Ecopetrol (EC) Q4 2025 earnings summary

Executive summary

• Achieved second-highest net profit in history for 2025, with net income of COP 9.0 trillion and strong operational discipline despite a 15% drop in crude prices.

• Exceeded exploration and drilling targets, with a 44% triennial exploration success rate and 16 wells drilled, surpassing the 2025 target by 60%.

• Reached a reserves replacement ratio of 121%, the highest in four years, and improved 1P reserves to 1,944 million barrels of oil equivalent.

• Advanced energy transition, surpassing renewable energy capacity goals with 951 MW operational and launching major green hydrogen and wind projects.

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

Financial highlights

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

• Net income totaled COP 9.0 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 working capital optimization.

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

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

Outlook and guidance

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

• Production target for 2026 is 730,000–750,000 barrels of oil equivalent per day; refinery throughput 410,000–420,000 barrels per day.

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

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

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