06/21/2024
Next June 26, Ecopetrol will make the payment of the last installment of the dividend, equivalent to $156 for each share that was held at the beginning of the day on June 20.
With this, The market expects a strong devaluation of Ecopetrol shares in the Colombian Stock Exchange due to the ex-dividend period, this is what financial analysts estimate.
This ex-dividend period is known as the time when, if you buy shares of a company, you will not receive the next dividend payment. It is as if you were late to a party, even if you buy a share, you no longer get that part of the money that will be distributed to the shareholders.
Also read: Ecopetrol speaks out on the scandal over contracting helicopter transportation and takes new measures
It must be remembered that, At the Ecopetrol Shareholders’ Meeting, held at the end of March, it was defined that in 2024 the company would pay $312 for each share. Although this dividend is one of the highest paid by the Colombian oil company, It represents a drop of $281 compared to 2023, when $593 was paid for each title.
This is because those who purchase shares during the ex-dividend period are not entitled to receive the scheduled payment.
Ecopetrol already specified that it will pay its dividend on June 26, the ex-dividend period began on June 20 and will end on the day of payment. The approved $312 will be paid in two installments: the first, of $156, was made on April 3, and the second will be made on June 26.
Read also: Ecopetrol gets the green light for its foray into renewable energy through bondholder assemblies
Bloomberg explained that, normally, once the ex-dividend period begins, the company’s shares usually fall because buyers during those days do not have the right to receive payment. On the first day of the ex-dividend period, Ecopetrol’s stock fell 4.12%, closing at $2,330.
“Considering that the share price before starting the ex-dividend period was $2,430, it is expected that the share will continue to fall in proportion to $156 that shareholders entitled to the dividend will receive. This is common behavior in the market during these periods,” Bloomberg detailed in a report.
It must also be taken into account that Ecopetrol’s dividends for next year will be defined at the Shareholders’ Assembly held annually in March. To know the amount of the 2025 dividend, it is necessary to wait for the company’s final balance sheet in 2024.
You may be interested in: Third law firm joins the investigation against Ecopetrol for alleged irregularities
In the first quarter of 2024, Ecopetrol reported profits of $4 billion, a 29% drop compared to the $5.66 billion obtained in 2023. Given that 2022 and 2023 earnings were exceptionally high, this declining trend is likely to continue in the coming quarters.
Bloomberg concluded that, If Ecopetrol maintains its current financial performance, it is projected that its profit at the end of 2024 would be around $16 billion. However, this is just a projection and not an official announcement. To know the official dividend, we must wait until February 2025, when the company presents its final balance sheet and its profit distribution proposal.
