Ecopetrol Challenges DIAN’s VAT Interpretation Amidst Significant Financial Implications

The latest announcement is out from Ecopetrol SA ( (EC) ).

On May 6, 2025, Ecopetrol S.A. announced its disagreement with the Colombian National Tax and Customs Directorate’s (DIAN) interpretation that the importation and nationalization of gasoline and diesel fuel are subject to a 19% VAT. Despite opposing DIAN’s interpretation, Ecopetrol and its subsidiary, Refinería de Cartagena, have begun making VAT payments while reserving the right to legally challenge the decision. The VAT requirements issued by DIAN amount to significant financial obligations for Ecopetrol and the Refinery, totaling 6.3 trillion pesos and 1 trillion pesos respectively, with additional interest. The company plans to recover a substantial portion of the VAT payments through discounts and refunds.

Spark’s Take on EC Stock

According to Spark, TipRanks’ AI Analyst, EC is a Outperform.

Ecopetrol’s stock score is bolstered by strong financial and operational performance, highlighted by robust cash flows and a solid equity base. The low P/E ratio and high dividend yield enhance its attractiveness. However, high leverage and challenges in refining and gas production pose risks. The stock’s current technical trends suggest caution, though it remains fundamentally strong.

To see Spark’s full report on EC stock, click here.

More about Ecopetrol SA

Ecopetrol is the largest company in Colombia and a leading integrated energy company in the Americas, employing over 19,000 people. It is responsible for more than 60% of Colombia’s hydrocarbon production and has significant operations in transportation, logistics, and hydrocarbon refining. Ecopetrol also holds a strong position in petrochemicals and gas distribution, and with its acquisition of ISA’s shares, it is involved in energy transmission and road concessions across several countries in the Americas.

Average Trading Volume: 2,799,000

Technical Sentiment Signal: Sell

Current Market Cap: $16.62B

For detailed information about EC stock, go to TipRanks’ Stock Analysis page.