Colombia's Ecopetrol posts 46% profit slump as oil prices drag

By Nelson Bocanegra and Sarah Morland

BOGOTA, Aug 12 (Reuters) - Colombia's state oil producer Ecopetrol ECO.CN on Tuesday posted a 46% slump in second-quarter net profit as lower global oil prices weighed on sales and production edged down.

Net profit dropped to 1.81 trillion pesos (around $450 million) from 3.38 trillion pesos in the year-ago period, while total sales fell 9% to 29.67 trillion pesos.

Ecopetrol, whose shares are 88.5% held by the Colombian government, noted lower prices across its products, including a 20% slump for crude in the quarter, though its gas prices edged down just 0.7%.

The company also cited unrest in rural areas and the impact of new taxes and inflation.

"We have had blockades, attacks and thefts that have prevented us from operating, and we have also seen a significant drop in volumes carried by third parties through our transportation assets," CEO Ricardo Roa told a press conference.

Ecopetrol's total production edged down 0.5% year-on-year to 755,500 barrels of oil equivalent per day.

Earnings before interest, taxes, depreciation and amortization fell 21% to 11.14 trillion pesos.

By the end of June, the group counted 13.14 trillion pesos in cash and had invested around $2.58 billion, largely in exploration and production projects in Colombia's central Meta department as well as international projects in Brazil and the United States.

By the end of June, Ecopetrol had drilled six of the 10 exploratory wells planned for the year, it said.

The energy sector has struggled with price volatility as the OPEC+ group increased production, pushing global benchmark Brent crude prices down 11% in the quarter.

Benchmark Brent crude prices hit $67 per barrel in the second quarter, down from $75 in the previous three months and $85 a year earlier.

While other oil producers were also hit by lower prices, both Mexico and Brazil's state-owned oil producers, Pemex PEMX.UL and Petrobras PETR3.SA, managed to swing back into the black from their year-ago losses.