Colombia’s Ecopetrol Faces Profit Decline Amid Strong Operational Gains in 2024

Ecopetrol, Colombia’s largest oil company, reported a 21.7% drop in net income for 2024, falling to COP 14.9 trillion ($2.5 billion) from COP 19 trillion ($3.2 billion) in 2023.

The company attributed the decline to lower crude prices, inflation, and exchange rate volatility. Despite these challenges, Ecopetrol achieved record operational results and announced plans to distribute dividends while advancing its energy transition strategy.

The company’s revenues reached COP 133.3 trillion ($22.2 billion), down 6.8% from the previous year. EBITDA stood at COP 54.1 trillion ($9 billion), with a margin of 41%.

Operational highlights included record daily production of 746,000 barrels of oil equivalent and transported volumes of 1.119 million barrels per day, both representing year-over-year growth.

Ecopetrol proposed a dividend of COP 214 ($36) per share, representing a payout of 58.9% of its net income. This decision sparked concerns among analysts like Sergio Cabrales from Universidad de los Andes, who argued that the high payout limits reinvestment potential.

The dividend will be distributed in two installments: April and July for minority shareholders, while payments to the majority shareholder align with debt obligations tied to Colombia’s Fuel Price Stabilization Fund.

Ecopetrol’s Strategic Investments

The company invested COP 24.9 trillion ($4.2 billion) in capital projects during the year, with COP 23.9 trillion ($4 billion) allocated to organic growth and COP 1 trillion ($167 million) to acquisitions, including Repsol’s stake in the CPO-09 field.

Ecopetrol also achieved a reserve replacement ratio of 104%, adding 260 million barrels of oil equivalent to its reserves. Ecopetrol’s energy transition efforts gained traction in 2024, saving COP 128 billion ($21 million) through energy optimization projects.

These initiatives reduced CO2 emissions by nearly 350,000 tons. The company also advanced its green hydrogen initiative at the Cartagena Refinery. Additionally, it announced a regasification project in Valle del Cauca to stabilize gas prices.

While liabilities rose by COP 12.2 trillion ($2 billion), driven by financial obligations and currency revaluation, Ecopetrol reduced debt tied to the Fuel Price Stabilization Fund from COP 7.6 trillion ($1.3 billion) to an expected range of COP 3–6 trillion ($500 million–$1 billion) by year-end.

Ecopetrol continues to balance shareholder returns with investments in hydrocarbons and renewable energy. It navigates volatile market conditions while preparing for future growth.