Ecopetrol's 2025 Earnings Distribution Proposal

Rhea-AI Summary

Ecopetrol (NYSE: EC) announced its board-approved proposal for the 2025 earnings distribution, to be submitted to the General Shareholders' Meeting on March 26, 2026. Key figures: Net income after tax COP 9,028,764,859,338, total available COP 25,664,256,953,415, and proposed ordinary dividend of COP 110 per share (payout 50.1%).

The board proposes COP 21,141,420,537,494 be allocated to an occasional reserve for sustainability; ordinary dividends totaling COP 4,522,836,415,921 are proposed to be paid no later than April 30, 2026, coordinated with the FEPC payment schedule.

Positive

• Net income after tax of COP 9,028,764,859,338
• Ordinary dividend proposed at COP 110 per share
• Payout ratio of 50.1% of 2025 net income
• Dividend total of COP 4,522,836,415,921 to shareholders
• Reserve allocation of COP 21,141,420,537,494 to support sustainability

Negative

• Majority allocation (~82% of available earnings) placed into occasional reserve
• Lower immediate cash for dividends as most earnings retained in reserve
• Dividend rounding may slightly alter exact per-share payout from precise payout percentage

News Market Reaction – EC

+8.80%

38 alerts

+8.80% News Effect

+4.4% Peak in 4 hr 15 min

+$2.10B Valuation Impact

$25.98B Market Cap

1.3x Rel. Volume

On the day this news was published, EC gained 8.80%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.4% during that session. Our momentum scanner triggered 38 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $2.10B to the company's valuation, bringing the market cap to $25.98B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income 2025: COP 9,028,764,859,338 Release of reserves: COP 17,144,573,697,440 Available to shareholders: COP 25,664,256,953,415 +5 more

8 metrics

Net income 2025 COP 9,028,764,859,338 Net income after provision for income tax for 2025

Release of reserves COP 17,144,573,697,440 Reserves released from previous years for distribution

Available to shareholders COP 25,664,256,953,415 Total amount available to shareholders under proposal

Total dividends COP 4,522,836,415,921 Ordinary dividend according to dividend policy

Dividend per share COP 110 Total ordinary dividend payable per share for 2025 earnings

Payout ratio 50.1% Dividend payout as percentage of 2025 net income

Sustainability reserve COP 21,141,420,537,494 Allocated to occasional reserve for financial sustainability

Employees More than 19,000 Number of Ecopetrol employees mentioned in company description

Market Reality Check

Price: $12.92 Vol: Volume 2,140,063 is at 0....

normal vol

$12.92 Last Close

Volume Volume 2,140,063 is at 0.71x the 20-day average of 3,010,828, indicating subdued trading. normal

Technical Price 11.59 is trading above the 200-day MA of 9.77, indicating a pre-news uptrend.

Peers on Argus

While EC fell 4.18%, key integrated energy peers like CVE, SU, IMO, and YPF rose...

While EC fell 4.18%, key integrated energy peers like CVE, SU, IMO, and YPF rose between 0.95% and 2.98%, with only PBR slightly down 0.3%, pointing to a company-specific move.

Historical Context

5 past events · Latest: Mar 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 02	Earnings call schedule	Neutral	+2.6%	Announced dates for Q4 and full-year 2025 results and conference call.
Feb 19	Board changes	Neutral	-0.6%	Elected new chair, vice chair, and refreshed board committees.
Feb 19	Reserves update	Positive	-0.6%	Reported 1,944.2 mmboe proven reserves and 121% replacement ratio.
Feb 19	AGM convocation	Neutral	-0.6%	Called General Shareholders’ Meeting with agenda including profit distribution.
Feb 19	Governance measures	Neutral	-0.6%	Outlined measures to ensure adequate shareholder representation at AGM.

Pattern Detected

Positive operational news (reserves update) previously coincided with a slight negative move, while neutral governance and scheduling items saw mixed but modest reactions.

Recent Company History

Over recent months, Ecopetrol has focused on governance, shareholder meetings, and operational strength. A Feb 19, 2026 reserves update highlighted a 121% replacement ratio and 1,944.2 mmboe reserves, yet the stock moved modestly negative. Multiple Feb 19 releases addressed the General Shareholders’ Meeting and representation rules. The current 2025 earnings distribution proposal, including a COP 110 dividend per share and a large sustainability reserve, fits this pattern of capital allocation and governance-focused news flow.

Market Pulse Summary

The stock moved +8.8% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +8.8% in the session following this news. A strong positive reaction aligns with the sizeable cash return proposed, including a COP 110 dividend per share and total dividends of COP 4,522,836,415,921. Historically, Ecopetrol’s stock showed only modest moves around governance and scheduling news, with one divergence on a positive reserves update. Investors would likely weigh this distribution against the large COP 21,141,420,537,494 sustainability reserve when assessing the durability of any strength.

Key Terms

fuel price stabilization fund (fepc), forward-looking statements

2 terms

fuel price stabilization fund (fepc) regulatory

"payment schedule for the balance of the Fuel Price Stabilization Fund (FEPC) debt"

A fuel price stabilization fund is a government- or regulator-run pool of money that smooths sudden swings in fuel costs by subsidizing retail prices when wholesale fuel gets expensive and building reserves when prices fall. For investors, such a fund affects company margins, consumer spending, inflation and fiscal balances—so it can change profit forecasts, sector risk and stock valuations much like an emergency savings account cushions a household against unexpected bills.

forward-looking statements regulatory

"This release contains statements that may be considered forward-looking statements within the meaning of Section 27A"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

BOGOTA, Colombia, March 4, 2026 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company") announces that, the Company's proposal for the distribution of 2025 earnings, which has been approved by its board of directors, and is intended to be submitted for the consideration of the General Shareholders' Meeting expected to be held on March 26, 2026.

2025 EARNINGS DISTRIBUTION PROPOSAL  (Colombian Pesos- COP)
Net income after provision for income tax	9,028,764,859,338
+  Release of reserves from previous years	17,144,573,697,440
Occasional reserve for sustainability	16,635,492,094,077
Excess fiscal depreciation reserve (Art.130 ET.)	509,081,603,363
-  Legal reserves of the current year	509,081,603,363
Excess fiscal depreciation reserve (Art. 130 ET.)	509,081,603,363
Available to the Shareholders	25,664,256,953,415
It is proposed to be distributed as follows:
Ordinary Dividend According to dividend policy (Payout 1 50.1% of Net Income)	4,522,836,415,921
Allocated to occasional reserve for sustainability:	21,141,420,537,494
Total:	25,664,256,953,415
Total dividend payable per share	110

¹ A 50.1% dividend payout ratio established within the policy range was applied to the net income, resulting in a dividend per share with decimals, which was rounded to the nearest number in COP/share. The payout percentage shown is rounded to the first decimal place.

The earnings distribution proposal, consistent with the Company's current dividend policy, proposes an ordinary dividend distribution of COP 110 per share, equivalent to a payout of 50.1% of Ecopetrol S.A.'s net income in 2025.

The payment of dividends to all shareholders is proposed to be made no later than April 30, 2026. This payment is expected to be made in coordination with the defined payment schedule for the balance of the Fuel Price Stabilization Fund (FEPC) debt, which corresponds to the FEPC balance accumulated in 2025.

Moreover, the board of directors proposes the allocation of COP 21,141,420,537,494 to an occasional reserve to support the Company's financial sustainability and flexibility in the execution of its strategy.

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 Mexico, 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.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. 

For more information, please contact: 

Investor Relations Office
Email: investors@ecopetrol.com.co 

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

 

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SOURCE Ecopetrol S.A.

FAQ

What dividend did Ecopetrol (EC) propose for 2025 and when will it be paid?

The company proposed an ordinary dividend of COP 110 per share. According to the company, payment is proposed to be made no later than April 30, 2026, coordinated with the FEPC schedule.

How much of Ecopetrol's 2025 net income is being paid as dividends (payout ratio)?

Ecopetrol applied a payout ratio of 50.1% to 2025 net income. According to the company, that results in the proposed ordinary dividend and the stated total dividend amount.

How much of the 2025 earnings will Ecopetrol (EC) allocate to reserves?

The board proposes allocating COP 21,141,420,537,494 to an occasional reserve for sustainability. According to the company, this supports financial flexibility and strategy execution.

What is the total amount available for distribution from Ecopetrol's 2025 earnings?

Total available for distribution is COP 25,664,256,953,415. According to the company, this sum is before splitting between dividends and the occasional reserve.

How much total dividend cash will Ecopetrol (EC) pay for 2025?

The proposed total dividend payable equals COP 4,522,836,415,921. According to the company, this corresponds to the ordinary dividend derived from the 50.1% payout ratio.

Will the 2025 dividend payment from Ecopetrol be linked to the FEPC schedule?

Yes. The company proposes paying dividends in coordination with the defined payment schedule for the FEPC balance accumulated in 2025. According to the company, this coordination affects timing up to April 30, 2026.