During 2024, four rating agencies reduced the outlook for Ecopetrol’s investment grade. The last one was JP Morgan. Photo: Ecopetrol
There are now four international risk rating agencies that, not only They lowered Ecopetrol’s investment grade, but also the target price of its stock on the stock market. Thus, the oil company, considered ‘the jewel in the crown’ for the country, continues to lose value in the markets.
JP Morgan was the last of these. He cracked it, among other things, for its financial results, for misguided executive decisions, for judicial decisions that affect its future production and for the attacks that armed groups have made on the oil infrastructure.
But she is not the first to do so this year. In January 2024, it received a negative note from Standard & Poor’s, modifying the company’s credit rating outlook from “stable” to “negative.”
Moody’s was the one that continued to downgrade Ecopetrol’s global credit and individual rating. Of course, it modified the outlook from “negative” to “stable.”
The other rating agency that did not raise Ecopetrol’s grade was Fitch Ratings, which, last July, reaffirmed the national rating of the oil company with a stable outlook, as it was. The reason was based on the possible purchase of CrownRock by Ecopetrol, a transaction that, in the end, did not happen.
All these perspectives and the setbacks in its operation contributed to the determination of the rating agency JP Morgan to lower the target price of the shares. that the Colombian oil company has in the stock market. And today it cannot be said that this is the most solid company in the country.
What is Ecopetrol planning?
According to Ecopetrol, the drop in its share price has been influenced not only due to the company’s performance, but also due to economic factors such as decrease in the Brent reference price which, according to the company, has fallen by 7 percent, causing the integrated oil majors to decline between 1.5 and 5.6 percent, while the state oil companies in Latin America would have fallen in a range of 5.0 and 8.2 percent.
#NewsOfInterest | Read in our official statement, Ecopetrol’s position, regarding the recent outlook for the share price. pic.twitter.com/z35QrhUTie
— Ecopetrol (@ECOPETROL_SA) September 26, 2024
«The price of crude oil in its Brent reference, in the last 12 months, has suffered a fall of 20.8%, which impacts the outlook and performance of the stock in the stock market,” the company indicated.
They added that Ecopetrol advances an investment plan between 2024 and 2026 for close to 20 billion dollars that will focus on operational performance of its business lines “promoting the increase in production, incorporating new reserves of crude oil and gas to its balance sheet, developing and maturing the prospects for exploratory activity in the Caribbean and incorporating efficiency and energy transition projects.
2024-09-27 01:25:04
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