Ecopetrol S.A. American Depositary Shares
EC · NYSE
Next quarter
Consensus is $0.53 EPS for Sep 2026 across 2 estimates, ranging $0.43 to $0.62.
EC Jun 2026
- 4.65%
- +0.49%
- $0.86
- $0.82
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- —
Highlights
- Earnings: Adjusted EPS was 0.82, below consensus of 0.86 by 4.65%.
- Quarterly profit: Net income reached COP 6.1 trillion, up 235% year over year from COP 1.8 trillion, while EBITDA rose 59% to COP 17.7 trillion.
- Refining record: Refinery throughput reached an all-time high of 438.5 kbpd, gross refining margin was a record USD 29.8/bbl, and refining EBITDA reached COP 3.1 trillion.
- Revenue and margins: Revenue increased 35% year over year to COP 40.2 trillion, and EBITDA margin expanded 6.5 percentage points to 44.0%, helped by Brent at USD 97/bbl versus USD 67/bbl a year earlier.
- Production pressure: Hydrocarbon production fell 6.6% year over year to 705.8 mboed, reflecting lower Permian output, mature-field declines, external disruptions and power-supply constraints in Colombia.
- Midstream execution: Transported volumes increased 3.8% to 1,125 kbpd, while ISA subsidiaries in Brazil won USD 428 million of new power-transmission awards.
- Balance sheet and cash: Gross debt-to-EBITDA improved to 2.0x from 2.2x a year earlier, with COP 11.3 trillion of cash and COP 8.0 trillion of FEPC receivables at quarter-end.
- Capital returns and investment: Ecopetrol distributed COP 5.0 trillion of dividends during the period and invested COP 10.9 trillion, with 71% allocated to Colombia and 29% to international operations.
Analysis
Ecopetrol's second quarter was a strong earnings print operationally, although EPS of 0.82 missed the 0.86 consensus estimate by 4.65%. Revenue rose 35% year over year to COP 40.2 trillion, EBITDA increased 59% to COP 17.7 trillion, and net income more than tripled to COP 6.1 trillion from COP 1.8 trillion. EBITDA margin expanded to 44.0% from 37.5%, supported by Brent prices of USD 97/bbl versus USD 67/bbl in 2Q25 and particularly strong refining economics. The supplied material does not provide a 1Q26 income statement, so the sequential change against the prior quarter cannot be quantified.
The defining feature was record refining performance: throughput reached 438.5 kbpd and the gross refining margin hit USD 29.8/bbl after maintenance was optimized to maximize refinery availability. The integrated model also benefited from 3.8% growth in transported volumes and disciplined financial management. Offsetting this strength, production declined 6.6% to 705.8 mboed as Permian output fell and expected Colombian production growth was delayed by disruptions and power constraints. First-half net income reached COP 9.0 trillion, already matching Ecopetrol's full-year 2025 result, while leverage improved to 2.0x and liquidity remained solid at COP 11.3 trillion of cash.
Record refining performance
Refining was the quarter's central earnings driver. Ecopetrol optimized maintenance schedules and maximized refinery availability, allowing the segment to capture exceptionally favorable market conditions. Throughput, refining margin and segment EBITDA all reached records.
- Throughput: Refinery throughput rose 6.1% year over year to an all-time high of 438.5 kbpd, versus 413.3 kbpd in 2Q25.
- Margins: Gross refining margin reached a record USD 29.8/bbl, benefiting from the favorable market environment and high asset availability.
- Profitability: Refining EBITDA was COP 3.1 trillion, contributing materially to group EBITDA of COP 17.7 trillion.
Earnings and market backdrop
The group delivered substantial year-over-year growth across the income statement. Higher crude prices, refining performance, commercial execution and the integrated portfolio more than offset higher taxes and a less favorable foreign-exchange environment.
- Revenue: Total sales increased 35% to COP 40.2 trillion from COP 29.7 trillion.
- EBITDA: EBITDA rose 59% to COP 17.7 trillion, with margin expanding to 44.0% from 37.5%.
- Net income: Net income increased 235% to COP 6.1 trillion from COP 1.8 trillion.
- First half: Six-month EBITDA was COP 31.1 trillion at a 45.2% margin, while net income was COP 9.0 trillion, up 81% and equal to the total net income generated in 2025.
Production constraints
Production was the main operational weak point. Lower international output in the Permian Basin reflected planned activity levels and natural mature-field decline, while domestic growth expected from several Colombian fields was delayed by external disruptions and power-supply problems.
- Total production: Hydrocarbon production averaged 705.8 mboed, down 6.6% year over year from 755.5 mboed.
- Crude and gas: Crude production fell 4.2% to 560.8 mboed, while gas and liquids declined 14.8% to 145.1 mboed.
- Delayed growth: Expected contributions from CPO-9, Caño Sur, Rubiales, Castilla and Chichimene did not arrive on the anticipated timetable, limiting the offset to natural decline and lower Permian production.
Transport and energy security
The midstream business provided a steadier source of growth, while Ecopetrol continued to position its energy-transition activities around supply reliability, efficiency and self-generation.
- Transport volumes: Transported volumes rose 3.8% year over year to 1,125 kbpd, supported by infrastructure management and commercial flexibility.
- Transmission awards: ISA and its Brazilian subsidiaries secured USD 428 million of new power-transmission awards and brought additional projects into operation.
- Gas supply: Ecopetrol supplied approximately 62% of Colombia's natural-gas demand during a period focused on expanding supply and preparing for expected El Niño conditions.
- Energy transition: The group continued work on energy efficiency, renewable and self-generation capacity, and water-resource management.
Cash, leverage and allocation
Strong operating cash generation and FEPC collections supported both capital returns and investment while keeping leverage under control. The FEPC receivable remains a material working-capital item, however, with management expecting the balance to stay within a broad COP 8 trillion to COP 12 trillion range.
- Liquidity: Cash and cash equivalents totaled COP 11.3 trillion at quarter-end, with liquidity supported by operating cash flow, FEPC collections and investment-portfolio redemptions.
- FEPC: Ecopetrol collected COP 1.0 trillion related to the 2Q25 FEPC balance, while the outstanding receivable reached COP 8.0 trillion.
- Leverage: Gross debt-to-EBITDA was 2.0x, down 0.2x from 2Q25.
- Capital allocation: Organic investment totaled COP 10.9 trillion, split 71% to Colombia and 29% internationally, while dividends distributed during the period totaled COP 5.0 trillion.
