Proposed distribution of Ecopetrol’s 2021 results
Bogotá – Colombia, March 1, 2022 /PRNewswire/ — Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) (“Ecopetrol” or the “Company”) hereby informs of the proposed distribution of the Company’s 2021 results, approved by the Board of Directors of ‘Ecopetrol SA, which will be submitted for consideration by the General Meeting of Shareholders to be held on March 30, 2022:
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2021 PROPOSED DISTRIBUTION OF PROFITS |
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(Colombian Pesos – COP) |
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Net income after provision for income tax |
16,694,683,910,302 |
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+ Release of reserves from previous years |
5,886,440,765,975 |
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Occasional reserve for sustainability |
5,377,359 162,612 |
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Excess tax depreciation reserve (Art.130 ET.) |
509 081 603 363 |
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– Legal reserves of the current year |
2,178,549,994,393 |
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Legal reserve (10%) |
1,669,468,391,030 |
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Reserve for excess tax depreciation (Art. 130 ET.) |
509 081 603 363 |
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Available to shareholders |
20 402 574 681 884 |
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It is proposed to distribute as follows: |
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For dividend payments: |
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Ordinary dividend – According to the dividend policy (Payment1 59.8% of net income) |
9,991,356 809,717 |
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Extraordinary Dividend (Payment 2 9.1% of net income) |
1,521,317 703,538 |
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Total (total payout of 69%): |
11,512,674 513,255 |
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Allocated to the occasional sustainability reserve: |
8,889,900 168,629 |
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Total: |
20 402 574 681 884 |
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Total ordinary dividend payable per share |
$243 |
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Total exceptional dividend payable per share |
$37 |
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Total dividend payable |
$280 |
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The ordinary and extraordinary dividend payment date for minority shareholders will be April 21, 2022. For the majority shareholder, the ordinary and extraordinary dividend payment will be made in installments during the remainder of the calendar year.
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1 A dividend payout ratio of 60% established in the policy was applied to net earnings, resulting in a dividend per share with decimals, which was rounded to the nearest number in COP/share, resulting in resulted in a payment not exceeding 60%. The indicated payout percentage is rounded to the first decimal place.
2 An extraordinary dividend of 9% was applied to the net result, resulting in a dividend per share with decimals, which was rounded to the nearest number in COP/share. The indicated payout percentage is rounded to the first decimal place.
Profit distribution proposal, consistent with the Company’s current dividend policy, proposes an ordinary dividend distribution of 59.8%3 of Ecopetrol’s net income in 2021, equivalent to the COP $243 per share.
In addition, the Company’s Board of Directors, given the strong financial performance of all segments of Ecopetrol, the Brent price outlook for 2022 and its stability, is also proposing an exceptional dividend of 9.1%3 of Ecopetrol’s net income in 2021, equivalent to the COP $37 per share, for a total cumulative dividend of COP $280 per share. The total dividend payment is aligned with the objectives set in the 2022-2024 Business Plan announced to the market by Ecopetrol on February 8, 2022.
Similarly, the Board of Directors proposes the allocation of COP $8,889,900,168,629 to an occasional reserve to support the financial sustainability and flexibility of the Company in the execution of its strategy.
Ecopetrol is the largest company in Colombia and one of the leading integrated energy companies in the Americas, with more than 17,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most of the transport, logistics and hydrocarbon refining systems, and holds leading positions in the petrochemical and gas distribution segments. With the acquisition of 51.4% of the shares of ISA, the company participates in the transmission of energy, the management of real-time systems (XM) and the Barranquilla – Cartagena coastal highway concession. Internationally, Ecopetrol holds interests in strategic basins on the American continent, with drilling and exploration activities in United States (Permian Basin and the Gulf of Mexico), Braziland Mexicoand, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission sector in Brazil, Chile, Peruand Bolivia, road concessions in Chile, and the telecommunications sector. This press release contains statements of business outlook, estimates of operating and financial results and statements relating to Ecopetrol’s growth prospects. These are all projections and as such are based solely on executives’ expectations regarding the future of the company and their continued access to capital to fund the company’s business plan. The achievement of such estimates in the future depends on the behavior of market conditions, regulations, competition, the performance of the Colombian economy and the industry, among other factors, and is therefore subject to change without prior notice.
This release contains statements that may be deemed forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including with respect to the company’s growth prospects. and its continued access to capital to fund the company’s business plan. , among others. Accordingly, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices for oil and gas, our exploration and production activities, market conditions, applicable regulations, stock exchange rates, the competitiveness of the Company and the performance of Colombia economy and industry, to name a few. We do not intend and assume no obligation to update these forward-looking statements.
For more information please contact:
Head of Capital Markets
Tatiana Uribe Benninghoff
E-mail: [email protected]
Corporate Communications Manager
Mauricio Tellez
E-mail: [email protected]
3 The indicated payout percentage is rounded to the first decimal place.
SOURCE Ecopetrol SA