João Barichello

João Barichello asked about Ecopetrol's dividend policy, noting a 32% year-over-year decrease in net income and its implication for lower dividends. He questioned if payouts would remain at the higher bound of guidance and if there were discussions about policy changes due to lower oil prices. He also inquired about the potential for further lifting cost reductions, aiming for a return to the $11 per barrel level, and the main triggers for such a reduction.

Answer

CFO Camilo Barco reiterated Ecopetrol's dividend policy of distributing 40%-60% of distributable profit, stating that the majority shareholder expects payouts within this range, likely closer to the medium range for next year. Corporate VP of Hydrocarbons Rafael Guzmán affirmed Ecopetrol's commitment to additional lifting cost reductions through ongoing efficiency plans, portfolio turnover (disinvestments of high-cost assets), and increasing production from other assets, including through partnerships.

João Barichello asked about Ecopetrol's dividend policy, noting a 32% year-over-year decrease in year-to-date net income, which implies a lower dividend. He questioned if payouts are expected to remain at the higher bound of guidance and if there are discussions on policy changes due to lower oil prices. He also asked if there is room for further reduction in lifting costs, potentially returning to COP 11 per barrel, and the main triggers for such a reduction.

Answer

Camilo Barco, CFO, reiterated Ecopetrol's dividend policy of distributing between 40% and 60% of distributable profit. He stated that the expectation of the majority shareholder, as included in the fiscal medium-term policy, is to remain within this range, likely closer to the medium range for next year, with the shareholders' meeting making the final decision. Rafael Guzmán, Corporate VP of Hydrocarbons, affirmed commitment to additional lifting cost reductions through the efficiency plan, measures with lower profitability/high lifting cost assets (portfolio turnover/disinvestments), and increasing production of other assets, including partners providing capital.