(RTTNews) - Colombia's oil and gas company Ecopetrol S.A. (EC: News ) announced a sharp fall in second quarter profit on huge non-operating loss resulting from revaluation of portfolio investments, lower domestic sales and reduced crude oil and natural gas prices, notwithstanding higher production.

The company posted a 77.3% decline in unconsolidated net profit to COP$ 762 billion or COP$ 18.82 per share from COP$ 3.357 trillion or COP$ 82.94 per share last year.

For the quarter, the company recorded a non-operating loss of COP$ 1.067 trillion compared to a non-operating profit of COP$ 394 billion in the same period last year. The non-operating loss reflects the impact of the Peso revaluation against US dollar that resulted in a currency exchange loss of COP$ 911.2 billion.

Total sales for the quarter declined 29.1% to COP$ 6.686 trillion from COP$ 9.425 trillion a year ago. Domestic sales were down 42% at COP$ 3.5 trillion compared to COP$ 6.03 trillion in the prior year. The company noted that an increase in the distribution of gasoline with 10% ethanol, greater restrictions on the use of vehicles in several Colombian cities, and the conversion of vehicles to natural gas, as a result of higher domestic gasoline prices as compared to natural gas prices for vehicles impacted the domestic sales.

Total volume sold increased 16.45% to 633 thousand BOE/d from 543 thousand BOE/d. Total domestic sales volume were 334 thousand BOE/d, up 1.1% from 330 thousand BOE/d last year. Exports recorded 85.5 thousand BOE/d increase year-over-year.

The company noted that international prices continued to be lower than the prior year rates and average price of crude oil export basket plunged to US$53.66 per barrel from US$112.14 per barrel a year ago. Cost of sales was down 15% from the comparable quarter, primarily on 23% decline in variable costs owing to lower value of crude oil purchases. Operating expenses increased 65.4%.
For the first half, net income was down 58% at COP$ 2.371 trillion or COP$ 58.59 per share compared to COP$ 5.650 trillion or COP$ 139.60 per share in the prior year.

Total sales for the six-month period declined to COP$ 11.798 trillion from 16.647 trillion in the previous year. Domestic sales dropped 36.8% to COP$ 6.687 trillion from COP$ 10.578 trillion last year.

For the period, total volume sold increased 16.1% to 614 BOE/d from 528 BOE/d in the previous year. The company said lower crude oil and natural gas prices dented its first half results.

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