‘They are cheap’: president of Ecopetrol proposed buyback of the company’s shares

During the presentation of Ecopetrol’s financial results, the company’s president, Ricardo Roa, launched a controversial proposal to the Government and shareholders to buy Ecopetrol shares because “they are cheap”.

(Read: Ecopetrol’s ‘Fracking’ in the US is already the first hydrocarbon producing field).

“I have already invited the Government to buy Ecopetrol shares that are cheap”said Roa in the middle of the press conference, in which it was announced the balance of the main financial indicators of the company corresponding to the third quarter, in which a drop in profits is observed is equivalent to 28.3% compared to the same period last year.

The proposal of the president of Ecopetrol did not go down well with experts, who wonder if the current administration’s strategy is to destroy the company’s assets to buy shares at a lower price.

(See: Current pace of the economy would leave three sectors in the red at the end of 2024).

“So the strategy was to financially destroy the hundreds of thousands of Colombian families who are minority shareholders and then buy cheaply at the head of the state?? A nationalization at the expense of the shareholder families?? Bad truth!! “wrote the former Minister of Finance and Public Credit José Manuel Restrepo Abondano regarding Roa’s proposal.

In the presentation of the results, it was known that during the third quarter of 2024, Ecopetrol’s profits reached $3.6 billion, which is equivalent to a drop of 28.3% compared to the $5 billion reported in the same period of 2023. .

In turn, Ecopetrol indicated that gross profit also presented a reduction of 17.6%, going from $14.5 billion to $11.9 billion.

Meanwhile, Ebitda fell 12.9%, reaching $13.9 billion in the third quarter, while a year ago it was $16 billion.

(Also: Will Davivienda buy Scotiabank’s operations in Colombia? Here’s what is known.)

In the nine months of the year, there was a production of 752,000 barrels of oil equivalent per day, an increase of 22,200 barrels per day compared to the same period in 2023.

“We are reporting the third best year in the history of Ecopetrol. This is reflected regardless of the volatility of the price of Brent in the international market, which continues to have a difference compared to the best year in history.”said the president of Ecopetrol, when commenting on the results.

PORTFOLIO