Q1 2025 Ecopetrol SA Earnings Call
Good morning, My name is not earlier and that will be your operator today.
Welcome to the corporate Trust earnings Conference call in which we will discuss the main financial and operating results of the first quarter of 'twenty to 'twenty five.
There will be a question and there's a recession or be end of the presentation.
Speaker Change: Before we begin it is important to mention that the comments in this call by Ecopetrol Senior management include projections of the company's future performance.
Speaker Change: These projections do not constitute any commitment as to future results nor do.
Speaker Change: Do they take into account risks or uncertainties that could materialize I'm.
Speaker Change: As a result, Ecopetrol assumes no responsibility in the event that future results are different from the projections shared on this conference call.
Ricardo Dutra: The call will be led by Mr. Ricardo Dutra CEO of Ecopetrol Rafael.
Speaker Change: Rafael Guzman executive Vicepresident of hydrocarbons Camilo article C F O and that'll be the real new executive Vicepresident of transition energies.
Speaker Change: Thank you for your attention Mr. Roy you May begin your conference.
Speaker Change: Welcome to the first quarter results call.
Speaker Change: Group for 2025.
Speaker Change: The first months of the year, where market high global uncertainties, we termed notable volatility in Brent prices.
Speaker Change: By geopolitical tension.
Speaker Change: Brief our supply from OPEC plus.
Speaker Change: It's fun to shoot grades that creation of different plans to just lowered price consumers.
Speaker Change: I think a breakthrough we have historically anticipate these challenges with a strong strategy.
Speaker Change: In our customer base.
Speaker Change: Our commercial management and genuine operation and capital discipline.
Speaker Change: This approach has enabled us to navigate the environment confidentially and take advantage of the opportunities that emerge.
Speaker Change: The hydrocarbons line, we closed the quarter with a barrage pollution of 745000 barrels of oil equivalent per day in line with our annual goal of at least maintaining a growing trend this right local events.
Speaker Change: So we are moving ahead with our exploration campaign and have achieved important milestones in the Caribbean offshore and our operations in Brazil, the quality our commitment to growth.
Speaker Change: Sustainability of reserves.
Speaker Change: In transportation, we maintained our resilience controlling social events preserving operational continuity, while DBA lupin key interests to reduce the time and cost of logistics for our crude oil and refined prudence.
Speaker Change: Regarding our refineries as we anticipate the throughput was temporarily affected by the scheduled maintenance chalk downs. According to the plan, ensuring safe reliable and efficient operations.
Speaker Change: The refining margin decreased by $3 $9 per barrel compared to the first quarter of the last year explained by 53% due to product differentials, 30% due to the scheduled maintenance, 14% due to them.
Speaker Change: Planet operational events and 3% due to other events.
Speaker Change: Among this event there were energy issues.
Speaker Change: The handle refinery, where we maintain our mitigation planning progress.
Speaker Change: Let's move to the next slide please.
Speaker Change: We clearly believe that natural gas is a key energy source for the energy transition and the litigation of the country. We continue contributing to national supply with significant progress in the development of mature gas along with important milestones such as the.
Speaker Change: Signing of the Regasification services contract on Colombian Pacific cost.
Speaker Change: This project has a potential of <unk>.
Speaker Change: <unk> D and is expected to begin operations in the second quarter of 2026. We are also advising the Caribbean Regasification project, which will liberate us ecopetrol group's assets two commercialized.
250, <unk> Btu.
Speaker Change: With an estimated starting 2027, our executive Vice President.
Speaker Change: Energy transition will provide more details about these projects shortly.
Speaker Change: I want to highlight that Ecopetrol group supplied approximately 68% of the country's natural gas demand during the first quarter at <unk>, our <unk> control in the Colombian energy security.
Speaker Change: In renewable energy, we remain committed to achieve 900 megawatts of cell generation capacity. This year actually expecting to surpass 1000 megawatts. This will allow us to continue reducing energy cost in our operation and to maintain our position as the leading cell generator.
Speaker Change: Of renewable energy in the company.
Speaker Change: During the first quarter, our energy efficiency programs generate savings of nearly 23 billion Colombian pesos, reaching a total 21 better Jules since the program began in 2018.
Speaker Change: Finally, we continued to achieve manage environmental licenses and the complementarity regulations required to legally enable our energy attentions to projects.
Speaker Change: Look on the next slide.
Speaker Change: Financially this was a stable quarter, despite lower Brent prices I want to highlight several aspects.
Speaker Change: We continued to strengthen our efficiency program optimizing cost and generating more value for every dollar.
Speaker Change: As part of the company's future.
Speaker Change: He's driven partnership to face current dis synergies secondly, I want to highlight the progress of the investment plan for the year with cash reached near to the 20% execution. This progress has been affected by external events and there will be a discuss seizure and can you sort of appeals.
Speaker Change: However, we have achieved important advances in our businesses through new initiatives in drilling.
Speaker Change: Completion in our operations in the Permian and through Silicon economic projects involving material. They use thirdly I want to mention that we received early payments from the fuel price stabilization pumped by the government covering the balances of the.
Speaker Change: Second third and fourth quarters in 2024. In addition, the lower accumulation. During this quarter reflects both the governments commitment and Ecopetrol effective management, unless the payment of dividends to our shareholders demonstrating our financial strength.
Speaker Change: Let's move to the next slide please.
Speaker Change: In terms of corporate governance I want to highlight the results of the general shareholders meeting held in March.
Speaker Change: The board of directors, who are with members of extensive experience in key areas of the company completing all the detectors provided for in the is that.
Speaker Change: Mostly independent.
Speaker Change: New detectors are already familiarizing themselves with the strategy and operation of the Ecopetrol group.
Speaker Change: Great traded daily commitment to continue generating competitive returns for our investors. Additionally, we publish our integrated management report.
Speaker Change: The annual corporate governance report, which includes our main initiatives goals and results in this area. The approved dividends was within the range of our internal policy balancing returns to shareholders with the need to continue investing in our operations and strengths.
Speaker Change: On the umbrella mental front, we continued to reduce our greenhouse gas emission. It is carbs Hawaiian into our world and to use capacity continues to grow and remains at levels comparable to the most demanding international standards with these results, we reaffirm that ecopetrol.
Speaker Change: Reminds a solid company strategy for the country.
Speaker Change: For future challenges I now leave the floor to Rafael Guzman, who will present the results of the hydrocarbons business line. Thank.
Speaker Change: Thank you Ricardo.
Rafael Guzman: 2025, we have a 17% progress in our exploration investments with four wells finished two more wells and drilling operations, Idaho and plan for the year key highlights for this investment in field operations, Nick or Av.
Rafael Guzman: Block with the successful completion of the initial formation testing of the serious to SD two well this allowed us to confirm the reservoir conditions and identify a production potential higher that can easily estimate. Additionally, as part of the development environmental licensing process for the <unk> discovery.
Rafael Guzman: <unk> successfully completed the required consultation process with the 116 community certified by the National Authority for prior consultation. Furthermore, drilling began on the Venezuela, one well this well located 11 kilometers from the serious discovery aims to test at <unk>.
Rafael Guzman: Since August and an exploration concept different from that of the aforementioned discovery.
Rafael Guzman: As for the onshore activity oil pricing was confirmed in desktop.
Rafael Guzman: Two we'll drill in 2023 by Hill project in partnership with alcohol in the general area. The well is currently undergoing full test.
Rafael Guzman: Currently the offshore assets in the South Caribbean, where shell has been our operator partners in the cold side.
Rafael Guzman: And what this will block we have been conducting a review since February 2025 towards says the best alternatives to continue executing the investments in light of a potential decision by the partners.
Rafael Guzman: It's interest these projects are a priority for our capital and have solid technical team Columbic viability.
Rafael Guzman: Next steps in the development of these discoveries include a continuation into conceptual basic and detailed engineering for connecting the gas to the national transportation system as well as efforts with the Ministry of mines and LNG on the energy and gas regulatory commission to enable guests.
Rafael Guzman: Creation International system, along with any required adjustments to our system.
Rafael Guzman: Ecopetrol has full capacity to ensure the continuity of operations, let's move onto the next slide.
Rafael Guzman: During the first quarter of 2025, the final investment decision for it got to the muscle was approved this development is part of our strategy to geographically diversify the hydrocarbon portfolio.
Rafael Guzman: Increasingly research we expect partial results incorporation in 2025. This decision followed at reengineering process for the development and includes the installation of an S. S. Designed to process up to 120000 barrels of oil per day. This is the first development.
Rafael Guzman: Project in which the Ecopetrol participates in the pre salt area of the southern basin in Brazil.
Rafael Guzman: Our motto has certified 112 million barrels of to see contingent all resources.
Rafael Guzman: Net to Ecopetrol before royalties production is expected to begin in 2029, reaching approximately 36000 barrels of oil per day net to our control, let's move to the next slide.
Rafael Guzman: On the top right graph in the first quarter of 2025 Ecopetrol reached a production of 745000 barrels of oil equivalent per day, mainly due to the contribution from the <unk> field. Following the increase in our participation in the CPO nine block.
Rafael Guzman: Field due to the expansion of water processing facility at <unk>.
Rafael Guzman: <unk> and better performance in the Permian.
Rafael Guzman: With this result, Ecopetrol achieved the highest crude oil production in Colombia in the last five years. This was possible. Despite the impact of external factors and pencil Keith and the reality between March 31 on April 3rd caused by blockades by in digital boards as well.
Rafael Guzman: As the impact on production from fields in the northern or outcome due to interruptions of the kind of more convenience and within Canario pipeline as a result of attacks to the infrastructure.
Rafael Guzman: <unk> demonstrated it.
Rafael Guzman: Williams by quickly recovering 100% of the production from <unk> and.
Antonio: Antonio disputes regarding investment activity during the first quarter of the year $602 million were executed with 17% progress on segments investment plan with a total of 94 workovers on 114th development well.
Rafael Guzman: Drill for.
Rafael Guzman: For the canceled the startup of the pipeline and the expansion of the 10000 extension standout. These milestones will allow operational continuity of the field with an increase in its production, let's move to the next slide please in midstream the volumes transported decreased by 2% compared to.
Rafael Guzman: First quarter 2024 as shown in the first growth primarily due to the scheduled maintenance of the Aramco refinery, which impacted both oil and refined product volumes.
Rafael Guzman: Midstream segment activated attended logistics schemes complement the necessary volumes and meet domestic production demand maximizing the use of available infrastructure during such maintenance. This this included the delivery of NAFTA and this one a deposit called us loading terminal in <unk>.
Rafael Guzman: Gasoline and <unk>, which were planned.
Rafael Guzman: As well as the reception of Sebastopol imports via <unk>.
Rafael Guzman: 800000 barrels of diesel and gasoline. Additionally, we successfully take a great deal more than three 7 million barrels from the Iraq feels.
Rafael Guzman: This pipeline.
Rafael Guzman: The suspension of the panel equity section of the kind of non core in your pipeline in line with what was mentioned on the previous slide the new sort of Michael B Tran operation This quarter.
Rafael Guzman: Activity up to the <unk> system with a capacity of over 50000 barrels per day.
Rafael Guzman: Cable devaluation of 100% of the current production from the field, providing operational reliability and reducing vulnerability to external risks lastly, I would like to highlight the financial strength of the midstream sector, which continues to contribute to the stability of the group's finance.
Rafael Guzman: Well results.
Rafael Guzman: Volatility with an 11% growth in EBITDA, driven by both exogenous factors and improved operational performance, let's move to the next slide important maintenance activities were carried out in our refinery during the quarter in barrancabermeja scheduled maintenance took place.
Rafael Guzman: In the crude unit the diesel hydro treater and the automatic plan. Additionally, major maintenance work began at the.
Rafael Guzman: <unk> cracking unit and it's progressing as planned and cap Diana and unscheduled shutdowns occur from February 14% to 20 with no impact on refined product supply in Colombia, followed by the commencement of scheduled maintenance on the Hydrocracking unit.
Rafael Guzman: The consolidated refining throughput for the first quarter of the year was 396000 barrels per day, representing nearly 7% reduction compared to the same period in 2024 due to scheduled maintenance at <unk> and the operational events mentioned early the refining margin.
Rafael Guzman: The fourth quarter was $10 $9 per barrel, which is $3 per barrel lower than the same period last year, 53% is associated with a reduction in international fuel price differentials, 30% with the scheduled maintenance <unk> and 14% with.
Rafael Guzman: Plan operational events, including the shutdown of the Cartagena refinery.
Rafael Guzman: During the first quarter of the year, there was a 60% decrease in EBITDA compared to the quarter of 2024 with 40% of impact related to exogenous factors, such as falling prices exchange rate fluctuations and on site product okay.
Rafael Guzman: 43% of the reductions were due to the operational expenses arising from the maintenance plan inventory management and higher gas costs, 10% reduction due to unplanned operational events such as the previously mentioned shutdown of the cabinet.
Rafael Guzman: Bye now.
Rafael Guzman: Compared to fourth quarter of 2024, there was an increase in both refining margin.
Rafael Guzman: Driven by better product differentials to address the challenges of 2025, we have made progress in the following value levers at the cafe and finally significant progress has been made in recovering electrical reliability with seven of the 16 plan milestones.
Rafael Guzman: <unk> achieved to date by June 2025, we expect to mitigate the risk from very high to meet regarding cost optimization, an 8% reduction in refining cash cost was cheap compared to fourth quarter 2024, primarily due to the reduction in <unk>.
Rafael Guzman: Maintenance to maximize value projects to keep projects are being developed.
Rafael Guzman: The expansion of the coking capacity.
Rafael Guzman: <unk> unit, which is underway and is expected to be operational in 2022nd.
Rafael Guzman: Second various initiatives aimed at increasing productivity at the barrancabermeja petrochemical plant are being at that Leslie.
Rafael Guzman: Lastly, in the strategic projects aimed at diversifying and exploring new markets.
Rafael Guzman: Like to highlight the approval by the board of directors of the project.
Rafael Guzman: <unk> quality baseline.
Rafael Guzman: Our EMEA and the project implementation of improvements to the <unk> 107 left the hydro treater in Cartagena.
Rafael Guzman: These projects are intended to improve the EBITDA of the downstream segment by generating higher value products and improvement of gassing quality.
Rafael Guzman: Also contribute to reducing fuel imports for the country and improving air quality in Colombia by 2030.
Rafael Guzman: These projects are key to advancing to energy transition and the future incorporation of Biofuels, such us sustainable aviation fuel SaaS, let's move to the next slide.
Rafael Guzman: In the first quarter of the year, we made progress on the efficiency plan and we are above expectations, achieving $2 seven trillion pesos from the upstream midstream and downstream segments as well as from the corporate areas.
Rafael Guzman: <unk> efficiencies.
Rafael Guzman: Other than those of the first quarter of 2024 allowed us to advance in cost control.
Rafael Guzman: Reductions in lifting costs transportation cost per barrel and refining costs compared to last quarter of 2024.
Rafael Guzman: Additionally, I would like to highlight that lifting cost reached levels lower than those of the first quarter of 2024 with a decrease of zero point $85 per barrel driven by the achievement of efficiencies and higher production that more than offset the operational cost pressures of hire any <unk>.
Rafael Guzman: Consumption and fit in a higher volumes of fluids as fields mature and the effect of higher dollar to peso exchange rate in 2025, we continue with an asset profitability enhancement plan that will allow us to maintain lifting cost below $12 per barrel now alternate.
Rafael Guzman: Over to David who will discuss the main milestones of the entities for the transition based on slide 10.
David: Thank you Rob.
Speaker Change: One of our strategic priorities is to move forward with projects that contribute to meet natural gas demand on the carbon supply conditions. In this context, we would like to share the progress on our diversification initiatives.
Speaker Change: February 28, we signed a contract as a user of integrative Regasification services on Columbia Pacific Coast with deal size, a company responsible for building operating and maintaining the facilities.
Speaker Change: Selected after a separate negotiation rounds within a competitive process that included 18 companies. The project involves the use of floating storage unit anchored in the window and toured Abbe and efficacy vacation facility located in Buena Disney.
These new infrastructure will enable their received startups Africa certification of LNG with an estimated capacity between 50 to 100 million cubic feet per day, and the storage capacity of up to 138000 cubic meters operation are expected to begin in the second quarter of 2026.
Speaker Change: Additionally, the commercialization process.
Speaker Change: We'll begin in July 2020.
Speaker Change: Starting at 60 <unk> per day for five years supported by key regulatory developments that open the door for new players in the Regasification and commercialization of imported gas, let's move on the next slide please.
Speaker Change: At the same time, we are evaluating the possibility of regasification projects of the Caribbean coast, leveraging the Ecopetrol group's existing infrastructure in two fronts by Jan LNG using assets from the <unk> Association to deliver gas to the national transportation system from the <unk>.
Speaker Change: Through our floating storage and Regasification unit <unk>.
Speaker Change: <unk> <unk>, using <unk> assets, and our floating storage and Regasification unit connected to the convenience for this option will require infrastructure conversion to ensure connectivity along the hull of US clean Air segment with estimated transportation capacity of $130 million two week.
Speaker Change: Feet per day by 2027, and up to 400 million cubic feet per day by 2029.
Speaker Change: This project will enable the commercialization of up to 250 <unk> per day with expected deliveries in 2027, both initiatives reflect our comprehensive supply strategy using existing infrastructure to expand supply capacity, while ensuring greater.
Speaker Change: To meet the country's demand <unk>.
Speaker Change: Next slide. This additionally, we are launching a new commercialization process for natural gas from our major feeds covering the period from December 2020 to November 2030.
Speaker Change: This cycle includes the sale of our 50 <unk> per day block over two years.
Speaker Change: Along with the potential availability of an additional 30 <unk> per day from here is that this complemented by Geordie blocks between 2027, and two in Italy with volumes ranging from 9% to 41 <unk> per day during the first quarter of 2025, the Ecopetrol group supply.
Speaker Change: 68% of the National natural gas demand and 83% of non thermal power demand supported by a production of 158000 barrels of oil equivalent per day of gas and LPG and maybe that generation of 915 billion peso.
Speaker Change: Our energy efficiency program delivered one point 27, <unk> in the first quarter of the year.
Speaker Change: In over 90000 tons of steel to conduct an emissions and generating nearly 23 billion pesos in savings since its launch in 2018. The program has accumulated 21, 18 potentials, representing a 71% progress towards our planetary tactic.
Speaker Change: In the first quarter of 2020 Fi the incorporation of Nonconventional renewable energy sources are low sapiens over 10 billion plus in addition, we've reached more than 6 million pesos in wholesale energy purchases.
Speaker Change: Lastly, we are progressing on an inorganic growth portfolio that could add over 1500 megawatts of installed capacity from nonconventional renewable energy resources between 2025 and 2028.
Speaker Change: This includes the signing of a framework investment agreement with ice Colombia, we set the conditions for a potential 49% stake in the HMA, what kite wind cluster located in lower heder subject to the fulfillment of precedent conditions.
Speaker Change: I'll now pass the floor to Camilla, who will present the vessels of our transmission a road infrastructure online and the key financial milestones. Thank.
Camilla: Thank you David.
Camilla: During the first quarter of 2025.
Speaker Change: ESR continue delivering outstanding results and contributing to the diversification of vehicle patrol group.
Camilla: These achievements are due to the commissioning of new project.
Camilla: Ziv effect of contractor and indexation higher returns from road Concessionaires and an increase in revenues from the telecommunication business.
Camilla: <unk> exhibited a comprehensive growth with an increase of 9% in revenues and 8% in EBITDA year over year its contribution within the Coca Cola group increased accounting for 13% of revenues and 18% of EBIT that align with our long term.
Camilla: <unk> strategic diversification objective. Additionally, we highlight the dividend contribution from Asia to its majority shareholder which for 2025 total 720 billion pesos and in return on average equity of 16, 8% for the first quarter of 2020.
Camilla: Five we the early achievement of key goals for the Asia 2030 strategy. The company is moving forward with its new 2040 strategy.
Camilla: Energy that brings life to transition this strategy outlines a roadmap towards a future more sustainable innovative and committed with Latin America's development I want to highlight also is as long term ambitious goal for doubling its 2024 as EBITDA.
Camilla: Additionally, it aims to increase its transmission capacity of 2024 by one five times and develop eight gigawatts of storage infrastructure and generate synergies with a corporate role as a provider of energy solutions regarding the awarded an operational project several of them.
Camilla: <unk> achievements have panned out.
Camilla: In Brazil. It can reinforcements were added to the electrical grid.
Camilla: The new 220 kilowatts, thus palomas Cynthia flow control system project was awarded two into reality in.
Camilla: The road segment May implementation of the free flow system on the router in my book was agreed upon facilitating traffic in the south axis to Santiago.
Camilla: Additionally, the commissioning of the renovation of the what you what Amtrust heroes of stations in Santander, Colombia seeks additional reinforcement in Brazil, and the expansion 21 project in Peru are not worth it let's go to the next slide to detail the financial performance of our.
Camilla: Group.
Camilla: The financial results for the first quarter of 2025.
Camilla: <unk>, our attempts to consolidate the structural efficiencies and protect the company's profitability and liquidity as Ricardo and Rafael mentioned before the declining brands referenced prizes and major maintenance in the downstream segment to guarantee the production of quality fuels and preserve.
Camilla: The integrity of our operations impacted our results net income stood at three one trillion pests.
Camilla: EBITDA at $13 three trillion pesos and EBITDA margin reached an outstanding 42%.
Camilla: Proving our effective control on lower costs and expenses compared to the last quarter of 2020 for that transportation and transmission segments contributed 42% to EBITDA effectively mitigating the impact of price volatility the exploration and production segments contributed 54 per se.
Camilla: <unk> to EBITDA, whether the refining segment accounted for the remaining 4%.
Camilla: We invested $1 2 billion exceeding the average amount for the first quarter of the past five years I would like to emphasize that within the hydrocarbons line. Our main efforts were directed towards the exploration and production segment in fields, such as CPO zero nine <unk> Andrew.
Camilla: Ellis as well as in the Permian.
Camilla: These were followed by investments focused on ensuring operational continuity in.
Camilla: In the transportation and refining segment. Similarly, we made investments of approximately $136 million relate.
Camilla: Related to expand the gas chain and supply.
Our leverage indicators remained steady.
Camilla: Gross debt to EBITDA ratio remained at two two times on a consolidated basis and one six times excluding <unk>.
Camilla: Let's move on the next slide we keep addressing and monitoring our cash levels, both standalone and on a consolidated basis with a proactive approach that has enabled us to optimize cash flow and ensure the availability of resources for key investment and minimize financial risks.
Camilla: Corporate <unk> group's cash balance closed at 17 Trillium passes generating a positive free cash flow of one four trillion pesos of the total cash 42% was contributed by either 27% by Ecopetrol and the remaining 31% by the group's other subsidy.
Camilla: Additionally, our cash management during the quarter included the following transactions as of March we carry it out.
Camilla: Repo for approximately $500 million back.
Camilla: Backed by public debt Securities.
Camilla: Test received in 2024 by Ecopetrol as a part of the fuel prices sterilization fund payment generating a temporary increase in short term gross debt.
Camilla: Depending on the market conditions, the unwind of this repo with the review of.
Camilla: The Ministry of Finance authorized an international loan facility of up to $500 million with Banco Santander. The proceeds from this transaction will be used to meet our operational cash requirements. Thus compensating the outflows caused by recent inorganic acquisitions.
Camilla: This aligns with our financing plan.
Camilla: And maintained the gross debt to EBITDA target for the year.
Camilla: A favorable milestone was the early collection of the total balance of the fuel price stabilization fund for Tech for 2024 at the end of March the receivable of the first quarter of 2024 for round two to Trillium passes was paid through a short term public debt.
Camilla: Securities called test, which were used to guarantee a repo transaction.
Camilla: In addition at the end of April we received five four trillion pesos in short term contest for the balance of the second third and fourth quarters of 2024.
Camilla: These were ready salt, providing the necessary liquidity to complete the total dividend payment to our shareholders in the first half of this year through our financial hedging policy, we executed hedging programs to mitigate the price.
Camilla: This volatility on diesel for a $3 2 million barrels and exchange rate for $615 million. Likewise, we continue to analyze our their hedging strategies for brand price for the second half of 2025 and 2026. These measures have strategically.
Camilla: Position.
Camilla: To address recent market dynamics and the increased fiscal obligations, resulting from the <unk> Con motion degree due to a cut that tomba crisis. We anticipate this will result in this version for the group of approximately one two trillion pesos this year.
Camilla: In addition to the impact of the value added tax on few imports starting January one 2025, which will be detailed in the next slide.
Camilla: In December 2020 for the National tax authority issued a ruling interpreting that value added tax on few inputs must be paid at a rate of 19% on the customs value of the imported goods.
Camilla: This ruling has prospective effects starting on January one 2025 since January Ecopetrol has paid so it's value added tax in accordance with the Ams rolling.
Camilla: Estimates show that in 2025. This payment was reached approximately three six trillion pesos recoverable at 93% through tax refund request.
Camilla: Regarding the period 2022 2020 for Ecopetrol is here on the Cartagena refinery received three request from the <unk>.
Camilla: Including a proposal of tax penalties and interest totaling $9 four trillion patents related to about payment on the declarations submitted during that period.
Camilla: Due to differing interpretations of regulations and <unk>.
Camilla: Protecting the company centrist.
Camilla: Petrol and the Cartagena refinery will respond to these special customer request and challenge them through administrative and judicial China using the resources and actions provided by the law Ecopetrol in the Cartagena refinery are committed to fully complying with their cost.
Camilla: <unk> and tax obligations and with respect to administrative and judicial decision. The resolve the dispute final market and company scenarios indicate that Brent prices for 2025 may fall below our financial projections. Therefore.
Camilla: Implemented measures to enhance our ability to address these industry challenges, ensuring we achieve our operational and financial targets for this year.
Camilla: Now hand over to the President who will detail the plan to navigate the current environment of price volatility.
Rafael Guzman: Thank you Camilo.
Rafael Guzman: To close this evenings call I would like to share key messages about the actions we have been implemented in response to the high uncertainty environment. We are currently navigating.
Rafael Guzman: It is important to emphasize that Ecopetrol is diversified group with core business in hydrocarbon transportation energy transmission, which has proven to be essential during times of volatility and now contribute over 40% of our EBITDA on top of that.
Rafael Guzman: We have a competitive commercially strategy.
Rafael Guzman: I love us to maintain single digit differentials maximizing the value of our products. This is not the first period of extreme volatility we have basic.
Rafael Guzman: As a company and we had bumps.
Rafael Guzman: <unk> and preparation need to response to particularly our <unk> business plan is built around a price range that allows us to adapt to different market scenarios.
Rafael Guzman: Maintaining capital discipline to ensure competitive returns.
Rafael Guzman: Based on these fundamentals, we have implemented concrete measures to strengthen the group's procedure.
Rafael Guzman: Consultation we have implemented an additional drug was prudent of efficiencies and cost and expenses savings amounting by epilepsy lately one trillion base.
Rafael Guzman: Alone.
Rafael Guzman: Working capital management of our own two trillion basis combined with the early feedback payments available credit lines. These reports our liquidity in terms of capital discipline, we arent focused.
Rafael Guzman: Leasing production decisions portfolio rotation strategies undifferentiated crude to market.
Rafael Guzman: Considering our integration across the value chain, 99% of our production operates at an EBITDA breakeven below $55 per barrel, providing a natural hedge against price fluctuations.
Rafael Guzman: Recently, our brands includes flexibility in terms of Capex intervention of $500 million.
Rafael Guzman: To protect our production for the year.
Rafael Guzman: Our resilience and financial flexibility, we maintain a control level declining production cost and are generating synergies between segments and subsidiaries that continued to strengthen our competitiveness it towards mentioning that keep the current situation we update our lift.
Rafael Guzman: <unk> cost target a mentor a level below $12 per barrel.
Rafael Guzman: We continuously monitor the market conditions.
Rafael Guzman: Well defined protocols in place to adjust convention options optimized close to renegotiate contract manage depth and activated financial hedge where neighborhood if necessary.
Rafael Guzman: These pillars allow us to look ahead with confidence we have clear protocols to respond to any further deterioration in market conditions and are ready to activate additional lever it.
Rafael Guzman: Quiet.
Rafael Guzman: Ecopetrol is well prepared to continue generating sustainable value for our shareholders and for the country, even in the face of global volatility with that we'll now open the floor for questions.
Rafael Guzman: Thank you, let's begin now the Q&A session.
Rafael Guzman: We recommend to ask three questions at the most to give space for the others.
Rafael Guzman: So all of the analysts analysts please choose the language in which youll be asking your question if not we won't be able to hear it.
Rafael Guzman: Next question is from Katherine Ortiz from core <unk>.
Rafael Guzman: <unk>.
Speaker Change: Good morning, everyone can you hear me.
Speaker Change: Kathryn Good morning, we can hear you loud and clear.
Speaker Change: For your presentation.
Speaker Change: Let me summarize my three questions one.
Speaker Change: Is it related to the last topic that you mentioned.
Speaker Change: Got it though.
Speaker Change: Okay.
Speaker Change: Related to the fact that the fall of oil prices can have and how ecopetrol has been preparing so I have several questions with that first could you. Please compare figures that you mentioned in other settings.
Speaker Change: Two the impact of the fall.
Speaker Change: The price of oil and the EBITDA and the revenue.
Speaker Change: <unk> dollar.
Speaker Change: The drop of the price of oil you said that zero point 75 billion peso for dollar please confirm that.
Speaker Change: Take care and with your last slide I have a question because the breakeven that you mentioned that 99% with production up $34.
Speaker Change: I'd like to compare it also with the break that W revenue because in the figures that you showed at the end of the year the breakup of the EBITDA at the end of the year was $40 overall, but the revenue was $49 and that's because of the context of that.
Speaker Change: Very high taxes that we have in Colombia.
Speaker Change: So I'd like to know that figure of 99% of production.
Speaker Change: And revenue to understand better the impact that we could see production.
Speaker Change: That's a fact and also although it's true.
Speaker Change: Especially the premium.
Speaker Change: We know that the break breakeven that zone is at $50 now, but when you look at that Delta UTI, it's below 60 cell.
Speaker Change: Could you please.
Speaker Change: Tell us.
Speaker Change: And that production.
Speaker Change: I meant in the U S. There is a contingency.
Speaker Change: Related to the effect that this could have with the.
Speaker Change: Paul on the oil price. That's my first question do you want to hear the other cure or do you want to answer this first one.
Speaker Change: Maybe my first question was quite extensive.
Erika: Erika Thank you.
Erika: Let's begin by answering your first question and then we can cover the other two.
Speaker Change: The RFC E L.
Speaker Change: Wed like to talk about the effect that.
Speaker Change: You're asking regarding the decrease of each dollar with the Brent.
Speaker Change: Beryl.
Speaker Change: Then I can complement.
Speaker Change: Good morning for everyone Kathryn good morning, and thank you for your questions I'll recap the role of the CEO of Ecopetrol, Yes, I'd like to confirm your figures had the exercises made so far remember we have a price have reference Brent and our plan.
Speaker Change: And in operations.
Speaker Change: <unk>.
Speaker Change: Of this we have evaluated and for every dollar.
Speaker Change: Is that the Brent changes at the market.
Speaker Change: We will have impacts on the revenue and the EBITDA.
Speaker Change: And the net profit.
Speaker Change: The impact of each dollar that changes upwards or downwards with the price of Brent at the market on EBITDA is point 74 billion versus a year on the net profit of <unk> 37.
Speaker Change: <unk> billion pesos and counter counteracting dose.
Speaker Change: We would need in terms of the exchange rate 200 passes more per dollar so the effect.
Speaker Change: Can counteract the impact of the fall of the Brent price.
Speaker Change: We have been monitoring constantly the conditions.
Speaker Change: Particular conditions of the price of the oil markets Brent.
Speaker Change: And W Ti, which as of this stage cell and those aspects. We've also been monitoring.
Speaker Change: Our operations profits and based.
Speaker Change: And what we've seen.
Speaker Change: You've announced that as of today and under the current conditions, we don't have to make decisions.
Speaker Change: The interruption of production.
Speaker Change: Chaparral.
Speaker Change: [noise] wells, but there may be decisions ahead, especially with our wells underway.
Speaker Change: And then we will have to be making evaluations and making decisions.
Speaker Change: So now let's give the floor.
Speaker Change: Rafael.
Speaker Change: Thank you Ricardo Inc. Katherine for your question.
Speaker Change: I'd like to refer briefly to the Permian.
Speaker Change: The.
Speaker Change: Current Permian is showing good portfolio for apartments now.
Speaker Change: Remember we're talking about.
Speaker Change: The Europe, having a production of about 90 to 95.
Speaker Change: We have completed 35, new wells to date.
Speaker Change: With the plant close to D that we have with the Permian in terms of the breakeven.
Speaker Change: Okay.
Speaker Change: The production.
Speaker Change: The Permian is below $50 of W. UTI, we do have with our partner sub strategies to suspend.
Speaker Change: The investment in new wells it for a long period of months, we'll see low prices of W. T. I one of the advantages.
Speaker Change: With this is that this these suspensions can be made quickly and they can be also reactivated quickly and that gives us high flexibility.
Speaker Change: To date, we haven't had discussions with the with our partner for the suspension and we continue with our plans anyway.
Speaker Change: Most of the production that we expect for the year is with the wells that are ready.
Speaker Change: Other way not with the production that comes from new wells So for now.
Speaker Change: And the flexibility of the Capex that we have we don't see that need of cutting back on capex or production.
Speaker Change: Thank you and if you allow me Catherine <unk> speaking I would like to complement the answers given by our CEO and hop out.
Speaker Change: And I'd like to highlight the breakeven.
Speaker Change: Typically this is an indicator that is displayed and companies of E&P pure A&P and.
Speaker Change: They're related to the production cuts as Rafael said, it's very important to keep in mind that epic to ecopetrol or more than 99% of our wells are.
Speaker Change: Capable of operated with breakeven below $55, but we cannot lose sight that today ecopetrol.
Speaker Change: As we emphasized in our presentation. This is a group.
Speaker Change: <unk>.
Speaker Change: Has different energy so it not only is upstream, but other segments in hydrocarbons midstream and downstream, but it also today incorporates lines the business lines of energy transmission of roads and energies for transition so.
Speaker Change: We're looking at these indicators by the group, perhaps you can find there is some of the answers to the differences with the breakeven analysis, but sure. We can confirm to you Kathryn that after making the analysis and the FX compensated by a different segment that brie.
Speaker Change: Even at the profit of the group, it's close to $50 per barrel, while the breakeven of the EBITDA is closer to $44 per barrel.
Speaker Change: Okay.
Speaker Change: Perfect. Thank you so much great answers.
Speaker Change: Let me continue with my second question that relates to the requirement made by Dan.
Speaker Change: Recently, you showed us the steps that you will be taking with that.
Speaker Change: And among those steps before the reconsideration you have closing the case I Wonder if right then our win specifically Ecopetrol should make a reserve.
Speaker Change: Four of those nine 4 billion.
Speaker Change: That dion or.
Speaker Change: The tax authority does that reconsider.
Speaker Change: And his firm with its a ruling so showed ecopetrol right then make that payment and in time.
Speaker Change: Or how long do you estimate making this close.
Speaker Change: Will it be three months six months a year just to have an idea.
Speaker Change: In that sense.
Speaker Change: The question.
Speaker Change: And.
Speaker Change: We'd also like to understand I had with that new interpretation.
Speaker Change: Well corporate rather have to keep spending every year about $3 6 billion.
Speaker Change: The ones that you mentioned.
Speaker Change: Like to confirm that so independent of what the <unk> rules in the past.
Speaker Change: Petrol it appeared to have to be paying those three 6 billion and sell this year you mentioned.
Speaker Change: And I reported that this is compensated.
Speaker Change: With balances that will be recovered, but ahead is it normal to have these types of balanced to be recovered or is this just a one time payment not for 2025, but afterwards after after this figure will it go to 4 million pets. This additional.
Speaker Change: That's my second question gentlemen.
Kathryn: Okay Kathryn.
Speaker Change: Again, thank you.
Speaker Change: This is can be a little article.
Speaker Change: And this question with the scope that youre, giving us will allow us to clarify several things for everybody that's joining us.
Speaker Change: And this call today and that are really wondering about this so let me expand.
Speaker Change: Okay going back to what you've asked indeed in December 2024.
Speaker Change: And December 20th.
Speaker Change: The Dionne issued an opinion in which there is a change of a doctor and to consider that as the first of January 2025 fields are subject imported fields are subject to a 19% that.
Speaker Change: This opinion has effects on two perspectives one.
Speaker Change: Head like you mentioned in your question and the other back.
Speaker Change: And it relates to the procedures that we will have to follow from here on regarding the procedures ahead.
Speaker Change: As of January and following this guideline ecopetrol has been meeting its responsibility it and its tax obligation.
Speaker Change: Doing what the Dod has required and has been paying the bed for importing fuels gasoline.
Speaker Change: And diesel mainly with nine 2%.
Speaker Change: Also you mentioned another figure it indicates our effort of Ecopetrol at three 6 billion pesos in the year 2025.
Speaker Change: Of these three 6 billion the expectation is that we can recover about 93% of that some meeting three 3 billion pesos.
Speaker Change: Through the recoveries in crisis of balances in favor.
Speaker Change: Tax returns from previous years.
Speaker Change: Going ahead.
Speaker Change: It's possible that the balance of taxes in favor of Ecopetrol will not only persist, but will increase why because this tariff up 19% means that we have to pay that percentage over at the airports.
Speaker Change: While the formula of the prices fields in Colombia, Alamo allow us only to recover 5%. So that difference between five and 19, meaning 14% necessarily will increase the balance of taxes paid in the future. So surely ahead.
Speaker Change: We will have to made.
Speaker Change: Effort that can't be crossed in real time with the balances of the tax returns for taxes in our favor now again, let me refer to the second perspective, and it's the <unk>.
Speaker Change: Impact on.
Speaker Change: Previous periods, specifically 2022, 24, which are the statements which are not in firm so on that claim.
Speaker Change: First how correlation has been made we have received special requirements customs and rapid cut and Ecopetrol, which add up today to nine 4 billion pesos within that some.
Speaker Change: $7 billion.
Speaker Change: The taxes that we haven't paid one bill.
Speaker Change: Six of the Ecopetrol whenever epic that and the other two 4 billion have to do with entrust infection.
Speaker Change: So on this particular item, we're talking about and interpret to.
Speaker Change: Interpreted the difference and we controversy that so the first thing that follows is to go through the administrative method for which we have to respond before may 12, the special customs requirements, we received from <unk>.
Speaker Change: Those that were received at the Pickard who have been answered already.
Speaker Change: This.
Speaker Change: The.
Speaker Change: But that should be giving its real lag in the following months, making analysis of what we presented and they will confirm this required but are they will adjust it.
Speaker Change: It's called.
Speaker Change: The official liquidation. This official liquidation is administrative act.
Speaker Change: Such is acceptable to us.
Speaker Change: I'll ask legal action sports Gina and the law. So once we have this ruling.
Speaker Change: From the data, we will determine what path, we shall continue which can.
Speaker Change: Include the reconsideration that were asking for.
Speaker Change: Along with legal actions as if required we can have the reposition resources presented and we can even go directly.
Speaker Change: Two we will present at demand before the state Council. So this process is this is a dish dull process that can take time from two to five years before.
Speaker Change: Anything goes through.
Speaker Change: And let me talk about.
Speaker Change: <unk> of the reserves when it comes to reserve as a payments they will of course depend how the process develops and the need.
Speaker Change:
Speaker Change: Final rule Lake.
Speaker Change: And the payment has to be given by the state Council.
Speaker Change: If necessary.
Speaker Change: Our consideration today, it's worth saying.
Speaker Change: And based on the opinions given by attorneys.
Speaker Change: The possibility.
Speaker Change: That we will be.
Speaker Change: Kevin.
Green light with this is high why because the eventual provision.
Speaker Change: Will it be with the requirement of the external auditor that provision a reserve will depend on the development of the process.
Speaker Change: And the possibility of success of defending the arguments by Ecopetrol, so to and we're in a very preliminary stage preliminary stage, we only received the requirement to pay.
Speaker Change: For especially 2022 and 24 and first we have to go through the administrative.
Speaker Change: Past.
Speaker Change: And then the legal paths, so we hope that the effects on the accounting.
Speaker Change: And the payment eventual payment.
Speaker Change: We'll take two to five years as I said before and I hope with this.
Speaker Change: I have responded.
Speaker Change: All of your questions related to the payment of that fact.
Speaker Change: Thank you.
Speaker Change: We also have daniella guanabara Napa BG team.
Speaker Change: Hello, Good morning, Ricardo Camilla Rafael I have two brief questions. So my other colleagues have time to ask questions Quest first what's a sensibility for the production of Ecopetrol keeping in mind, if the company executes a capex reduction of 500.
Speaker Change: That you have with your austerity plan and second question.
Speaker Change: <unk> look could you please share with us what's the rent cash break even of the upstream business considering of course, the capex that you expect to assign to this business. This year. These are my two questions. Thank you.
Speaker Change: Danielle Good morning. This is Rafael Guzman and thank you for your question.
As Camillo said, 99% of the production.
Speaker Change: Has a break even a $55 per barrel.
Speaker Change: Now in terms of investment.
Speaker Change: We end up with the flexibility of Capex, We've announced we will give priority to the capex, especially for zales have best friends that create new production.
Speaker Change: And so far we haven't seen.
Speaker Change: Having to cut back on our Capex for production.
Speaker Change: We'd also like to give an example related to the prior question with the Permian, which we expect will be 90% to 95000 barrels a day and.
Speaker Change: With those new wells that we have it's close to 8% eight 9% of that production.
Speaker Change: And we also mentioned that we have drilled 75 wells this year.
Speaker Change: This example, also illustrates our effort to maintain capital and.
Speaker Change: The projects that remain in production.
Speaker Change: Okay, Danielle and with regards to the financial question I think it was covered by Rafael when it when we discuss the break even maybe it's important to mention that the expectations of the investments plan related with Capex.
Speaker Change: We announced to the market.
Speaker Change: <unk> plan that was approved at the end of 2024 and for this 2025, perhaps six to $6 $8 billion.
Speaker Change: Yeah.
Speaker Change: Of these six eight.
Speaker Change: There is a chance or the flexibility better.
Speaker Change: Our $500 million.
Speaker Change: And over that perhaps we should emphasize.
Speaker Change: That we will give priority to investments that protect production and reserve is firstly.
Speaker Change: And secondly, we will give priority to those investments.
Speaker Change: On projects that can contribute.
Speaker Change: The internal generation right away, meaning projects preferably.
Speaker Change: And operation stages brownfield projects that have positive of bad debts and increase the generation the internal generation of the company.
Speaker Change: And depending of this capex level if possible.
Speaker Change: And to stay in this range.
Speaker Change: Yeah.
Speaker Change: Without.
Speaker Change: Ruling out a chance depending of the performance.
Speaker Change: The prices, we will have even a more drastic plan of that capex depends the final a bit that that will have but as Rafael said.
Speaker Change: The breakeven of the EBITDA is below $55 a barrel. Thank you Rafael and Caboodle happy birthday.
Speaker Change: Thank you.
Speaker Change: The next questions will be in English, so we remind all the analysts to choose.
Speaker Change: The interpretation I can the language otherwise we cannot hear you.
Speaker Change: UBS has a question Mr vascular and sages asking a question.
Speaker Change: Hi, everyone. Thanks for taking my question two follow ups here on these breakeven discussion the first one at what point would echo Petros reviewing your strategy. We just discussed it quite a lot about the 55, Brent breakeven, but for how long would you need to remain below such levels.
Speaker Change: For Ecopetrol to change the strategy I assume of course would not be like a week or a month, but I think the question is exactly how is the company's evaluation process to change the strategy or the approach here a.
Speaker Change: Second question actually a follow up on this first one where do you view all the opportunities to reduce capex and costs.
Speaker Change: Branch remains lower for longer is it the $500 million the upstream business that you just mentioned on the slides the full potential or there could be other opportunities in which business would you prioritize the most and recharge. Your business you also see potential to reduce capex or expenses.
Speaker Change: If required those are the two questions. Thank you.
Speaker Change: We're not.
Speaker Change: Vasomotor bouquet that Todd so thank you for your questions.
Speaker Change: Let's wait for again.
Speaker Change: This is coming to a logical I missed the CFO I'd like to begin by quickly referring to the ranges.
Speaker Change: Of reviewing the strategy as you've mentioned and specialty I'll talk about the eventual reversion of the financial plan for 2025.
Speaker Change: And the three years three subsequent years.
Speaker Change: The most important thing I'd like to highlight here is that we constantly monitor the performance of the market.
Speaker Change: And there is a range determined from 60 to $65.
Speaker Change: A barrel, Brent which leads us to take measures like the ones we've announced.
Speaker Change: These ranges it's important to mention are not specific the range is it's not that the price of Brent and some debt determined days will touch this level instead.
Speaker Change: We're talking about average ranges for the year.
Speaker Change: The full year based on this first quarter and the forecast that we have for the rest of the year.
Speaker Change: No.
Speaker Change: While re re reach the average ranges for the full year closer to $60. In addition to the measures. We've met we've mentioned there could be a chance or we can evaluate the chance of re sanctioning or changing.
Speaker Change: The budget of 2025.
Speaker Change: When we see that there that that deviation.
Speaker Change: Our material enough to not meet the goals established for this year, so again beyond that discussion at the breakeven.
Speaker Change: When it comes to the planning and budget policy of the company the range of $60 per barrel average Brent for next year.
Speaker Change: <unk> says the chance of evaluating the re sanction.
Speaker Change: Financial plan for 2025.
Speaker Change: And now, let's give the floor and the opportunities of investment bench that you mentioned no.
Speaker Change: This is Rafael Guzman again.
Speaker Change: This $500 million that we mentioned of Capex, it's not only for the upstream business. It also impacts the mid and downstream and the other ecopetrol businesses even in corporate.
Speaker Change: And I'd like to mention also something.
Speaker Change: About that 1% of production that has a breakeven above 55, we've talked about the 99, a lot, but let's talk about that 1% because there we have important action part of the new goal that we have in efficiencies, which is a another billion pesos.
Speaker Change: Is for higher efficiencies included in these fields are more breakeven also in these fields.
Speaker Change: We have investment commitments for our partners not of Ecopetrol, but made by the partner, which will increase the production of these fields and therefore well.
Speaker Change: Decrease the breakeven.
Speaker Change: And we're not only looking at fields entirely but also.
Speaker Change: The production specific of wells and certain facilities.
Speaker Change: To maintain our production levels throughout the year, including with the current prices that we are revealing.
Speaker Change: So and I'd like to complement my answer.
Speaker Change: Related to your second question.
Speaker Change: Let me say that of course and eventual resumption of the plan would lead us to review the Capex.
Speaker Change: And every business line. This reversion would be cross sectional today, what we propose with a Brent expectations. We have is $500 million of flexibility to her.
Speaker Change: Help us to be in the lower range of the financial plan and proposed.
Speaker Change: But.
Speaker Change: While there is a persistent reduction.
Speaker Change: Of the prices, we can take more drastic measures again to protect to protect our production and reserves, but when more necessary we can intervene.
Speaker Change: Right.
Speaker Change: When it comes to the profitability and the break even of different well. So that's why we have a detailed analysis per assets.
Speaker Change: And we are.
Speaker Change: As the Goldman usage southern titles or any type of short term securities should pay delta balance those are the questions. Thank you.
Speaker Change: There's a lot of them, we wouldn't be guzman.
Rafael Guzman: So truth carnivals, but almost Jeremy good morning, Eduardo This is Raphael Guzman and the first quarter, we had a cost and fulfillment. So below $12. It's specific 11 25, that's we're announcing that we will keep it below $12 I'm sorry.
Rafael Guzman: Year most of it is also comes with the increase.
Rafael Guzman: The <unk> model.
Rafael Guzman: $1 billion on peso sells the mechanisms.
Rafael Guzman: To reduce the interest well maintenance.
Rafael Guzman: The soil video increasing the period in which you have to change the subject soil weapon and second is in and efficiencies in energy look around which we have been achieving it.
Rafael Guzman: Using less energy firms.
Rafael Guzman: And here, having lowered our rates of energy thanks to the commercial management blade.
Rafael Guzman: When it comes when it uses to get into more doors, we have really different <unk> and gentlemen that were placed in the pumps on others subsoil wells, but we also have them on the renegotiation of maintenance contract most of the analysts reusing material, Ian just to make that maintenance.
Rafael Guzman: At our facilities on the surface.
Rafael Guzman: Also as we saw in the first quarter.
Rafael Guzman: His hand in hand, with new hires with Euro exchange rate of the past. This was how consistent widen significantly in these andy's lifting Congo.
Rafael Guzman: I would ask been sorted out.
Rafael Guzman: Here are my.
Rafael Guzman: When it comes to a farm of pavement. After you had said on the call upon my parallel to the farmer.
Rafael Guzman: Talking about payment.
Rafael Guzman: <unk>.
Rafael Guzman: The test Treasury Manav NFL game in London.
Rafael Guzman: With that I'll ask you.
Rafael Guzman: And in Asia.
Rafael Guzman: That allows the caverns, those firewalls or so to make the.
Speaker Change: Pedro Jose, who will go through that <unk>, but through <unk>.
Rafael Guzman: Our direct paid mentioned earlier.
Rafael Guzman: So administering <unk> really the ministry of Treasury of the nation or mature man is in part how payments environment.
Rafael Guzman: However, its a good opportunity to mention when I know the GSM.
Rafael Guzman: Related to this industry, which as you know.
Rafael Guzman: Yes.
Rafael Guzman: The name <unk>.
Rafael Guzman: <unk> noted and the <unk>.
Rafael Guzman: Our neighbourhood rollout.
Rafael Guzman: The trial the lateral that you guys are in as they have only the <unk>.
Rafael Guzman: So it sounds like basic one.
Rafael Guzman: In 2024.
Rafael Guzman: <unk> payment of $2 2 billion peso, you say window partner payment by of what are we going forward got it great.
Rafael Guzman: Breaching seven point entangled failure and for like ourselves.
Rafael Guzman: Sure.
Rafael Guzman: <unk> 'twenty to 'twenty four users.
Rafael Guzman: And fourth order received by Ecopetrol biological centers, you with regards to the Endo Pago some received in the second payment. These short term titles to your job.
Rafael Guzman: Which were liquidated bands unmet sold to the market yet.
Rafael Guzman: Through <unk>.
Rafael Guzman: Banking.
Rafael Guzman: Margaret Sanders newness with the remaining payments.
Rafael Guzman: $2 2 billion some of these some part of the.
Rafael Guzman: Titles are part of the simultaneous transaction may move around and are used as collateral for our liquidity.
Rafael Guzman: <unk> obtained Daniels Midland.
Rafael Guzman: This year 2025, given the circumstances and the prices of UFC Laurie.
Rafael Guzman: Is that the conversation.
Rafael Guzman: <unk> will drop substantially although last year, we had 176 billion analyst projections when you create rice.
Dr Tang: Dr Tang.
Rafael Guzman: Here, the past quarter or two.
Rafael Guzman: Two 4 billion approximately.
Rafael Guzman: Went up our Ecopetrol and paper in my office.
Rafael Guzman: Closer to lower day rates in the demonstration phase will have your own way what adoption of payment is determined by the nation.
Rafael Guzman: And as a company we already have a habit.
Costa: Costa from Goldman Sachs. Mr Cluster ask your question.
Mr Cluster: Hi, everyone. Thanks for taking my questions I have a follow up on <unk> question on the form of payment of OPEC.
Mr Cluster: The recent news flow mentioned that you guys were being paid with some illiquid instruments right as you just explained.
Mr Cluster: I just want to confirm my understanding that you kind of liquidate if those already and having cash in hands right.
Mr Cluster: And my second question is on the Capex flexibility you guys talk about.
Mr Cluster: I understand you have some 500 million capex flexibility.
Mr Cluster: You cannot just not only on the upstream segment, but also on the downstream and so on.
Speaker Change: I would like to get a sense on what is the impact of production.
Mr Cluster: Your wood costs.
Mr Cluster: With the investments on the upstream division.
Mr Cluster: Yeah.
Mr Cluster: Yeah, when we tested it out did you add them all thank you for your question and where this is kind of the ladder.
Mr Cluster: Your question about lag and do you remember in that in D target with the payment lifter back what are you seeing in five 4 billion.
Mr Cluster: Was liquidated inaugurating titles were placed in the market is today.
Mr Cluster: Part of our cash flow and the liquidity of the Ecopetrol.
Mr Cluster: He's already lots and with regards to your second question I can anticipate that there is no impact on production.
Rafael Guzman: But listen to Rafael <unk>.
Mr Cluster: <unk>.
Mr Cluster: Yes, you're right coming along at about five <unk>.
Mr Cluster: I am going to file the NDA.
Mr Cluster: No.
Mr Cluster: When it comes to the 500000 that we haven't got back when the museum and we still have the same production goal keep that in mind.
Speaker Change: Good afternoon, everyone. Thank you the question and that will be more to it.
Speaker Change: Slightly raimo, Thank you Andrew.
Speaker Change: Good morning, Brett.
Speaker Change: The language and local Chilean question, otherwise, we can go with that.
Speaker Change: Got it from the lifestyle, they all kind of does handler.
Speaker Change: All that stuff.
Speaker Change: Or is yours.
Speaker Change: Good morning, everyone I would ask yes, Paul lack confidence yet.
Speaker Change: I have several questions.
Speaker Change: Questions Juan Camilo.
Speaker Change: Bill again.
Speaker Change: The topic of the <unk>.
Speaker Change: That's correct David.
Speaker Change: One is you're saying.
Speaker Change: 3.6, but you seem to February 3.3, the Olympics to Nick I would like to see what's the net effect on the cash.
Speaker Change: But that is it.
Speaker Change: The company this firsthand.
Speaker Change: So the couple of days.
Speaker Change: Our working capital all those things.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: It reversed.
Speaker Change: Yes, yes.
Speaker Change: Hum.
Speaker Change: Can we see it is a net effect on the cash flow.
Speaker Change: Well, we have and in fact, our module partner.
Speaker Change: Based on our $1 billion.
Speaker Change: This puts <unk> sorry, this is perfect.
Larry: That is correct Larry to understand.
Speaker Change: Second question is on those studies in the bridge.
Larry: And.
Larry: Separately.
Larry: Good morning.
Larry: And the last question from Helen Shan Shan.
Speaker Change: Jack on that then.
Larry: <unk> has capital.
Larry: It would have to.
Larry: Working capital However, what we are.
Larry: Getting there.
Larry: Required.
Larry: One of the D&O National Pizza day without paying you.
Larry: Got it.
Larry: Helpful.
Larry: We're trying to change is tight.
Larry: Making that.
Larry: So.
Larry: We're at the two buckets.
Larry: Working capital below <unk>.
Larry: But I'll comment.
Larry: And third I think.
Larry: David You gave us.
Larry: Perfect.
Larry: That library.
Larry: And I would ask.
Larry: Cushing is where they'd be upgrading scale escalation governance.
Larry: Rating.
Larry: Please download the stand alone <unk>.
Larry: <unk> rating.
Larry: Okay.
Yes, it's a very hot area.
Larry: Is a Saturday legislation so if you've got it what about Youre right I certainly one thing how would you talk with the rate.
Larry: <unk> is normal.
Larry: The balance has seen less of that.
Speaker Change: That has had higher leverage level compared to other oil companies. So if you could.
Speaker Change: Thank you Stephanie.
Speaker Change: I'm sure you guys have been made up only capture and how does.
Speaker Change: That six times that you're talking about.
Ricardo Dutra: Ricardo Mutuals garage Ricardo. Thank you. This is Camilla <unk> again lapping at operating impact with regards to your first question related to.
Ricardo Dutra: Two <unk> orders and Neal is the tax authority is about you have summarized it perfectly this year. Indeed, the payment allowed the tags from January to December means an effort made by US are $3 6 billion, although we have balances in favor of us.
Ricardo Dutra: The bat close to 5 billion today and it's possible to cross the these in the next months.
Ricardo Dutra: Tactically in the next 30 60 days, we've been able to cross.
Ricardo Dutra: The taxes in charge of that by the end of 2025 of you said of those 3.6, we expect to recover $3, three which would imply.
Ricardo Dutra: Total.
Ricardo Dutra: Appert of Ecopetrol is the cash of three.
Ricardo Dutra: 500 million pets and ahead, if this keeps on happening and we know that this will happen given the difference of rates.
Ricardo Dutra: To pay the bad versus that difference of right to collect Lafayette. It sure that we will have balanced says.
Ricardo Dutra: The taxes in our favor significant ones.
Ricardo Dutra: So in the next 60 days, we will have to pay the VAT.
With balances of taxes in our favor so that covers your first question.
Ricardo Dutra: Your second question is related to managing working capital in that $2 billion that our CEO referred to.
Ricardo Dutra: Fundamentally has to do with part of our contingency plan.
Ricardo Dutra: Under the protection of our cash flow and ensuring our liquidity and this fundamentally has to do.
Ricardo Dutra: Yeah.
Ricardo Dutra: With a central inefficient centralization of the groups that has to do with paying the dividends of of the affiliates several payments epoch of Petro two words subsidiaries capitalizations of subsidiaries.
Ricardo Dutra: Which are deferred and time.
Ricardo Dutra: And we'll be more adjusted to the timetables required.
Ricardo Dutra: And our investment plans.
Ricardo Dutra: And really at the management of inventories of accounts payable and receivable.
Ricardo Dutra: Measures guided to increase the efficiency.
Ricardo Dutra: Of the cash pooling.
Ricardo Dutra: Of the subsidiaries.
Ricardo Dutra: Managing the accounts and the <unk> as part of their working capital.
Ricardo Dutra: Our expectation is that here, we can increase it by 2 billion. The total this year the amount of the cash available and now your third question related to the adapt your question very pertinent and one of our main working goals.
Ricardo Dutra: Is that today, yes, the rating firms are still applying a criteria, which in our opinion.
Speaker Change: Everytime genes.
Ricardo Dutra: To be.
Speaker Change: Less technical.
Speaker Change: Because indeed as a group we incorporate Isa.
Speaker Change: Which is a group that contributes.
Speaker Change: The most proportion.
Speaker Change: Or the most of.
Speaker Change: Of the of the depth and since Isa.
Speaker Change: Is regulated it can leverage as investments for two point times EBIDTA and today this implies a reading.
Speaker Change: That's not precise when it comes to the indicator of the debt to EBITDA of the Ecopetrol group.
Speaker Change: And as you said within the indicator of the industry 2.2 times looks high yes, but when you exclude the part of the tab Debbie said the indicator of Ecopetrol is one six times in terms of adapt.
Speaker Change: So that makes sense.
Speaker Change: Hi.
Speaker Change: Two a lower range of adapt this is circa ongoing conversation that we have with the rating firms and what they've said is that while the contribution of the about.
Speaker Change: Companies like Acer and send it to which is about 42% of the EBITDA surely this discussion.
Speaker Change: Can be given more and more our expectation.
Speaker Change: As to adjust the methodology used by the rating firms. So they keep in mind. These factors allow us to have a adapt space.
Speaker Change: Other group.
Speaker Change: That has energy with oil.
Speaker Change: Thank you so much.
Okay.
Speaker Change: Today, we have Andres Cardona from Citibank I, Mr. Cardona, you can ask.
Speaker Change: Good morning, everyone I have three questions first recently, we saw in the company.
Speaker Change: Making several acquisitions and the arching segment.
Speaker Change: Our renewables that can possibly close another assets I understand too.
Speaker Change: To be sold.
Speaker Change: So tell us about the appetite for more inorganic growth.
Speaker Change: With the oil price at $60.
Speaker Change: Which.
And you've got a barrel of $73 per barrel and also with the effect of that liability and Latvia and Dionne.
Speaker Change: First question second question could you clarify how many barrels are consolidated in our cause C. In the first quarter.
Speaker Change: Because of the higher participation and third the media is saying that shell.
Speaker Change: Potentially leave the offshore project.
Speaker Change: Are you capable to phase development of this project.
Speaker Change: Loan.
Speaker Change: And what permits environmental permits.
Speaker Change: Our pending.
Speaker Change: Too so that the project.
Speaker Change: Can move to the next stage and how feasible is it to have those permits because of the recent postures.
Speaker Change: And the Ministry of the environment et cetera. So these are my three questions. Thank you. Thank you for taking them.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: And thank you for your question this fiscal year levels and the corporate.
Speaker Change: Precedent.
Speaker Change: <unk> strategy.
Speaker Change: Firstly as Ecopetrol, we have.
Speaker Change: Investments planned belt as you've said with a Brent of $73, yes, and all of the inorganic investments we've evaluated.
Speaker Change: And we're constantly evaluated have to meet working discipline.
Speaker Change: Criteria.
Speaker Change: There's no doubt right now.
Speaker Change: We have to review.
Speaker Change: Those opportunities that we're seeing.
Speaker Change: But we are also convinced that just as we've hydrocarbons.
Speaker Change: And other projects.
Speaker Change: In renewable energies, we have to review them and to find a way to make the progress because they do contribute to the financial sustainability of the group.
Speaker Change: And of course, we cannot just leave them.
Speaker Change: Suddenly.
Speaker Change: Surely the setting would make us be more strict with our criteria and more creative with the mechanisms that we can have to carry out these transactions.
Speaker Change: Mean.
Speaker Change: Cash generation structuring adapt.
Speaker Change: Or the rotation of our portfolio for the next two questions slots here Rafael Guzman.
Andres Cardona: Andres Good morning, Rafael Guzman speaking.
Speaker Change: For your question on Arcata, Yes.
Andres Cardona: Yes, comparing the last quarter of <unk>.
Andres Cardona: Last year with the first quarter of this year, we had an increase of 16000 barrels of crude oil.
Speaker Change: National of Ecopetrol group of these 10600 correspond to.
Andres Cardona: 245%.
Andres Cardona: Which was the acquisition we made of reps. So let me highlight in this field of <unk> since we have 100% of the synergies that we have between this field and the <unk>. We have 200000 barrels in addition.
Andres Cardona: So it's not only themselves, but it's just because of the synergies.
Andres Cardona: And the increase of oil crude oil in Colombia comes from <unk> Sood.
Andres Cardona: The next question regarding the development.
Speaker Change: Oh, the discoverer <unk> coverage of K G G in the Caribbean, Yes shell.
Speaker Change: It will seed its participation to ecopetrol and firstly, yes, we are capable to assume the operation on their own the development.
Speaker Change: Has more with the engineering.
Speaker Change: With the National <unk>.
Speaker Change: <unk> says that women at Pratt procedures with the Ministry of mines, and the Craig to have disconnection, mainly.
Speaker Change: As far as the environmental permits led tiered Alta habits can talk about this thank you Phil good morning, Andreas with regards to the environmental.
Speaker Change: Permits pending.
Speaker Change: Right now we are.
Speaker Change: Under way with the exploration permit and also the environmental and.
Speaker Change: And to connect the cats.
Speaker Change: Offshore with the National Transportation system and within this big prices, which is the study of environmental licenses. The first part has to do with the prior giving disclosures with the communities that are nearby so right now we're designing the connection.
Speaker Change: That duct that oil back to pipeline.
Speaker Change: The AD managing with the a.
Speaker Change: A N C P.
Speaker Change: The certification of the communities that would be impacted to precede the with the prior consultation once we have agreements with the communities we will present their requests.
Speaker Change: The environmental permits and if it's feasible to have them, yes. It is and we've been working with the on the.
Speaker Change: Understood. Thank you let me could you please precise.
Speaker Change: Is there an appetite for new operations.
Speaker Change: Where I know you have several underway, but ahead do you does it go up it will have an appetite for new opportunities of growth.
Speaker Change: Organic given the prices of oil which are much lower.
Speaker Change: And the risk.
Speaker Change: Of the Dan liability.
Speaker Change: It is as I've mentioned the appetite is there, yes, we have strategic goals to incorporate reserves inorganic and megawatts and constantly seeking opportunities to have diversification into enhance our portfolio.
Speaker Change: And again.
Speaker Change: We want we want to do is to be much more strict with the criteria. We have U we use and we have to be very creative.
Speaker Change: So again, we will if we are evaluating options. We are aware that the moment of the moment now, but we're also aware of the needs and the strategic goals of the organization and how the MAA M&A is very important to that.
Speaker Change: Let me complement other is related to the eventual contingency.
Speaker Change: Deanne.
Speaker Change: It's important to to say.
Speaker Change: Yeah.
Speaker Change: That the perspective, the future perspective of paying the bat does it really have a big impact on our cash flow and remember it was 300000 million pesos in 2025.
Speaker Change: But.
Speaker Change: When it comes to the controversy rising from the interpretation.
Speaker Change: Of the opinion given by Deanne.
Speaker Change: The effects that could take place eventually again.
Speaker Change: We'll be seeing at a long term basis once the rulings are made and the.
Speaker Change: Judicial purse process takes place so we will be taking the actions and using their resources foreseen in the law and this will take no less than two years.
Speaker Change: Thank you.
Speaker Change: Next question Brown Sand Hill Torres from Colorado, WB and Theyre Mr. Taurus.
Speaker Change: Good morning, and thank you for reshaping my questions I have one.
Speaker Change: Okay.
Speaker Change: With what you mentioned.
Speaker Change: That February 28th Ecopetrol entered a contract.
Speaker Change: Two four regasification.
Speaker Change: Could you please give us more details about that contract.
Speaker Change: <unk> and its capability.
Speaker Change: How much will cost will be the cost annual cost for Ecopetrol and how for how long will you have this service.
Speaker Change: Contracted.
David: Good morning. This is David the annual the executive VP of energies for transition.
Speaker Change: Thank you said here for your question.
David: As we've announced before.
Speaker Change: This is a contract in which.
Speaker Change: Ecopetrol acquired services of Regasification and this session was taken.
Speaker Change: Keeping in mind all of our working capital.
Speaker Change: Acquirements when it comes to this particular case first it's to acquire the Regasification rights.
Speaker Change: Which has been announced later and as we've said also in several sectorial settings wafer will proceed.
Speaker Change: To acquire the molecule the LNG that will be placed at the facilities of Regasification and long term contracts under the best price conditions.
Speaker Change: And domestically that amount of gas will be sold.
Speaker Change: That way the group expects to generate value.
Speaker Change: He has lived through this transaction specifically at the duration this contract.
Speaker Change: Has that commitment for that for five years counted as of the moment. When the facility is commissioned the detail of the price of a third of the Regasification is <unk>. It's confidential however.
Speaker Change: But.
Speaker Change: Our CEO.
Speaker Change: Recently said that this year, we will begin the <unk>.
Speaker Change: The commercialization process publicly so everybody can participate.
Okay.
Speaker Change: Here, we have a lot I had a drive from J P. Morgan.
Speaker Change: Hello. Thank you for taking my question I'd like to understand.
Speaker Change: And the potential of acquiring new DAP to you said for MAA.
Speaker Change: And also the possibility of going to international markets.
Speaker Change: That current cost is much more expensive are different.
Speaker Change: Your stand that you'll be more cautious with Emma and age, but I'd like to understand if there is a chance of going out to international markets to issue that are.
Speaker Change: Or do you want to remain more.
Speaker Change: <unk> or if theres efforts off of.
Speaker Change: Off the table.
Speaker Change: Go outside.
Speaker Change: Thank you Alejandro.
Speaker Change: This is coming to the article or the CFO.
Speaker Change: With regards to the additional <unk>.
Speaker Change: I'd like to remind you that our investment plan organic.
Speaker Change: Does not have an increase stepped and the inorganic component.
Speaker Change: We have confirmed even under these circumstances.
Speaker Change: That every opportunity for a bit of an inorganic investment is being evaluated very very closely and with the caution that you have mentioned.
Speaker Change: This means that we prioritize the investments, which today have the capability to contribute and generate enough to elaborate the investment itself, meaning projects that are under operation and have a bet.
Speaker Change: That's enough to serve the adapt.
Speaker Change: We work in each of these opportunities looking at the finance looking at the evaluation of everything.
Speaker Change: Yeah.
Speaker Change: On this it's also worth mentioning that this year.
Speaker Change: We have formalized transactions are closed transactions, which are financed also.
Speaker Change: We refer to the presentation to the financing of $500 billion, which fundamentally is part of the cash of the group, but will cover part of the investment made in the CPO zero nine asset.
Speaker Change: And in the future what we foresee is that we will try.
Speaker Change: Okay.
Speaker Change: To see financing options that are structured more and banks, we monitor constantly the market.
Speaker Change: Only.
Speaker Change: If there are conditions and levels of rates.
Speaker Change: That will allow us to go out to the market this year.
Speaker Change: We will be evaluating those possibilities, but right now we don't see them.
Speaker Change: And really we're focused.
Speaker Change: If we have to fitness and organic opportunities these will be structured.
Pi dance.
Speaker Change: Specific operations, mainly using banking bank related financing.
Speaker Change: Thank you.
Speaker Change: Next question from address to our type of coffee Columbian now addressed the floor is yours.
Speaker Change: Good morning, everyone and thank you for taking my questions and for your presentations.
Speaker Change: Three follow up questions.
Speaker Change: First.
Speaker Change: Since Riccardo rollout the CEO Jess remembered that sentence ability not only comes from with prices, but also from the devaluation I'd like to know.
Speaker Change: What exchange rate are you assuming for the breakeven of $55 per barrel second question.
Speaker Change: Please explain again.
Speaker Change: In case, you did I'd add did I understand it well that component of the 2.2 billion used as collateral related to what you just talked about the fab Tech. Please explain it what that consists of I did understand it and third and last.
Yeah.
Speaker Change: Has to do with M&A, but more focus not on oil and gas could you specifically refer to mono meadows electrical.
Speaker Change: Generators had the next and I'm asking because you said yesterday said that it had discussions with that company and mono Meadows I don't know if that was an initiative of the company itself I guess not but could.
Speaker Change: Could you please refer to possible acquisitions.
Speaker Change: Those thank you.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay address thank you for your questions. This is coming in a lot of cool again.
Speaker Change: And let me answer two of your three questions mainly.
Speaker Change: The exchange rate used that we.
Speaker Change: In our investment plan is 4150 pesos a dollar.
Speaker Change: And that sensibility over the variability is indeed is made using this rate. This this exchange rate.
Speaker Change: As far as your second question, we're talking about simultaneous operations.
Speaker Change: In other words these are operations of short term financing with a collateral.
Speaker Change: And this case.
Speaker Change: Our short term tests.
And long term that we have in possession.
Speaker Change: To guarantee.
Speaker Change: The payment of the short term obligation, meaning this is a credit line from treasury guaranteed withheld collateral.
Speaker Change: For which we give this short term tests. So there we can still identify.
Speaker Change: The episodes share we're talking about the payments have put back the 2.21st Bill yet past shows that we received in March to pay the first fab Tech.
Speaker Change: Payment is.
Speaker Change: Used as a collateral for the tests.
Speaker Change: Credit.
Speaker Change: With the drop of the exchange rates with all of our Central Bank surely this transaction will be liquidated it will be lip made liquid like we did with the other tests titled So again.
Speaker Change: This has been placed in the market these were liquidated or sold.
Speaker Change: Through the brokers bank of the banks.
Speaker Change: So these are the two questions that I have addressed for you. Thank you camilo.
Speaker Change: <unk> said this has really added minimalist our corporate VP strategy, new strategies businesses. So let me talk about three aspects for you first.
Speaker Change: M&A is a confidential nature for us, but let me talk with you with what I can address firstly ecopetrol has not announced that it will or by electrical companies. There are two potential businesses for remote self generation.
Speaker Change: To cover the needs of electrical need of Ecopetrol itself.
Speaker Change: So with that we will continue with two projects that are subject to the precedent conditions too.
Speaker Change: Care to take that to carry them out and it and Jeff says we have strategic goals to incorporate reserves. We also have strategic goals to incorporate megawatts that are renewable for our own consumption.
Speaker Change: With regards to other topics I'd say that our corporate ROIC constantly evaluates options.
Speaker Change: The oil chain, including petrochemicals fertilizers throughout the analysis made recurring labor regularly we monitor the opportunities out there and the opportunities that are not out there.
Speaker Change: And well I'm not talking about one company, specifically here, but I'd like to underscore that our company.
Speaker Change: And our process really does evaluate the options to diversify and capture value.
Speaker Change: Throughout the entire chain with inter next that you mentioned what is said yesterday, let me tell you what precedent ROA, perhaps in the last call mentioned the conversation is out there yes, it's covered by competent challenge, however, and when we have a potential.
Speaker Change: Agreement with Isa, we will reported to the market.
Speaker Change: We cannot announce anything now. Thank you. Thank you. Thank you so much for your answers.
Speaker Change: Next question comes from MS, Stephanie I must get up.
Speaker Change: Got it wrong capital.
Speaker Change: Good morning, everyone and thank you so much for the time.
Speaker Change: I have three questions I think they're quite brief.
Speaker Change: Let me begin with one that's a follow up of what address ask and its.
Speaker Change: We've heard comments in the market by potential.
Speaker Change: By the purchase of web Kashi do you have any comments about that.
Speaker Change: Thank you Stephanie this is full year levels.
Speaker Change: The corporate VP of.
Speaker Change: Do businesses, what I can mention is that we are waiting for the compliance.
Speaker Change: Got precedent conditions.
Speaker Change: Made the contract with Enel.
Speaker Change: The authorization of the integration by the Sigma has been made and when we reach the precedent conditions, we can make the announcements and the details of the transaction I would like to underline that this is not buying and electricity.
Speaker Change: Plant, it's for that remote electricity to serve the electrical consumption only of Ecopetrol.
Speaker Change: Remember our capital as the main consumer electrical energy of the country. So these types of acquisitions do contribute to the power supply strategy that we have on our medium and long term basis perfect. Thank you.
Speaker Change: The other question is.
Speaker Change: On the midstream that we Havent discussed.
Speaker Change: What impacts do you see other midstream on revenue.
Speaker Change: Given the lower prices of oil today.
Stephanie: Good morning, Stephanie.
Speaker Change: I am the president of Citi.
Speaker Change: What we see at a short term basis the impact is small.
Speaker Change: And as Rafael said that production does go hand in hand, with our expectations of the year in terms of revenue. So you mean that there is no way in taxation of the rates on the oil prices no perfect.
Speaker Change: Perfect. Thank you so much to add.
Speaker Change: Going back to the Regasification I understand that you are a sub of hiring the capacity of re gas have buying.
Speaker Change: But how would the.
Speaker Change: Or what.
Speaker Change: Bedrock, what can you clarify what the licensees that you would need to have this gasification this re gasification.
Speaker Change: And.
Speaker Change: Milestones needed for this.
Speaker Change: This is debbie.
The executive VP of energies for transition.
Speaker Change: As we've said before.
Ed: Ed you've underlined.
Ed: With the Pacific we are hiring the services of Regasification and which the contractor is in charge of building the facilities operating them and maintaining them to meet.
Ed: The availabilities of the service demanded in the contract.
Ed: As far as the permits the contractor already has them, especially the environmental authority has certified that they don't need the environmental license in the facilities.
Speaker Change: At Borgata.
Speaker Change: And the permits and why now and daughter are in effect.
Speaker Change: So.
Speaker Change: According to the timeline of the contractor the construction will begin June 28 this year.
Speaker Change: So.
Speaker Change: That way, we can have the commissioning.
Speaker Change: Of the contract or even before the date pack.
Speaker Change: <unk> great. Thank you so much for your answers.
Speaker Change: Thank you there are no more questions.
Speaker Change: So now let's read the questions of the Chad Peter asks can you share an update on the discussions made and importing G. F. G M L.
adrianne: Again this is now adrianne yet.
Speaker Change: In addition to what we've mentioned in this call on the contracting a regasification.
adrianne: In the Pacific.
adrianne: And as we also mentioned in the sector. There are two additional initiatives in the Caribbean that seek to make use of facilities up at <unk>. One it's called by Jana LNG, which would connect one loading unit for.
adrianne: For Regasification to the tissue pave platform, which already is connected to <unk> and to the national grid of gas.
adrianne: That's managed by T. G I N in the Caribbean and also Brian make US and then the second project that Caribbean, It's call Karen Yes LNG.
adrianne: Which will use the facilities have Senate and that area of the country and will connect to the gases.
adrianne: Through the conversion of the group, which Hubble cornea. This is advancing yes.
adrianne: We already have contractual bowl designs.
adrianne: And were make the consultations before are the environmental authorities had Seo authority is to obtain permits quickly and to have this re gasification.
adrianne: One or both or it by 2027 in parallel we've begun this year.
adrianne: The requirements for the LNG and the international market, we already have non binding offers.
LNG providers.
adrianne: And overseas and while we have we can.
adrianne: <unk> the permits.
adrianne: We can get the molecule.
adrianne: Yeah.
Speaker Change: Alejandro Sanchez from Alleanza sets do you plan to incorporate reserves this year for that got to the motto.
adrianne: Project are these.
Speaker Change: Our proved probable or possible.
Speaker Change: Accounting wise could you give us more details about the situation, although <unk> refinery because the charge dropped 8%.
Speaker Change: Year, but the plants began only three days before the first quarter ended.
Speaker Change: This is Rafael Guzman, let me answer the first question I've got the little motto. Indeed, we are going to incorporate proven reserves this year given.
Speaker Change: The detection of investment and the project last year, we had certified added 12 million.
Speaker Change: Barrels of oil.
Speaker Change: For contingency.
Speaker Change: The contingency was the approval of the development plan from the partners, which did take place this quarter.
Speaker Change: And most of these resources will go to proven reserves and that the other part to non proven reserves.
Speaker Change: Good morning. This is phillipe it region B P.
Speaker Change: The industrial processes, the decrease of 8% and the charge of the refinery barrancabermeja in the first quarter is for three things one.
The schedule stop of the oil and the hydro treatment, which stopped the operation. The second is the lower availability of light crude oil, especially in casually board, which does hit our.
Speaker Change: I heard the processing like the lubricants and the paraffin.
Speaker Change: And third.
Speaker Change: It relates to the maintenance of the U a E.
Speaker Change: A P two which began at the end of the quarter days before.
Speaker Change: The operators the operations were just so then this effect that the availability, but it's important to keep in mind that this is a 74 day overhaul.
Speaker Change: Stoppage, it's part of the timetable or or the or the schedule.
Speaker Change: And we expect with the op it to a contribution of very very important after the second semester.
Speaker Change: Or do you in a couple of her balance sets on.
Speaker Change: On the best on the main and the midstream business is there any relevant update on.
Speaker Change: The tariffs that should take place.
Speaker Change: For the 23 27 period, what's the impact expected.
Speaker Change: From Adler and there'll be Atlas.
Speaker Change: Good morning.
Speaker Change: This is Alexander Karlan again.
Speaker Change: Think that there is no update.
Speaker Change: And the rates or tariffs, but I'd like to remind you the process that we have experience to update the tariff.
Speaker Change: Well, it's been a years since we since the resolution was issued.
Speaker Change: And the agents the producers.
Speaker Change: And.
Speaker Change: The companies of transportation presented comments about it.
Speaker Change: And they were given.
Speaker Change: The on time to the Ministry of mining the number of comments, where so many that the ministry.
Speaker Change: <unk> two reviewed them with different agents meetings had regular meetings have been held technical meetings to review the impact on the tariffs.
Speaker Change: But now there is no estimated date for the for the final resolution, it's important to clarify that Meanwhile, we apply the tariffs are in force and an August 26, the Ministry published resolution 285, which enabled.
Speaker Change: Annual tariff that was included in the prior methodology. This was made as of September 1st it's important to highlight that this is part of what's explain explains the higher EBITDA of the midstream.
Speaker Change: <unk> seen compared to the first quarter of last year.
Speaker Change: So the big Ole Miss from Ashburn asks why does the plan presented by Ecopetrol to 2040 has the capex for <unk> almost half of what.
Speaker Change: This represented for its own 20 for your strategy.
Speaker Change #100: Good morning on the question.
Speaker Change #100: Regarding the environmental license says against different data energy and Ecopetrol, that's important to highlight that the procedure just began.
Speaker Change #100: La has not charged any of these companies we are in the initial phases once the charges.
Speaker Change #100: Our established we will respond them and defend them.
Speaker Change #100: Under the administrative proceedings.
Speaker Change #100: Yeah.
Speaker Change #100: Okay.
Speaker Change #100: Camilo article again.
Speaker Change #101: CFO and let me answer your question related to the investments plan announced recently by ESR.
Speaker Change #101: Talking about its 20th for your strategy versus the figures that possibly.
Speaker Change #101: We have an investment plan.
Speaker Change #101: Of this company.
Speaker Change #101: I'd like to mention that yes.
Speaker Change #101: The strategic investment plan disclosed recently by Isa.
Speaker Change #101: Is reviewed and adjusted.
Speaker Change #101: And it's conciliate, what the investment plans of Echo Petros.
Speaker Change #101: Bed set plan by 2040, and there are major challenges not only with the investments that are growing but to renew some concessions now at Ecopetrol, we are analyzing and reviewing this strategy.
Speaker Change #102: And Shirley.
Speaker Change #102: There we can align the investment plans that go between 28 and 33 billion pesos.
Speaker Change #103: No $28 billion to $33 billion for 25 to 2040.
Speaker Change #104: Allow me to end this call. Thank you thanking all of you for joining us with the following messages ecopetrol firmly bets on the <unk> plan with the flexibility and.
<unk> enhancing the fundamentals of the business of hydrocarbons, even and the middle of the complexities that we're saying second will real remain.
Speaker Change #104: The idea of growing our business as.
Speaker Change #104: We have a discipline with our working capital and the idea is always to benefit society, and our shareholders and we will continue.
Speaker Change #104: Measuring monitoring sensible assessing and evaluating every element that can hurt the liquidity and the leverage of growth of.
Speaker Change #104: That can hit or hurt the company, which.
Speaker Change #104: Which has to do with the ability of purchased that we will reach in savings at the end of the year and all this together, we can build and making our backup.
Speaker Change #104: Make this company the company ever.
Speaker Change #105: Thank you. Thank you all and with this we add this earnings call for the first quarter of 2025. Thank you for joining US you can leave now.
Speaker Change #104: Yeah.
Speaker Change #104: [music].