In the year 2004, Ecopetrol obtained the best financial results ever achieved.

The net profit reached MUS$802,95, that is, a 45% growth vis-à-vis the year 2003, basically derived from improved operational results amounting to MUS$422,87 and an increase in the revenues margin, up from 26% to 30%. On the other hand, its non-operational margin resulted in a greater expense for MUS$178,53.

Operational revenues increased by 24%, reaching MUS$ 4.965,10, 60% of which was generated by the domestic market and the remaining 40% by exports.

The domestic market recorded a 16% growth with respect to the preceding year, accounting for MUS$2.978,41, mainly as a result of the increased sale of 5,000 barrels per day of Diesel (ACPM) and 28 million BTU of natural gas.

In 2004, the company exported MUS$1.968,69, 20% more than in the year 2003. As regards volume, oil exports were similar to those recorded in 2003.

The increased load to the refineries and the better fuel price rendered greater income for gasoline exports amounting to MUS$95,11, naphtha MUS$86,74, and fuel oil MUS$12,55. The latter, despite its 3% price reduction, generated additional revenues due to an increased exported volume of 9,000 barrels per day.

Sales costs dropped by 2% in proportion to the operational income. The fixed cost level, as related to sales, dropped from 26% in 2003 to 22% in 2004, thus reflecting cost reductions for actuarial calculation and payroll of MUS$78,85 and the reduced rates for oil transport to the refineries.

In turn, the variable costs increased by MUS$422,30, mainly due to higher royalty payments of MUS$131,26, higher prices in oil purchases for MUS$57,45, and increase in amortizations for MUS$67,34.

On the other hand, the reduced commercialization expenses are derived from reduced oil and oil products transport, which are compensated