This early payment is the result of the Company's solid cash position, which by the end of the first quarter of 2017 amounted more than USD $ 6,000 million. The solid cash position is the result of efficiencies and savings achieved by the Ecopetrol Business Group (Grupo Empresarial Ecopetrol [GEE]), which from 2015 to date total more than USD $ 1,500 million.
As a result of this early payment operation, credit metrics improve, including the Debt/Ebitda indicator reported to March 31, 2017 from 2.6 to 2.3 times. In addition, the Group's cash position will remain sound, allowing it to adequately address fluctuating crude price scenarios, maintaining the pace of investment for organic growth opportunities, as well as being able to realize potential inorganic growth for the acquisition of reserves.
The early payment is in line with the objectives of the 2020 business plan and confirms the company's commitment to continue to improve its credit rating and increase the return for its shareholders.
Bogota, June 29, 2017
This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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 in respect of the Company’s prospects for growth and its ongoing access to capital to fund the Company’s business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company’s competitiveness and the performance of Colombia’s economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.
For further information, please contact:
Head of Corporate Finance and Investor Relations (A)
Lina María Contreras Mora
Phone: (+571) 234 5190
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: (+ 571) 234 4329