#Ecopetrol #Colombia #Bogota #dividends #Earnings

Ecopetrol Unveils 2024 Earnings Distribution Proposal

Ecopetrol S.A., a leading player in Colombia's energy sector, has recently revealed its proposal for distributing its earnings for the year 2024, following approval from its board of directors. The plan aims to address the General Shareholders' Meeting, scheduled for March 28, 2025. This strategic vision underscores Ecopetrol's commitment to sustainable growth while ensuring that shareholders benefit from the company's profitable operations.

Overview of the Proposal

According to the proposal, the company reported a net income of approximately 14.93 trillion Colombian Pesos (COP) after tax provisions. Additionally, the board has emphasized financial prudence by considering the release of reserves accumulated in prior years, totaling around 12.5 trillion COP.

Considering sustainability, Ecopetrol plans to allocate nearly 12 trillion COP into an occasional reserve dedicated to sustainability efforts, which align with its ongoing strategy for financial flexibility and environmental stewardship. This reserve is crucial for the company to execute its operations effectively while embracing its responsibilities towards sustainable practices.

Dividend Distribution

In line with its established dividend policy, Ecopetrol intends to distribute 58.9% of its net income as ordinary dividends. This results in a proposed dividend per share of 214 COP. The total dividend to be paid out amounts to approximately 8.80 trillion COP. The payout shows a commitment to supporting its shareholders, which is further segmented into two payments scheduled for April 4 and June 27, 2025.

Moreover, a significant portion of the profits, over 16.63 trillion COP, has been earmarked specifically for the occasional sustainable reserve. This initiative demonstrates the company's dual focus: rewarding shareholders while also investing in future sustainability endeavors that are fundamental to Ecopetrol's operations.

Importance of Sustainability

Ecopetrol stands out as the backbone of Colombia's energy landscape, accounting for over 60% of the country's hydrocarbon production. The company is also well-regarded for its significant role in logistics and refining processes. By prioritizing sustainable reserves, Ecopetrol aims to reinforce its vision of being a resilient and adaptable energy enterprise that can thrive amidst the evolving energy landscape.

In addition to its domestic efforts, Ecopetrol has made substantial strides internationally, holding interests in strategic basins and energy transmission sectors across the Americas. This global perspective contributes to its operational efficacy and positions it well for future growth.

Forward-Looking Statements

As part of the publication, Ecopetrol issued several forward-looking statements regarding its growth prospects and capital accessibility, acknowledging potential risks and uncertainties that could impact its strategic goals. Key among these factors are fluctuations in oil and gas market prices, regulatory environments, and overall economic conditions in Colombia and the regions where it operates.

The board of directors is committed to keeping shareholders informed as the company navigates these challenges and strives to deliver on its promises. Ecopetrol remains focused on balancing immediate shareholder returns with long-term sustainability goals.

In closing, Ecopetrol's earnings distribution proposal for 2024 embodies a balanced approach that recognizes the importance of rewarding shareholders while investing in the future sustainability of the company. With strategic reserves and a robust dividend policy, Ecopetrol is poised to maintain its position as a leader in the energy sector, adapting proactively to the demands of the market and its stakeholders.