Ecopetrol Announces Its Results for the Fourth Quarter and Full Year 2013

- Crude and gas 1P reserves increased 5.1% compared to 2012; the reserve replacement ratio was 139%, while the reserves average life remained the same at 8.1 years.

- Average production for 2013 (Ecopetrol S.A., including its interests in affiliates and subsidiaries) was 788.2 mboed^[1], a 4.5% increase compared to 2012 despite transport restrictions and blockades by some communities.

- Ecopetrol S.A.s net income in 2013 was COP$13.35 trillion. Results were positive in a year with considerable challenges and adjustments in the capital markets.

BOGOTA, Colombia, Feb. 25, 2014 /CNW/ -. Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results^[2], both consolidated and unconsolidated, for the fourth quarter and full year 2013, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Regimen de Contabilidad Publica, RCP) of Colombia's General Accounting Office.

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Highlights of Ecopetrol S.A.'s financial and operating results
Unconsolidated
(COP$ Billion)	4Q 2013 *	3Q 2013*	Var. %	4Q 2012*	Var. % **	2013	2012	Var. %
Total sales	16,201.3	16,218.4	( 0.1%)	15,054.4	7.6%	62,514.3	59,524.6	5.0%
Operating profit	4,077.3	5,497.5	( 25.8%)	5,474.2	(25.5%)	19,627.4	22,104.9	( 11.2%)
Net Income	2,629.6	3,973.8	( 33.8%)	3,706.8	(29.1%)	13,353.0	14,973.0	( 10.8%)
Earnings per share (COP$)	63.96	96.65	( 33.8%)	90.15	(29.1%)	324.76	364.16	( 10.8%)
EBITDA	5,268.4	8,181.1	( 35.6%)	5,988.4	(12.0%)	28,497.5	28,555.1	( 0.2%)
EBITDA Margin	33%	50%		40%		46%	48%

Consolidated
(COP$ Billion)	4Q 2013 *	3Q 2013*	Var. %	4Q 2012*	Var. % **	2013	2012	Var. %
Total sales	17,960.3	18,127.2	( 0.9%)	17,758.2	1.1%	70,428.7	68,852.1	2.3%
Operating profit	4,209.8	6,144.0	( 31.5%)	5,323.8	( 20.9%)	21,834.7	23,343.0	( 6.5%)
Net Income	2,426.6	3,860.7	( 37.1%)	3,620.8	( 33.0%)	13,106.5	14,779.0	( 11.3%)
Earnings per share (COP$)
EBITDA	4,901.4	7,999.7	( 38.7%)	5,866.3	( 16.4%)	28,013.7	28,507.0	( 1.7%)
EBITDA Margin	27%	44%		33%		40%	41%
* Not audited
** Between 4Q 2013 and 4Q 2012
Some 2012 figures were reclassified for the sake of comparison with 2013 figures

Consolidated
	4Q 2013	3Q 2013	Change (%)	4Q 2012	Change (%)	2013	2012	Change (%)
Production (mboed)	779.4	800.4	(2.6%)	762.0	2.3%	788.2	754.0	4.5%
1P Reserves (mmboe)	N.A.	N.A.	N.A.	N.A.	N.A.	1,972	1,877	5.1%

^[1] Thousands of barrels of oil equivalent per day.

^[2] Some figures in this release are presented in U.S. dollars (US$), as indicated. The financial results in the main body of this report have been rounded to one decimal place. Figures presented in COP$ billion are equivalent to COP$1 thousand million (COP$1,000,000,000). Additionally, some 2012 figures have been reclassified to be comparable to those of 2013.

In the opinion of Ecopetrol S.A.'s CEO, Javier Gutierrez:

"In 2008, we launched a strategic plan and we have achieved important gains such as 97% growth in production with an increase of 63% in reserves volume, the implementation of a new transport model and supplying fuels with the highest environmental standards in Latin America. These operating results have been accompanied by profitability and value, among which I would highlight our EBITDA margins and our cumulative income of COP$69 trillion pesos since 2008. The results obtained are evidence of the company's growth.

2013 was a good year for Ecopetrol. We grew our reserves and production and maintained strong financial results within a challenging environment for our operations. Our organization made important achievements on all fronts, including the following:

Proven reserves of hydrocarbons increased 5.1%, reaching 1.972 million barrels equivalent, with a replacement ratio of 139%, while the average-life of reserves remained the same at 8.1 years.

We reached a new annual production record of 788 thousand barrels equivalent per day, an increase of 4.5% over 2012.

We had eight discoveries in Colombia, with an exploratory success rate of 44%. Additionally, we announced the commercial viability of the Cano Sur and Akacias fields, which are important milestones in the Exploration and Production strategy.

In transport, we completed the transition to the new profit center model and began the operation of the Bicentenario oil pipeline.

We also made significant progress of 85.7% in the modernization of the Cartagena refinery. The market diversification strategy for the sale of crude and products was another important highlight, increasing significantly sales volumes to the Far East.

For a third year in a row we have been included in the Dow Jones World Sustainability Index.

Ecopetrol remains a financially strong company, with high margins (EBITDA, operating and net) in comparison to other oil companies. Its indebtedness continues to be low and its cash generation is strong.

In conclusion, I would like to send a message of optimism and confidence to our more than 420 thousand shareholders, emphasizing both the important achievements made as well as the future growth strategy, which will make Ecopetrol a greater and stronger company."

The complete report is available in www.ecopetrol.com.co

SOURCE: Ecopetrol S.A.

http://www.ecopetrol.com.co

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