Ecopetrol S.A - EC STOCK NEWS

Ecopetrol S.A. (NYSE: EC) announced a rating downgrade by Fitch Ratings, aligning with Colombia's sovereign downgrade. The company's foreign and local currency Issuer Default Ratings were lowered to BB+ from BBB-, with a Stable Outlook. Ecopetrol's stand-alone rating remains at bbb. The company is Colombia's largest, accounting for over 60% of the country's hydrocarbon production, and has significant interests in North American oil basins. The downgrade reflects broader economic conditions and potential impacts on Ecopetrol’s financial stability and growth prospects.

Ecopetrol S.A. has successfully incorporated Ecopetrol Singapore Pte Ltd., fully owned by Ecopetrol, which will in turn own Ecopetrol Trading Asia Pte Ltd. Both companies are established to enhance Ecopetrol's presence in the fast-growing Asian market for crude and refined products. The new subsidiary aims to start operations in early 2022, following regulatory requirements. This move aligns with Ecopetrol's strategy to boost competitiveness amid the energy transition. As a key player in Colombia's hydrocarbon sector, Ecopetrol is focused on expanding its international footprint.

Ecopetrol S.A. has received authorization from the Colombian Ministry of Finance to structure the issuance of bonds up to US$1.4 billion. This funding aims to support the company's organic growth and regular business operations. However, this authorization does not equate to approval for the bond issuance; Ecopetrol must complete further procedures with its Board of Directors and the Ministry before proceeding. As Colombia's largest company, Ecopetrol plays a pivotal role in the energy sector, accounting for over 60% of the country’s hydrocarbon production.

Ecopetrol S.A. has extended its Exclusivity Agreement with the Colombian Ministry of Finance regarding the acquisition of a 51.4% stake in Interconexión Eléctrica S.A. (ISA) until August 31, 2021. The decision not to condition the acquisition on an equity offering is supported by improved financial conditions, allowing for a credit facility from international banks. Ecopetrol plans to continue exploring financing options for its energy transition strategy, including potential equity issuance and debt transactions.

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reported operational challenges due to ongoing social protests in Colombia. In May, production was 651 mboed, with significant declines in gas and white products. The midstream segment faced high inventory levels, leading to reduced transportation volumes of refined products (224 mbd) and crude oil (716 mbd). The Barrancabermeja refinery processed 207 mbd, while national demand decreased for diesel (-33%), gasoline (-15%), and gas (-16%). Despite these issues, Ecopetrol believes its business plan targets for 2021 remain achievable, although future unrest poses ongoing risks.

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced a downgrade of its credit rating by S&P Global Ratings from BBB- (negative outlook) to BB+ (stable outlook), following a similar downgrade of the Republic of Colombia. The company's Stand-Alone rating remains at bbb-. As Colombia's largest company and a key player in Latin America's oil and gas sector, Ecopetrol accounts for over 60% of the country's hydrocarbon production. The downgrade may impact investor confidence and access to capital.

Ecopetrol S.A. (NYSE: EC) has announced the retirement of Jorge Arturo Calvache, Vice-President of Exploration, effective June 1, 2021. The company expresses gratitude for his leadership over the past two years. Elsa Jeanneth Jaimes has been appointed as his successor, bringing over 29 years of experience, including her role as Vice President of Exploration at Hocol S.A. Ecopetrol, the largest firm in Colombia and a major player in the global oil industry, continues to expand its operations internationally. The company remains committed to its growth strategies despite market uncertainties.

Ecopetrol SA (BVC: EC; NYSE: EC) reported robust financial results for Q1 2021, achieving a net income of COP 3.1 trillion, reflecting a 139.3% increase year-over-year. Total sales rose by 14.2% to COP 17.2 trillion, driven by a strengthened crude oil export price. EBITDA surged by 55.7% to COP 8.2 trillion, with an EBITDA margin of 47.6%. The company highlighted its strategic initiatives in decarbonization and diversification, including a potential acquisition of a controlling stake in ISA. Cash position at the end of Q1 was COP 8.1 trillion, supporting ongoing growth plans.

Ecopetrol S.A. (NYSE: EC) has been sanctioned by the National Authority on Environmental Licensing (ANLA) due to non-compliance with environmental management plans during the construction of the Poliducto Andino project. The fine imposed amounts to COP$ 1,308,670,854, although this decision may be appealed as it is not final. Ecopetrol is a leading integrated oil company in Colombia and Latin America, involved in exploration and production across several countries, and operates the country's largest refinery and pipeline network.