ACP as a source of information
Source: lahoradelaverdad.com.co – National
Date: April 02
Lloreda explained that there are companies that are able to extract barrels at 30 dollars, but the vast majority require prices above 40-45 dollars to be profitable, which is why the current price is concerning. “When we look at the Brent reference, for example, today it is at 27 dollars, we must reduce approximately 7 dollars from this, which is what we call a quality penalty for Colombian oil, that is, they buy our oil cheaper,” Lloreda added. He emphasized that it is clear that with a price of 20 dollars no barrel in Colombia is profitable at this moment.
Source: Radio Red – Regional
Date: April 02
Headline: Figures making news. Francisco José Lloreda, president of the Colombian Petroleum Association, talks about the fall in crude prices at the international level, all economic sectors of the country are facing serious difficulties, this industry is no exception, in this case, the price war combines with the effects of the drop in hydrocarbon demand at the international level Responded in: Radio Red (April 02), Radio Red (April 02).
GREMIO
Source: El Tiempo
Date: April 03
Headline: Stocks gained 4.841%
Colombian stocks cut yesterday 4.841% the losses of 29.41% that they have accumulated this year. Ecopetrol (131%), Preferential Grupo Argos, and Grupo Argos were the winners.
Source: El Espectador
Date: April 03
Headline: The coronavirus erodes the tax structure
The tax collection is going to be considerably lower, which could heavily impact GDP if the economic slowdown continues throughout the rest of the year. For 2020, the goal is to reach $158 billion, a figure that has not been modified by the Government. The coronavirus pandemic has brought the global economy to its knees, unleashing a crisis that very few people have experienced and that is already leaving its mark on the two things that are certainties amid so much uncertainty. (…) In terms of oil, Sergio Olarte notes that, “due to the drop in prices, companies are likely to generate zero profits, and when there are zero profits, zero taxes are paid.” Likewise, the producing regions will have less royalties, and that affects investment. “However, there will be something to pay for the first quarter of the year, when oil was above US$60 per barrel,” Olarte recalls. Ecopetrol contributed $23 billion to the Colombian state in 2018 through dividends, taxes, and royalties.
Source: La República
Date: April 03
Headline: The Colcap closed with an increase of 4,84%.
On Thursday, after U.S. President Donald Trump announced that Saudi Arabia and Russia are close to reaching an agreement to reduce their production and stabilize crude prices, the price of oil halted its decline and recovered more than 20% of its value. The recovery of oil prices had a positive impact on equity trading in the country, as the Colcap, the main index of the Colombian Stock Exchange, closed the day with an increase of 4,84% and reached 1,114 units. (…) The good moment of the oil sector also had an impact on Ecopetrol's stock, which was the one that rose the most during the session. The oil company's stock increased by 13,04% and closed at $2,080. Its closing price on Wednesday was $1,840.
Source: La República
Date: April 03
Headline: OPEC plays a new card to stop the drop in oil prices.
The collapse of nearly 60% in oil prices so far this year has governments in countries like Venezuela, Colombia, and Ecuador making adjustments to their annual budgets, as their fiscal revenues depend on the value of crude oil exports, which have been hit since March 6, the day Russia refused to cut its crude production. This disagreement has also taken a toll on the world's major oil companies like Petrobras, Ecopetrol, and YPF, which have seen their stock values fall as Saudi Arabia and Russia increase production and measures to contain the spread of Covid-19 intensify, generating a greater drop in demand for this commodity. (…) “Most of the producers in the world could close wells and cease activities due to this crisis,” said the executive president of Campetrol.
Source: La República
Date: April 03
Headline: Six years of Lava Jato. By: Álvaro Uribe Echeverri.
On March 20, 2014, the Federal Police of Brazil arrested Paulo Roberto Costa, former director of Petrobras, who had come onto the radar of the investigative agency for receiving as a gift a luxury truck worth more than US$100,000 from Alberto Youssef, a shady character historically involved in money laundering in Brazil. (…) The Lava Jato Operation uncovered a sophisticated model of corruption that aimed to perpetuate the left in power through the Workers' Party (PT) and its satellite parties. These parties placed political allies in strategic positions within the state oil company Petrobras, who in turn signed lucrative contracts in rigged bids with private companies friendly to the government, which inflated their prices with the approval of both Petrobras and the federal government itself.
Source: Portafolio
Date: April 03
Headline: 4.84 percent…
…was the increase of the COLCAP index at the close of the stock market reaching 1,114.43 points. In the stock market, Ecopetrol closed up with a 13,04% increase, ETB with 5,65%, while Celsia had a drop of 2,91% in price.
Source: Portafolio
Date: April 03
Headline: Esenttia will prioritize supplies for health.
In order to help meet the needs of the Colombian market in light of the health emergency caused by covid-19, Essenttia (a company of the Ecopetrol Group) makes available to the national market all the production of plastic products used in the food and health sectors. Thus, the polypropylene petrochemical company seeks to address the health emergency in the country with a process projected at 40,000 rounds per month. «We made the decision to prioritize the supply of the national market so that our clients have the input to produce essential items to address the crisis we are currently facing. This relocation will be gradual and as the requirements of national industries arise,» explained Juan Diego Mejía, president of Esenttia.
Source: Portafolio
Date: April 03
Headline: The Stock Exchange is driven by the rise in crude oil prices
Infected by the rebound in oil prices that boosted the New York Stock Exchange, shares of the Colombian Stock Exchange recorded a good day, although with a low trading volume of 167,041 million pesos. The Colcap index of the Colombian stock market ended the session positively and rose by 4.841%, closing at 1,114 points. The stocks that gained the most during the day were Ecopetrol with 13.041%, PF Grupo Argos with an increase of 9.961%, Grupo Argos with 9.911%, PF Cementos Argos with an 8.951% rise, and Banco de Bogotá with 7.491%.
Source: Dinero
Date: April 03
Headline: A balance of the policies for the crisis. By: Eduardo Lora
In a few weeks, the national government and many local governments have adopted effective measures to manage a crisis of unpredictable magnitude. Numerous companies committed to their employees have also done so. (…) Correctly, the Treasury and the Bank of the Republic have taken measures to swiftly mobilize fiscal resources and sources of liquidity. The creation of the Emergency Mitigation Fund (Fome) is justifiable, but the way it was decided implies a worrying lack of coordination with the regions. (…) On the other hand, the fiscal situation for 2021 will be very critical, as Ecopetrol will not generate the profits it was transferring to the government, and the costs of the tax benefits granted by the 2018-19 reform will also be fully felt.
Source: El Pilón
Date: April 03
Headline: Twitter
Grupo ECOPETROL confirms investments in La Guajira. The department is part of the areas where the company will make investments to face COVID-19. The resources will be invested according to the priorities set by the local Government. @tinasotogo @olimponunez @MLLACOUTURE.
Topics
Source: El Tiempo
Date: April 03
Headline: Decreased by 5.21%
During February, Colombia's external sales decreased by 5.2 percent, representing 3,018.7 million dollars compared to February 2019, when they were 3,183 million dollars. The result, presented yesterday by Dane, was explained by the drop in sales of fuels and products from the extractive industry (-9.31%), while agricultural, food, and beverage exports grew by 3.6 percent.
Source: El Tiempo
Date: April 03
Headline: Trump spoke and crude oil prices rose
Strangled by weak demand due to covid-19 and excess supply from the rivalry between Saudi Arabia and Russia, the price of oil surged when Donald Trump announced a possible agreement between those countries. «I hope they reduce their production by about ten million barrels,» reported AFP.
Source: El Tiempo
Date: April 03
Headline: ‘There is no other remedy but to raise the debt’: Minhacienda
In the last two weeks, the promising outlooks for 2020 have completely collapsed. At first, it seemed like just a reduction - indeed dramatic, but temporary - in the international oil price, as had happened so many times before. This was compounded by the increasingly aggressive presence of the coronavirus in the world. (…) In addition to the coronavirus, we have the low oil price, which is now complicated by the paralysis of production and lower demand, how big can the fiscal gap be in our country? We are reviewing the numbers and there is still a long way to go before we can have an accurate figure. The truth is that, with the decline in economic activity, we will collect less taxes, while our country requires - and the Government is implementing - measures that increase public spending.
Source: La República
Date: April 03
Headline: Economy will improve in the second half according to Moody's
After the deterioration suffered by Colombia's ratings as a suitable country to receive capital by two of the three most relevant international rating agencies, the alarm was raised over the possibility that Colombia could cross the threshold and lose its investment grade. (…) “Our current forecast predicts that the economy would suffer two cyclical shocks, both from the drop in oil prices and from the paralysis of productive activity due to the coronavirus, particularly during the second quarter of the year. But we believe it would gradually recover during the second half of 2020,” said Merino. (…) The economist added that he disagrees with the decision made by Fitch this week, as the effects of the oil and Covid-19 shocks should be seen as transitory.
Source: Portafolio
Date: April 03
Headline: Five economic measures that should not be adopted in the crisis
Given that the current situation is a complex one for the Colombian economy, which has had to try to stay afloat while facing two simultaneous impacts: the Covid-19 pandemic and low oil prices, multiple economic proposals have been put on the table from different sectors of society, which could provide the country with greater resources in this situation. (…) For analysts, there are at least five economic measures that should not be adopted in a crisis, and this is no exception. Among these are stopping the payment of external debt, eliminating the fiscal rule, dollarizing the economy, printing more money, and using the international reserves of the Bank of the Republic to provide direct loans to the Executive.
Source: Portafolio
Date: April 03
Headline: Brent price recorded its largest increase in history
Strangled by weak demand due to the coronavirus and excess supply from the rivalry between Saudi Arabia and Russia, oil prices soared when Donald Trump announced a possible agreement between the two countries, later cooled by the Kremlin. (…) Immediately, the price of oil skyrocketed. However, the occupant of the White House did not provide details on these figures and, above all, the Kremlin denied that such a conversation had taken place between the Russian president and the Saudi crown prince. And it assured that «for the moment» it was not planned. Thus, at the close, the WTI barrel rose nearly 25% to US$25.32, while Brent gained 21% to US$29.94 in London. For both barrels, this is the largest percentage increase in a single day in their history.
Source: El Nuevo Siglo
Date: April 03
Headline: Off the record. Oil and avocados
Political fuss amid the health emergency does not stop. It is clear that the way the Government is handling the Covid-19 crisis is generating controversy between the ruling parties and the opposition. (…) for example, avocado production was more profitable in some countries than hydrocarbons. Obviously, with figures in hand, Petro was hit with criticism, being accused of economic populism. “Petro proposes and many complain. Time proves him right and the things he proposes end up happening. Visionaries are always two steps ahead. For example, a sack of avocados is worth more today than a barrel of oil. Do you remember the laughter from the audience in NY when he proposed it?” Obviously, there were many replies.
Source: El Nuevo Siglo
Date: April 03
Headline: Oil skyrockets after US incursions in price war
Suffocated by weak demand due to the coronavirus and excess supply from the rivalry between Saudi Arabia and Russia, oil surged when Donald Trump announced a possible agreement between both countries, later cooled by the Kremlin. “I just spoke with my friend MBS (Mohamed bin Salman, crown prince) of Saudi Arabia, who spoke with President (Russian, Vladimir) Putin,” tweeted the US president. And implying that they had reached an agreement to end the price war, he stated: “I hope they reduce by about ten million barrels, maybe much more” their production. “It could even reach up to 15 million barrels. Good (excellent) news for everyone!” he added. (…) For the two barrels, this is the largest percentage increase in a single day in their history.
Source: El Colombiano
Date: April 03
Headline: Echoes and comments. Fitch downgrades the debt rating
The fall in oil prices and the expected impact on the Colombian economy due to covid-19 led the risk rating agency Fitch to downgrade the Colombian sovereign debt rating from BBB to BBB-, with a negative outlook yesterday. According to Fitch's statement, the downgrade “reflects the likely weakening of key fiscal metrics, due to the economic recession caused by shocks stemming from the sharp drop in prices and efforts to combat the coronavirus pandemic.” This downgrade follows a similar move by the S&P rating agency in recent days.
Source: Vanguardia Liberal
Date: April 03
Headline: In February, exports fell due to low oil demand
Dane announced that exports in February amounted to US$3.018.7 million, which represented a decrease of 5.2% compared to February 2019. This result was mainly affected by a 9.3% drop in external sales of the Fuels and Extractive Industries group. Regarding the participation of the study groups, products from the extractive industries accounted for 52.5% of the total value of exports (…) In turn, the fuels and products from the extractive industries amounted to US$3.667.0 million and increased by 8.2% compared to the same period in 2019.
Source: El Universal
Date: April 03
Headline: From Fendipetróleo
A line of credit with preferential rates and a grace period, granting minority distributors a 90-day deadline for the payment of surcharges and the national tax on fuel purchases made between March and December 2020, are some of the requests from Fendipetróleo, Imzacom, and Soldicom to the national government.
Institutional
Source: Portafolio
Date: April 03
Headline: Preparing a plan to help the oil sector amid the pandemic
The halt to the country's oil operations due to the drop in crude oil prices, combined with the crisis from the coronavirus, led the National Government to reorganize the cards to keep the sector's reactivation afloat. Thus, the National Hydrocarbons Agency (ANH) is preparing a draft agreement for issuance in the coming weeks, with temporary measures “aimed at mitigating the adverse effects” from the drop in prices and the pandemic. (…) This is the case of the oil company GeoPark, which, in light of the drop in barrel prices, cut its investment by 60% (from US$190 million to US$75 million). (…) The oil company Ecopetrol was also one of the companies that trimmed US$1.200 million (about $5 billion) from the investment plan scheduled for 2020.
Colombian Association of Oil and Gas