Ecopetrol positions for the rebound
The twin shocks of Covid-19 and the oil price collapse have severely impacted the company’s bottom line, but it is well-placed to bounce back
Colombia’s state-controlled oil firm Ecopetrol suffered a 95pc drop in first quarter net profits, as the coronavirus pandemic and sunken oil prices ravaged the sector. But analysts say its commanding share of the Colombian oil industry means it remains resilient in a weak price environment. Ecopetrol brought in a $34.2mn net profit in the first three months of 2020 compared with $705.6mn in the first quarter of 2019. But, while net profit collapsed, Ebitda was down by only 28.5pc year-on-year, reaching $1.35bn compared with $1.89bn. “[This year began] with growth prospects and a defined path,” says Ecopetrol’s CEO, Felipe Bayon Pardo. “However, by the end of the first quarter, we confronte
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment