Ecopetrol (EC) Q3 2024 earnings summary

Executive summary

• Achieved highest production in nine years at 752,000 bbls of oil equivalent per day as of September 2024, with record refining throughput and strong operational resilience across all segments.

• Revenues for the first nine months reached COP 98.5 trillion, EBITDA COP 42.3 trillion (margin 43%), and net profit COP 11 trillion; normalized net profit (excluding external factors) was COP 16.4 trillion, up nearly 10% year-over-year.

• Maintained a robust cash position (COP 18.8 trillion) and executed significant liability management, including a $1.75 billion bond issuance with strong investor demand to refinance 2026 maturities.

• Continued progress in energy transition and sustainability, with over 500 MW of renewables expected by year-end, major reductions in CO2 emissions, and investments in TESG and social development.

• Strong exploratory activity, including major offshore gas discoveries and new agreements/extensions with government agencies.

Financial highlights

• EBITDA margin stood at 43% for the first nine months, reflecting strong profitability despite external pressures.

• Net income for 9M 2024 was COP 11 trillion, with normalized net income (excluding external factors) at COP 16.4 trillion, a 10% increase year-over-year.

• Revenue for 9M 2024 was COP 98.5 trillion, down 9% year-over-year, while EBITDA was COP 42.3 trillion, down 12.8% year-over-year.

• Return on Capital Employed (ROCE/ROACE) at 11–12%, above the annual target.

• Gross debt to EBITDA ratio at 2.1x (1.5x excluding ISA), within strategic targets.

Outlook and guidance

• Production guidance for 2024 remains 700,000–750,000 bbls per day, with expectations to close above 735,000.

• CapEx for 2024 expected to exceed $6 billion (COP 16.2 trillion), with similar annual levels planned for 2025–2027.

• Renewable energy portfolio is expected to exceed 500 MW by end-2024, and self-generation target of 900 MW by 2025 remains on track.

• No special dividend distribution planned; payout policy remains at 40–60% of net income.

• Agreements for regasification services and supply of deficit amounts to be signed in December 2024.