A brief note on EcoPetrol
EcoPetrol had their earnings call this morning. Here is a link to the transcript of the call and a link to their quarterly results splash-page.
From the excel doc:
Presentation data:
2023 was not like the blowout year of 2022. Total revenue was down compared to last year. This was due to softer oil prices compared to ‘23.
I anticipate the oil price pushing higher, setting EC up to make big profits in ‘24.
As a reminder, EcoPetrol is owned by the Colombian government and has a policy of paying 60% of net profits out to shareholders. Last year, they paid an extraordinary dividend on top of the 60% that was 13% of net income. This made the 2023 payout equal to 73% of 2022’s net income.
If we stick with the same general guidelines for upcoming dividends, EcoPetrol has net income of 19,062B Colombian Pesos ($4.84B USD).
$1 USD is equal to 3942.20 Colombian Peso.
Here’s a little math:
If the EcoPetrol board sticks to last year’s formula and we get another extraordinary dividend of 13%, we could be looking at 15.9% annual return from dividends. If not it would be 13.1% at the current stock price. Seems like a great place to hang around at on ex-dividend days.