What is happening with Ecopetrol's Board of Directors? Its members could be in the spotlight
Ecopetrol's board and the company's outgoing president Ricardo Roa. Photo: Private Archive
TL;DR
- Ecopetrol's credit rating was downgraded by S&P from BB to BB-.
- The downgrade is linked to concerns about the company's governance and board independence.
- The National Government's influence on the board is identified as a source of financial pressure.
- Only two of the nine board members are considered independent.
- Ecopetrol significantly exceeded its projected resource consumption.
- Dividend distribution in 2024 surpassed the company's net profit.
- The increase in dividend per share, initiated by the Ministry of Finance, limits the company's financial flexibility.
- Board members may face administrative or judicial investigations in the US due to Ecopetrol's listing on the US stock exchange.