The Ecopetrol (NYSE: EC, BVC: ECOPETROL) General Shareholders’ Meeting concluded at the Corferias convention center in Bogotá, marked by a decline in annual profits and an intensifying debate regarding the continuity of the company’s president, Ricardo Roa. During the assembly, shareholders approved a dividend of $121 COP per share for minority holders and a total payment of $4 trillion COP to the Colombian government, which serves as the majority shareholder. The government’s payout is scheduled for distribution in two installments, to be completed by June 30, 2026.

Click on above image to view shareholder meeting

The financial results for the 2025 fiscal year revealed a significant contraction in net income, which fell to $9 trillion COP from the $14.9 trillion COP reported in 2024. Roa attributed this decline primarily to the volatility of international crude prices. He noted that the average price of Brent crude dropped from $80 USD per barrel to $68 USD per barrel over the period. According to company data, every $1 USD drop in the price of Brent corresponds to a reduction of approximately $500 billion COP in net profit and $700 billion COP in EBITDA. Despite the lower earnings, the company maintained a production level of 745,000 barrels per day and achieved a reserve replacement rate of 121%, the highest in five years.

Governance issues remained the primary focus of the assembly. Minority shareholders expressed concern over the legal challenges facing Roa, who is currently under investigation by the Fiscalía General de la Nación for alleged influence peddling. Additionally, the Consejo Nacional Electoral (CNE) has raised accusations regarding the alleged violation of spending caps during the presidential campaign of Gustavo Petro, which Roa managed. Angela Maria Robledo, Chair of the Board of Directors, defended the decision to retain Roa, stating that the board has activated a evaluation protocol while respecting the constitutional principle of the presumption of innocence.

Shareholders Erupt In Anger At CEO Ricardo Roa:

🚨Abuchean a Ricardo Roa en asamblea de Ecopetrol

“¡Fuera, fuera!”: Este es el momento del tenso abucheo de los accionistas al presidente de la empresa 🔽

Videos: Néstor Gómez pic.twitter.com/uyjh4chpl2

— EL TIEMPO (@ELTIEMPO) March 27, 2026

“Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol,” stated Martín Ravelo, President of the USO.

The Unión Sindical Obrera (USO), the primary labor union representing nearly one-third of the company’s workforce, has issued an ultimatum for Roa’s removal. Martin Ravelo, president of the USO, warned that the union will initiate a national strike and affect crude production if Roa is not aparted from his position by Monday, March 30. Ravelo expressed concern that Ecopetrol, which is subject to the regulations of the Securities and Exchange Commission (SEC) and the Office of Foreign Assets Control (OFAC), could face federal intervention. He highlighted that Ecopetrol’s current debt has reached $30 billion USD, exacerbated by rising interest rates, and warned that the company lacks the cash flow to respond to potential demands for early repayment of international obligations.

President Gustavo Petro responded to the union’s concerns via social media, stating that the executive branch will take measures to shield the company’s financial future. Petro emphasized the importance of maintaining investment during periods of high oil prices to prepare for future market downturns. He also criticized past administrations for failing to invest sufficiently in clean energy during previous price cycles. In contrast, Ravelo called for the board to maintain its independence from political influence, noting that four of the nine board members have already left formal records supporting Roa’s departure.

Ecopetrol also addressed the national gas supply, with Roa announcing that new regasification alternatives at Puerto Bahía and on the Pacific coast are expected to begin operations in the second half of 2026. These projects are intended to contribute between 186 and 430 Gbtud to the national grid. A third regasification facility in Coveñas is projected to start operations in 2029 with a capacity of 400 Gbtud. Despite these operational plans, the immediate focus of the international investment community remains fixed on the board’s upcoming meeting on Monday, where the leadership deadlock must be resolved to avoid a potential halt in national production.

Headline photo: Former Senator Jorge Robledo admonishes the Ecopetrol board of directors at the March 2026 shareholders’ meeting.

Aggregate volume of debt affected by defaults YTD totaled more than $20 billion, with LATAM Airlines being the largest with approximately $10 billion of on-balance-sheet debt as of YE 2019. Historically, there has not been significant sector concentration for defaults in the region. However, most of the defaults YTD have been in the airline, non-food retail and gaming sectors, which are highly exposed to the coronavirus pandemic due to significantly reduced demand for these non-essential products and services.

LATAM Airlines Group’s and Aerovias del Continente Americano’s (Avianca) Chapter 11 filings were triggered by severe travel restrictions imposed due to the outbreak and limited financial flexibility. Grupo Famsa’s inability to refinance maturing debt due to investor risk aversion drove it into default. Enjoy’s reorganization was due to the closure of casinos in Chile, Argentina and Uruguay following government-mandated lockdowns to slow the spread of the virus.

Default risk in LATAM remains high over the near term. Over 20 issuers with aggregate outstanding debt of approximately $32 billion as of YE 2019 currently have international ratings of ‘CCC+’ or below. Eight of these issuers are domiciled in Brazil and Mexico, the two largest economies in Latin America. Brazil and Mexico accounted for 36% and 21%, respectively, of the 78 group-level defaults in the region over the last two decades. The next largest was Argentina, which represented 17% of the cumulative defaults since 2000.

Oi’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) were downgraded to ‘CCC+’ from ‘B-’ in May due to the company’s weak operating trends and the deterioration in the Brazilian operating environment, which will hinder Oi’s return to growth. While Oi is expected to have adequate liquidity in 2020, the company’s business model and financial performance is unsustainable relative to capex requirements and debt service in 2022 and beyond. Oi has the highest amount of debt outstanding at $7.8 billion among the more than 20 rated issuers with international ratings of ‘CCC+’ or below in Fitch’s LATAM corporate portfolio.

Grupo IDESA and Grupo Posadas are currently two of the lowest-rated issuers in Fitch’s rated portfolio. Grupo IDESA’s IDR was downgraded to ‘C’ from ‘CCC-’ in late March after the company launched a tender offer to exchange its unsecured notes due in 2020 for new secured notes due in 2026, which Fitch considers a distressed debt exchange (DDE) per our DDE criteria. Grupo IDESA’s IDR will be downgraded to ‘RD’ and subsequently upgraded to a rating level reflecting the post-DDE credit profile. The Mexican chemicals company is highly-levered with more than $500 million of debt as of YE 2019.

Grupo Posadas’ ratings were downgraded to ‘C’ from ‘CC’ following its announcement in June that it will not meet its senior unsecured notes’ $15.5 million USD coupon payment due on June 30, 2020. The company also announced it does not intend to make the payment during the 30-day cure period, which will lead to a downgrade of the IDRs to ‘RD’.

For more information, see Fitch’s Special Report “Latin American Corporate Defaults: Trend Increasing Over Two Decades (2000-YTD 2020)” at www.fitchratings.com.