Higher production volume and an increase in oil prices are what analysts consider to be the reasons behind Ecopetrol’s earnings, which for 2010 are approaching 9 billion pesos. The company’s net profits in 2009 had fallen to 5.26 billion pesos, a significant decline compared to the previous year’s 11.63 billion.

Serfinco analyst, Felipe Sanchez, said the “WTI is expected to land at an average of around US$80 per barrel for this year, which would improve the company’s results considerably”. This will also lead to an increase in dividends for shareholders, who should receive 140 pesos per share in 2011.

President Alvaro Uribe said today in Medellín that his cabinet will hold an emergency meeting this evening to declare a Social and Economic Emergency for the Colombian region that borders Venezuela.

The measure temporarily eliminates the added value tax, or IVA, on products crossing the border on products like textiles, clothing, and shoes. “I believe it will help to revitalize this sector in that area of the country. It’s a benefit to national and international sales on the border. I have faith and wanted to communicate it to you, the government has been working on it since last week and I believe everything is ready to be signed tonight at 9:00 p.m.”, Uribe said.

Another measure also in the works will make it easier to declare duty-free zones in departments like La Guajira, Northern Santander and Arauca.

Minister of Trade, Luis Guillermo Plata, said these measures are a “shock plan” in response to Venezuelan President, Hugo Chavez’, decision to break diplomatic ties with Colombia. Plata warned it may take some time to see results, because they are long-term projects.