OREANDA-NEWS. Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results1, both consolidated and unconsolidated, for the first quarter of 2014. The financial results were prepared and filed in Colombian pesos (COP) in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública, RCP) of Colombia's General Accounting Office.

Summary of Ecopetrol S.A.'s financial results

Unconsolidated

(COP Billion)

1Q 2014 *

4Q 2013*

Var. %

1Q 2013*

Var. % **

Total sales

15,741.7

16,201.3

( 2.8%)

14,771.8

6.6%

Operating profit

4,552.6

4,077.4

11.7%

5,145.3

(11.5%)

Net Income

3,225.9

2,629.7

22.7%

3,495.7

(7.7%)

Earnings per share (COP)

78.46

63.96

22.7%

85.02

(7.7%)

EBITDA

7,704.6

5,268.4

46.2%

7,746.0

(0.5%)

EBITDA Margin

49%

33%

 　

52%

 　

Consolidated

(COP Billion)

1Q 2014 *

4Q 2013*

Var. %

1Q 2013*

Var. % **

Total sales

18,262.0

17,960.2

1.7%

16,745.7

9.1%

Operating profit

5,882.8

4,209.7

39.7%

5,553.9

5.9%

Net Income

3,287.4

2,426.5

35.5%

3,411.7

( 3.6%)

EBITDA

7,793.0

4,901.4

59.0%

7,596.5

2.6%

EBITDA Margin

43%

27%

 　

45%

 　

* Not audited

** Between 1Q 2014 and 1Q 2013

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

The financial results of the first quarter of 2014 were better compared with those from the fourth quarter of 2013. The unconsolidated net income as well as the Ebitda increased 22.7% and 46.2% respectively.

The results of the first quarter of 2014 reflected the difficult operating conditions: there were 33 attacks on infrastructure, and blockades by some communities in different regions across Colombia. Due to this situation, we have experienced delays in execution of some E&P projects. In midstream, the operation of the Bicentenario oil pipeline has remained disrupted since February 20 and in the Caño Limon - Coveñas pipeline since March 25. As a consequence, average production reached 765.7 mboed falling 3.2% compared to the first quarter of 2013, and 1.8% compared to the last quarter of 2013.

The dollar sales price of crudes, products and gas declined 8.1%, 5.3% and 16.3%, respectively, versus the same period of 2013, as the result of international market conditions.

Higher variable costs were generated due to higher transportation fees, the cost of transporting by truck, increased purchases of ultra-low sulfur content diesel and diluent, among others.

The better results for the companies of the Corporate Group, came from the Midstream and Upstream segments, the latter posting a 5.0% growth in production.

We had several highlights during the quarter such as the discovery in the well Tibirita 1A in Llanos Orientales, the 11 most competitive bids for the blocks in Lease 231 in the Gulf of Mexico (U.S.), the 55 thousand barrel increase in the capacity of the San Fernando-Monterrey transport system, the achievement of 89% completion in the Reficar modernization project, and the two patents in Colombia for the production of biofuels. Additionally we also highlight the progress in projects such as the water flooding pilot in the Galan field and the CEOR pilot at the Yariguí field.

We are advancing in the initiatives to improve operating conditions, and the progress in the capex plan, including close cooperation and coordination with Government agencies such as the Military Forces, the Labor Ministry and Local governments. We have a dedicated multidisciplinary team with the objective of prioritizing and implementing the key projects.

As a closing, I would like to reiterate our commitment to overcome the operational difficulties and move forward with the projects that will allow us to continue along the path of growth.”