Ecopetrol (EC) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in 1Q26, leveraging disciplined execution and favorable pricing, with milestones in exploration, production, refining, and international expansion.

• Maintained production at 725 mboed, with robust refining and transportation throughput, and advanced strategic growth initiatives including the Brava Energia transaction in Brazil and expanded gas infrastructure.

• Focused on energy transition, expanding gas supply, renewable energy projects, LNG import partnerships, and infrastructure for regasification and transmission.

• Board changes and dividend distribution of COP 4.4 trillion (55.1% of 2025 net income) were approved.

Financial highlights

• Q1 2026 revenues reached COP 28.6 trillion, EBITDA COP 13.5 trillion, and net income between COP 2.9 trillion and 3.1 trillion, with EBITDA margin at 47%.

• Revenue declined 8.7% year-over-year, but EBITDA rose 1.5% and net income margin declined due to higher taxes and financial expenses.

• Refining margin rose 60% year-over-year to $17.3 per barrel; refining EBITDA nearly tripled versus Q1 2025.

• Cash balance at quarter-end was COP 14 trillion, with positive free cash flow and 59% held in USD.

• Downstream segment contributed an additional 10 percentage points to EBITDA versus 1Q25.

Outlook and guidance

• Full-year production target maintained at 730,000–740,000 barrels of oil equivalent per day, with CapEx guidance for 2026 at $5.4–$6.7 billion, trending toward the upper end, and Brent base case at $83/bbl.

• Sensitivity: $1 change in Brent impacts EBITDA by COP 1.6 trillion and net profit by COP 800 million; FX and external risks such as weather events and asset blockades are key variables.

• Continued investment in operational reliability, value generation, and portfolio diversification.