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 average production of 745,000 barrels per day and record reserves replacement ratio of 121%.

• Surpassed renewable energy capacity goal, reaching 951 MW, a milestone initially set for 2030, and advanced major solar and wind projects.

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

• Transferred COP 35 trillion to the nation in dividends, taxes, and royalties, reinforcing its role in national economic development.

Financial highlights

• EBITDA for 2025 was COP 46.7 trillion with a margin of 39–41%, in line with targets.

• Net income totaled COP 9.0 trillion, close to the financial plan target, despite lower Brent prices and higher taxes.

• Free cash flow reached COP 11 trillion, supported by strong operating cash generation and disciplined CapEx execution.

• Dividend proposal of COP 110 per share, equivalent to 50% of net income.

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

Outlook and guidance

• 2026 investment plan ranges from $5.4 billion to $6.7 billion, focusing 70% on hydrocarbons and 30% on energy transition.

• Production target for 2026 is 730,000–750,000 barrels of oil equivalent per day, with 80% oil and 15% gas.

• Refinery throughput expected between 410,000–420,000 barrels per day; over 1.1 million barrels transported daily.

• Net income breakeven targeted at $47 per barrel for 2026.

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