Colombia’s Oil Giant Ecopetrol Struggles iin Q2 205 as Profits Sink Despite Record Output

Ecopetrol, Colombia’s state-owned oil company and one of Latin America’s largest energy producers, has reported a steep fall in profits despite producing more oil than at any time in recent years.

Official company figures for April to June 2025 show net earnings of 1.81 trillion Colombian pesos — about 46% less than in the same quarter last year. For the first half of 2025, Ecopetrol’s profit reached 4.93 trillion pesos, down by a third from 2024.

Revenues followed the same pattern, sliding 9% in the second quarter to 29.7 trillion pesos and totaling 61 trillion pesos for the half-year, their lowest level since the pandemic years.

Behind the earnings slump lies a sharp drop in global oil prices. The benchmark Brent crude price fell around $12 per barrel compared with the same period last year, averaging near $66.

This was driven by a mix of factors: global oversupply, new U.S. trade tariffs under President Donald Trump, and escalating tensions between Israel and Iran.

Higher costs inside Colombia have compounded the problem. Inflation has pushed up the price of operations, equipment, and exploration activities.

These rising expenses eroded the benefit of a slightly stronger peso against the dollar, which brought higher local returns on exports but did little to offset the loss from cheaper crude.

Ecopetrol has kept output strong, producing 755,000 barrels per day in the second quarter — the highest level in years. But record volumes have not been enough to counter weaker prices and cost pressures.

Operational earnings (EBITDA) fell to 11.1 trillion pesos in the quarter, 21% lower than last year, with a margin of 40% for the first half. While that margin still ranks well against many global peers, the drop shows the strain in its core business.

The company is still investing heavily. It spent $156 million in the first six months on drilling and infrastructure. Six of ten planned wells for the year have already been completed.

Ecopetrol is also moving forward with Petrobras on the Sirius offshore gas project and preparing for a new Caribbean regasification terminal, which could start operations between late 2026 and 2027.

The story behind the numbers is simple but important: even a major oil producer can suffer when prices fall and costs rise, no matter how much it pumps.

For Colombia, Ecopetrol’s health matters well beyond the company — its profits feed government budgets, public services, and national investment.

For international observers, it is a reminder that in the oil business, global market swings and geopolitics can outweigh even record-setting production.