ACP as a source of information
Source: co.globedia.com – National
Date: March 18
Headline: Bacteria and the spread of endemic viruses
Latin America is opening up to militarism and Maduro is turning to the right and forgetting his revolutionary precepts in light of this truth. Today, countries are living a different reality, and political parties seek to win any election by a good margin. The economic programs reflect an orthodox structure, and progressive countries struggle to incentivize private companies. (…) On one hand, there is the democratic regime, with orthodox economic policy and a European vision, as is the case of Greece. On the other, there is the dictatorial regime, with heterodox economic beliefs, and with a pro-Russian and anti-Western vision, as is the proposal of Turkey. Whichever is more successful will have consequences beyond the borders of these two countries,” insists economist Rafael Herz, vice president of the Colombian Petroleum Association.
GREMIO
Source: El Tiempo
Date: March 18
Headline: Should Ecopetrol be sold? By: Juan Carlos Echeverry
In an interesting reflection, Gabriel Silva proposes selling Ecopetrol. Respectfully, I disagree. The reason is that, as long as it is well managed, Ecopetrol is more profitable than a private company that had the same assets, because its main owner, the State, deducts taxes and royalties from its costs, as they come out of one pocket and go into another. (…) A second argument: Ecopetrol is an integrated company of production, transportation, and refining. If it were sold separately to Cenit, its transportation company, reserves and production would also be lost. The reason is that Ecopetrol owns a good part of the pipelines, which allows it to account for transportation at cost. (…) Why is fracking needed? The fields of Llano, Castilla, Chichimene, and Rubiales reached a production of 450,000 barrels/day, but today they are in a natural and inexorable decline that will be dramatic by the end of this decade. The only way to maintain Colombian production between 800,000 and one million barrels per day after 2025 is with significant discoveries in Colombia and with unconventional deposits (fracking).
Source: El Tiempo
Date: March 18
Headline: The coronavirus and the oil crisis: challenges and opportunities
The Colombian economy is suffering two shocks of different nature, but with similar effects. The first is related to the expansion of the coronavirus, which has generated disruptions in international trade and global value chains, as well as impacts on global economic activity due to the various containment measures being adopted by governments. (…) The fiscal front looks complicated. While it is early to determine the final impact of this shock, it seems very difficult today to reach an average Brent price of 60 dollars per barrel, the value budgeted by the Government for this year. The good news is that the realization of this impact on fiscal accounts will only occur in 2021, the year in which oil companies, including Ecopetrol, will pay the income taxes corresponding to the profits generated this year.
Source: El Espectador
Date: March 18
Headline: The Great National Conversation: what has happened four months later?
On November 24, 2019, President Iván Duque announced the installation of a «Great National Conversation,» after the protests framed within the so-called national strike - initially announced only for November 21 - extended for more days, demanding action from the Government. It is clear that the motivations that have led thousands of people to mobilize in the streets are diverse, so the Executive had the great challenge of addressing each of the dissatisfied by sectors; social leaders, peace, pension and labor reforms, environment, security, Esmad, women, among others. (…) He also pointed out that 20% of the requests cannot be met due to economic and political issues, such as the purchase of Ecopetrol to make it a 100% public company, which would represent a cost to the State of 15 trillion, or the elimination of the 4 per 1,000, with which the State would stop receiving 18 trillion.
Source: El Espectador
Date: March 18
Headline: Ecopetrol tightens its belt due to falling oil prices
Ecopetrol announced yesterday measures to face the shock of falling oil prices, which this year has recorded a drop of 40% for Brent (compared to the closing prices of 2019). The company plans to cut 2 trillion in costs and expenses and will adopt austerity measures immediately, such as «prioritization of operational, administrative activities and control of operational expenses, such as travel restrictions, per diems, sponsorships, and participation in events, among others,» it reported in a statement. It will also reduce its 2020 investment plan by US1.2 billion, which leads it to operate in this regard with a range between US3.3 billion and US4.3 billion.
Source: El Espectador
Date: March 18
Headline: To buy shares?
For those with liquidity (savings), this could be the time to make a medium-term investment: shares like those of ISA and Ecopetrol are cheap, and when the crisis passes, they could rise sharply and provide significant profits. (…) The declines recorded by the Colombian Stock Exchange reflect one of its main problems: the lack of diversification. In fact, for the past four years, it has been losing issuers (stocks): one of them was Isagén, which withdrew after its purchase by Brookfield in early 2016; in the same year, Pacific Rubiales delisted its stock after entering reorganization due to the financial problems it suffered during the last oil price crisis, and at the end of November 2019, it was reported that Grupo Pan de Azúcar bought 96.57% of the shares of Grupo Éxito, leaving practically nothing for daily negotiations on the BVC.
Source: La República
Date: March 18
Headline: Avianca, the one that has lost the most in a year
After a week in which the equity market did not operate for a day due to technical failures and the Colombian Stock Exchange (BVC) had to suspend its operations several times because the Colcap, the main indicator of the Colombian market, fell more than 10% on three occasions and more than 15% on one occasion, the outlook improved for the local stock market. (…) The top five stocks that have fallen the most in a year includes Ecopetrol, whose price decreased by 52.65% and has been affected by the drop in crude prices. “The oil company's stock has retreated and is at levels of November 2017. It could still fall further, as the drop in crude has not yet hit bottom,” Torres stated.
Source: La República
Date: March 18
Headline: Ecopetrol lost half of its shareholders in the last 8 years
The country's main oil company has had two stock issuances in the Colombian Stock Exchange's history. The first issuance was in November 2007, when 482,941 new shareholders arrived. In the following years, until 2011, Ecopetrol's stock had significant increases; a price that was taken advantage of by about 180,000 minority partners to sell and take profits. (…) Recently, the Financial Superintendence authorized issuers, such as Ecopetrol, to be the direct depositors of their shareholders“ titles. That is, the company can be the one that ”holds" its partners' shares without charging them fees against their dividends, as when they arrived at the stock market. It would be very healthy for the minority partners of Ecopetrol, who bought in the issuances of 2007 and 2011 and have not wanted to sell, who can be 90% of the total partners, to be transferred under the direct administration of this.
Source: La República
Date: March 18
Headline: Ecopetrol proposes to postpone the payment of 5.5 trillion in dividends to the Nation
The crisis of international oil prices, with Brent at US30 per barrel, forced Ecopetrol to make new calculations for this year. The oil company announced that it will implement from now on an austerity plan in which not only greater efficiencies and savings are expected, but also an adjustment in the payment of the 6.5 trillion in dividends that they proposed to deliver to the Nation. This is a new disbursement scheme that estimates that on April 23, 100% of the dividend would be paid to minority shareholders and 14% of the dividend to the State, while the payment of the remaining (86%) for the majority shareholder would be in the second half. Specifically, and under these calculations, the company would deliver 5.59 trillion to the Government in the second half of the year.
Source: Portafolio
Date: March 18
Headline: Ecopetrol cuts US1.200 million from investment plan
The coronavirus and the drop in crude oil prices are taking a toll, and significantly so, on the oil company Ecopetrol. The reason, due to these two causes, is that the state-owned company had no choice but to cut US$1.200 million (about S5 trillion) from the investment plan scheduled for 2020. (…) «The abrupt drop in oil prices forced us to make immediate adjustments to ensure the sustainability of the company and strengthen competitiveness, with austerity measures, prioritization of operational and administrative activities, and control of operational expenses, such as travel restrictions, per diems, sponsorships, participation in events, among others,» emphasized Felipe Bayón, president of Ecopetrol.
Source: El Nuevo Siglo
Date: March 18
Headline: Ecopetrol cuts $2 trillion in expenses and US$1.200 million in investment
A cut of $2 trillion in expenses and US$1.200 million from the US$4.300 that was budgeted for investment this year was made by Ecopetrol in light of the price collapse. These are some of the measures announced by the company in response to the nearly 40% drop in crude oil prices compared to December 2019. According to a company statement, this cut will be made “by immediately adopting austerity measures, prioritization of operational and administrative activities, and control of operational expenses, such as travel restrictions, per diems, sponsorships, participation in events, among others.” The company has not announced cuts to its permanent staff, but it is anticipated that the oil company will modify or end its relationship with some contractors. (…) The plan was built with an expectation of Brent price in a range of US$50 to US$60 per barrel. In this range, the plan aimed to ensure an average return on capital employed (ROACE) above 12%, which would keep Ecopetrol as one of the highest value-generating companies among its peers, and anticipated efficiencies of $1.6 trillion, which will add to the more than $11 trillion achieved in the last 5 years.
Source: El Colombiano
Date: March 18
Headline: Ecopetrol tightens its belt in response to crude oil prices
The coronavirus and lack of agreement between OPEC and Russia are testing the state firm. If there is an expression that summarizes the current state of oil prices worldwide, it is: “free fall.” Thus, without further ado, the Brent crude, with which Colombia makes its calculations, has lost more than 40 % of its price compared to the end of 2019, according to Ecopetrol, and yesterday, for example, it closed at 28.73 dollars per barrel, while West Texas Intermediate (WTI) was at 26.95 dollars. (…) This is considering that Felipe Bayón, president of Ecopetrol, said last February during the company's financial results presentation that while five years ago a price of more than 60 dollars per barrel was needed to generate profits, today the margin is “less than 30.” (…) “Although Ecopetrol's threshold is at 30 dollars, if the disagreement among oil-producing countries does not cease, the price of the barrel could drop to 24 dollars, according to the International Energy Agency,” says Amylkar Acosta, former Minister of Mines and Energy.
Topics
Source: El Tiempo
Date: March 18
Headline: Dollar and oil prices fall, while stock markets had a slight respite during the session
After reaching a new high, 4,175 pesos, its maximum quotation at the beginning of the week, the price of the dollar in the Colombian interbank market registered a drop of nearly 56 pesos, settling at its average rate of over 4,044.8 pesos, while the Brent crude barrel continued to decline and the stock markets in Europe and Asia recovered some of the ground lost in previous days. The correction in the price of the US currency in Colombia occurs at a time when the Brent oil barrel, the main reference for the country, recorded a new drop, this time of 4 percent, adding to the decline from this Monday. The North Sea Brent for May delivery ended at 28.73 dollars, down 4.4 percent in London. In New York, the WTI for April delivery settled at 26.95 dollars, down 6.1 percent.
Source: La República
Date: March 18
Headline: Fear of recession drove oil prices to US$28.7
Oil prices extended their decline on Tuesday to around US$30 per barrel, after losing a tenth of their value the previous day due to the coronavirus pandemic and Saudi Arabia's decision to increase its production. Brent crude closed down 4.39% at US$28.73 per barrel, ending the session below US$30 for the first time since January 2016. Meanwhile, US WTI deepened the previous day's plunge, falling 6.1% to US$26.95 per barrel. US President Donald Trump warned that his country could be heading for a recession due to the stagnation of productive activity worldwide and the financial market crisis. The United States announced that it would take advantage of low oil prices to increase its strategic reserves, while other nations and companies are taking similar measures to keep their storage tanks well supplied.
Source: La República
Date: March 18
Headline: To balance the scale. By: Abelardo de la Espriella
The accelerated devaluation of the peso, caused by the conjunction of uncontrollable factors such as the drop in oil prices and global uncertainty due to the coronavirus pandemic, constitutes an excellent opportunity for the Colombian productive sector to sit down judiciously to find a way to balance the trade balance, to avoid the currency exchange rate from skyrocketing the prices of goods and services, but, above all, to adopt innovative productive processes. Let's start by taking a quick look at the situation of oil. Colombia, with a production barely exceeding 800,000 barrels per day, is not a heavyweight player among the major extracting nations. Russia, which is above 11 million/day, decided to shatter the agreement to maintain a stable price and, unilaterally, increased the production of its vast fields.
Source: Portafolio
Date: March 18
Headline: A breather for the dollar and the Stock Market amid the whirlwind
The hurricane of global markets, dragged by the expansion of the new coronavirus covid-19 and which has caused a strong devaluation of the Colombian stock market and increases in the price of the dollar in just a few weeks, yesterday had a breather that analysts believe could have served for investors to acquire cheap securities or carry out favorable currency operations. (…) Oil, meanwhile, continues to decline without remedy. The prices of black gold fell again due to excess supply and a demand in free fall due to the pandemic, and Brent reached its lowest level in four years. North Sea Brent for May delivery ended at $28.73, down $4.41 in London. In New York, WTI for April delivery settled at $26.95, down $6.11.
Source: El Nuevo Siglo
Date: March 18
Headline: Gasoline will be cheaper
As published by EL NUEVO SIGLO, on Monday President Iván Duque announced from the Casa de Nariño that the reduction in fuel prices in the country will help transporters in the mobilization of food, amid the measures adopted due to the coronavirus epidemic. “This measure helps transporters and many sectors. It also, of course, contributes to lowering the cost of living and logistics for the mobilization of food in these circumstances,” emphasized the President before the media. The Government's decision implies reducing the price of a gallon of gasoline by $1,200, while the price of diesel will drop by $800.
Institutional
Source: El Tiempo
Date: March 18
Headline: ‘Portafolio’ publishes today the special on ‘Women in Business’
This Wednesday, March 18, a special 16-page edition on ‘Women in Business’ in Colombia circulates with the printed edition of Portafolio and the online version. This document aims to highlight gender inequality in the Colombian economy and the progress towards equality. The work was carried out under the co-editorship of the Minister of Mines and Energy, María Fernanda Suárez, and the director of Portafolio, Francisco Miranda, along with the team of journalists from the economics and business newspaper. (…) Similarly, the special features a central theme of an interview with the Minister of Mines and Energy, María Fernanda Suárez, a profile of the only two women who are part of the board of directors of the Bank of the Republic, María Fernanda Maiguashca and Carolina Soto, as well as an interview with Ángela Hurtado and an analysis by Mónica Contreras, CEO of the Club del 30 %.
Source: El Nuevo Siglo
Date: March 18
Headline: They are not complying with the measure
Senator Sandra Ortiz, from the Green Alliance, yesterday echoed on her social networks the citizens who reported that some service stations “do not comply with the presidential measure to reduce gasoline and ACPM prices.” Ortiz asked the Minister of Mines, María Fernanda Suárez, as well as the Superintendent of Industry and Commerce, Andrés Barreto, to “immediately apply the discounts that President Iván Duque promised to Colombians.”.
Source: portafolio.co
Date: March 18
Headline: ‘Men and women have the same leadership capacity’
For María Fernanda Suárez Londoño, Minister of Mines and Energy, the leadership capacities between men and women are equal. And she emphasizes that a leader, “what they seek at the core,” is to influence and inspire behaviors. In dialogue with Portafolio, the head of the aforementioned portfolio pointed out that there were two reasons that led her to accept the invitation from this newspaper to participate as co-editor of the gender equity special: her conviction, the deep interest in the topic, and the contribution to the readers. (…) Her professional trajectory was what caught the most attention of President Iván Duque to appoint her as Minister of Mines and Energy. (…) After finishing my master's degree in Washington, I returned to Colombia, and the then president of Ecopetrol, Juan Carlos Echeverry, offered me the Financial Vice Presidency of Ecopetrol. While there, President Iván Duque offered me the Ministry of Mines and Energy.
Colombian Association of Oil and Gas