(Reuters) – Colombia’s state oil firm Ecopetrol is planning to cut some 1 trillion pesos ($232 million) in costs and expenses and signaled more flexibility in its investment plan for this year, Chief Executive Ricardo Roa said on Wednesday.
Roa spoke in call with analysts as the oil firm faces falling oil prices that ate into its first-quarter profits.
For its 2025 investment plan, Ecopetrol said it could cut its planned spending of $5.9 billion to $6.8 billion by around half a billion dollars.
However, the company’s hydrocarbons vice-president Rafael Guzman said the planned cuts would not affect Ecopetrol’s production.
“Today, with our current expectations, we have proposed around $500 million,” finance chief Camilo Barco said of the planned spending cuts.
“However, considering the extent to which lower prices persist, we will be able to take more drastic measures aimed at protecting production and reserves,” Barco added.
Ecopetrol had on Tuesday reported a net profit for the first three months of 2025 down 22%, citing geopolitical tensions weighing on global oil prices, notably economic slowdown in China and the United States’ broad-ranging tariff threats.
Ecopetrol’s share price edged up slightly in morning trading on Wednesday. It is up nearly 1.2% since the start of this year.
($1 = 4,305.02 Colombian pesos)
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