for the secretion of our 2020 pie in breast implants now, let's move to the next slide.
Speaker Change: Regarding <unk> I want to mention the following milestones as of September and environmental from weak.
Speaker Change: <unk>.
Speaker Change: <unk> 2021, 89 million tons of <unk> to a cable and in the scope one and two emissions in our operations as of September we have already completed 97% of our annual R&D. It for 2020.
Speaker Change: Additionally, we have reached cumulative energy optimization since 2018 of 14 point 20 poll.
Speaker Change: <unk>, which is equivalent to the annual energy consumption of departments.
Speaker Change: We unlike what heater in Colombia.
Speaker Change: So surely the Ecopetrol group has seen best Upper 341 billion pesos in sustainable to retool that development.
Speaker Change: Highlight the completion of nine projects in lieu of taxes during the third quarter of 2024, <unk> 26 billion pesos, but in 15.
Speaker Change: Eight hours.
Speaker Change: In the departments of meta.
Speaker Change: Since 2018 this mix and this has helped the.
Speaker Change: The Ecopetrol group to complete six to three projects valued at 171 billion pesos in there were some science technology and innovation, we have impediments to over 100 digital solutions promoting energy efficiency.
<unk> bye.
By measuring the contribution to the net income and regional GDP from our investment with group, how sustainability generates financial benefits and act as a catalyst for the country's economic development and balance of governance I want to recognize.
Speaker Change: Two days of our association of internal policies currently.
Speaker Change: 5% of our.
Speaker Change: Confront internal talent accomplished in silver springs in this sector. Finally, I want to highlight withdrawals participation cop 16 are caused by analyst in a total of 33 events.
Speaker Change: Johan Albrecht to Rafael Guzman, who will speak about the hydrocarbons segment.
Speaker Change: Thank you Ricardo.
Rafael Guzman: September exploration capex of $330 million.
Has been recorded the highest within the last four years by year end.
Rafael Guzman: The drilling 16 exploration wells, one additional well versus the previously announced plan in the 2024 exploration campaign.
Rafael Guzman: The drilling of 10 wells one the serious two well was declared successful located in the Caribbean offshore onshore we completed the drilling of five wells that are currently undergoing long term production testing. These wells are more mileposts window.
Rafael Guzman: By Ecopetrol in association with Repsol had a better owner operated by CF recall and toilet suite.
Rafael Guzman: <unk> 30.
Rafael Guzman: So it does not one wells operated by Geo Park in partnership with our subsidiary.
Rafael Guzman: By the end of October.
Rafael Guzman: Three wells.
Rafael Guzman: One well.
Rafael Guzman: Production of almost 2000 barrels of oil production per day increase in total production from Janus 123 block by 49% Lastly, we have four wells with no commercial hydrocarbon volumes corresponding to the longer one launching one site.
Rafael Guzman: One for corporate one.
Rafael Guzman: Paulo, Brazil, one wells the following wells are being drilled Atlantis, one operated led products Florencia and 18 operated by Ecopetrol, both located in the Monterrey, NATO and the east one well operate but Youll park located in the Eastern Plains.
Rafael Guzman: Also we began drilling the <unk> two sidetrack well to perform formation testing and acquisition of.
Rafael Guzman: The information necessary for the development of the porch. Furthermore, the depths of multiple project is in the final planning phase are waiting for the final investment decision to make by the consortium members. This date is estimated to be first half of 2025 related to progress.
Rafael Guzman: Government entities.
Rafael Guzman: 2023, we have been developing an agenda with the national hydrocarbon agency and the Ministry of mines and energy of Columbia with the aim to increase activities.
Rafael Guzman: Areas of existing contracts and agreements achieving the following first the signing of this Rio Magdalena agreement on July 31, 2024, which allows us to access exploratory prospects in the middle months of Ala and <unk>.
Rafael Guzman: Second the extension of existing contracts prolonging their exploratory period from two to five years, let's move to the next slide please.
Rafael Guzman: Our offshore Caribbean portfolio has discovered.
Rafael Guzman: Active resources potential amounting to 75 tera cubic feet of gas as you can see in the map we have three clusters.
Rafael Guzman: Caribbean cluster in partnership with Petrobras in the Gulf of Zero block, where the CDO discovery is located and for which I will elaborate in the next slide in this block we expect to drill two new prospect by 2025 in order to confirm the potential of the block.
Rafael Guzman: The South Korean cluster in association with shell, where the Kronos.
Glass cause discoveries are located.
Rafael Guzman: And finally, the ultra deepwater cluster in association with Oxy I'm about to go with it.
Rafael Guzman: One block is located in which the kimono X one well is expected to be drilled once environmental license is granted by the national Environmental licensing authority and we need to fight together with the operator right.
Rafael Guzman: That coincides with the appropriate weather.
Rafael Guzman: Let's move to the next slide please.
Rafael Guzman: We are pleased with a favorable decision of the symptomatic court, but allows us to continue with operations of this used to say.
Rafael Guzman: <unk>. Meanwhile, we are awaiting a decision from authorities on whether or not.
Rafael Guzman: Consultation just needed we expected decision by November 30th.
The good news is that we expect to continue to move forward with operations. According to the schedule even if the prior consultation is required with information so far obtained from the <unk> two appraisal well the extension of the skews one discovery well was confirmed with an estimated.
Rafael Guzman: Original insitu volume potential to date.
Rafael Guzman: They're a cubic feet as is shown in the timeline in the graph below.
Rafael Guzman: We are integrating the process to reduce time to market of the Colombian Caribbean offshore projects.
Rafael Guzman: Barring out in parallel to the exploration and appraisal.
Development activities in order to declare commerciality between 2026, and 2028 and gradually started progression.
Rafael Guzman: Sources to reserves in 2025, we expect to start engineering designs for early development and production of gas for the domestic market.
Speaker Change: 2000 planes in 2013.
Speaker Change: As explained in the upper right graph for environmental licenses are required.
Speaker Change: The development of the discovery first the subsea development of the serious field.
Speaker Change: The construction of the subsea line that will transport production to Dubai, Jane accomplished which already has a proposed route third the Beast crossing point with the facilities and the last one for the onshore facilities at the <unk> complex, which serve as a connection note with the national transportation system.
Speaker Change: Let's move to the next slide please.
Speaker Change: In the first nine months of the year Ecopetrol group reached a production of 752000 barrels of oil equivalent per day, an increase of 22000 barrels of oil equivalent.
Speaker Change: Equivalent per day compared to the same period of the previous year as can be seen in the graph of the left side production is leveraged on.
The production growth of our subsidiaries.
Speaker Change: Permian production stands out with a contribution of 95200 barrels of oil equivalent per day and.
Speaker Change: Sustained domestic crude oil production leverage by kind of soup.
Speaker Change: Please go ahead.
Speaker Change: <unk> noticed a prestige and teach many fields, which almost fully offset the natural decline on the other hand deferred production due to social unrest issues was 6800 barrels of oil equivalent per day, representing less than 1% of our controls.
Speaker Change: Total production and in line with previous years in terms of drilling activity.
Speaker Change: We advanced with 343 development wells drilled uncompleted maintaining the levels of previous years with an average occupancy rate of 23 rigs.
Net income reached $2 seven trillion passes for the third quarter of the year.
Speaker Change: Selecting an increase of two 4% compared to the same period of the previous year.
Year, mainly leverage on higher production levels better prices to our crude oil basket lower tax provisions.
Speaker Change: On the right hand side of this slide I would like to highlight two main points.
Speaker Change: First the entry of the auditorium.
Speaker Change: Station, which us Carlos previously mentioned with leverage that future reserves.
CPO nine it will enable a progressive increase in Ecopetrol net production of 5000 barrels per day at the end of 2024 and up to 25000 barrels of oil per day from 2026 consolidated the CPO nine asset is one of the regions.
Speaker Change: Major producers.
Speaker Change: The air injection pilot TG, mainly the national hydrocarbons agency and the National Environmental licensing authority approved its continued theme for three additional years. This pilot has allowed us to incorporate 915 million barrels of oil in contingent resources.
Speaker Change: Which demonstrates the potential for large scale implementation, let's move to next slide please.
Speaker Change: In the midstream segment transported volumes in the first nine months increased by more than 21000 barrels per day compared to the same period of 2023, mainly leveraged by the increasing crude oil production in the generalist area, coupled with the higher deliveries of <unk> not that crude coming from.
Speaker Change: However, due to the damages caused by third parties to the kind of non core and this pipeline during the third quarter of 2024, four reversal cycles of these and other pipeline work carried out evaluating more than 1 million barrels thus ensuring the production of the field.
Lastly, the midstream segment maintained a solid financial performance during the first nine months of the year, adding up and EBITDA of $8 three trillion pesos, representing 20% contribution to the total EBITDA of the Ecopetrol group.
Speaker Change: EBITDA reduction compared to the first nine months of 2023 is mainly explained by external effect, such us exchange rate and inflation, partially compensated by higher revenues and cost efficiencies.
Speaker Change: Joan Didion bottom right figure let's.
Speaker Change: Let's move to the next slide.
Speaker Change: As of September 2020 for the refineries achieved historic throughput.
Speaker Change: 418000 barrels per day. This was accomplished even under challenging environment and intense period of major scheduled maintenance. This the Cartagena refinery completed its maintenance plans and Teva uncovered refinery into 85% of the units.
Speaker Change: Ensuring the reliability of us.
Speaker Change: Refining gross margin.
Speaker Change: Increased by $13 $6 per barrel versus the third quarter of 2022.
Speaker Change: $7 per barrel, 75% of this impact is due to the drop of international fuel prices, mainly gasoline and this.
14% impacted by the execution of the first major scheduled maintenance.
Speaker Change: The hydrocracking unit uptake.
Speaker Change: And that refinery.
Speaker Change: <unk> since its start up in 2016 completed its first eight year cycle, 9%, mainly due to the effect of the lower availability of light.
Speaker Change: Crude oil.
Unclear to me how to refinery as a result of the attacks or the kind of demand convenience white glove and the remaining 2%.
Speaker Change: The results of the power shut down and pick up.
Speaker Change: And our refinery, which thanks to the timely response of the teams was overcome in two days.
Speaker Change: Guaranteeing the national fuel supply.
Speaker Change: And where our subsidiary Isa provides support to ensure the continuity of energy supply.
Speaker Change: We began the implementation of the plan consisting of 16 actions can indicate to you where power supply risks.
Speaker Change: <unk>.
Speaker Change: As a result, the EBITDA for the year was two trillion persons.
Speaker Change: 2% less than the same period of 2023, mainly affected by the aforementioned factors. In addition to the exchange rate and inflation effects normalizing. This external variables EBITDA would have been seven one trillion pesos for the year.
Speaker Change: EBITDA margin of 13, 8% by year end, we expect to close the year with an average throughput between 415 to 420000 barrels per day, let's go to the next slide.
Speaker Change: During the first nine months of 2020 for Ecopetrol continued to materialize, it's comprehensive efficiencies and competitiveness and strategy with a contribution of $3 two ceridian base exceeded by 10% and 81% compared to those achieved during the same.
Period of 2023, and 2022, respectively by year end, we project to achieve efficiencies between $4 to $4 five trillion pesos, which will exceed our 2020 targets as is shown in the upper right graph.
Speaker Change: These efficiencies offset the increase in total cost by $79 per barrel, which reached $47 per barrel in the first nine months after year to conclude the lifting costs transportation costs and refining cash costs were impacted by exogenous.
Speaker Change: Actors related to inflation gas prices.
Speaker Change: The new phenomenon and the exchange rate Nonetheless.
Speaker Change: When we normalize these effects in each of the aforementioned metrics cost levels are similar to those obtained in the first nine months of 2023 now I will turn it over to David who will discuss the main milestones of the end used for the transition business line.
Thank you Olaf I ecopetrol remains implementing unnecessary the actions and investments to contribute to the country's energy security and meet the demand for natural gas in Colombia for.
Speaker Change: For the year 2022 existing contracts Ecopetrol has committed a total of 551 G that btu per day, representing 65% of national demand, excluding the natural gas consumed by thermal electric power generation.
Speaker Change: During the same period with aim of supporting the country supply will reduce our grasberg chasing required in this to about 25 <unk> per day by optimizing our operation and consumption, which accounts for approximately two 5% of national demand.
By 2026, we will contribute 370 <unk> per day to the market through already signed contracts, representing 43% of national demand excluding power generation consumption.
Speaker Change: Additionally, we have an extra volumes of whenever it is a 131 G that btu per day in 'twenty, two indices, which could be fully marketed through frame contracts.
Speaker Change: Once the minister of mines, and energy and then FDA in gastric Lottery Commission have made gas commercialization more flexible.
Speaker Change: It's important to point out that despite the progress made across all areas of natural gas challenges still remain.
Speaker Change: Environmental permits tire social consultations regulatory flexibility and transportation infrastructure to name a few on the NMDA transition front, we remain focused on the energy efficiency, making significant progress by the close of the third quarter of 2020, we'd say this of 11 <unk>.
Speaker Change: In thermal energy and 290 titles in electrical entity for a total of 14 two potential since the start of the program.
Speaker Change: This translates into a savings of 322 billion pesos for the Ecopetrol group and an impact of more than 950000 tons of fuel two equivalent we continue working on the sustainable development of the communities in which we operate today, our social gas program Ecolab.
Speaker Change: In relation with various strategic allies has the sexually connected nearly 52000 pumps to their natural gas network in Colombia.
Speaker Change: Ali we highlight the financial analysis of the cash and LPG These leases, which by the end of the third quarter of 2024 accumulated cash and LPG production of 173000 barrels of oil equivalent per day, representing 22, 8% of the group's total production.
Speaker Change: And 58% market share in Colombia.
Speaker Change: Did that generated during the year amounted to about 2.2 trillion pesos.
Speaker Change: I will now pass the floor to Camilla, who will present, our transmission on road business line as well as the main financial milestones. Thank.
Thank you very much very it is a great pleasure to address you in my first earnings call Vice President of finance and sustaining or volume I would like to express my gratitude for the trust placed in me by the Ecopetrol group.
Speaker Change: Neither of the finance function my priorities are focused on establishing a solid financial foundation to strengthen the execution of the 24 his strategy through the efficiency program and strict cost.
Speaker Change: Discipline, and ensuring profitability and value generation for all our shareholders.
Speaker Change: I would like to begin by sharing the positive results of our transmission Roes and telecommunication business line.
Speaker Change: This water you have it.
Speaker Change: Recognize the effect of the periodic revision BTR opex, mainly concession contract.
Speaker Change: This revision conducted every five years by the National Electric Energy ANZ, and then would you use the regulator in Brazil.
Speaker Change: In a positive net impact on EBITDA equivalent to 875 billion.
Speaker Change: Net income of 207 million pets.
Speaker Change: This positively leverage the business lines results, which showed an 8% increase in revenue and 7% in EBITDA compared to the first nine months of 2023, reaching 11, five trillion comparisons and seven five trillion comparison perspective.
Speaker Change: These strong results contributed 12% of the group's revenues, 18%, we did that and 6% of net income at the end of September aligning with our strategic objective of diversification within the Ecopetrol group among the most significant milestones this year.
Speaker Change: We would like to highlight.
Speaker Change: Breath here.
Speaker Change: Pepe wasn't warhead Adrian enforcement, completing 44 transmission grid reinforcement that together with total capex of 775 million pets.
Speaker Change: Colombia.
Speaker Change: <unk> won a public tender from bogey for the construction and operation of a psychologist substation.
Speaker Change: Associated lines in the requirement of <unk> with a complex sale.
Speaker Change: <unk>.
Speaker Change: Additionally, <unk> was awarded an expansion to the transmission network in Colombia, without referring to any capital expenditure of <unk> 9 billion passes.
Speaker Change: Also in Colombia, the signing and closing of the specific agreement.
Speaker Change: Internet boards, which will contribute to reducing the digital gap in the country and apathy 56000 families throughout the country with Internet access.
Speaker Change: Q E cigarette was rewarded with the expansion 24 of them, we're not going to do substation with a capex of about 567 billion versus <unk> continues to advance in the construction with 36 energy transmission projects in the countries, where it operates representing our committed capex.
Of 28 point by Trillium passes by the end of this quarter.
Speaker Change: This operation that they will add more than 5807 kilometers of surface to the network and generate approximately 1.83 imperatives in revenues between 'twenty 'twenty four and 'twenty three.
Speaker Change: For the remainder of the 'twenty to 'twenty four investments of between one or two trillium passes are expected to be made 2% to four projects are expected to come into operation and more than 50 reinforcements and improvements there's a definite work congrats here.
Speaker Change: Let's move on to the next slide to obtain the group's financial performance.
Speaker Change: Starting with cash flow for the third quarter of 2024, we closed with a solid cash position at the group level of 18 point phase III pests operational generation stood out at $35 five trillion basis, which includes the collection of the accounts receivable.
Speaker Change: Capex for approximately $17 seven trillion best these liquidity will be primarily used to continued execution of the 'twenty 'twenty four investment plan and to meet operational and financing obligations regarding the main cash outflows.
Speaker Change: Capex disbursement of approximately $16 two trillion patents. In addition to dividend payments of $14 nine trillion patents, which include payments from Ecopetrol S. A so the nation and minority shareholders as well as payments from ETA Mr.
Speaker Change: Subsidiaries and in very close to their noncontrolling shareholders as of the end of September we completed the dividend payment to the nation totaling $11 three trillion passes and thus concluding the payment was approved by the general shareholders meeting regarding per pack in the third quarter of 2024.
Speaker Change: <unk> seven trillion passes were collected reaching by September and 86% recovery of the receivable balance.
Speaker Change: As of the end of 2023.
Speaker Change: September 2024, the receivable balance was nine trillion patents the lowest balance.
Speaker Change: Since 2021 Ecopetrol continues its joint efforts with the Ministry of Finance and mines and energy to it.
Speaker Change: We implemented effective payment terms and reduce the monthly accumulation of the farm, which has remained below 800 million barrels per month on average since the second quarter of this year.
Speaker Change: Move on to the next slide.
As of the third quarter of 2024 net income was $11 trillion patents one of the highest in the last eight years. After those recorded in 2022 and 2023 years during which we achieved historical financial results supported mainly by a favorable.
Speaker Change: Pricing environment, and a higher average exchange rate.
Speaker Change: Compared to the same period last year net income for the third quarter of 2024 decreased by approximately three eight.
Speaker Change: This performance was mainly due to the impact of external factors that by the end of September had an effect of iPhone trillium presence compared to 2023, excluding those external factors, which are beyond the company's control normalized net income would be closed.
Speaker Change: 2016 for Trillium patents, representing a 10% increase when compared to the same period of the previous year. The main external factors affecting net income as of September 2024.
Speaker Change: The lower average exchange rate with an impact of approximately $3 five trillion patents now decreasing brands, which consolidates the brand's reference price and the effect of products and crude different engines with an impact of approximately $1 two trillion patents.
Speaker Change: <unk> him with an impact of <unk> six trillion and perhaps it is important to note that due to a decrease in the brand preference price for the third quarter of 2020 for the income tax surcharge was adjusted from 15% to 10% with a commodity effect for the year 2024.
Speaker Change: So by the end of September 24, we reached nine year highs in the revenues and EBITDA as of the third commodities quarter, excluding the years 2022 and 2023 in the same way.
Speaker Change: We maintain competitive profitability levels supported by five element.
Speaker Change: Standing operational performance Hi.
Sarah: Hi, Sarah.
Sarah: That's.
Sarah: <unk> is currently very himself.
Sarah: Pregnancy for patients the strategy of Nissan tariff revision as of the third quarter of 2024, we achieved a cumulative EBITDA of $42 three trillion patents.
Sarah: The EBITDA margin of 43% maintaining competitive levels compared to our historical results.
On capital of employee Rafi continues to be above our annual target.
Sarah: Target of 9% standing at 10 five.
Sarah: 5%.
Sarah: In addition to what was mentioned in the previous sections about the efficiency strategy I would like to highlight that initiative focused on the cost optimization.
Corporate support areas have been included contributing approximately 240 billion patches on the other hand when modeling on revenue improvement strategies led by the commercial team have optimized 996 billion pesos by the end of the third quarter.
Sarah: Next optimization initiatives reached <unk> nine trillion presence for the same period of time.
Sarah: I think in the diversification of our business lines.
Sarah: The third quarter of 2020 for the contribution to total EBITDA from the exploration and production business was 58% highlighting the operational resilience of the segment despite challenging environmental conditions.
Sarah: Like the contribution on the stability of our transportation business lines with 20% in transmission in roads with 18% have been fundamental in maintaining EBITDA at current levels.
Please move on to the next slide.
Sarah: Regarding investments we remain in line with our financing plan, achieving an execution rate of 86% by the third quarter of 2024 and are staying in line with the target set for this year.
Sarah: Residents were mainly performing in Colombia accounting for 65%.
Sarah: And 35% internationally, notably in the Permian basin in the United States with 19% in Brazil, and other countries with the remaining 16%.
Sarah: In the hydrocarbons segment hold the largest share of the group started investments, reaching 67% equivalent to approximately 2000 $716 million.
Sarah: This same segment.
Sarah: I was making in exploration and production standout amounting to 2120 $8 million.
Sarah: Representing 78% of the total hydrocarbons investment the remaining 22% consists of an investment in the refining and transportation business lines focused on the operational continuity of reef.
Sarah: Finally on the integrity of transportation systems.
Sarah: The third quarter of 2020 for the energy supporting transition segment made investments of approximately $556 million contributing 14% of the group's total investments.
Sarah: <unk> focus on the growth of the gas supply chain in the Permian basin, the Tayrona block offshore.
Sarah: <unk> investment in the transmission on Roseland reached $791 million, primarily in the energy transmission business with an 86% sure follow by the roads business with 12.
Sarah: And the remaining 2% in telecommunications, please lets move onto the next slide.
In terms of our debt strategy, we remain committed to a proactive debt management approach, mainly focus on extending the average maturity of debt obligations, reducing refinancing risk and optimizing interest expense during the third quarter of 2024, we executed the following.
Sarah: In July we replaced a syndicated loan maturing in August 2024 by these berthing and committed lines of $1 2 billion.
Sarah: Turning to 2029.
Sarah: We began recognizing the bond maturing in 2026, one point.
Sarah: $5 billion through a make whole of 250 meeting.
Sarah: However, we disbursed $250 million of our bilateral credit facility two weeks 250 million of cost, whereas it to make a powerful prepayments for a 500 million. So a great with international banks and nominate Barbara with a $1 billion.
Speaker Change: And maturity Duane.
Speaker Change: Finally, we issued a new bond maturing in 2030, 241 75 billion.
Speaker Change: The proceeds were used in the tender offer and the make whole for the remaining amount of the 2026, Paul for 125 billion and to prepay the residual value of the credit facility maturing in 2034 of 500 million Mark.
The refinancing of the 'twenty 'twenty fixed bonds include repurchase of 803 million. According to the tender offer may call of 447 million for the remaining balance.
Speaker Change: The settlement is scheduled for November 21, 2024.
<unk> improved our maturity profile and ensures that we have a manageable debt profile until 2020 at the end of the third quarter, our gross debt to EBITDA ratio stood at two one times. Excluding he says that the ratio would be one five times now fleet.
I would like to mention that the rating agency Fitch ratings recently reaffirmed our corporate roles global credit rating are double B, plus with a stable outlook highlighting the company's importance to the country and its financial strength to meet its obligations as well as through actions that.
Speaker Change: Our capital market.
Speaker Change: Now handover to recover for the closing remarks.
Thank you Camilo.
To conclude this conference call by highlighting that the operational and financing <unk> accumulate.
Speaker Change: As of September train pulls the achievement of the financial plan for 2020 program announced.
Speaker Change: Announced last year, we are proud of the company's quick and effective.
Speaker Change: Response to the challenging to the consensus during the quarter I. Thank our employees for debate importance, our exploratory activity three minus from the last two years have seen the highest investment the hydrocarbons business lines.
Speaker Change: 2015, reflecting our commitment to the traditional business for the rest of the year, our airports will focus on preparing the operational and financial plan for 2020 by 2027 and consolidating tube respondents will continue work.
To mitigate the effects.
Speaker Change: Pat.
Speaker Change: And maintain high operational standards as we have done so far.
Speaker Change: Please state your participation in these conference calls now we will begin.
Speaker Change: <unk> first tissue.
Speaker Change: Thank you.
Speaker Change: We will begin the Q&A session, we recommend asking only three questions at the moment for everybody else to ask questions and also all the analysts. Please choose the language that you will be asking your question.
Speaker Change: I know at Ts.
Speaker Change: Got it nowadays.
Speaker Change: Meso taste the floor is yours. Good morning for everyone can you hear me.
Speaker Change: Yes, we do.
Speaker Change: Good morning, and thank you for this opportunity I have a couple of questions one.
Speaker Change: I'd like to know what was the impact on the net profit of the quarter with the adjustment made.
Speaker Change: Uh huh.
Speaker Change: And.
Speaker Change: Okay.
Speaker Change: And what what what would have been the true and pack.
Speaker Change: Second I'd like to have more information.
Speaker Change: On your.
And about something you have been discussing on the news.
Speaker Change: Petrobras is.
Speaker Change: We're expecting.
Speaker Change: To develop projects for Regasification in Colombia, and one is about to begin with.
Speaker Change: Is close to two two.
Speaker Change: Regarding this could you could share what does the size of this project if it got better already.
Speaker Change: Is directly planning.
Speaker Change: It could be the bastard operator.
Speaker Change: Yes.
Speaker Change: Or these plants that have been mentioned and if this specific project do you have any information about its cost.
Speaker Change: Or or its development. So that's my second question and third.
Speaker Change: I have another question it's <unk>.
Speaker Change: Recently.
We have the Iraq cadets a resignation of two members of the board.
Speaker Change: Boyd.
Speaker Change: Are these members already replaced or will they wait until March or.
Speaker Change: Yeah.
Speaker Change: Regarding corporate copper. It's do you have what do you have a special shareholders meeting before these members leave or what's your plan with them.
Camille: Kathryn Good morning, again, my name is Camille I am the CFO.
Speaker Change: On your question related to the effect of the exchange a bad income tax it's important to mention that in the third quarter.
We saw the reversal of the surcharge of 3% that we had for the first nine months and we calculated it at 10%. This specifically has an impact on the surcharge.
Speaker Change: Calculated from January to June and we're talking about 500 billion doses on the profit this means without this figure.
Speaker Change: Profit of the third quarter would have been close to 3.1 trillion bits.
Speaker Change: Debbie.
Debbie: V P of transition energies.
Debbie: With regards to your question on the projects have for Regasification and the tissue project.
Debbie: This is project directly made by Ecopetrol group.
We're making the assessment right now.
Speaker Change: Pretty good catch will decide the permits needed to develop this facility enlightened says.
Speaker Change: As far as its size. Its a result of the analysis that we are making which keeps in mind factors such as the amount of gas that it will need to endpoint to sell into the market.
Speaker Change: And the period that goes from this here to the moment, where when we have the resources of the off shore.
Speaker Change: And also keeping in mind the restrictions that we currently have and when it comes to expand share of transportation.
Speaker Change: We're talking about 200 to 300 million cubic feet. So here, what we're talking basically about the regulatory aspect, so ecopetrol king to import and sell gas.
Speaker Change: So as we advance with these designs and permits and complying with regulations, we could talk about the specific amounts that will be imported.
Speaker Change: Sorry, I have another question I'm, sorry to interrupt.
Speaker Change: In terms of.
Speaker Change: By dancing this project.
Speaker Change: Regarding the gas rates what would be assuming.
Speaker Change: The cost.
Speaker Change: Of this development.
Speaker Change: Yeah, the compensation associated so this project can be profitable.
Speaker Change: To make an investment.
Speaker Change: Like this.
Speaker Change: Sure like any project and in this case also those of gas we have to meet the discipline of the principle of the grille.
So we follow the current commercialization rules and does that appear in the future. The government may have so when we have the cash.
Speaker Change: Also out of the market, we will look at these prices undoubtedly a project like this.
Speaker Change: We'll take place when we have enough information to determine the business case her model that meets the principal discipline.
Speaker Change: Transferring these.
Speaker Change: Figures like any other project that well follow regulations that are currently in sports. Thank you. Thank you for your answer is.
Good morning, My name is in high demand.
Speaker Change: Ecopetrol as to the question you ask about the resignation of the board of directors that took place on November nine.
Speaker Change: This event merits, a call or amputation for at Assembly.
Speaker Change: Oh and I'd like to report the following we have to keep in mind that the power.
Speaker Change: Bite to shareholders' meetings special.
Special or not is in the hands of the shareholders and to date, we have not received any request to do so and secondly.
When it talks about a special shareholders meeting.
Speaker Change: We have just foresee circumstances when there are attempts.
The fact that we have seven members today.
Speaker Change: The nine we have reviewed extensively that.
This is not according to our corporate governance something.
Speaker Change: That allows us to stay can see to necessarily have to have a special shareholders meeting why.
Speaker Change: First with respect to corporate principles, saying.
Speaker Change: Saying that with seven members, we have enough for them.
Speaker Change: Of the board.
Speaker Change: And if.
Speaker Change: If we have seven that would be fine.
Speaker Change: Second we are biased to.
Speaker Change: Everything that has to do with the minimum number of independent members.
And.
Speaker Change: Also the requirement that we recently implemented to have at least three female members. So.
Speaker Change: All of these principles.
Place and we can continue with its Sabaratnam member meeting and what's important also.
Speaker Change: S F.
Speaker Change: There is a request is sent by shareholders at a time.
When we receive that indicate that request and the date Uh huh.
Speaker Change: The next shareholders' meeting in March would make it very tight because we need 60 days.
And it would just go with the ordinary shareholders' meeting.
Speaker Change: And in 2025, we would need a list with the nine members because according to the bylaws you can never replace we are partially buoyed members you always have to manage the list with nine members. So that's another reason to think that we are.
Speaker Change: We would have a hold and the ordinary.
Meeting in March there.
Speaker Change: The the way of having these two new members. Okay. Thank you for your answers next question from while it wasn't it wasn't yours from BTG Pactual.
Speaker Change: Good morning, Thank God Kabila, Kim Ann Thank you for the call I have three questions.
Speaker Change: First.
Speaker Change: I wanted to ask you could you give us more.
Speaker Change: Color with J P C with premium and this last quarter.
Speaker Change: Yeah.
Speaker Change: And what was the posture of the group regarding the posture of this JV. That's my first question second.
Speaker Change: Okay.
Speaker Change: I would also.
Speaker Change: Like Oh.
Speaker Change: More insight on what's happening in downstream.
Speaker Change: When it comes to the bed that margins they dropped it.
Speaker Change: And you said that this is mainly because of the fall.
Speaker Change: The prices of gasoline and diesel worldwide, but we don't see that in Argentina, and Brazil. So that's my second question and third.
Speaker Change: I'd like to know if your plan.
Speaker Change: A special distribution of dividends, considering the current levels of cash.
Speaker Change: Hello and.
Speaker Change: And the working capital Thank you.
Speaker Change: Well I'll say good morning, Mike I am who yesterday was the acting VP of strategy and new business. It's regarding the future of JV at Odyssey, It's important to mention that for both companies. This is a very important operation.
Speaker Change: We have very good ties with oxy.
We are currently discussing constructively as well.
Speaker Change: How we can expand the period.
Speaker Change: For the joint venture, it's Keith mentioned that bi.
Speaker Change: No that by March 2025, we would complete if any we would terminate if either of the two parties wants to but again, where she gating everything with them constructively and we understand for both companies its way a little bit to keep that JV.
Well, let's say good morning, thereby guzman I'm the acting B P.
Rafael Guzman: Hydrocarbons and I'd like to explain a bit more at the margins or the results of the downstream.
Rafael Guzman: Perhaps the best ex the explanation is what we showed you in the slide there you could see that the fall other margins in the third quarter compared to that of last year is because of the difference of products and this is something that we see in every country that percentage is up 70.
Rafael Guzman: 5% in addition.
Rafael Guzman: And this is specifically for us here in Colombia, we had scheduled maintenance, mainly the hydrocracker I've cut the Hana, which had its first major overhaul that this isn't scheduled every eight years and it was scheduled this third quarter. In addition.
To this.
Rafael Guzman: With a 9% impact.
Rafael Guzman: And.
Rafael Guzman: Everything has to do with what's happening in Columbia crest.
Rafael Guzman: For instance, they redo reduction of transportation or Dana alcohol, which didn't allow us to transport the like feel to the refineries and that made our margins dropped as well as strikes and in different areas, where our capital operates and also.
Rafael Guzman: Yeah, our failure, we had the Cartagena refinery.
Rafael Guzman: But keeping in mind that the maintenance and electrical failures have been overcome now as well.
Rafael Guzman: Yes, the Destructions and this has been handled 12 and we expect that in the future. We can have major recoveries in these segments.
Well, let's say good morning.
Rafael Guzman: Cool.
To answer your question regarding dividends.
Rafael Guzman: Allow me by saying.
Rafael Guzman: Again.
Rafael Guzman: Everything has to do with our cash flow by the end of this quarter.
Rafael Guzman: Is a castle, it's very solvent and it's important to keep in mind that for next year, we have major commitments with an ambition of investments planned that exceeds $6 billion. So I'd just like to remind you of the main destination of the resource.
Rafael Guzman: It says of the Companys cash flow is to serve the operational needs and of course, the investments commitments that we have.
Rafael Guzman: With that said I'd like to specifically refer to the dividend. Indeed, there is a dividend distribution policy of the group that determines that the distribution of that should range between 40 and 60%.
Rafael Guzman: This year, what we expect is.
To meet that policy we.
Rafael Guzman: Alright, not identifying any special distributions have evidenced, especially keeping in mind that next year.
Rafael Guzman: We have set out to not increase the level of debt or debt that nets, which is close to 2.1 times see a bit up.
Rafael Guzman: Therefore.
Rafael Guzman: And keeping in mind that limit of depth. It does we don't at sea.
Rafael Guzman: Any special distributions of dividends, but of course.
Rafael Guzman: This is something that is decided by our shareholders' meeting.
Rafael Guzman: Well determine.
Rafael Guzman: That distributions surely this will be their recommendation by management and by Ecopetrol for our shareholders' meeting.
Speaker Change: We are also with Andrew Scott from Citibank, Mr. Ricardo now.
Speaker Change: Thank you and good morning, everyone I have three questions one.
Speaker Change: Could you please share with us.
What's your insight.
Speaker Change: Yeah.
Speaker Change: How about the decline of.
The production of the company excluding shaving what's why is this taking place and what how can you reverse this trend.
My second question has to do with the lifting cost could you. Please help us understand.
Speaker Change: The level of this cause for production, excluding zale, because surely the costs are lower.
And this type of asset and my third and last question looking at the comments a doctor for a while there.
Speaker Change: A proposal made by the government to repurchase shock stocks could you tell us which were the carbon that you received from the government on that.
If eddie thank you.
Speaker Change: Good morning, Andreas I am Rafael Guzman again.
Speaker Change: First of all.
Speaker Change: When it comes to the the drop off of our production. We also showed you a slide that explain that and clearly there you could see that we have an increase a major increase in international affiliates that allow us.
To see their operation, but also that part of the national or domestic production.
Speaker Change: Oil compared to previous years has grown we have 508000 in 2021 to 512000 barrels per day. This year in Colombia. This shows the positive effect that we have with the investments made in different feels like bite to eat it too.
Speaker Change: A man named for the reality and the commissioning of the auditorium.
Plant that we mentioned today, so the domestic feel what we're seeing.
Speaker Change: Is maintenance or is it really the growth production the big decline that we see in the country. However is the protection of gas and there we're taking major actions as well as with children in our presentation, we are making big investments and.
Speaker Change: And offshore.
Speaker Change: And with discoveries that we have underway.
Speaker Change: To bring gas to the country as fast as possible and going through Google to whole call, we're making major investments in gas and the growing area of Columbia, We've announced discoveries and new commercials and field. So this is what we're seeing.
Speaker Change: To mitigate the decline of the gas fields in Colombia, when it comes to the lifting costs evidently with the production that's growing in premium.
Speaker Change: I had a high production car.
Cost per barrel is lower than the average in Colombia. The numbers I have is the premiums the cost of the barrel and lifting cost is 1.3, while in Colombia, it's slightly above $13 30 to $3 per barrel and this gives us the average.
Speaker Change: That we showed a 12.3 throughout the company.
Speaker Change: I better ask it more than they cut the rollout.
Speaker Change: T O.
Speaker Change: First I'd like to clarify that by law. The nation can reach a maximum of share and in our company of 60% and so this and right now it has 1.5 more without altering the.
Speaker Change: This this type of a company.
Speaker Change: The elements that I'll give it my invitation really is not only to the government, but everybody in the country.
Speaker Change: And all of that is.
Speaker Change: It's based.
Speaker Change: The fact that.
Speaker Change: We have to use mechanisms.
And if we were going to make a reallocation from the nation are the majority shareholder to say it better.
We would be giving more support to our shareholders.
Speaker Change: Because it's sub valued and we would send to the market more trust adults like too.
Speaker Change: Talk about the returns of the price.
Speaker Change: And.
We need to improve the financial indicators that our O E R O a and by reducing the outstanding shares.
I would believe that.
Speaker Change: The nation.
Speaker Change: Shirts that can study and analyze the situation.
Speaker Change: Yes.
If are there any shifts on the majority.
So we have to have a proper basket of different types of shareholders here.
Speaker Change: Thank you.
Speaker Change: The question next is in English. So please all the analysts.
Speaker Change: Choose on the globe.
Speaker Change: The other language.
Speaker Change: Diego good as she is.
Speaker Change: Diablo.
Good morning, and thank you so much for your question.
Speaker Change: As far as production, yes, we are pleased with the performance of this segment.
Speaker Change: And we established a goal from 730 to 735 for the year, but we've had better results.
Speaker Change: Currently.
Speaker Change: We've had the second semester as we anticipated more maintenance at the production areas.
And more effects of third parties. However.
We believe that by the end of this year, we will be significantly above 735, and a bit less than the average that we have that.
Speaker Change: Of seven 7% to 735, but right now we will that set a new goal by 2025, we are ending our financial operation and we see that we will be within the figures.
Speaker Change: That we have communicated our strategy 700, 750 barrels a day in terms of lifting costs.
Speaker Change: For the year 2024, as we've established we will be at between 12 to $13 a barrel.
And this number will be the close the number that will be using seeing also in 2025.
We'd like to remind all the analysts to please choose the language.
Speaker Change: What you will ask the question otherwise we cannot hear you today, we are with <unk> from Banco.
Banco Santander.
Speaker Change: Hi, Thanks for taking my question I have one here just spotless per day may spread.
Speaker Change: Sorry, just.
Speaker Change: Patients for the pickup for bank balance.
In the end of the year.
Speaker Change: That's my question. Thank you.
Speaker Change: Okay.
Oh, yes, good morning, Camillo adequate again.
Speaker Change: When it comes to the Putback.
Speaker Change: Let's talk about some figures throughout the year.
Speaker Change: If you remember at the end of the year 2023, the turtle balance in favor of epic capital exceeded 20 billion.
Up to now in these three quarters, we've received 17.7 billion pets.
Speaker Change: On the what we only have one payment pending in this last quarter up to a point 8 million pets.
Speaker Change: And announced by the Ministry of Treasury that payments could take place and very soon.
When it comes to the balance of 2024.
Speaker Change: And indeed this payment up to 0.8 in the last quarter, we would have a remaining balance by 2025 close to 8 billion pesos between eight and 8 billion pesos. According to.
Speaker Change: The price levels of diesel and gasoline. This year 2024. So for next year. This balance will be covered throughout the year.
Speaker Change: We're holding conversations with the Ministry of Treasury and public credit and we will determine the dates and the amount of these payments. According to the availability of the cash flow I know the budget of this ministry of Treasury.
Speaker Change: Sure.
Speaker Change: Just a follow up here what to expect in terms of refining margin for fourth quarter.
Speaker Change: Could you remind.
Speaker Change: As in terms of seasonality in volumes for the business and the impact of higher volumes due to that stoppage in the fourth.
Speaker Change: Fourth quarter.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: Again, it's Rafael Guzman, we expect that our margin will be within what we've planned of 10 to $11.
Speaker Change: And as said before.
Speaker Change: Most of the maintenance that we have scheduled.
Speaker Change: For the year were made in the third quarter and we do not expect to have any in the fourth quarter. So by the fourth quarter, we do expect improved beds and more available more availability of cheap.
Because of no patent tenants when it comes to external factors it depends on the country and we foresee.
Speaker Change: That we can continue to face these effects, but we do expect improvements in the fourth quarter compared to the third quarter.
Speaker Change: Thank you next question is in Spanish the condos on the wild for Bancolombia is online Mr sent the well you can ask.
Speaker Change: Good morning, everyone and thank you for your presentation.
Speaker Change: You have answered already several of my questions, but I'd like to follow up on some that you've answered first.
Speaker Change: Has to do with margins.
Speaker Change: Although we see in the third quarter, several non recurrent effects because of maintenance and overhaul.
Speaker Change: And failures in their refi math refinery and margins in general and the consolidated we do see a trend.
Speaker Change: At low low lower tread, which by the third the third quarter reached 40% I'd like to see if in any scenario do you see the EBIDTA margin of the company below 40% in 2025.
Speaker Change: With a forecast that you have today.
Speaker Change: Yeah.
Speaker Change: My second question has to do with repurchasing stock and I'd like to know, perhaps do you know or can you tell us.
Speaker Change: What's the legal path.
Speaker Change: For a possible repurchase of stocks.
Speaker Change: And.
Riccardo could you. Please confirm again I did I get it well there's a program.
Speaker Change: 1.5% maximum.
Speaker Change: Of the float of the outstanding shares is that show.
Speaker Change: Thank you.
Speaker Change: Ricardo Thank you for your question or questions.
Speaker Change: Let me begin with the first one I am cabello radical.
Indeed, the EBITDA margin of this third quarter.
Speaker Change: Had a level close to 40%.
Rich.
Speaker Change: Is relatively low compared to the previous ones and.
Speaker Change: It's worth pointing out that and this quarter we collect.
Speaker Change: A major part of the.
Speaker Change: Of external factors that we've talked about.
Speaker Change: Indeed, we had this is influenced significantly by the differential of refined products and as Rafael already answered the previous question.
Speaker Change: These have practically.
Speaker Change: Practically.
Reached a half of the margins.
Speaker Change: <unk> debt at $11 a barrel. So this is the first impact the second.
Speaker Change: The impact of the third quarter and it's also an external factor it has to do with the Brent.
Speaker Change: Although so far the up to this date this year, it's at $82 in this specific quarter.
With a fall of $6 per barrel from 82 to $76.
Speaker Change: And both factors.
Leaders to these levels of generating of in a bit of a 40% now we're working on our financial plan 25, 27, where you don't see lower levels, but it's worth clarifying that as we've seen.
Speaker Change: Before.
Speaker Change: The results of the company, mostly are seen or influenced by external factors. So with the projections that we have today and the Brent price and the margin of refined products, we don't see that it will be below this margin. However.
Speaker Change: It will really depend of these external variables.
Speaker Change: Thank God I already got better a lot get yes.
Speaker Change: Practically what I said before refers to a pause.
Speaker Change: Ability that our major shareholder will have maximum 90%. So it will have.
Speaker Change: Participation up 88 point D point, 49% and it can acquire the 1.5% second we already talk about mechanisms. The at re acquisition of stocks of Ecopetrol and the other one.
Speaker Change: Theres another legal figure of which is.
Speaker Change: That the shareholder.
Speaker Change: May increase its share.
Speaker Change: And in the company as I said before.
Speaker Change: The card, but could you. Please let me know.
Speaker Change: If this has to go through Congress.
Is that does this.
Speaker Change: Require something else speak.
Speaker Change: Cuz.
Speaker Change: Since the government is the majority shareholders is is this do you need an additional process.
Speaker Change: And also with what we've seen like a what's.
Speaker Change: With Celsius or semi goes.
Speaker Change: According to the law.
Speaker Change: 11, 86, which says that the nation is guaranteed at least 80% of the share of Ecopetrol. That's the minimum and Theres also a maximum limit to not lose its condition.
Speaker Change: Am I being a mixed economy Corporation.
Speaker Change: The only legal.
The only legal approval is given by the shareholders meeting in this case.
Speaker Change: Next question is and it is from Andres Duarte from corporate Columbian.
Speaker Change: Thank you. Good morning, Thank you for taking my questions I've got three two.
Speaker Change: A follow up to what's been asked before.
Speaker Change: My first question is.
Speaker Change: With the joint venture at Oxy that though.
Speaker Change: And.
Speaker Change: It has to do.
Speaker Change: With the joint production agreement.
Speaker Change: That has.
Speaker Change: That was made with oxy.
Speaker Change: And it's a production that goes till 2027, so I'm confused.
Speaker Change: Regarding the answer you just gave what you will read negotiated in the first quarter of 2025 or what is it exactly and more specifically does it also embrace the production agreements well does it cover everything where a portion of it that July.
Speaker Change: Production agreement is separate could.
Speaker Change: Could you please provide us more.
More information about this what is negotiated is it part of it or are all of it second question.
What's the chance of making that bar are our buying electric generation projects.
Speaker Change: Our nonconventional.
So it's basically what advantages do you think that Ecopetrol has.
Speaker Change: Regarding environmental Lionshead says in previous consultations.
Compared with the companies that are selling their projects.
Speaker Change: Because no.
Speaker Change: Why would it be good for Ecopetrol to develop.
Speaker Change: That electrical generation and third question.
Speaker Change: Has to do with the Chihuahua.
Speaker Change: I'm not sure I have an alert linear name.
Speaker Change: That's a big bet for you for the country, even for Petro over to us for.
Speaker Change: From what I understand the Colombian offshore.
This is this is the biggest that we have besides Brazil, so what's plan b for Ecopetrol.
Speaker Change: This.
Speaker Change: <unk> is not economical feasible to produces gas. Thank you.
And good luck with the rest of this year.
Speaker Change: And there is good morning, I am Pollyanna Mad dose acting Vice Presidents do you best as I'd like to clarify that with Oxy right now we have two contracts one for.
Speaker Change: For bad land.
Speaker Change: Which is a joint venture agreement and this agreement as I said before.
Speaker Change: Has a date that's important Pat did with Oxy March 2025.
Speaker Change: Which one of the two parties can decide to terminate the agreement right now that agreement is.
Speaker Change: Under negotiation.
Speaker Change: With oxy and the <unk>.
Speaker Change: Other hand, we have the.
Speaker Change: The joint development agreement.
Speaker Change: For the area of Delaware, which is effective until 2027, and so far it's not part of the negotiation with.
Speaker Change: Have with us.
Speaker Change: For that Midland area.
Speaker Change: Hi.
Speaker Change: I'm, sorry, I cannot make a follow up of this answer.
Speaker Change: Currently the contribution of Branyan, what percentage comes from the first and second regarding production.
What does Permian contribute Ah if possible if got I understand yes, and that has led to answer your second question, while we seek that figure okay.
Speaker Change: Good morning, again, there is genuine and.
Speaker Change: B P.
Speaker Change: Energy transition.
Speaker Change: When it comes to the purchase of projects, they're not conventional firstly, we'd like to say that as established in our 'twenty 'twenty 'twenty 40 strategy. The incorporation of electric energy with renewable sources has the purpose to serve the needs of the.
Speaker Change: Group.
Speaker Change: We are a large consumer of electrical power.
Speaker Change: Eight terabytes hour a year like.
Speaker Change: 10% of the total demand of the country, which we expect that by 'twenty 40 will grow significantly, reaching 16 terabytes hours and that context access too.
Speaker Change: I'd like to call generation from Nonrenewable sources.
In areas that are not where we operate will be made based on the regulation announced by the national government regarding remote self generation and there we get to know that regulation.
Speaker Change: Which is about to be enacted that we will see.
But we'll see how we can answer your question regarding the accepts our obligations regarding the reliability rate.
And.
Speaker Change: With regards to the advantages of a corporate Trust group when it comes to environmental licenses at prior Consultancies compared to other companies to develop the electric energy through non conventional resources Sandridge Rodriguez will answer this question.
Speaker Change: Question.
Speaker Change: Andreas Thank you for your question, it's important to highlight that Ecopetrol real passive strategy.
Speaker Change: To comprehensively manage territories.
Speaker Change: And to contribute to its sustainability throughout its value chain. So we have to build trust with a shared vision of the territory with our stakeholders in that setting in guajira, we've been making.
Speaker Change: Making progress and having great discussions getting to know the territory.
Speaker Change: Respecting and promoting human rights are.
Speaker Change: And promoting human rights really.
Speaker Change: Taking specific scenarios of social investment.
Speaker Change: Promoting supplying or public utilities, social gas that allows us to establish a different.
Speaker Change: Our relationship with the communities, it's important to highlight how companies of our group are in the territories, creating our building collective spaces. Thank you.
Rafael Guzman: And that is again that pilot Guzman for your other questions the contribution of Delaware.
Rafael Guzman: To produce the total premium in the U S is close to 15%.
Rafael Guzman: And Midland regarding your question of Sirius.
Rafael Guzman: Which is the new name.
Rafael Guzman: We are also pleased with the relationship we have with Petro bras and we've directly heard their top managers.
Rafael Guzman: Who's saved the importance of this major discovery to them.
As far as.
Rafael Guzman: The development costs and how.
How would this be feasible there mainly three factors.
Rafael Guzman: The Capex, it's very important the price at which we sell the the oil but also the amount of gas we have the more of the cash we have the operational and development cost dropped.
Rafael Guzman: And as we've discussed before.
Rafael Guzman: The discoveries made.
Rafael Guzman: Are quite important.
Rafael Guzman: Gas in place of six Terra terabytes.
Rafael Guzman: Per cubic foot next year, we plan to drill two new exploratory wells into structures that are adjacent to this discovery, which would increase the volume.
Rafael Guzman: And as I said before the more of the volume the likelihood of developing this gas economically is is higher so we're really aimed at making a quick development we have the best months.
Rafael Guzman: With studies.
Rafael Guzman: And designs to have our gas produced in Colombia as soon as possible. Thank you.
Rafael Guzman: It gets so much.
Speaker Change: The next question is in English. So please at the end of last.
Speaker Change: Choose the icon in which you're going to speak.
Speaker Change: Otherwise, we can't hear you.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Alright. Thank you so much for taking my question.
Speaker Change: The question is a follow up on the dynamic on fuel prices there wasn't true.
To raise diesel prices at some point, which was not successful which means the government will have to continue to.
Speaker Change: To subsidize <unk>. So the question is you're already traction with the Gulf of Maine.
Why do you feel like is the plan are they going to try to increase prices at some points already comfortable subsidizing diesel prices going forward you know how does it impact.
Speaker Change: The budgets of the go home so any comments around that would be very helpful. Thank you so much.
Speaker Change: Bruno Good morning, Riccardo <unk> CEO of Ecopetrol, Indeed, we've been working with these techniques.
With the Ministry of mines and of Treasury.
Speaker Change: To reduce or to keep reducing.
Speaker Change: The the price of diesel.
Speaker Change: Come compared to what the prices internationally and the government.
Speaker Change: Has focused more on affleck applying the subsidy into niches of the market.
Speaker Change: For the.
Speaker Change: The mass transportation systems in cities and heavy cargo for food.
Speaker Change: Those are the subsidies the rest of the niches.
Speaker Change: Would be subsidizing would be reducing their the subsidy.
Speaker Change: Substantially.
Speaker Change: Compared to what was seen in recent years.
Speaker Change: And if I may just a quick follow up.
Speaker Change: When would you when do you expect for dose changes true.
Speaker Change: To be implemented.
Speaker Change: Hi.
Speaker Change: Okay.
Speaker Change: This is an agenda of the government and when it makes the decisions we have no detailed information.
Speaker Change: Perfect. Thank you so much.
Speaker Change: Sure.
Speaker Change: The next question is in Spanish.
Speaker Change: <unk> from territory to the Capa crap.
Speaker Change: Good morning.
Speaker Change: Hello, Good morning.
Speaker Change: Thank you for allowing me to ask this question.
Speaker Change: I would like to ask you following.
Speaker Change: The topics of.
Speaker Change: The EBITDA margin of this quarter.
Speaker Change: Keeping in mind that it's one of the lowest <unk> seen since the pandemic and keeping in mind all of the expertise explanations you provided today.
Speaker Change: Your expectation of this margin is to remain at the same levels or that it will continue dropping thank you.
Speaker Change: Yeah.
Speaker Change: Third here good morning, again, the company lower back.
Speaker Change: We see.
Discussed previously our expectations related to the margins.
And.
Speaker Change: It's worth underscoring that.
The margins will depend on the performance of macroeconomic variables and external factors such.
As the price of Brent.
Speaker Change: The price of refined products and they are of course, the gross margin a refinery where for net refining regarding the expectations.
Speaker Change: Product prices.
Speaker Change: What we're seeing is that the trend will return to levels before those seen in the before the epidemic Robert near 22 or 23 were exceptional.
Speaker Change: Where the margins reached.
Speaker Change: More than $20 per barrel.
And it's an exceptional situation that however, we do not see as Sean so possibly in our projections.
Speaker Change: Margins for products well be closer to the levels, we see today.
Speaker Change: And I'd like to underline also.
Speaker Change: That these products are highly volatile.
Speaker Change: They are seasonal.
Speaker Change: And depend.
Speaker Change: Winter and summer.
Speaker Change: In other countries. So with these fluctuations we believe that the prices of products are closer to current levels.
Speaker Change: That's why we think that the margins will be specifically those of downstream close to current levels.
Speaker Change: For the projections of next years.
Speaker Change: We are working on a financial plan short term.
Speaker Change: And long term as well.
Speaker Change: With other expectations.
Speaker Change: Where economics, which will allow us to go to higher Mt margins, but as I said it really depends on the performance of these variables there macroeconomic.
Speaker Change: Also I'd like to insist that there is a major efficiencies plan, where we can more control and in which we're focusing a lot.
Speaker Change: This year, we are V. P. R of hydrocarbons already said, there's we're exiting 2.8 billion pesos and the ideas as well.
Speaker Change: We will not exceed not only what we planned.
Speaker Change: Compared to what we announced last year, but next years, we can have more margins and there again, we will have the bed the margins.
Speaker Change: That we have in our goal to maintain and maximize.
Thank you the questions next or in English, that's why police again to all the analysts choose in the icon.
Speaker Change #100: The language in which you will ask your question otherwise we cannot hear you.
Hi, everyone. Thanks for taking my question actually I do have a follow up on this capex discussion.
Speaker Change #100: So far and do you have already reached about 90% of the plan for the year. So I mean, what's the outlook here for 2025 and maybe for the upcoming years could you expect some adjustments on our investments.
Speaker Change #100: For the upcoming years, and maybe where you're seeing the greatest.
Speaker Change #101: Investment opportunities any relevant investments outside of Colombia. These are my questions. Thank you.
Camillo particle: Good morning, Chas so thank you for your questions Camillo particle.
Chas: On the levels of investment indeed, this year, we have been meeting execution levels above 87% closer to 90% by.
Chas: By the end of the year, we trust and.
Chas: And believe that we will be not only at the plant that levels plant, but we will meet the goal of 100% of the investments for this year for the coming years, we have announced an ambitious investment plan Tri annual plan that exceeds 6 billion.
Chas: Dollars a year it leads us to almost $20 billion for the next three years.
Chas: This is in terms of investments capex and our expectations.
For the three year term.
Speaker Change #104: The next question is from Rodrigo Almeida from Banco Santander.
Rodrigo Almeida: Hi, I have a couple of follow ups here. The first one is on the Permian JV.
Rodrigo Almeida: And then I just wanted to get a sense of the two.
Rodrigo Almeida: Mexico effect of the decision to extend the Delaware JV are regarding the development plan for the asset right. We would there be a capex acceleration there.
Speaker Change #106: Do you have any visibility of the work program for 2025, especially we did pick station of the JV.
Speaker Change #106: And my second question is related to.
Speaker Change #107: Are you, saying the disclosure then and sorry, if I missed some of the coal and maybe you have commented on this but the discussions on the vertical integration of our power.
Speaker Change #108: And we saw how do you do.
Coming to Isa recently, and I wanted to understand a little bit how.
Can we think about your developments in Congress regarding the potential greater utilization for power generation Unisa. Thank you.
Speaker Change #109: Rodrigo good morning, Rafael Guzman.
Rafael Guzman: As far as the investment in the Permian. This is a very important asset for us.
Rafael Guzman: And our plan is to continue with investments that are similar to those that we've seen this year.
Rafael Guzman: This with the JV even.
Rafael Guzman: Without it we could make advancements with a joint operating agreement.
Rafael Guzman: We also have the.
Rafael Guzman: The Elliott of Jello War, it's called the joint development agreement and the activity there continues.
Rafael Guzman: So in short.
We have similar types of investments toward the ones. We saw this year and results for next year that will be good.
Rafael Guzman: As a premium.
I am Decabdes roll up.
Rafael Guzman: On the vertical integration app activities related with the electrical sector of and Isa.
Rafael Guzman: The National planning law of this government and.
Rafael Guzman: Several articles.
The law of electrical.
Rafael Guzman: Development of the previous government.
Rafael Guzman: Eliminate the possibility for easy to carry out vertically integrated activities.
Rafael Guzman: And this has to go through the constitutional efforts.
Rafael Guzman: And abide to la 142 and 143.
Rafael Guzman: Since <unk>.
Rafael Guzman: And when this comes out Isa.
Rafael Guzman: Can be enabled that legal space to develop it.
Rafael Guzman: Vertically integrated activities still what we're seeing from the board of Isa and strategic plans include.
Rafael Guzman: To start to develop now.
Speaker Change #110: Got it.
Speaker Change #110: Co related projects.
Speaker Change #110: And to start look at large scale storage electric storage projects.
Speaker Change #110: Projects and these are major resources that is.
Speaker Change #110: Could use to diversify its portfolio.
Speaker Change #110: Okay.
Speaker Change #110: Perfect. Thank you.
Speaker Change #110: Today with Bruno.
Speaker Change #110: <unk> from Morgan Stanley.
Speaker Change #111: Hi, Thanks for taking my question just one one quick question on Isa.
Speaker Change #112: Our results were very strong given the tariff review process in Brazil as I understand so just wanted to understand if you expect results to be sustainable at similar levels as we've seen in the third quarter no. Thank you very much.
Speaker Change #112: Okay.
Speaker Change #112: Okay.
Speaker Change #112: I am Ricardo Gila again.
Speaker Change #112: What we've seen today.
Speaker Change #112: In the accounting.
Speaker Change #112: Is the contribution of Isa desert resolved.
That I know in Brazil banks of it trades with the balance.
Speaker Change #113: That's recognized and it makes.
Speaker Change #112: Ed.
Speaker Change #112: Reach 6 billion, Colombia peso. This review is made every five years and the expectation is that in Canada. The same conditions can remain regulatory.
Speaker Change #112: Make the.
Speaker Change #112: These revisions to this.
Speaker Change #112: Reviews of rates can be sustainable.
Speaker Change #114: Thank you for now we have no further questions live, but we will read those that were sent in writing Kim of Dora for Ampco valleys ask.
Speaker Change #115: Good morning, Congratulations for your results could you. Please tell us why is theres a high difference and have.
Speaker Change #115: And the oil in the third quarter in 2020 for it.
Speaker Change #116: Good morning.
Speaker Change #116: This is really bad through <unk> the CFO.
Speaker Change #116: The explanation basically is two factors one the diversification of geographies through our three offices, Bogota, Houston and Singapore.
Speaker Change #116: Which allows us to capture opportunities.
Speaker Change #116: And to identify our oil and the best conditions and the second factor has to do with the development or the increase of of operations and shipping.
Speaker Change #116: This increase in ship Big allows us not only to have enormous.
Speaker Change #116: Optimisations, but also to reach geographies are destinations that we didn't go to because of the flexibility that allows us to.
Speaker Change #116: To have shipping.
Speaker Change #116: That we've had a notes we've seen that the past two years adequate Pittsburgh.
Speaker Change #117: Alejandro from Mitchells have Jefferies asks good morning could you. Please indicate how do you see capex and volumes of production for 2025.
Speaker Change #117: Well.
Again.
Speaker Change #117: This is camilo radical.
Speaker Change #117: Yeah, and Alejandro good morning.
Speaker Change #117: Regarding the investments we would like to repeat for next year.
Speaker Change #117: Theres, an investment plan that exceeds $6 billion.
Speaker Change #117: Aligned with the investment level that will be made by the end of 'twenty 'twenty four and that was enough since November last year.
Speaker Change #117: For the following years 25 to 27, the expectation in terms of investments is to maintain the investment levels and to do whatever is necessary.
Speaker Change #117: To keep production levels.
Speaker Change #118: And now we have the words of our V P of hydrocarbons.
Speaker Change #118: Good morning again.
Speaker Change #118: We with that sustainable.
Speaker Change #118: Capital investment.
Speaker Change #118: For production and expansion, we also seek to have.
Speaker Change #118: <unk> levels to be within the range that we said when we published our strategy to be between 70.
Speaker Change #118: 707 does that 150 barrels a day.
Speaker Change #120: Philippe will Miss from Ash Port capital asks how much.
Speaker Change #121: Does the EBITDA grow or drop.
For the shareholder of Ecopetrol, meaning the EBITDA that comes from eliminating two minorities at companies like said choppy that impact the results of this quarter and where the economic interest of Ecopetrol is lower than 20%.
Speaker Change #122: Felipe good morning, I'm Javier Cardenas well.
Speaker Change #122: When you look at the bed down regarding the share of minority shareholders only for the quarter.
Speaker Change #123: We're looking at a bedrock of 1.4.
Billion purchase less compare.
Speaker Change #123: To do the same.
Speaker Change #123: Quarter of last year. It would have been 0.9 billion in that same period.
Speaker Change #123: The variation is essentially has to do with our CEO says it has to do with the impact that <unk> of the 0.9 billion purchase of our share.
Speaker Change #124: Thank you.
Speaker Change #125: There we have no further questions now, let's listen to the closing remarks of our CEO.
Speaker Change #125: Yes.
We'd like to thank you all for joining us and this resolves this conference call we guarantee that we're still committed.
Speaker Change #125: To create value in all of our business lines to protect.
Speaker Change #125: Our <expletive>, our traditional business keeping in mind always that we have here resources.
Speaker Change #125: That energy transition, that's fair responsible and I'd like to say that we are waiting for the end of this year.
Speaker Change #125: Perhaps.
Speaker Change #125: It will be one of the best years in terms of technical or operational economic performance.
Speaker Change #126: For the Great group of Ecopetrol. Thank you so much thank.
Speaker Change #127: Thank you all what this we and our results conference call for the third quarter 2024. Thank you for joining US you may leave.
Okay.
Speaker Change #127: Okay.
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Speaker Change #127: Yes.
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Speaker Change #127: Okay.
Speaker Change #127: Okay.
Speaker Change #127: [music].
Speaker Change #127: Yes.