Daily Colombian Equities Bulletin and Fundamentals 05-01-14
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May 1, 2014 (www.investorideas.com newswire) The Colcap index closed at 1,672 points (+1.14%).Total turnover reached USD 203 mn. The best performers were Enka (+3.74%), Ecopetrol (+3.00%) and Conconcreto (+2.50%). On the other hand, the worst performers were El Condor (-4.09%), BVC (-3.72%) and PREC (-1.50%). We highlight the strong volumes in today's session, especially in Ecopetrol (USD 42 mn) and PFBancolombia (USD 39 mn).
1Q14's revenues were COP 18,26 trillion, +9.1% YoY, despite a 3.2% YoY decrease in production. This figure was supported by COP's devaluation (12.1% YoY) and higher sale volumes (934 kbped +5.5%. It's worth to highlight, that average Brent oil prices during the 1Q14 declined 4.3% YoY. Revenues were 3.1% below our estimates. Production during the 1Q14 was 766 kbped, -3.2% YoY and 3.7% below our estimates. According to Ecopetrol, there were 33 terrorist attacks made to the Colombian oil infrastructure during the 1Q14, which affected production levels. That said, the OBC operation has been affected since Feb-20 and Caño Limon since Mar-25
1Q14's EBITDA was COP 7,79 trillion, +5.6%, which represents a margin of 42.7%, 139 bp below 1Q13's. EBITDA was 4.7% below our estimates. In the bottom line, net income was COP 3.2 trillion, -3.6% YoY and 16.7% below our estimates.
Overall, we consider the 1Q14's results as negative, production issues in Colombia continued to jeopardize Ecopetrol's MEGA, a situation that we have been mentioning before. We also remain cautious about future oil prices. We think that current share price have discounted most of 1Q14 results.
Colcap Final Basket
BVC Published the COLCAP Final basket that will be valid from May 2nd, 2014 until July 31st, 2014. COLCAP's leading company is ECOPETROL, with shares accounting for 17.8% of the index weight; followed in importance by PFBCOLOM (combining preferred and ordinary shares), with a share of 13.813%; PFGRUPSURA (combining preferred and ordinary shares), with 12.543%; GRUPOARGOS (combining ordinary and preferred and shares), with 9.836% and NUTRESA, with 6.848%.
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