Although on October 27, 2022, after the arrival of the government of President Gustavo Petro, the board of directors expressed its support for the Ecopetrol management team and its president Felipe Bayón, in the meeting that was held yesterday the decision was made not to continue in office.
He will be in charge of the oil company until March 31day on which the General Assembly of Shareholders is traditionally held each year.
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Bayón became President in September 2017 and was the one who led the transformation process of Ecopetrol, which went from being a hydrocarbon-only company to one that now has among its main objectives the Unconventional renewable energy generationand lead the energy transition not only in Colombia but in the region.
During its more than five years of management, the company achieved historical operating and financial results that provided significant benefits in terms of energy sovereignty and more resources to close social gaps in the country.
At the end of the third quarter of 2022, it accumulated profit of 26.5 billion pesos so far this year, in addition to reporting historical income of 119.8 billion pesos.
Under the direction of Felipe Bayón, the Ecopetrol Group also became a pioneer in the region by setting a goal of reduce net carbon emissions to zero to 2050, as well as the design and implementation of its strategic plan for the development of low-emission hydrogen.
Additionally, he promoted a profound technological transformation to streamline processes in the company and was a champion of diversity and inclusion programs.
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Likewise, he led the acquisition of 51.4 percent of the shares of ISA in August 2021, one of the most relevant transactions in the Western Hemisphere in 2021 with already visible results in decarbonization and electrification.
During his administration, important offshore gas facilities such as Gorgon-2 and Uchuva-1 were built in 2022, which ratified the existence of a gas province in the Caribbean Sea that will be essential to preserve the country’s energy sovereignty in the future. In addition, it is on these conclusions that the Government has pinned its hopes for secure gas supply in the future.
The expansion of the capacity of the cartagena refinery to meet the growing demand for refined products and led a comprehensive program to raise the quality of fuels to international standards.
Its direction was essential to face the most complex international situations in recent years, such as the price crisis derived from the pandemic due to the COVID-19 under the highest industrial safety standards and meet the country’s demand for fuel for its operation.
The company stated that the selection and appointment process of the new president of Ecopetrol by the board of directors would be based on «a rigorous selection process»in accordance with the Succession Policy of the president of Ecopetrol.
Watchful markets will be on the lookout for his replacement. For now, the one who sounds the most is Ricardo Roa, a trusted man of the president and who was general manager of the Colombia Humana movement and president of Grupo Energía Bogotá (GEB) during Petro’s term as mayor of the capital.
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It is bad news because a highly respected technician is coming out. We will be for a while with the uncertainty of who is coming now
José Ignacio López, director of Economic Research at Corficolombiana, assured that Bayón «will leave a high rod for their high professional and technical skills».
Meanwhile, Alberto Bernal, director of Global Strategy at XP Investments, stated that it is a «bad news because a highly respected technician comes out. We will be for a while with the uncertainty of who is coming now.»
He also expressed concern about the risk that exists that other important executives or highly relevant engineers can leave Ecopetrol.
For Tomás González, former Minister of Mines and Energy, the most important thing going forward is that there be continuity in the company’s approach: «to make the transition but without neglecting the security of supply or the generation of taxes to finance social spending».
For his part, former minister Amylkar Acosta highlighted that Bayón further positioned Ecopetrol in the international arena, with significant investments and as one of the most important multilatinas. «It faced several challenges that it was able to overcome wisely and effectively, beginning with ensuring the operability and Scaling of Reficar’s refining capacity. He consolidated, and incidentally, diversified the Ecopetrol Group, as well as its investment portfolio, with the acquisition of ISA”, he stated.
Following this announcement, economic analysts say that it is likely that Ecopetrol’s share reacts downward and presents some volatility in the day of this Friday in the Stock Market of Colombia due to the uncertainty of the change that is coming in the Presidency of the company. Yesterday it closed at 2,693 pesos, up 1.1 percent.
