Page 14 - LatAmOil Week 09 2023

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INVESTMENT
Ecopetrol reveals 2022

earnings distribution

proposal

Ecopetrol hereby informs of the Company’s 2022
earnings distribution proposal, approved by the
Company’s Board of Directors, which will be
submitted for the consideration of the General
Shareholders’ Meeting that will take place on
March 30, 2023:
The earnings distribution proposal, consist-
ent with the Company’s current dividend policy,
proposes an ordinary dividend distribution of
60% of Ecopetrol’s Net Income in 2022, equiv-
alent to COP487 per share.
Additionally, the Board of Directors of the
Company, taking into consideration the solid
operating and financial performance in all of Mexico, and, through ISA and its subsidiaries, $24.1mn refers to the average annual Brent oil
Ecopetrol’s business lines, is also proposing an Ecopetrol holds leading positions in the power price for the next three years. It will start to be
extraordinary dividend of 13% of Ecopetrol’s transmission business in Brazil, Chile, Peru, and payable from $80 per barrel with a maximum
Net Income in 2022, equivalent to COP106 per Bolivia, road concessions in Chile, and the tele- to be reached if the price is above $90 per bar-
share, for a cumulative total dividend of COP communications sector. rel. The remaining payment will be subject to
593 per share, which distribution would be the Ecopetrol, 28 February 2023 synergies with PetroRecôncavo’s potential new
highest in the Company’s history. assets. Part of proceeds from the transaction will
The payment of dividends to minority share- Maha Energy completes the be used as collateral for Maha’s outstanding debt
holders will be made in three equal installments to BTG Pactual (related to the Credit Agreement
on April 27, September 28 and December 21, sale of Maha Energy Brasil dated March 30, 2021).
2023. On the other hand, for the dividend due “This divestment is a significant step within
to our majority shareholder, it is expected to be to PetroRecôncavo the Company’s new strategic positioning, con-
applied to offset the balance due to Ecopetrol tinuously focusing on generating value for share-
for the accounts receivable related to the Fuel Maha Energy AB is pleased to announce that it holders. As a result of this sale, we will have a
Price Stabilisation Fund (FEPC by its Spanish has completed the sale of its Brazilian subsidi- strong balance sheet and cash position, enabling
acronym) for the second, third and a portion ary Maha Energy Brasil Ltda to PetroRecôn- the Company to pursue further opportunities in
of the fourth quarter of 2022. Such payment cavo SA after fulfilling all precedent conditions. the O&G market. In addition, we have already
would be expected to be applied in full no The acquisition consideration amounts up to announced a business combination with DBO,
later than December 31, 2023. Likewise, the $174.1mn plus $9.3mn in adjustment of net which will, at closing1, add a current net produc-
Board of Directors proposes the allocation of working capital and $3.7mn of net cash adjust- tion of approximately 2,000 boepd and 18.5mn
COP7,665,757,580,902 to an occasional reserve ment from Maha Brazil, resulting in a total boe of 2P reserves (according to the public infor-
to support the Company’s financial sustainabil- acquisition consideration of up to $186.9mn. mation regarding the Certificate of Reserves),”
ity and flexibility in the execution of its strategy. The signing of the sale of Maha Brazil to says Paulo Thiago Mendonça, CEO of Maha
Ecopetrol is the largest company in Colombia PetroRecôncavo was announced on December Energy AB.
and one of the main integrated energy compa- 28, 2022. After proper adjustments made at the Maha Energy, 28 February 2023
nies in the American continent, with more than closing date and considering possible earn-outs
18,000 employees. In Colombia, it is responsible contractually agreed, the total acquisition con-
for more than 60% of the hydrocarbon produc- sideration can reach $186.9mn, being comprised PERFORMANCE
tion of most transportation, logistics, and hydro- of the following: the adjusted purchase price,
carbon refining systems, and it holds leading equivalent to $138.0mn, with additional adjust- Maha Energy announces
positions in the petrochemicals and gas distribu- ment of net working capital of $9.3mn and net
tion segments. With the acquisition of 51.4% of cash of $3.7mn, in a total amount of adjusted filing of Q4 2022 report
ISA’s shares, the company participates in energy purchase price of $150,9mn to be paid in two
transmission, the management of real-time sys- installments: (a) $95.9mn, at the present date – Maha Energy AB is pleased to announce its
tems (XM), and the Barranquilla-Cartagena i.e., February 28, 2023 (the closing date), and (b) fourth quarter results.
coastal highway concession. At the international $55.0mn, six months after the closing date – i.e., Highlights, Fourth Quarter 2022: The Com-
level, Ecopetrol has a stake in strategic basins at August 28th, 2023; pany announced the signing of a binding term
in the American continent, with Drilling and Additional earn-outs of up to $36.1mn, sheet envisioning a business combination with
Exploration operations in the United States (Per- which could be paid based on certain con- DBO 2.0 and expecting to close after obtaining
mian basin and the Gulf of Mexico), Brazil, and tractual conditions being met, whereof up to the approval on Maha’s EGM on March 29, 2023.

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