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Ecopetrol's Achievements in 2024

In 2024, Ecopetrol S.A., the leading petroleum company in Colombia, reported impressive operational and financial results that align closely with the company's initial goals. The performance not only marks a significant achievement for the company but also sets the stage for a robust investment plan for 2025 aimed at creating sustainable value for its shareholders.

The company wrapped up 2024 with revenues amounting to COP 133.3 trillion, net income of COP 14.9 trillion, and an EBITDA of COP 54.1 trillion, showcasing an EBITDA margin of 41%. This financial success comes amidst lower market prices, inflation, and various external challenges, demonstrating Ecopetrol's resilience and efficient management.

A pivotal factor contributing to these results was the execution of an efficiency program that optimized EBITDA, capital expenditures (capex), and working capital, leading to remarkable savings of COP 5.3 trillion. The company's gross debt-to-EBITDA ratio was reported at 2.2 times, and a return on capital employed (ROACE) of 10.2% further underscores its financial health.

In terms of investments, the company committed USD 6.1 billion (approximately COP 24.9 trillion) towards both organic growth (USD 5.9 billion) and inorganic expansion (USD 239 million). Additionally, Ecopetrol made substantial contributions to national economic growth, transferring COP 42 trillion to shareholders, which reinforces its role as a key player in Colombia's economic landscape.

Further, Ecopetrol achieved a remarkable 104% reserve replacement rate, incorporating 260 MBPE, with a consolidated current asset reserve replacement ratio of 111%. The company’s strategic acquisition from Repsol added 32 MBPE to its reserves, showcasing a commitment to sustainable resource management. The average reserve life currently stands at 7.6 years, with a robust production performance of 746 kboed—representing a 1.2% increase from the previous year.

Ecopetrol's ability to exceed production targets reflects not only its operational efficiency but also its strategic collaborations. Particularly noteworthy has been the successful extension of the joint venture in the Permian, further enhancing its production capabilities.

The midstream segment also surpassed expectations, transporting 1,119 kbd of oil—up by 5.8%—while the downstream operations achieved a 94.5% operational availability, successfully completing its annual plan on plant shutdowns and maintenance.

In line with the evolving landscape of energy production, Ecopetrol has placed a significant focus on energy optimization. The company has saved around COP 128 billion through sustainable operations and has incorporated 4.17 PJ of energy optimization, significantly reducing CO2e emissions by 349,735 tons.

As part of its commitment to transitioning towards cleaner energy, Ecopetrol is progressing on the Coral project, which aims to produce up to 880 tons per day of green hydrogen at the Cartagena Refinery. The approval of Phase III of this project aligns with Ecopetrol's overall strategy to innovate and expand its portfolio in renewable energies.

In the realm of infrastructure, ISA’s recent tender award for the mining-energy planning unit's transmission mission speaks volumes about Ecopetrol's role in ensuring electrical system reliability in the Colombian Caribbean coast. This initiative should further bolster the company’s EBITDA and represent a stepping stone towards a more integrated energy sector.

Looking forward into 2025, Ecopetrol is poised to continue delivering value to its shareholders while maintaining strict capital discipline and a focus on efficiencies. The company aims to strengthen its traditional business model and push the frontiers of clean energy solutions through innovative approaches and robust governance frameworks. With the tireless efforts of its workforce, Ecopetrol is set to build upon its 2024 successes to create a sustainable energy future.