Page 13 - LatAmOil Week 31

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“In line with the guidance announced at the end intervention, along with the gradual improve-
of the first quarter, results for the second quarter ment in market conditions reported since
reflect the impact of the unprecedented situa- mid-May, our operating and financial results,
tion caused by the global spread of [coronavi- although impacted, were positive.”
rus] COVID-19,” explained Felipe Bayón Pardo, Meanwhile, Reuters noted that Ecopetrol
Ecopetrol’s CEO. had done better than expected in the second
Bayón went on to say that the combination of quarter. Analysts had predicted that the NOC
low oil prices, high crude and fuel inventory lev- would sustain a loss in the April-June period, but
els and sluggish energy demand had adversely instead it had earned a small profit, the news
affected NOC’s revenues during the second agency said. ™
quarter. These conditions were responsible for
the sharp decline in Ecopetrol’s sales of refined
petroleum products, he added. “[During] the
second quarter, sales of our main products
reported a decrease of 46%, mainly in jet fuel
(-89%), gasoline (-46%) and diesel (-35%),” he
said.
He also stressed, though, that the company
had taken steps to contain the damage. “This
new reality required a rapid financial and oper-
ational adjustment that we executed decisively,
while reinforcing our three strategic pillars:
strict capital discipline, cash protection and
cost efficiency, as well as reserve growth and
profitable production,” he said. “Thanks to this Senkata is the main source of LPG for La Paz and El Alto (Photo: YPFB)

Gran Tierra says revenues, profits,

production declined in Q2-2020

Gran Tierra Energy, a Canadian company active output had been adversely affected by “deferred
in Colombia and Ecuador, has reported that its development drilling, [the] shut-in of higher
financial and operational performance deterio- cost production and wells that were left off-line
rated in the second quarter of the year. awaiting routine mechanical workovers [and]
In a statement released earlier this week, the suspension of production at the Suroriente
the company stated that its revenues from and PUT-7 blocks in the southern Putumayo
sales of crude oil and natural gas had reached region, [owing] to force majeure related to a
$33.824mn between April and June. This local farmers’ blockade.”
marked a decline of 78.6% on the year-ago fig-
ure of $157.993. It also said that it had posted a
net loss of $370.649mn in the second quarter,
compared with a net profit of $38.54mn in the
same period of last year.
Gran Tierra’s EBITDA (earnings before
interest, taxation, depreciation and amortisa-
tion) also fell during the April-June period. It
sank to $17.851mn, down by 81.7% on the fig-
ure of $97.351mn recorded in the same period
of 2019.
According to the statement, the company
also saw its working-interest production levels
fall in the second quarter. Gross output before
royalties averaged 20,165 barrels of oil equiva-
lent per day during the period, down by 42.9%
on the year-ago figure of 35,340 boepd.
Gran Tierra explained the decline in its yields
as a result of “the unprecedented impact of the
[coronavirus] COVID-19 pandemic and the
related crash in world oil prices.” It said crude Most of the firm’s assets are in Colombia (Image: Gran Tierra)

Week 31 06•August•2020 www. NEWSBASE .com P13