Ecopetrol positions for the rebound

The twin shocks of Covid-19 and the oil price collapse have severely impacted the company’s bottom line, but it is well-placed to bounce back

Colombia’s state-controlled oil firm Ecopetrol suffered a 95pc drop in first quarter net profits, as the coronavirus pandemic and sunken oil prices ravaged the sector. But analysts say its commanding share of the Colombian oil industry means it remains resilient in a weak price environment. Ecopetrol brought in a $34.2mn net profit in the first three months of 2020 compared with $705.6mn  in the first quarter of 2019. But, while net profit collapsed, Ebitda was down by only 28.5pc year-on-year, reaching $1.35bn compared with $1.89bn. “[This year began] with growth prospects and a defined path,” says Ecopetrol’s CEO, Felipe Bayon Pardo. “However, by the end of the first quarter, we confronte