On Wednesday, Ecopetrol, Colombia’s state-owned oil company, announced plans to reduce costs and expenses by approximately 1 trillion pesos ($232 million) in 2025, according to Chief Executive Ricardo Roa. During a call with analysts, Roa outlined a more adaptable investment strategy to address declining oil prices that impacted first-quarter earnings.

Ecopetrol’s 2025 investment plan, originally set between $5.9 billion and $6.8 billion, may see reductions of up to $500 million. Finance Chief Camilo Barco stated: “Today, with our current expectations, we have proposed around $500 million.” He added: “However, considering the extent to which lower prices persist, we will be able to take more drastic measures aimed at protecting production and reserves.”

Rafael Guzman, Vice-President of Hydrocarbons, emphasized that these cost-saving measures would not compromise Ecopetrol’s production levels. The company aims to maintain operational stability despite market challenges, focusing on efficiency to safeguard reserves and output.

On Tuesday, Ecopetrol reported a 22% drop in net profit for January to March 2025, attributing the decline to global oil price pressures driven by economic slowdowns in major markets and international trade uncertainties. Despite these challenges, the company’s share price rose slightly in Wednesday morning trading, reflecting a year-to-date increase of nearly 1.2%.

Ecopetrol’s cost-cutting strategy aligns with its broader efforts to navigate volatile global energy markets while sustaining its role as a key contributor to Colombia’s economy. The company continues to prioritize operational resilience and long-term sustainability through targeted financial adjustments.