Alejandro Andrade's questions to ECOPETROL (EC) leadership • Q2 2025
Question
Alejandro Andrade of JPMorgan Chase & Co. asked for an explanation of a tax reimbursement in the Q2 cash flow. He also questioned how the company plans to manage acquisitions, investments, and dividends given that its consolidated leverage is near the stated ceiling.
Answer
CFO Camilo Barco Muñoz explained the tax item was a compensation from a larger favorable balance. Regarding leverage, he stated that organic investments are covered by cash flow, while inorganic growth in renewables will use structures like project finance. He stressed that while the gross debt/EBITDA ratio is near 2.5x, the net debt ratio is significantly lower at 2.2x (1.6x excluding ISA), providing financial flexibility.