EC - Ecopetrol to access contingency financing while awaiting government cash

Ecopetrol (NYSE:EC) said Wednesday it will activate a contingency financing plan to ensure continued capital spending while it waits for Colombia's government to pay more than 14T pesos (~$3.45B) owed to the company, Reuters reports. The debt owed by the government corresponds to Colombia's Fund for Stabilization of Fuel Prices, which reduces the impact of international oil market volatility on local fuel prices. "With the clear goal of not compromising the ongoing investment plan, we have activated a contingent financing plan for eventual temporary liquidity shortfalls," CFO Jaime Caballero said during the company's earnings conference call, noting he considers the situation "transitory." Ecopetrol (EC) invested $986M during Q1, the highest level for the period in seven years, and cash flow at the end of the quarter the quarter totaled 16.5T pesos (~$4B), double the amount in the year-earlier period. Ecopetrol (EC) reported Q1 net profit more than doubled to 6.57T

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Ecopetrol to access contingency financing while awaiting government cash