Ecopetrol Group Releases Its Financial Results for Third Quarter 2025

Core Insights - The company focused on strengthening its traditional business operations, maintaining capital discipline, and driving sustainable value through strategic projects aimed at energy transition and security [1][2][11]. Financial Performance - In Q3 2025, the company reported revenues of COP 29.8 trillion, a decrease of 13.8% compared to Q3 2024, with an EBITDA of COP 12.3 trillion and a net income of COP 2.6 trillion [3][4][14]. - For the first nine months of 2025, total revenues reached COP 90.9 trillion, with an EBITDA of COP 36.7 trillion and a net income of COP 7.5 trillion, reflecting a 40.4% EBITDA margin [4][13][14]. Production and Operations - The company achieved a quarterly production of 751 mboed, with significant contributions from key fields in Colombia and the Permian Basin in the U.S. [7][64]. - Natural gas output is being increased through self-operated fields and offshore reserves, with plans for LNG import and regasification activities at the Coveñas Marine Terminal [5][11]. Energy Transition Initiatives - The company commenced operations at the La Iguana Solar Farm, adding 26 MW to its renewable energy capacity, which now totals 234 MW, a 77% increase from the previous year [8][11]. - The first phase of gas commercialization from the Floreña field was completed, resulting in 39 sales agreements with 22 off-takers [8]. Cost Management - Variable costs decreased by 22.8% in Q3 2025, attributed to lower purchase prices and volumes, while fixed costs increased by 3.5% due to inflationary pressures [28][29][30]. - The company reported a 12.3% reduction in the cost of sales in Q3 2025, reflecting effective cost control measures [28]. Investments - Total investments for the first nine months of 2025 amounted to USD 4,179 million (COP 17.3 trillion), with 62% allocated to hydrocarbons and 13% to energy transition projects [55][56][59]. - Investments in the refining segment focused on operational continuity and strategic projects, totaling USD 240 million [57]. Market Conditions - The average selling price of crude oil decreased by 13.3% to USD 68.2/bbl in Q3 2025, impacting overall revenues [22][23]. - The company faced challenges from lower sales volumes and prices, but managed to mitigate some impacts through improved differentials and strategic market positioning [23][26].