Ecopetrol (EC) Q4 2025 earnings summary

Executive summary

• Achieved second-highest net profit in history for 2025, maintaining financial discipline and stable operations despite a 15% drop in crude prices.

• Highest national crude production in five years, with 745,000 barrels/day average and renewables capacity reaching 951 MW, exceeding 2030 target.

• Reserve Replacement Ratio reached 121%, with record reserve incorporation and enhanced recovery contributions.

• Significant progress in ESG, including 561,454 tCO2e GHG reduction and 800 tons/year green hydrogen production.

• Board proposes COP 110 per share dividend, 50% of net income.

Financial highlights

• EBITDA reached COP 46.7 trillion with a 39% margin, driven by refining recovery and efficiency programs.

• Net income totaled COP 9 trillion, close to the financial plan target despite lower Brent prices and higher taxes.

• Free cash flow was COP 11 trillion, supported by strong operating cash generation and early FEPC collections.

• Total shareholder return was 24% for local and 39% for US investors.

• Efficiency programs delivered COP 6.6 trillion in 2025, exceeding targets.

Outlook and guidance

• 2026 investment plan set at $5.4–$6.7 billion, with 70% for hydrocarbons and 30% for energy transition and infrastructure.

• Production target for 2026: 730,000–750,000 barrels/day; refinery throughput: 410,000–420,000 barrels/day.

• Net income breakeven expected near $47 per barrel; target EBITDA margin of 40%.

• Plan to incorporate 750 MW of new renewable energy projects in 2026.

• Strategic focus on gas supply, energy transition, and operational discipline.