(Ecopetrol, 27.Feb.2019) — Ecopetrol S.A. informs the 2018 earnings distribution proposal, approved by a majority of the members of its Board of Directors, which will be submitted for the consideration of the Shareholders Meeting (Asamblea de Accionistas) that will take place on March 29, 2019:
The proposed earnings distribution follows the company’s dividend policy to distribute between 40%-60% of net income for the year. Pursuant thereto, the Board approved an earnings distribution of 60% of 2018 net income as an ordinary dividend payment. In addition, considering the solid financial performance of the company, the over delivery of its targets and its robust cash position at the end of 2018, the Board is also proposing an extraordinary dividend, of exceptional nature, of 20% of net income as well as the establishment of a reserve for the future sustainability of the company.
Given the above, a $169 peso per share is proposed as earnings distribution in line with the 60% dividend policy in place and $56 pesos per share of an extraordinary dividend as a response to the over delivery of the financial performance of the company, which does not compromise the 2019-2021 business plan announced on February 26, 2019.
The proposed payment dates will be April 25, 2019 (100% ordinary and extraordinary dividend to minority shareholders / 50% of the ordinary dividend to the majority shareholder), June 25, 2019 (50% of the ordinary dividend to the majority shareholder) and September 25, 2019 (100% of the extraordinary dividend to the majority shareholder).
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