facebook
linkedin
twitter
About Us
  • BFSI
  • Energy
  • Infocom
  • Mining
  • Venture
  • Industry
  • Travel
  • Civic
  • Food, Health, Ag
  • Real Estate
  • Responsibility
  • Economy
  • Law & Justice
  • Interview
  • Analysis

Colombia’s President Ivan Duque To Tap Ecopetrol For $1 Billion USD To Fund Promises, Quell Protests

Posted OnDecember 2, 2019
By :Loren Moss
Comment: Off
Tag: BVC: ECOPETROL, chevron, colombia, corferias, cvx, ecopetrol, Iván Duque, minhacienda, nyse, NYSE: EC, nyse: oxy, Occidental, Oxy

At the instruction of the Colombian President Ivan Duque’s finance ministry, Colombia’s state-controlled petroleum company, Ecopetrol (NYSE: EC, BVC: ECOPETROL) has called for an extraordinary meeting of shareholders for December 16th at 7:30am in Bogotá’s Corferias Convention Center to consider an extraordinary dividend as solicited by Colombia’s Ministerio de Hacienda y Crédito Público (Minhacienda), Colombia’s finance ministry.

The Colombian government seeks a distribution of $1.1 billion USD or $3.7 trillion Colombian Pesos in a special dividend. With the government owning 85.5% of Ecopetrol the measure is certain to pass. Colombia’s government would receive approximately $920 million USD of the dividends distributed. The dividends would be distributed on December 23 for minority shareholders or the 26th for the government.

  • Total Ecopetrol reserves available (COP) $3,691,130,198,643
  • Number of shares outstanding 411,166,946,901,959
  • Dividend amount $3,659,385,827,427 COP
  • Dividend per share $89 COP
  • Ecopetrol remaining reserves $31,744,371,216

 

The immensely unpopular President Ivan Duque has only a 26% approval ratings in recent polls, disliked by broad swaths of society across the political spectrum. Duque and the candidates supported by his Centro Democratico party, founded Duque’s political patron & ex President Alvaro Uribe were humiliated in October’s local elections across the country. Massive protests and strikes were organized across Colombia, and started two weeks ago, disrupting travel, commerce, and services. Uribe is currently the first former president of Colombia to face criminal trial in history, now answering to charges of witness tampering and accused of a cozy relationship with paramilitaries and narcotraffickers.

The strikes and protests in Colombia in the past month were originally called by labor unions, but were soon joined by students who say Duque has reneged on last year’s education pact, indigenous groups and urban supporters who denounce Duque for not adequately protecting rural social leaders (hundreds have been assassinated during his term), civil groups protesting security forces ineptitude (the Defense Minister resigned weeks ago after a government bombing operation killed several children), those upset with corruption, and resistance of Duque & his party in implementing the historic peace accords reached by the previous administration. Even the other conservative or right wing-parties joined in the protests against Duque.

Duque announced several measures hoping to reverse popular sentiment, such as a 3 day tax holiday on the national VAT of 19%, and reducing the health contribution of pensioners from 12% of their pension to 8%, along with other tax breaks. To fund these measures the government will need to find other revenues, such as tapping into Ecopetrol’s assets.

Ecopetrol has recently made significant purchases, including a joint venture with Occidental (NYSE: OXY) in Texas, and purchasing Chevron’s (NYSE: CVX) upstream assets in Colombia. This latest move weakens Ecopetrol’s balance sheet and can negatively affect liquidity. Raiding assets to address political expediencies has been a constant problem in Latin America when politicians have control of enterprises.

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transferred to MailChimp ( more information ) DISCLAIMER: Protección de Datos Personales Artículo 15 de la Constitución Política de Colombia, ley 1581 de 2012 y decreto 1377 de 2013.
We will never spam you or share your email address ¡Nunca Jamás!

Share the news!

  • Facebook
  • Twitter
  • Print
  • Email
  • WhatsApp
  • LinkedIn
  • Skype

Related

Share your thoughts:

comments

Loren Moss
About the Author
Loren Moss is the founder and publisher of Finance Colombia. He has over 20 years of international business experience, including over a decade of experience in securities, insurance, and commercial real estate, at the institutional and international level.
  • google-share
Previous Story

Colombia Reduces Import Duty On Heavy Trucks Powered By Natural Gas, Electric Vehicles

Next Story

Explainer: Why Are Colombians Protesting & Striking?

Related Posts

Tecnoglass window-making factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)
0

Tecnoglass To Hold Q1 2021 Earnings Call The Morning Of May 7

Posted OnApril 13, 2021
, ByLoren Moss
After 1 week, Alejandro Calderón Chatet will no longer be CEO of EPM.
0

EPM Governance Crisis Deepens: New CEO Alejandro Calderón Chatet Resigns, 1 Week After Being Appointed

Posted OnApril 12, 2021
, ByLoren Moss
0

What Jumps Out: Where Is Everyone Going?

Posted OnApril 9, 2021
, ByRupert Stebbings




RECENT

POPULAR

COMMENTS

Tecnoglass window-making factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)

Tecnoglass To Hold Q1 2021 Earnings Call The Morning Of May 7

Posted On April 13, 2021

Etek Launches Identity & Access Management Service

Posted On April 13, 2021

GCA Airlines Files To Fly New Routes To Bucaramanga, Santa Marta, San Andrés & Pereira, Colombia

Posted On April 13, 2021
PharmaCielo horticultural worker harvests THC dominant and unique cultivar (CNW Group/PharmaCielo Ltd.)

Colombian Cannabis Cultivator PharmaCielo Closes $13.5 Million CAD Capital Raise

Posted On April 13, 2021
Photo from Twitter

Support for Colombian Fugitive Alex Saab Turns Out To Be Nigerian Troll Farm

Posted On April 13, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020

AVIANCA IS BANKRUPT

Posted On May 10, 2020

In Deepening Crisis At EPM, Labor Union Demands CEO Explain Private Gym, Luxury Office Remodel Despite Austerity Orders

Posted On August 25, 2020

Declan Ryan Says Viva Air Not Being Treated Fairly By Colombian Government: Exclusive Interview

Posted On September 3, 2020
Avatar

[…] 2020 — SINPRO, EPM’s largest...

Posted On April 12, 2021
Avatar

[…] Sky Airline each may operate 4...

Posted On April 6, 2021
Avatar

[…] didn’t know that; that...

Posted On April 6, 2021
Avatar

[…] during his mayoral campaign...

Posted On April 6, 2021
Avatar

[…] existing Viva aircraft are...

Posted On March 30, 2021

Watch This!

Book With Us

Consider Advertising With Us

Click here to visit Expat Group's English site

Subscribe Free

don't forget to include "http://"
* = required field
Your Background / Function








unsubscribe from list

RECENT

POPULAR

COMMENTS

Tecnoglass window-making factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)

Tecnoglass To Hold Q1 2021 Earnings Call The Morning Of May 7

Posted On April 13, 2021

Etek Launches Identity & Access Management Service

Posted On April 13, 2021

GCA Airlines Files To Fly New Routes To Bucaramanga, Santa Marta, San Andrés & Pereira, Colombia

Posted On April 13, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020
copa airlines

Copa Airlines Raising $350 Million USD War Chest Via Private Notes Offering

Posted On April 27, 2020
Avatar

[…] 2020 — SINPRO, EPM’s largest...

Posted On April 12, 2021
Avatar

[…] Sky Airline each may operate 4...

Posted On April 6, 2021
Avatar

[…] didn’t know that; that...

Posted On April 6, 2021

Watch This!

Contact Us (Click the image):

Book With Us

Pages

  • About Us
  • Colombia Events, Conferences, Festivals and Important Dates
  • Contact Us
  • main
  • Media Partnerships
  • Privacy Policy
  • Whatsapp test page
Copyright 2014-2020 Finance Colombia All Rights Reserved. We may earn commissions from qualifying purchases.
WhatsApp us
loadingCancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.