Ecopetrol announces the liquidation of one of its subordinates

Rhea-AI Summary

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has announced the liquidation of its subordinate, Ecopetrol Energia S.A.S E.S.P. The decision was unanimously approved by the Shareholders' Meeting, authorizing the liquidator to complete all necessary steps. The liquidation process concluded with the cancellation of the company's commercial registration in early October.

The liquidation was necessary due to regulatory restrictions preventing the same group from simultaneously engaging in energy commercialization and transmission activities. This follows Ecopetrol's acquisition of a majority stake in ISA, an electric power transmission company.

Ecopetrol, Colombia's largest company, is a major integrated energy player in the Americas, with operations spanning hydrocarbon production, transportation, refining, and petrochemicals. The company has also expanded into energy transmission and infrastructure through its ISA acquisition.

Positive

• Compliance with regulatory requirements by liquidating Ecopetrol Energia S.A.S E.S.P.
• Streamlining operations to align with current business structure and regulations
• Unanimous shareholder approval for the liquidation process

Negative

• Discontinuation of energy commercialization activities through the liquidated subsidiary
• Potential loss of revenue stream from energy commercialization business

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BOGOTA, Colombia, Oct. 11, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that the Shareholders' Meeting of its subordinate Ecopetrol Energia S.A.S E.S.P., with the favorable and affirmative vote of 100% of its subscribed shares, authorized its liquidator, Mr. Christian Schneider Jaramillo, to carry out all the necessary steps for the due liquidation of this company whose purpose was the commercialization of energy, which culminated with the cancellation of its commercial registration the first days of October.

The liquidation of Ecopetrol Energia S.A.S. E.S.P. was due to the fact that Ecopetrol S.A. is currently the parent company of an electric power transmission company, and current regulations restrict the same group from simultaneously carrying out commercialization and transmission activities.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

For more information, please contact:

Head of Capital Markets (a)
Cristhian Prado Castillo
Email: investors@ecopetrol.com.co

Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-announces-the-liquidation-of-one-of-its-subordinates-302274391.html

SOURCE Ecopetrol S.A.

FAQ

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Why did Ecopetrol (EC) liquidate Ecopetrol Energia S.A.S E.S.P.?

Ecopetrol liquidated Ecopetrol Energia S.A.S E.S.P. due to regulatory restrictions that prevent the same group from simultaneously carrying out energy commercialization and transmission activities. This decision followed Ecopetrol's acquisition of a majority stake in ISA, an electric power transmission company.

When was the commercial registration of Ecopetrol Energia S.A.S E.S.P. canceled?

The commercial registration of Ecopetrol Energia S.A.S E.S.P. was canceled in early October 2024, marking the completion of the liquidation process.

Who authorized the liquidation of Ecopetrol Energia S.A.S E.S.P.?

The liquidation was authorized by the Shareholders' Meeting of Ecopetrol Energia S.A.S E.S.P., with a unanimous vote in favor by 100% of its subscribed shares.

What was the main business of Ecopetrol Energia S.A.S E.S.P. before liquidation?

Ecopetrol Energia S.A.S E.S.P.'s main purpose was the commercialization of energy before its liquidation.