Ecopetrol net income jumps 85.6% to 4.758 trillion pesos in third quarter
Key Facts
Ecopetrol said on November 12 that net income reached 4.758 trillion pesos in the third quarter of 2026, up 85.6% from 2.563 trillion in the same period last year. Net income for the first nine months reached 13.709 trillion pesos, up 82.7% year on year. Quarterly gross sales rose 17.5% to 35.064 trillion pesos, while earnings before interest, taxes, depreciation and amortization reached 15.871 trillion, with a margin of 45.3%, compared with 41.3% a year earlier. The company said in its report that the pricing environment was a key driver of results, helping offset operating pressures from lower production and scheduled maintenance at the Barrancabermeja refinery. The results showed growth in earnings and sales despite lower production, with a limited contribution from Brava Energia after consolidation began.
The company attributed part of its revenue growth to a rise in the weighted average selling price of its product basket to $105.6 per barrel, adding 11.4 trillion pesos. This positive effect was offset by a decline in the average exchange rate, which reduced revenue by 5.9 trillion pesos, and lower sales volumes, which cut 1 trillion pesos. Consolidating Brava's September results added 1.1 trillion pesos to revenue. Brent averaged $91.3 per barrel in the quarter, compared with $68.2 a year earlier, while the average price of the crude and products basket rose to $110.3 from $73.6, an annual increase of 49.9%. Ecopetrol said the basket recorded a premium of $19 per barrel over Brent, the highest across the group since 2015.
The integrated gross refining margin was $45.6 per barrel, a quarterly record, compared with $14.3 in the third quarter of 2025, an increase of 219%. Refining segment earnings before interest, taxes, depreciation and amortization reached 4.125 trillion pesos, up 426.8%, with a margin of 18.8%. Refining activity improved while the company said scheduled maintenance at the Barrancabermeja refinery had weighed on operations. By contrast, the group's average production fell to 747.3 thousand barrels of oil equivalent per day from 751.2 thousand a year earlier, down 0.5%. The figure included 38.6 thousand barrels per day of Brava production on a 100% consolidation basis, starting August 18.
Ecopetrol completed its acquisition of a controlling 51% stake in Brava Energia on August 17, for $1.123 billion. The company began consolidating Brava's revenue and expenses in its results from September, so the quarterly figures included one month of its financial contribution. Brava added 0.6 trillion pesos to earnings before interest, taxes, depreciation and amortization that month, and 0.1 trillion to net income. Ecopetrol cited declining international production, particularly in the Permian Basin, and lower natural gas and natural gas liquids output among the reasons for the production decline. It also pointed to natural field decline and water-handling constraints, while Brava's contribution offset part of the production decline in other areas.
The effective tax rate rose to 37.7% in the third quarter, from 31.2% a year earlier. The company attributed the increase to the wealth tax and the surtax on income, which rose from 0% in 2025 to 15% in 2026. For the first nine months, Ecopetrol said higher oil and refined-product prices added 13.5 trillion pesos, partially offsetting the effects of a lower exchange rate and inflation-driven cost increases amounting to 4.1 trillion pesos. The higher tax burden added a negative impact of 2.1 trillion pesos over the same period. Consolidated cash at the end of September stood at 16.3 trillion pesos, of which Brava contributed 3.1 trillion, while the company's receivables from the fuel price stabilization fund reached 11.4 trillion pesos.
The group's organic investment totaled $4.766 billion in the first nine months, with 65% directed to Colombia and 35% to international operations. Cumulative operating cash flow reached 22.004 trillion pesos, compared with 25.047 trillion in the same period of 2025. The ratio of gross debt to earnings before interest, taxes, depreciation and amortization was 2.1 times at the end of September, below the company's 2026 upper limit of 2.5 times, while net debt stood at 1.9 times the same measure. In exploration, the company said it drilled 9 wells in the first nine months, completing its full-year 2026 target ahead of schedule. It expects to drill 3 additional wells in the fourth quarter.
Chief Executive Joaquin Gutierrez said in a letter in the report that the company "is beginning a new phase focused on strengthening business competitiveness, restoring market confidence and executing a strategy aimed at creating sustainable value." Ecopetrol shares closed at $15.30 on November 11, then at $15.32 on November 12. The company's management is scheduled to hold a virtual conference to discuss the results on November 13 at 10:00 a.m. Colombia and New York time. The company said the conference will be broadcast in Spanish and English. The event follows the results announcement, while the announced drilling program extends into the fourth quarter.