Ecopetrol Reports Strong First Half 2025 Performance Amid Market Challenges

Ecopetrol SA reported strong first half 2025 performance with a net income of COP 4.9 trillion and EBITDA of COP 24.4 trillion with a 40% margin. The company maintained operational performance through market diversification, cost optimization, and strategic investments. Ecopetrol's efforts in the hydrocarbons sector led to increased production, while its energy transition initiatives marked significant progress. The company's focus on operational growth and financial stability aims to maximize long-term value for shareholders.

Title: Ecopetrol SA Reports Strong H1 2025 Performance

Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) has delivered a robust performance in the first half of 2025, posting a net income of COP 4.9 trillion and an EBITDA of COP 24.4 trillion with a 40% margin. The company's operational and financial achievements are a testament to its strategic initiatives and market diversification efforts.

Operational Performance

Ecopetrol's operational performance was driven by increased production and cost efficiencies. The company achieved its highest semiannual production since 2015, with an average of 751,000 barrels of oil equivalent per day (boepd) in H1 and 755,000 boepd in Q2. This growth was primarily attributed to increased output from the Caño Sur and CPO-09 fields, as well as operations in the U.S. Permian Basin [1].

Transport volumes averaged 1.088 million barrels/day, while refining runs reached 405,000 barrels/day after maintenance completions and operational upgrades. Ecopetrol also made significant strides in its energy transition portfolio by acquiring the 205 MW Windpeshi wind farm in La Guajira and initiating Colombia’s first long-term LNG import sales contracts, totaling 60 GBTUD over four to five years [2].

Financial Performance

Despite a 22% drop in crude prices, Ecopetrol maintained a strong EBITDA margin of 38% for Q2 and 40% for H1, outperforming industry peers. The company's net income for Q2 was COP 1.8 trillion, which would have been COP 3.2 trillion absent adverse external factors such as weaker oil prices, inflation, and new taxes. H1 net income totaled COP 4.9 trillion [3].

Ecopetrol's leverage remained below targets, with gross debt-to-EBITDA at 2.4x (1.7x excluding subsidiary ISA) and net debt-to-EBITDA at 2.2x (1.6x excluding ISA). Free cash flow stood at COP 3.1 trillion, with total cash at COP 13.1 trillion by June’s end [2].

Challenges and Sustainability Commitments

External headwinds, including lower oil prices, currency volatility, inflation, and domestic disruptions such as infrastructure blockades, posed challenges. However, Ecopetrol demonstrated resilience and adaptability. The company invested COP 180 billion in territorial development and paid COP 8.8 trillion in dividends, offering a 10% yield. Ecopetrol also reduced GHG emissions by 242,000 tonnes CO?e—132% above target—and reused 44 million cubic meters of water, covering 82% of operational needs [2].

Outlook

For the second half of 2025, Ecopetrol plans to save COP 1 trillion in costs, generate over COP 5 trillion in efficiencies, and maintain lifting costs under $12/bbl. The company will continue optimizing working capital to meet its COP 2 trillion annual target and pursue disciplined capital allocation to capture full CapEx flexibility. Management emphasized resilience, adaptability to market conditions, and long-term value creation for shareholders and communities [1].

References

[1] https://finance.yahoo.com/news/ecopetrol-posts-strong-h1-2025-020328749.html
[2] https://oilprice.com/Company-News/Ecopetrol-Posts-Strong-H1-2025-Results-With-Record-Output.html
[3] https://www.ainvest.com/news/ecopetrol-achieves-record-oil-output-h1-2025-strengthens-energy-transition-portfolio-delivers-solid-financial-performance-2508/