Ecopetrol SA (NYSE:EC) stock rose 0.92% (As on May 11, 11:21:15 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 22 has reported the consolidated revenue of COP 32.5 trillion, which represents an increase of 89% as compared to 1Q21, a net profit of COP 6.6 trillion, an EBITDA of COP 15.9 trillion (EBITDA margin of 49%), and a Gross Debt/EBITDA leverage indicator of 1.8x. The return on average capital employed (ROACE) was 14.5%. During the period, ISA’s contribution to the Ecopetrol Group totaled net income of COP 0.2 trillion and EBITDA of COP 2.0 trillion. At the end of the quarter, the Ecopetrol Group closed with a cash balance of COP 16.5 trillion, committed CAPEX equivalent to USD 986 million (COP 3.9 trillion), in line with the 2022 investment plan, and an account receivable balance from the Fuel Price Stabilization Fund (FEPC in Spanish) amounting to COP 14.1 trillion. During the first quarter of the year the company has incorporated savings for COP 358.2 billion by strengthening the EBITDA margin, with improvements in product and petrochemical margins, dilution strategies, and lifting cost optimization, among others, which have allowed the company to partially offset the inflationary effects brought to the operation.

Moreover, in production the company reached this quarter an average of 692 mboed, an increase of 16.3 mboed as compared to the same quarter of 2021, primarily explained by: i) the outstanding operating performance of unconventionals in the Permian (USA); ii) positive results in the Liria YW12 and Flamencos exploratory wells; and, iii) production recovery in the Castilla field. Compared to 4Q21, production decreased due to maintenance and operational activities, and public order circumstances, situations that have been gradually restored. As of March, the company had achieved an average production of 705 mboed. During this quarter, the contribution to production of gas was 19.8% (136.7 mboed) and whites was 3.8% (26.2 mboed) for a total increase of natural gas of 6.1% compared to 1Q21 driven by domestic demand recovery. In Unconventional Reservoirs, with 31 new wells in Permian entering into production, we completed a total of 135 producing wells, reaching an average JV production in March of 61.4 mboed (net for JV before royalties), corresponding to 30.1 mboed net for Ecopetrol before royalties. For the quarter, average production was 26.7 mboed (net for Ecopetrol before royalties).