Ecopetrol S.A. (EC)

Ecopetrol S.A. Financial Report

Report Date: 2025-04-29
Period Covered: Fiscal Year Ended December 2024

Profit & Debt Analysis

Net Income: COP 13.84 trillion (down 34 % YoY)
Total Debt: USD 26.85 billion (up 6 % YoY)

Drivers of Profit Decline

• Lower average Brent-linked basket prices (USD 73.4/bbl in 2024 vs USD 73.5/bbl in 2023)
• Weak refining margins amid oversupply of middle distillates
• Increased operating expenses (maintenance, energy, G&A) and finance costs (higher interest rates and FX losses)

Debt Management & Financing

• Issued USD 1.85 billion 8.375 % notes due 2036 and USD 1.75 billion 7.75 % notes due 2032
• Secured USD 1.2 billion syndicated facility and USD 250 million credit line
• Early redemptions reduced near-term maturities and extended average tenor

Pros & Cons

Pros

• Fully integrated upstream-midstream-downstream platform
• Leading position in Colombian hydrocarbons and Latin American power transmission
• Diversifying into renewables, hydrogen and low-carbon solutions under “2040 Strategy”

Cons

• Exposure to oil price cycles and narrowing refining spreads
• Rising debt service costs and FX volatility on USD-denominated borrowings
• Heightened regulatory and environmental obligations in Colombia and abroad

Outlook Ecopetrol is focused on preserving financial flexibility through disciplined capex, continued debt optimization and by accelerating its energy-transition roadmap, while managing near-term headwinds in commodity pricing and regulatory changes.

2024 Production & Reserves: 7,458 mboed (+1.3 % YoY); Refined-product throughput 416,879 bpd. Proven net reserves: 18.93 mmboe. Sales Volumes: total 10,116 mboed (Crude 4,459; Refined 3,520; Gas 990; Other Fuels 2,147). Midstream & Power: transported 8,152 mboed of crude; 30,359 mboed refined products; 49,677 km transmission circuits; 13,805 GWh transmitted; 811 km toll roads (138.9 million vehicles).

Ecopetrol’s trajectory hinges on integrating its legacy hydrocarbon business with its Energy-Transforms agenda. Upstream, prioritizing low-break-even projects in mature fields and the Permian Basin bolsters cash flow. Downstream, optimizing refinery yields and capturing higher middle-distillate spreads is critical. Midstream diversification, through toll roads and power transmission, provides stable regulated returns. Crucially, Ecopetrol’s pivot to renewables, hydrogen and CCUS under its 2040 Strategy will define its resilience to the energy transition. Key challenges include navigating volatile commodity markets, managing FX and interest‐rate exposures, and meeting evolving environmental and social governance standards. Success depends on disciplined capital allocation, execution of decarbonization roadmaps and proactive regulatory engagement to sustain growth and stakeholder value.