Ecopetrol Comments on Elections in Colombia, Uncertainties

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(Energy Analytics Institute, 26.Apr.2022) — Colombia’s state-owned Ecopetrol commented on the electoral process and Colombia in its Form 20-F filed this week with the US SEC, and highlighted uncertainties regarding future policies.

— “The Colombian parliamentary elections were held on March 13, 2022, with more than 99% of votes counted, results suggest a fragmented Congress with left-wing parties increasing their overall representation. However, the power configuration could remain relatively unchanged, given that no party will hold a clear majority. Left-wing parties are expected to control 21% of the total seats in the Senate. A coalition between center-right and right-wing parties (“Centro Democrático”, “Partido Conservador”, “Cambio Radical” and “Mira”) are expected to have control of 42% of the total seats in the Senate, while center and center-left parties are expected to control 36% of the total seats.”

— “Meanwhile, in the three presidential primaries held on March 13, 2022, there was a record of 11.7 million votes casted, and Gustavo Petro (“Pacto Historico”, left-wing coalition), Federico Gutierrez (“Equipo por Colombia”, center-right coalition) and Sergio Fajardo (“Centro Esperanza” center-left coalition) were chosen to participate in the presidential election. Gustavo Petro led the voting intention tally, followed by Federico Gutierrez and then Sergio Fajardo. The first round of presidential elections will be held on May 29, 2022. If no candidate wins a clear majority in the first round, a runoff election will be held on June 19, 2022. Although throughout history elected governments (and the Colombian Congress as well) have pursued free market economic policies, with almost no economic interventions, we cannot predict which policies will be adopted by the new government or congress and whether those policies would have a negative impact on the Colombian economy or our business and financial performance.”

RELATED STORY: Ecopetrol Files its Form 20-F for FY 2021

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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.

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