Colombia's Ecopetrol reports a 46% drop in profit as oil prices fall

Ecopetrol, Colombia's state-owned oil company, reported a 46% drop in its net profits for the second quarter 2025. This was due to lower oil prices globally, which impacted sales. Production also decreased.

The company reported a net profit of 1.81 trillion pesos ($450 million) for the three-month period ending June, compared with 3.38 trillion pesos a year ago. Total sales were 29.67 trillion, down 9% compared to 2024's same quarter.

Ecopetrol's shares, which are owned by the Colombian Government to the tune of 88.5%, have seen lower prices on all its products. This includes a 20% drop in its crude oil sales for the third quarter. However, its gas prices were stable, only dropping 0.7%.

Ecopetrol’s total production fell 0.5% on an annual basis to 755,500 barrels equivalents per day.

At the end of June, it had 13.14 trillion pesos (about $2.58 billion) in cash. This was mainly invested in exploration and production in Colombia's central Meta Department as well as in international projects in Brazil or the United States.

As OPEC+ increased production, the energy sector was hit by price volatility. Brent crude oil prices fell 11% globally in the third quarter.

Benchmark Brent crude hit $67 a barrel in the second half of the year, down from $85 and $75 in the first quarter.

Pemex, the state-owned oil company in Mexico, and Petrobras in Brazil, despite being hit by lower oil prices, have managed to turn a profit from losses incurred a year ago.

(source: Reuters)