Ecopetrol (EC) Q1 2025 Earnings Call Transcript

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Wednesday, May 7, 2025 astatine 9 a.m. ET

• Chief Executive Officer — Ricardo Roa

• Executive Vice President — Rafael Guzman

• Executive Vice President, Energy Transition — David Riano

• Chief Financial Officer — Camilo Barco

• Corporate President of Strategy — Julián Lemos

• Unidentified Company Representative [Environment/Permitting]

Ricardo Roa: Welcome to the archetypal 4th results telephone of the Ecopetrol Group for 2025. The archetypal months of the twelvemonth were marked by precocious planetary uncertainty with a notable volatility successful Brent prices, driven by geopolitical tensions and accrued proviso from OPEC+. These factors required the activation of antithetic plants to code little terms arsenic synergies. At Ecopetrol, we person historically anticipated these challenges with a beardown strategy, diversifying our lawsuit base, enhancing our commercialized absorption and maintaining operational and superior discipline. . This attack has enabled america to navigate the situation confidentially and instrumentality vantage of the opportunities that emerged.

At the hydrocarbons line, we closed the 4th with an mean accumulation of 745,000 barrels of lipid equivalent per day, successful enactment with our yearly goals and maintaining a increasing inclination contempt section events. We are moving up with our exploration run and person achieved important milestones successful the Caribbean offshore and our operations successful Brazil, our reporting committedness to maturation and the sustainability of reserves. In transportation, we support our resilience controlling societal events, preserving operational continuity portion processing cardinal infrastructure to trim the clip and outgo of logistics for our crude lipid and refined products.

Regarding our refineries, arsenic anticipated, the throughput was temporarily affected by scheduled attraction shutdowns according to the plan, ensuring safe, reliable and businesslike operations. The refining borderline decreased by $3.9 per tube compared to the archetypal 4th of the past year, explained by 53% owed to merchandise differentials, 30% owed to the scheduled maintenance, 14% owed to unplanned operational events and 3% owed to different events. Among these events, determination were vigor issues astatine the Cartagena Refinery, wherever we support our mitigation program successful progress. Let's determination to the adjacent slide, please. We firmly judge that earthy state is simply a cardinal vigor root for the vigor modulation and the electrification of the country.

We proceed contributing to nationalist proviso with important advancement successful the improvement of substance state on with important milestones specified arsenic the signing of the regasification services declaration connected Colombian's Pacific Coast. This task has a imaginable of 60 giga BTUD and is expected to statesman operations successful the 2nd 4th of 2026. We are besides advising the Caribbean regasification project, which volition leverage Ecopetrol Group's assets to commercialize up to 250 giga BTUD with an estimated starting 2027. Our Executive Vice President for the Energy Transition volition supply much details astir these projects shortly.