Ecopetrol (EC) Q1 2025 earnings summary

Executive summary

• Achieved highest crude oil production in five years at 745 kboed in 1Q25, supported by operational discipline and efficiency gains amid global uncertainty and Brent price volatility.

• Advanced exploration in the Caribbean and Brazil, including FID approval for Gato do Mato, and expanded infrastructure for logistics and energy transition projects.

• Progressed energy transition initiatives, supplying 68% of Colombia's gas demand and advancing renewable and regasification projects.

• Maintained a diversified business model, with transportation, transmission, and transition energies contributing significantly to EBITDA.

• Dividend payments of COP 5.5T made in April, with final payment to the Nation pending; Board of Directors renewed with increased diversity.

Financial highlights

• Net income for 1Q25 was COP 3.1T; EBITDA reached COP 13.3T with a 42% margin; revenue was COP 31.4T, up 0.2% YoY.

• Investments totaled USD 1.2B (COP 5.1T), above the five-year Q1 average, with 59% in hydrocarbons, 14% in energy transition, and 27% in transmission and roads.

• Free cash flow remained positive, aided by early collection of FEPC balances and disciplined capex.

• Dividend payout of 59% (COP 214 per share), within policy range.

• Cash and equivalents at quarter-end were COP 17T; gross debt/EBITDA at 2.2x.

Outlook and guidance

• 2025 production target reaffirmed at 740–750 kboed, with continued focus on operational resilience and investment in transition energies.

• CapEx flexibility of USD 500M to adapt to market conditions, prioritizing production and reserves.

• Lifting cost target updated to below USD 12/boe for 2025.

• Brent price projections for 2025 may fall below financial plan; measures in place to ensure operational and financial targets.

• Energy transition investments and new regasification capacity expected to support medium-term growth.