Ecopetrol declares record dividends and strong 2024 results
During the shareholders meeting, Ecopetrol confirmed an ordinary dividend of 243 dollars per share and an extraordinary dividend of 37 dollars per share, totaling 280 dollars per share for 2024. This payout framework reflects the company’s confidence in its ongoing profitability and the solidity of its balance sheet as it closes the year with robust cash generation and a disciplined approach to shareholder returns.
Felipe Bayón highlighted the shareholder base, noting that the organization serves about 254,000 Ecopetrol holders, including numerous pension funds. He explained that the cumulative dividend distributions amount to roughly 11.5 billion dollars, with a portion flowing to the state and to the investors who own Ecopetrol shares. The statement underscores the scale of Ecopetrol in both public and private investment circles and the importance of these payouts to long-term stakeholders.
The company confirmed a strong financial performance for the previous year, reporting a historic net profit of 16.7 billion dollars. This outcome rested on an EBITDA of 42 billion dollars and total revenues of 91.7 billion dollars. The figures place Ecopetrol among peers with solid earnings momentum, signaling that the business remains well positioned despite macroeconomic headwinds and market volatility. The results also outpaced early analyst projections and market expectations, which had anticipated a net profit around 15 billion dollars for the year.
Looking ahead, the management disclosed a planned allocation of approximately 20.4 trillion dollars in available resources to the General Assembly after accounting for mandatory reserves of 2.1 trillion dollars. In addition, a sustainability reserve is planned to be set aside at around 8.89 trillion dollars. These allocations illustrate a structured approach to capital management, balancing immediate reinvestment opportunities with long-term environmental and social governance commitments that align with the expectations of investors and regulators alike.
Bayón also pointed out that crude oil represented about 79 percent of the Group’s total production, with natural gas and liquefied petroleum gas contributing the remaining 21 percent. This production mix underscores Ecopetrol’s core operating focus on liquid hydrocarbons while maintaining a meaningful exposure to natural gas and LPG markets, which can help diversify revenue streams and manage price risk across commodity cycles.
In another notable milestone, the company reported that reserves had grown by more than 2.002 million barrels, reflecting significant progress in reserve replacement and long-term production planning. Bayón explained that 2021 marked a decisive step in consolidating Ecopetrol as a leading energy and infrastructure group in Latin America. The reported reserve replacement ratio, indicating that two barrels of crude reserves were added for every one barrel produced, highlights the effectiveness of the company’s exploration and development programs during that period.
Source: Lare Publica