BOGOTA,
Colombia, Feb. 29, 2024 /PRNewswire/ -- Ecopetrol
S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company")
hereby communicates the Company's proposal for the
distribution of 2023 earnings, which has been
approved by the Company's board of directors, and
will be submitted for the consideration of the General
Shareholders' Meeting that will take place on March 22, 2024:
2023 EARNINGS DISTRIBUTION PROPOSAL
|
(Colombian Pesos- COP)
|
Net
income after provision for income tax
|
19,062,090,905,658
|
+ Release of reserves from previous years
|
8,174,839,184,265
|
Occasional
reserve for sustainability
|
7,665,757,580,902
|
Excess
fiscal depreciation reserve (Art.130 ET.)
|
509,081,603,363
|
- Legal reserves of the current
year
|
2,415,290,693,929
|
Legal
reserve (10%)
|
1,906,209,090,566
|
Excess fiscal depreciation reserve (Art. 130
ET.)
|
509,081,603,363
|
Available
to the Shareholders
|
24,821,639,395,994
|
It is proposed to distribute as
follows:
|
|
For dividend payments:
|
|
Ordinary Dividend -According to dividend policy (Payout1 60.0%
of Net Income)
|
11,430,441,123,874
|
Extraordinary Dividend (Payout 2 7.3% of Net
Income)
|
1,397,967,619,467
|
Subtotal (Total payout
of 67.3%):
|
12,828,408,743,341
|
Allocated to occasional reserve for sustainability:
|
11,993,230,652,653
|
|
24,821,639,395,994
|
Total:
|
|
Total ordinary dividend payable per share
|
278
|
Total extraordinary dividend payable per share
|
34
|
Total
dividend payable
|
312
|
1 A 60.0% dividend payout ratio
established in the policy was applied to net income, resulting in a
dividend per share with decimals, which was rounded to the
nearest number in COP/share resulting in a payout not
surpassing 60%. The payout percentage shown is rounded to the
first decimal place.
2 A 7.3% extraordinary dividend was applied
to net income, resulting in a dividend
per share with decimals, which was rounded
to the nearest number in COP/share. The payout
percentage shown is rounded to the first decimal place.
The earnings distribution proposal, consistent with the
Company's current dividend policy, proposes an ordinary dividend
distribution of 60.0%1 of Ecopetrol's net income in
2023, equivalent to COP 278 per
share.
Additionally, the Board of Directors of the Company, taking into
consideration the solid operating and financial performance in all
of Ecopetrol's business lines, is also proposing an extraordinary
dividend of 7.3%2 of Ecopetrol's Net Income in 2023,
equivalent to COP 34 per share,
for a cumulative total dividend
of COP 312 per share,
which distribution would be the second highest in the
Company's history.
The payment of dividends to minority
shareholders
will be made in three equal installments
on April 25, September
26 and December 19, 2024. On the other hand,
the dividend due to
our majority shareholder is expected to be
applied in full no later than December 31,
2024.
Likewise, the Board of Directors proposes the allocation of
COP 11,993,230,652,653 to an
occasional reserve to support the Company's financial
sustainability and flexibility in the execution of its
strategy.
Ecopetrol is the largest company in Colombia and one of the main integrated energy
companies in the American continent, with more than 18,000
employees. In Colombia, it is
responsible for more than 60% of the hydrocarbon production of most
transportation, logistics, and hydrocarbon refining systems, and it
holds leading positions in the petrochemicals and gas distribution
segments. With the acquisition of 51.4% of ISA's shares, the
company participates in energy transmission, the management of
real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the
international
level, Ecopetrol has a stake in strategic
basins in the American continent, with Drilling and Exploration operations in the United
States (Permian basin and the Gulf of
Mexico), Brazil, and
Mexico, and, through ISA and its
subsidiaries, Ecopetrol holds leading positions in the power
transmission business in Brazil,
Chile, Peru, and Bolivia, road concessions in
Chile, and the telecommunications
sector. This press release contains business prospect statements,
operating and financial result estimates, and statements related to
Ecopetrol's growth prospects. These are all projections and, as
such, they are based
solely on the expectations of the managers
regarding the future
of the company and their continued access
to capital to finance the company's business plan.
The realization of said estimates in the future depends on the
behavior of market conditions, regulations, competition, and the
performance of the Colombian economy and the industry, among other
factors, and are consequently subject to change without prior
notice.
This release contains statements that may be considered
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All
forward-looking statements, whether made in this release
or in future filings or press releases, or orally, address
matters that involve risks and uncertainties, including in respect
of the Company's prospects for growth and its ongoing access to
capital to fund the Company's business plan, among others.
Consequently, changes in the following factors, among others, could
cause actual results to differ materially from those included
in the forward-looking statements: market prices of oil &
gas, our exploration, and production activities,
reserves, market conditions, applicable
regulations, the exchange rate, the Company's
competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend and do not assume any obligation to update
these forward-looking statements.
For more information, please
contact:
Head of Capital Markets
Carolina Tovar Aragon Correo
Email: investors@ecopetrol.com.co
Head of Corporate
Communications
Marcela Ulloa Beltran
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.