Ecopetrol’s Profit Slide Exposes Colombia’s Fiscal And Energy Crossroads

Ecopetrol, Colombia’s state-controlled oil and gas champion, has slipped into one of its toughest periods since the pandemic.

Between July and September, the company earned about 2.5 trillion pesos (about $0.7 billion) in net profit, almost 30% less than the 3.6 trillion pesos (about $1.0 billion) it made a year earlier and only slightly better than the weak second quarter.

Over the first nine months of 2025, profits fell from around 11 trillion pesos (about $2.9 billion) to 7.5 trillion pesos (about $2.0 billion), extending a long run of disappointing results.

The pressure shows up clearly in sales and operating performance. Third-quarter revenue dropped from 34.6 trillion pesos (about $9.2 billion) to 29.8 trillion pesos (about $8.0 billion), while nine-month revenue fell from 98.5 trillion pesos (about $26.3 billion) to 90.8 trillion pesos (about $24.2 billion).

EBITDA slipped from 13.9 trillion pesos (about $3.7 billion) to 12.3 trillion pesos (about $3.3 billion), even though margins stayed solid at roughly 41%.

Production hovered around 751,500 barrels of oil equivalent per day, a respectable level but not enough to offset the financial squeeze.

Two forces largely explain the hit. International oil prices have cooled, falling from an average of about 80 dollars per barrel last year to just over 70 dollars this year.

At the same time, the Colombian peso has strengthened by roughly 17% against the dollar. For a company that earns most of its income in dollars but reports in pesos, every step of currency strength cuts the local value of exports.

Behind the numbers sits a bigger national argument. Ecopetrol finances a large share of Colombia’s budget and supports pensions, yet the government is sending mixed signals on new exploration while promising ever-larger social and climate agendas.

Investors worry that weaker profits, hesitancy toward drilling and regulatory noise could shrink future reserves and reduce the flow of cash to the state, leaving less room for those promises.

Inside the company, managers are trying to show that discipline and investment can still deliver. They highlight stable refining, tighter cost control and better results at power-grid subsidiary ISA, which helped lift profit versus the previous quarter.

Ecopetrol plans to invest about 6.3 billion dollars next year, drilling new wells, expanding gas projects and pushing offshore and U.S. ventures.

For expats and foreign readers, the message is simple: follow Ecopetrol’s balance sheet if you want to understand Colombia’s fiscal strength, its currency risks and the real limits on its politics.

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