Ecopetrol publishes financial results for second Quarter 2025
BOGOTÁ, Colombia, Aug. 13, 2025 /PRNewswire/ -- During the first half of 2025, we maintained a solid operating performance, demonstrating our ability to generate sustainable value and respond in advance and effectively to challenging market conditions such as the decline in Brent benchmark crude prices, external environment events, and geopolitical tensions.
Our financial results were underpinned by market and portfolio diversification, integration across the hydrocarbons value chain, cost cutting maximization, and operational optimization, enabling us to achieve competitive profitability levels within the industry.
In 2Q25, revenues totaled COP 29.7 trillion, EBITDA reached COP 11.1 trillion with an EBITDA margin of 37.5%, and a net income of COP 1.8 trillion. For the first half of the year, we reported revenues of COP 61.0 trillion, EBITDA of COP 24.4 trillion with a 40% EBITDA margin, and net income of COP 4.9 trillion.
Our cash management strategy in response to falling prices has progressed through the identification of cost, expense, and CAPEX optimization initiatives; early collection of the 2024 FEPC receivable balance; implementation of foreign exchange hedging; and tax credit offsets, among others, allowing us to uphold the value promise of 2025's financial plan. We have also completed the payment of dividends to shareholders totaling COP 8.8 trillion, delivering a dividend yield of approximately 10%.
In the Hydrocarbons business, we continued our growth trend, reaching a production of 751 mboed during the first half of the year, driven by strong performance in Colombian fields such as Caño Sur and CPO-09, as well as in the Permian Basin in the U.S., which enabled us to overcome challenges stemming from local external events. Transported volumes reached 1,088 mbd, supported by repair and alternative evacuation strategies that partially mitigated third-party disruptions. Refining throughput reached 405 mbd, following the completion of major maintenance at the Barrancabermeja refinery, restoring operational availability and full processing capacity for the second half of the year.
A key milestone for the country's energy security was the declaration of commercial feasibility for the Lorito discovery in Meta Department, the largest in the last decade, realizing the benefits of acquiring a 45% stake in CPO-09.
In the commercial segment, we highlight the strong contribution of our subsidiaries in Houston and Singapore, which have successfully captured market opportunities and maximized financial results for Ecopetrol S.A. and its subsidiaries (the "Group"). During 2Q25, we achieved the best crude trading differential for the past four years at -USD 3.7/Bl.
In the Energy Transition business line, we closed the acquisition agreement for the Windpeshi wind project, with 205 MW of self-generation capacity in La Guajira, recognized worldwide as one of the world's most promising regions for solar and wind energy development. This marks the first project of its kind to be executed and built by Ecopetrol. We also highlight the commercialization of natural gas for an average of 58 GBTUD for the next four years, and the long-term commercialization of imported gas at 60 GBTUD (starting 2Q26 for five years), a first in the Company's history, marking a significant step in addressing the country's gas supply deficit while advancing on our gas supply portfolio.
In the Transmission and Toll Roads line, we maintained stable operational results, including the award and commissioning of seven transmission network reinforcements in Brazil. Financial results reflect a one-time recognition of the revised methodology for calculating financial compensation for Brazil's Existing System Basic Network, as determined by the Brazilian Electricity Regulatory Agency (ANEEL), amounting to approximately COP 0.6 trillion.
Finally, I would like to emphasize that the Group continues to invest strategically to maximize long-term results, maintaining operational growth across all business lines, with total investments reaching USD 2,582 million as of the end of 2Q25.
We will continue to strengthen our operational and strategic flexibility, while monitoring market prices and global developments to effectively navigate external challenges and protect and maximize value for all our shareholders, whilst seeking to accomplish our year's financial targets.
Ricardo Roa Barragán President of Ecopetrol S.A.
In the first half of 2025, the Ecopetrol Group generated net income of COP 4.9 trillion, EBITDA of COP 24.4 trillion, with an EBITDA margin of 40%.
The results highlight: i) the increase in crude oil production leveraged by the contribution of Permian, Caño Sur, and the acquisition of 45% of CPO-09, ii) the recovery in the throughput levels of the Refineries, thanks to scheduled maintenance, which underlines the reliability of their operations, plus the supply of quality fuels to the country, and iii) efficiencies for COP 2.2 trillion that enable control of OPEX and a focus in high value investments. The resilient performance of the operation occurs in an environment of lower hydrocarbon prices and local events that affect the results
Table 1: Financial Summary Income Statement - Ecopetrol Group
Billion (COP)
2Q25
2Q24
∆ ($)
∆ (%)
6M 2025
6M 2024
∆ ($)
∆ (%)
Total Sales
29,669
32,627
(2,958)
(9.1 %)
61,035
63,929
(2,894)
(4.5 %)
Depreciation and amortization
4,349
3,594
755
21.0 %
8,087
7,046
1,041
14.8 %
Variable costs
11,382
12,020
(638)
(5.3 %)
23,302
22,841
461
2.0 %
Fixed Costs
5,430
4,966
464
9.3 %
10,478
9,757
721
7.4 %
Sale costs
21,161
20,580
581
2.8 %
41,867
39,644
2,223
5.6 %
Gross profit
8,508
12,047
(3,539)
(29.4 %)
19,168
24,285
(5,117)
(21.1 %)
Operating and exploration expenses
2,871
2,512
359
14.3 %
5,151
4,948
203
4.1 %
Operating profit
5,637
9,535
(3,898)
(40.9 %)
14,017
19,337
(5,320)
(27.5 %)
Financial revenues (expenses), net
(2,085)
(2,090)
5
(0.2 %)
(4,503)
(4,092)
(411)
10.0 %
Share in profit of companies
189
189
0
0.0 %
398
386
12
3.1 %
Profit before tax on gains
3,741
7,634
(3,893)
(51.0 %)
9,912
15,631
(5,719)
(36.6 %)
Tax on gains provision
(1,285)
(3,234)
1,949
(60.3 %)
(3,224)
(6,154)
2,930
(47.6 %)
Net consolidated profit
2,456
4,400
(1,944)
(44.2 %)
6,688
9,477
(2,789)
(29.4 %)
Non-controlling interest
(645)
(1,024)
379
(37.0 %)
(1,750)
(2,090)
340
(16.3 %)
Net profit attributable to Ecopetrol shareholders
1,811
3,376
(1,565)
(46.4 %)
4,938
7,387
(2,449)
(33.2 %)
EBITDA
11,136
14,052
(2,916)
(20.8 %)
24,394
28,291
(3,897)
(13.8 %)
EBITDA Margin
37.5 %
43.1 %
-
(5.6 %)
40.0 %
44.3 %
-
(4.3 %)
The figures included in this report are audited and are expressed in trillion of Colombian pesos (COP), or United States dollars (USD), or thousands of barrels of oil equivalent per day (mboed) or tons and are indicated as such when applicable. For purposes of presentation, certain figures in this report were rounded to the nearest decimal place.
Forward-looking Statements: This release may contain forward-looking statements related to business prospects, estimates for operating and financial results, and growth of Ecopetrol. These are projections and, as such, are based solely on management's expectations regarding the future of the Company and its permanent access to capital to fund its business plan. Such forward-looking statements depend, basically, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, without limitation thereto; therefore, they are subject to change without prior notice.
I. Financial and Operating Results
Sales Revenues
Accumulated sales revenue in 2Q25 totaled COP 29.7 trillion a 9.1% or COP -3.0 trillion decrease as compared to 2Q24, as a net result of:
Lower weighted average sales price of crude oil and products of -12.0 USD/Bl (COP -4.4 trillion), in line with the decrease in Brent, partially offset by strengthening crude trading and product differentials.
Lower income from energy and road transmission services (COP -0.1 trillion), due to the combined effect of: i) timely recognition in June of the adjustment to the financial component of the Basic Network of the Existing System in ISA Brazil for COP -0.6 trillion, and ii) higher income from rate indexation to inflation indicators.
Positive exchange effect on income (COP +1.4 trillion), due to a higher average exchange rate.
Positive effect on sales volume of COP +0.1 trillion, due to the offsetting effects of: i) higher crude oil exports (+12.4 mboed), given commercial management that allowed closing with lower shipments in transit in 2Q25 versus 2Q24 and ii) lower gas sales volume (-14.1 mboed), mainly associated to lower domestic production due to natural decline of fields and other effects on the local environment.
Table 2: Volumetric Sales - Ecopetrol Group
Local Sales Volume - mboed
2Q25
2Q24
∆ (%)
6M 2025
6M 2024
∆ (%)
Middle Distillates
186.9
189.4
(1.3 %)
185.8
183.3
1.4 %
Gasoline
126.9
126.2
0.6 %
129.6
130.8
(0.9 %)
Natural Gas
68.0
86.7
(21.6 %)
69.0
86.4
(20.1 %)
Petrochemicals and Industrial
19.1
18.1
5.5 %
18.8
18.5
1.6 %
LPG and Propane
13.2
15.4
(14.3 %)
13.2
15.9
(17.0 %)
Crude oil
0.1
0.0
-
0.1
0.0
-
Fuel oil
0.2
0.1
100.0 %
0.2
0.1
100.0 %
Total Local Volumes
414.4
435.9
(4.9 %)
416.6
435.0
(4.2 %)
Exports Volumes - mboed
2Q25
2Q24
∆ (%)
6M 2025
6M 2024
∆ (%)
Crude oil
440.8
428.5
2.9 %
431.4
421.0
2.5 %
Products
112.7
109.1
3.3 %
106.3
104.2
2.0 %
Natural Gas*
18.7
14.1
32.6 %
17.2
13.4
28.4 %
Total Export Volumes
572.2
551.7
3.7 %
554.8
538.5
3.0 %
Total Sold Volumes
986.6
987.6
(0.1 %)
971.4
973.5
(0.2 %)
* Natural gas exports correspond to local sales by Ecopetrol America LLC and Ecopetrol Permian LLC.
The total volume sold during 2Q25 amounted to 987 mboed, 0.1% lower as compared to 2Q24, mainly as a result of a lower local sales volume, partially offset by export volumes.
Sales in Colombia, which represented 42% of the total, showed a decrease of 4.9% (-21.5 mboed) versus 2Q24, mainly due to:
Decrease of 21.6% (-18.7 mboed) in gas sales explained by lower quantities contracted in Cusiana - Cupiagua due to the decline in production fields.
Decrease of 14.3% (-2.2 mboed) in sales of LPG and Propane as a consequence of the financial prioritization of the use of energy for own consumption, which reduces the cost of dilution of crude oil and gas purchases.
Decrease of 1.3% (-2.5 mboed) in middle distillate sales, explained by lower domestic diesel demand in thermal power generation, large consumers, and industrial burners.
International sales, which represented 58% of the total, showed an increase of 3.7% (+20.5 mboed) in 2Q25 versus 2Q24, due to:
Increase of 2.9% (+12.3 mboed) in crude oil exports due to lower shipments in transit in 2Q25 versus 2Q24.
Increase of 32.6% (+4.6 mboed) in natural gas sales due to a solid performance of the Permian development campaign.
Table 3: Basket Realization Prices, Ecopetrol Group
USD/Bl
2Q25
2Q24
∆ (%)
6M 2025
6M 2024
∆ (%)
Brent
66.7
85.0
(21.5 %)
70.8
83.5
(15.2 %)
Gas Sales Basket
26.9
27.1
(0.7 %)
27.9
27.7
0.7 %
Crude Sales Basket
63.0
78.7
(19.9 %)
65.8
76.2
(13.6 %)
Product Sales Basket
79.2
91.4
(13.3 %)
82.7
92.0
(10.1 %)
Crudes: In 2Q25 versus 2Q24, a weakening of 15.7 USD/Bl was observed in the prices of the crude oil basket, going from 78.7 USD/Bl to 63.0 USD/Bl, explained by the weakening of the Brent price at 18.3 USD/BL, which was partially offset by a better differential. The commercial management stands out for helping maintain the differential at single-digit levels, further strengthening it from -6.28 USD/Bl versus Brent in 2Q24 to -3.71 USD/Bl versus Brent in 2Q25.
Refined Products: In 2Q25 versus 2Q24, the product sales basket weakened by 12.2 USD/Bl, going from 91.4 USD/Bl to 79.2 USD/Bl, explained by the weakening of Brent at 18.3 USD/Bl, partially offset by stronger international indicators versus Brent for diesel, gasoline, and fuel oil, driven by declining global inventories associated with solid demand and supply constraints, primarily in the Middle East.
Natural Gas: The price of gas sales decreased by 0.2 USD/Bl, from 27.1 USD/Bl to 26.9 USD/Bl due mainly to the weakening of sales prices in the Permian in line with international indicators.
Hedging program: During 2Q25, tactical hedging operations continued due to exposure to different price indices and pricing periods between the purchase and sale of physical barrels. Ecopetrol S.A. covered volumes of 1.5 million barrels during 2Q25, based on crude export indicators and pricing periods. From Ecopetrol Trading Asia, tactical hedges were executed for 7.2 million barrels based on indicators and pricing periods, and from Ecopetrol US Trading, tactical hedges were executed for 0.7 million barrels under similar conditions.
Sale Costs
The cost of sales showed an increase of 2.8%, equivalent to COP +0.6 trillion in 2Q25 versus 2Q24.
Variable Costs
Variable costs showed a decrease of 5.3% equivalent to COP -0.6 trillion in 2Q25 as compared to 2Q24, explained by the combined effect of:
Lower value of purchases of crude oil, gas and products (COP -1.6 trillion), due to the net effect of:
Decrease in the weighted average price of national purchases and imports of -14.2 USD/Bl (COP -2.0 trillion), in line with international indicators.
Decrease in volume of crude oil purchased (COP -0.5 trillion, -23.2 mbod), mainly at domestic level given lower throughput from the refineries and external events.
Increase in the volume of refined products purchased (COP +0.3 trillion, +10.3 mboed), due to greater fuel imports to meet national demand, because of major maintenance cycle at the Barrancabermeja Refinery.
Negative effect on purchases due to the higher average exchange rate (COP +0.6 trillion).
Increase in other variable costs (COP +1.0 trillion), mainly due to: i) greater consumption of crude oil inventories in transit, in line with commercial management, ii) impact of higher average exchange rate on transactions executed in U.S. dollars, and iii) inflationary effect on contract rates.
Fixed Costs: Increase of 9.3% equivalent to COP +0.5 trillion in 2Q25 as compared to 2Q24, associated to: i) greater construction activity at ISA, and ii) increase in maintenance costs and other general costs, mainly due to inflationary effect on contract rates and the effect of higher average exchange rate in costs.
Depreciation and Amortization: Increase of 21.0% equivalent to COP +0.7 trillion in 2Q25 compared to 2Q24, due to: i) increase in production, ii) higher level of capital investment and iii) exchange rate effect in the depreciation of subsidiaries with the U.S. dollar as functional currency, given the devaluation of the Colombian peso against the U.S. dollar.
Operational and Exploratory Expenses, net of Other Income
Operating expenses, net of other income, increased by 14.3%, equivalent to COP +0.4 trillion as compared to 2Q24, mainly explained by:
Higher tax rate given the internal commotion decree (062 issued in January 2025) amounting to COP +0.1 trillion.
Higher provisions (COP +0.2 trillion), mainly due to: i) impairment of the Air-E portfolio in ISA, and ii) updating of environmental and labor provisions.
Higher labor expenses, mainly associated to salary increases, affected by the inflationary effect COP +0.1 trillion.
Financial Results (Non-Operational)
Financial expenses remained at similar levels compared to 2Q24, mainly due to the net effect of: i) higher income from exchange rate difference vs. 2Q24, given the Group's net liability position in the face of a lower closing exchange rate, and ii) an increase in financial expenses from interest on debt denominated in U.S. dollars, given the higher average exchange rate and higher inflation, which in turn affected inflation-linked debts.
Income Taxes
The Effective Tax Rate for 2Q25 was 34.3% compared to 42.3% for 2Q24. The decrease is mainly due to a lower income tax surcharge in 2Q25 (0%) vs 2Q24 (10%) given the projection of the Brent price at the closing date.
Progress in the customs correction process started by DIAN related to VAT on fuel imports
The National Taxes and Customs Directorate ("DIAN") issued Opinion No. 100202208-2305 on December 19, 2024, which, according to its interpretation, stated that the imports and nationalization of gasoline and Diesel are subject to Sales Tax (VAT) at the general rate of 19%. According to DIAN's interpretation, the base for calculating tax is the cost of the products at customs.
Ecopetrol S.A. ("the Company") and Refinería de Cartagena S.A.S. ("the Refinery") differ from the DIAN's interpretation for the reasons that were opportunely presented to the tax authority. The tax authority, in line with its interpretation and current application, has notified the Refinery of two official assessments and four special customs requirements totaling COP 0.9 trillion and COP 0.4 trillion, respectively. Additionally, the Company was notified of two special customs requirements totaling COP 6.5 trillion for the periods between 2022 and 2024. Interest accrued on these amounts to date is estimated at approximately COP 3.3 trillion. These figures may rise substantially depending on the issuance of further requirements by the Colombian tax authority (DIAN).
The Refinery and the Company, in the framework of due diligence and the protection of their legitimate interests, have responded to DIAN's actions within the legally established timeframes, challenging the issued rulings and questioning the regulatory interpretation. Under DIAN's interpretation, the collection process may continue in accordance with the procedural rules of the customs regime and the Tax Statute, which include coercive collection procedures. However, the Refinery and the Company may exercise the corresponding administrative or judicial remedies, as provided by the same regulations. Although the Refinery and the Company plan to pursue these remedies, a potential coercive collection could have a materially adverse effect on their operations, liquidity, and financial position, depending on the amount and duration of such collection. Furthermore, based on opinions issued by external advisors, who consider the probability of success to be greater than 50%, the Company believes there are sufficient grounds not to record any accounting provision.
Considering that DIAN has decided to apply its regulatory interpretation, starting January 2025, the Company and the Refinery have been making VAT payments on the importation of gasoline and diesel (ACPM), in compliance with DIAN's interpretation of the 19% rate. These VAT payments do not affect the rights that the Company and the Refinery reserve to legally challenge the interpretation at the appropriate time before the relevant authorities, as previously mentioned.
The projected value of VAT payments related to gasoline and Diesel imports for 2025 is estimated at COP 3.6 trillion, of which approximately COP 3.3 trillion will be recovered through the sales tax (VAT) discount and refund procedure and devolution of balances in favor on the sales tax (VAT).
Ecopetrol and the Refinery reiterate their commitment to fully comply with their customs and tax obligations and will be respectful of the decisions that resolve this controversy before the corresponding authority.
Financial Position Statements
Group's assets decreased by COP 5.7 trillion, equivalent to -1.9%, between March and June 2025, mainly due to: (i) a lower accounts receivable balance from the Fuel Price Stabilization Fund, driven by payments received versus accrued amounts in 2Q25 (COP -4.5 trillion); (ii) cash consumption (COP -3.9 trillion); (iii) the revaluation effect on assets of subsidiaries with the U.S. dollar as their functional currency, translated into Colombian pesos at the closing exchange rate (COP -2.6 trillion); and (iv) asset depreciation during the period (COP -4.5 trillion). These effects were offset by a higher level of CAPEX (COP 5.1 trillion) and increased tax credits and other receivables (COP 4.8 trillion).
Liabilities decreased by COP -8.0 trillion, equivalent to -4.1%, during 2Q25, mainly due to the net effect of: (i) the payment of 100% of the dividends declared to Ecopetrol shareholders and non-controlling shareholders of subsidiaries; and (ii) the increase in financial obligations resulting from the acquisition of short-term debt, offset by the revaluation effect of U.S. dollar-denominated debt translated at the closing exchange rate.
As of the end of 2Q25, Group's equity totaled COP 105.6 trillion, reflecting an increase of COP 2.3 trillion compared to 1Q25, mainly driven by the profits generated during the period. Of the total equity, 75% corresponds to Ecopetrol shareholders, while the remaining 25% pertains to non-controlling interests.
Cash Flow, Debt and FEPC
Table 4: Cash Position- Ecopetrol Group
Billion (COP)
2Q25
2Q24
6M 2025
6M 2024
Initial cash and cash equivalents
14,101
15,167
14,054
12,336
(+) Cash flow from operations
10,046
17,071
16,168
23,084
(-) CAPEX
(5,031)
(4,628)
(8,990)
(8,901)
(-) Consideration paid for acquisition of assets
0
0
(1,109)
0
(+/-) Investment portfolio movement
(1,456)
(522)
(2,258)
(685)
(+) Other investment activities
403
625
805
1,052
(+/-) Adquisition, borrowings and interest payments of debt
1,980
(2,790)
2,431
(1,915)
(-) Dividend payments
(9,672)
(11,922)
(10,695)
(12,192)
(+/-) Exchange difference (cash impact)
(253)
251
(288)
473
(-) Return of capital
0
(15)
0
(15)
Final cash and cash equivalents
10,118
13,237
10,118
13,237
Investment portfolio
3,024
2,702
3,024
2,702
Total cash
13,142
15,939
13,142
15,939
Cash Flow
As of the end of 2Q25, Group held a cash balance of COP 13.1 trillion (23% in COP and 77% in USD). The operating cash flow for the quarter, the full collection of the 2024 Fuel Price Stabilization Fund receivable, and the contracting of short-term debt enabled the coverage of: (i) the payment of declared dividends to Ecopetrol shareholders and non-controlling shareholders of subsidiaries, and (ii) the CAPEX disbursements for the quarter.
Debt
At the end of 2Q25, the balance of debt in the balance sheet amounts to COP 120.3 trillion, equivalent to USD 29,550 million (the consolidated debt of Grupo ISA contributed USD 8,432 million), an increase of COP 1.6 trillion compared to 1Q25. The increase is explained by the net effect of: i) the execution of short-term loans in Ecopetrol S.A., Cenit and Ecopetrol Trading Asia, and long-term loans in ISA for investment projects, and ii) the restatement of financial obligations in denominated in U.S. dollars at the closing exchange rate, recognized mainly in equity through hedge accounting.
The Gross Debt/EBITDA indicator of the Group at the end of March 2025 was 2.4 times lower than the upper limit established for 2025 (2.5 times) while the net Debt/EBITDA ratio of the Group closed at 2.2 times. The Debt/Equity ratio at the end of June remained at 1.1 times.
Fuel Price Stabilization Fund (FEPC for its initials in Spanish)
At the end of June 2025, the account receivable from FEPC amounted to COP 2.5 trillion. In 2Q25, there was a decrease of COP -4.5 trillion compared to 1Q25, mainly explained by the payments received by the Ministry of Finance and Public Credit for COP -5.4 trillion corresponding to the 2024 accrual, partially offset by the quarter accrual for COP +0.9 trillion.
Efficiencies
In 2025, the Group continues materializing its comprehensive strategy of efficiencies and competitiveness with a contribution of COP 2.2 trillion at the close of 2Q25. The main actions are summarized below:
i) 66% of the efficiencies have an effect on EBITDA of COP 1.4 trillion (COP 0.8 trillion in OPEX and COP 0.7 trillion in revenue generation), as follows:
OPEX
Cost efficiencies in the Corporate and Support Areas (COP 147 billion), including initiatives in digital solutions and infrastructure at the corporate level and in control of service demand in operations,
New service contracting achieving better rates than planned (COP 133 billion),
Cost efficiency in self-generation and energy purchase management (COP 104 billion),
Energy efficiency in operations (COP 51 billion), and
Lower crude oil evacuation costs, mainly due to the entry of the Caño Sur Este - ODL pipeline (COP 77 billion), among others.
Income
Capture of synergies in the crude transportation systems associated to the segregation and routing of crudes (Caño Limón and Araguaney Blend) (COP 82 billion),
Higher margins achieved in product purchases and imports (COP 73 billion) and crude exports (COP 68 billion),
Gain from volumetric compensation for quality, obtaining more volumes for sale (COP 48 billion), and higher asphalt production at the Barrancabermeja refinery (COP 12 billion), among others.
From the unit costs standpoint, the efficiencies obtained are reflected as follows:
47% of the aforementioned efficiencies with an effect on EBITDA reduced the lifting cost by 0.81 USD/Bl.
Efficiencies affecting the refining cash cost and the cost per barrel transported reduced such costs by 0.07 USD/bl and 0.015 USD/bl, respectively.
ii) Efficiencies of COP 0.7 billion were achieved in Capex (29%) related to the optimization of the cost of investment in projects, including the following:
In drilling and completion, design and engineering initiatives stand out, together with optimization of cementing and directional services, negotiation of steel rates and implementation of lessons learned from reduction of process times.
Permian notable progress was made through the implementation of best practices aimed at reducing time and costs in drilling and completion operations. Design and engineering initiatives introduced new well designs with lower fracture pressures and shorter pumping times, resulting in reduced cost per foot drilled and cost per barrel pumped, thereby enabling an increase in planned activity.
In surface facility projects, efficiencies are highlighted by redefining scopes (design and engineering) without affecting the value promise of the projects, using existing facilities and materials available in the warehouse, thus reducing purchases.
iii) Actions focused on improving working capital, positive effect on the company's cash flow by COP 0.1 billion (5%), mainly due to actions in inventory management such as exchange of materials and spare parts between warehouses from different business areas, thus optimizing their purchase, added to savings in financial costs.
Investments
Table 5: Investments by Segment - Ecopetrol Group
Ecopetrol Group Investments
Business
Total 6M 2025
Millions USD
Trillions COP
% Share
Hydrocarbons*
1,583
6.6
61 %
Energies for the Transition**
348
1.5
14 %
Transmission and Toll Roads
651
2.7
25 %
Total***
2,582
10.8
100 %
* Includes the total amount of investments in hydrocarbon transportation of each of the Ecopetrol Group Companies (Ecopetrol S.A. Participation and non-controlling interest).
Average exchange rate: 4,196.15
** Includes investment in Gas and Energy Transition
***Includes only organic investments
At the end of 2Q25, the Ecopetrol Group invested USD 2,582 million (COP 10.8 trillion). The Ecopetrol Group investments were made mainly in Colombia, with a 62% share, and the remaining 38% at international level, mainly in Brazil (17%), United States (15%) and other geographies (6%).
Hydrocarbons
The investments registered in the hydrocarbons line represented 61% of the Groups's total amounting to USD 1,583 million (~COP 6.6 trillion1). In Colombia, USD 1,290 million (~COP 5.4 trillion) were allocated to Exploration and Production activities, primarily concentrated in the department of Meta, in assets such as Caño Sur, Rubiales, Castilla, CPO09, and Chichimene. Internationally, investments were focused on Brazil, with the development plan for the Orca discovery (formerly Gato do Mato), and in Midland, within the Permian Basin in the United States.
In the Refining segment, USD 171 million (COP 0.7 trillion) have been invested, focused on operational continuity through a cycle of major maintenance to guarantee the availability of the refineries, even reaching operational availability of 95.8% in 2Q25. Similarly, investments were made in projects such as SOX Emissions Control and Base Line of Fuels Quality at the Barrancabermeja Refinery.
In turn, in the transport segment, investments at the end of 2Q25 amounted to USD 100 million (COP 0.4 trillion), mainly focused on the operational continuity of the different oil and polyduct systems in crossing activities, mechanical repairs and geotechnics.
Energy for Transition:
So far in 2025, USD 348 million (COP 1.5 trillion) have been invested in the Energy for Transition line with a 14% share of the Ecopetrol Group's total investment, mainly concentrated in investments for the growth of the gas chain and supply with USD 279 million (COP 1.2 trillion) mainly in the Piedemonte assets such as the Floreña and Cupiagua, Recetor fields in the department of Casanare and in the Tayrona Block in the Caribbean offshore in Colombia.
Within the business line, investments were made in energy efficiency and renewable energies amounting to USD 69 million (COP 0.3 trillion) primarily in solar energy projects such as the Quifa Solar Farm and the La Iguana Ecopark Solar Project, located in the departments of Meta, Bolívar, and Antioquia, respectively, as well as the Coral hydrogen project
Transmission and Toll Roads
In 2Q25, in the Transmission and Toll Roads business line, investments were executed for USD 651 million (COP 2.8 trillion) with a 25% share of the Group's total investments, concentrated in the energy transmission business (87%) in Brazil, Peru, and Colombia, followed by Toll Roads with an 11% share, and the remaining 2% in the Telecommunications business.
II. Business Lines Results
For purposes of this report, the financial information included in this annual report is organized by the following segments: (i) exploration and production, (ii) transportation and logistics, (iii) refining and petrochemicals, and (iv) power transmission and highways, which is consistent with the Company's previous reports. Management is currently reviewing different options to update the Company's operating and financial reporting model to be better aligned with Strategy 2040.
1. HYDROCARBONS
1.1 Exploration, Development and Production
Exploration
At the end of 2Q25, 6 exploratory wells were drilled compared to the 10 planned for the year. Of these wells, 2 were successful (Sirius-2 ST2 and Currucutu-1), 2 are under evaluation (Toritos Oeste-1 and Toritos Sur-3), and 2 had no commercial hydrocarbon shows (Andina Este-1 and Buena Suerte-1).
In the onshore exploration activity, the following stands out:
The declaration of commerciality of the Lorito discovery, in the Llanos Sur basin (municipality of Guamal, Meta), materializes the benefits derived from the acquisition of 45% of the CPO-09 block. This asset is incorporated into the production portfolio with two wells that have a joint potential of 1,450 barrels per day. Its proximity to existing production and transportation infrastructure facilitates its commercial production and allows to leverage on operational synergies with Ecopetrol's producing fields.
The success of the Currucutú-1 well, operated by GeoPark in partnership with our subsidiary Hocol, located in the Department of Meta, municipality of Cabuyaro, in block LLA-123, was confirmed, which found heavy crude oil accumulation of 14.2 °API. This well is located in the same Eastern Llanos basin as the Toritos discovery, which reduces the technical uncertainty of the block and expands its production potential to the North.
Of the wells drilled in previous years that were under evaluation, Bisbita Oeste-1,drilled in 2024, and Zorzal Este-2, drilled in 2023, confirmed the presence of hydrocarbons in the departments of Meta and Casanare, both wells are operated by GeoPark in partnership with our subsidiary Hocol.
Drilling continues on the Floreña N18Y well operated by Ecopetrol (100%), located in the Piedemonte, which is expected to reach final depth in 4Q25.
Approval was obtained to extend the term of the exploration phase for contracts LLA-4-1 and LLA-141 for two- year and one and a half year periods, respectively.
In the offshore exploration activity, the following stands out:
The exploration campaign in the GUAOFF-0 block continued with the completion of the Buena Suerte-1 well, with no commercial hydrocarbon shows. This well targeted a different play2 than Sirius. Additionally, the evaluation of the block continues with the objective of identifying additional volumes, maximizing value capture from the asset, and reducing technical uncertainty, through the drilling of the Papayuela-1 well, which is expected to be completed in 4Q25.
The Sirius project is progressing with the contracting model for the design, construction and operation of the facilities that will allow gas to be treated to meet regulatory conditions for commercialization in the domestic market. At the same time, ethnic, social and environmental feasibility activities are being performed to continue with the environmental licensing process.
Regarding the Fuerte Sur, Purple Angel and COL-5 blocks, where the Kronos, Gorgon and Glaucus (KGG) gas discoveries are located, work continues with Shell and the ANH to formalize the transfer of Shell's 50% ownership and operation to Ecopetrol, in accordance with current regulations. On June 9, 2025, a request was filed with the ANH for the assignment of Shell's participation interest (50%) in the contracts in favor of Ecopetrol, which continues making progress in maturing the development alternatives for the discoveries.3
Gato do Mato (Change of name to "Orca and Sul de Orca Field" approved by the Brazilian National Petroleum and Biofuels Agency (ANP) as of May 20, 2025)
The following progress was made during the quarter:
Recognition of the effectiveness of the Declaration of Commerciality of the Orca (ORC) and South Orca (SOR) development areas was obtained on May 20, 2025, from the Brazilian National Petroleum and Biofuels Agency (ANP), which is one of the milestones that are expected to enable the start of the gradual incorporation of proven reserves as of 2025.
During the quarter, detailed engineering of the vessel (FPSO4) and processing facilities started along with process safety analyses and consolidation of work teams by the contractors and the operator.
Production
Table 6: Gross Production - Ecopetrol Group
Production - mboed
2Q25
2Q24
∆ (%)
6M 2025
6M 2024
∆ (%)
Crude oil
491.5
497.0
(1.1 %)
495.6
493.9
0.3 %
Natural Gas
103.9
121.3
(14.3 %)
104.6
120.8
(13.4 %)
Total Ecopetrol S.A.
595.4
618.4
(3.7 %)
600.1
614.7
(2.4 %)
Crude oil
21.6
17.9
20.7 %
21.4
17.9
19.6 %
Natural Gas
13.8
17.6
(21.6 %)
14.4
17.8
(19.1 %)
Total Hocol
35.4
35.5
(0.3 %)
35.8
35.7
0.3 %
Crude oil
8.4
6.5
29.2 %
7.9
7.6
3.9 %
Natural Gas
0.9
0.9
0.0 %
0.9
0.9
0.0 %
Total Ecopetrol America
9.2
7.4
24.3 %
8.8
8.5
3.5 %
Crude oil
63.6
59.5
6.9 %
58.5
54.4
7.5 %
Natural Gas
51.9
38.8
33.8 %
47.3
37.0
27.8 %
Total Ecopetrol Permian
115.5
98.2
17.6 %
105.8
91.4
15.8 %
Crude oil
585.1
581.0
0.7 %
583.4
573.9
1.7 %
Natural Gas
170.4
178.6
(4.6 %)
167.1
176.5
(5.3 %)
Total Ecopetrol Group
755.5
759.6
(0.5 %)
750.5
750.3
0.0 %
Note 1: Gross production includes royalties and is prorated by Ecopetrol's holding in each Company. The Natural Gas data includes Gas and Blanks (LPG, propane and butane).
Note 2: Consolidated data presented in rounded up figures.
Note 3: The table of this report includes 100% production of Arauca-8. The owner of the Arauca Agreement is Ecopetrol, therefore, 100% of the ownership of the production of the Arauca Agreement Area is in the hands of Ecopetrol, however, by virtue of the private agreement (Bussiness Collaboration Agreement (BCA), signed between Ecopetrol and Parex, Ecopetrol, once the hydrocarbons of the Arauca Agreement are produced, immediately transfers to Parex 50% of all the production obtained in the contracted area.
Note 4: Quarterly production figures subject to minor updates due to ministerial forms to the ANH of associated fields and closures in international subsidiaries.
The production of the Ecopetrol Group in 2Q25 was 755.5 thousand barrels of oil equivalent per day (mboed), of which Ecopetrol S.A. contributed 595.4 mboed and the subsidiaries 160.1 mboed, incorporating the production of the Guando and Guando SW fields (4.3 mboed) into the subsidiary, Hocol, given the transfer from Ecopetrol S.A. at the end of 2024, in line with the Ecopetrol Group's presence strategy in the department of Tolima through this subsidiary.
Compared to the same period of the previous year, the production of gas -4.1 mboed due mainly to: i) lower gas production related to the decline of the Cusiana and Recetor fields (Piedemonte Llanero), and Ballena and Chuchupa in Guajira, ii) lower crude oil production due to blockades in the Orinoquia, associated to events beyond Ecopetrol's control, and iii) the impact of the Llanos Norte asset due to the unavailability of the Bicentennial Pipeline because of damage to the infrastructure caused by third parties. These effects were partially mitigated by: i) improved performance of Permian's incremental campaign due to the optimization of the development plan, ii) acquisition of Repsol's 45% interest in the CPO-09 block and iii) production growth in Caño Sur, supported by the increased fluid treatment capacity of the Centauros Station.
Compared to the first half of 2024, production levels are maintained in the order of (+0.21 mboed) with an increase in domestic crudes of +5.2 mboed, driven by the growth in Caño Sur and Chichimene, and the acquisition of 45% of the CPO-09 block. These factors, together with the increase in Permian production, offset both environmental impacts and the natural decline of domestic gas.
With respect to production impact derived from external events, during 2Q25 there was a deferred production of 1.5 million barrels for a cumulative total of 1.8 million barrels for the first half of the year.
These impacts were mainly concentrated in April (64% of deferred production), due to: i) blockades in the Rubiales and Caño Sur fields by members of the indigenous guards, and ii) unavailability of the Bicentennial Pipeline, as a result of the attacks that affected the fields in northern Arauca fields. The Ecopetrol Group maintains the production target established between 740 and 750 mboed.
In terms of drilling, as of June 2025, in the Ecopetrol Group, 220 development wells were completed with an average monthly occupancy of 21 active drilling rigs.
Lifting and Dilution Cost
Table 7: Lifting Cost - Ecopetrol Group
USD/Bl
2Q25
2Q24
∆ (%)
6M 2025
6M 2024
∆ (%)
% USD
Lifting Cost*
11.97
12.08
(0.9 %)
11.59
12.04
(3.7 %)
26.4 %
Dilution Cost**
4.36
5.38
(19.0 %)
4.89
5.40
(9.4 %)
100.0 %
* Calculated based on barrels produced without royalties. Figures subject to minor updates between periods.
**Calculated based on Ecopetrol S.A barrels sold.
Lifting Cost
The 1H25 lifting cost decreased by -0.45 USD/Bl versus the same period of the previous year, mainly leveraged by the exchange rate effect and the efficiencies captured as follows:
Exchange Rate Effect (-0.81 USD/Bl): positive effect due to higher average exchange rate going from 3,920 to 4,196 pesos/dollar for the conversion of the indicator from pesos to dollars.
Cost effect (+0.36 USD/Bl)5: The increase, mainly in costs and inflationary factors (+USD 0.73/Bl) was partially mitigated by efficiencies achieved of +USD 0.37/Bl (USD 0.81/Bl in 1H25 vs USD 0.44/Bl in 1H24), with the following key contributing factors:
Energy optimization: optimization of self-generation and energy purchase tariffs, as well as a reduction in energy consumption thanks to the optimal operation of production processes and the widespread adoption of more efficient technologies.
Optimization of the operations and maintenance model for non-industrial areas.
Reuse of materials in subsurface operations.
New maintenance and production facilities contracts, achieving better rates than originally planned.
These efficiencies partially offset the following cost increases:
Cumulative inflation impact on operating service and labor costs (+0.28 USD/Bl).
Maintenance at international assets: increased maintenance activities at Big Spring and Lomax, located in the Permian Basin.
Fluid treatment: Increase in volumes treated (+736 KBWPD6), mainly in Caño Sur, Rubiales and Castilla and in Akacias due to the acquisition of a stake in the CPO-09 block, which require additional energy, chemical treatment, and maintenance associated with the expansion of facilities for their processing.
Increased subsurface activities: Early scheduling of interventions as a strategy to leverage available equipment and manage external conditions.
Dilution Cost
The 1H25 dilution cost decreased 0.51 USD/Bl versus 1H24, mainly explained by:
Cost effect (-0.64 USD/Bl): Cost reduction due to i) lower naphtha purchase price associated with the correction in the Brent benchmark by -9 USD/Bl and ii) reduction in the dilution factor from 11.43% in 1H24 to 11.22% in 1H25.
Volume Effect (0.13 USD/Bl): Fewer barrels of crude oil marketed, mainly due to public order disturbances.
Financial Results
Table 8: Income Statement - Exploration and Production
Billion (COP)
2Q25
2Q24
∆ ($)
∆ (%)
6M 2025
6M 2024
∆ ($)
∆ (%)
Total revenue
18,089
21,499
(3,410)
(15.9 %)
36,506
40,215
(3,709)
(9.2 %)
Depreciation, amortization and depletion
3,208
2,517
691
27.5 %
5,866
4,894
972
19.9 %
Variable costs
7,604
8,091
(487)
(6.0 %)
14,782
14,698
84
0.6 %
Fixed costs
3,412
3,404
8
0.2 %
6,585
6,642
(57)
(0.9 %)
Total cost of sales
14,224
14,012
212
1.5 %
27,233
26,234
999
3.8 %
Gross income
3,865
7,487
(3,622)
(48.4 %)
9,273
13,981
(4,708)
(33.7 %)
Operating and exploratory expenses
1,633
1,644
(11)
(0.7 %)
2,876
3,105
(229)
(7.4 %)
Operating income
2,232
5,843
(3,611)
(61.8 %)
6,397
10,876
(4,479)
(41.2 %)
Financial result, net
(922)
(1,074)
152
(14.2 %)
(2,043)
(1,960)
(83)
