Ecopetrol will replace CEO Javier Gutierrez after 8 years as it seeks to shift strategy after falling far short of production goals and seeing its stock plummet.
BOGOTA, Dec 12 (Reuters) - Ecopetrol will replace Chief Executive Javier Gutierrez after eight years, the board said on Friday, as Colombia's state-run oil company seeks to shift strategy after falling far short of production goals and seeing its stock plummet.
Ecopetrol shares have have shed about two-thirds of their value since early 2013. Its woes were compounded by a 41 percent plunge in third-quarter profits due to the sharp drop in oil prices and production bottlenecks.
The board said it would turn to international head-hunting firms to help find Gutierrez's replacement, and hoped to have a name to announce by the next shareholder assembly. Gutierrez will remain until then, it said.
"Under his management, the company managed to double hydrocarbon production, enabling Colombia to enter into the group of the world's 20 biggest oil producers," the board's statement said, thanking Gutierrez for his achievements.
Analysts said Ecopetrol was in a difficult position after falling far short of ambitious production targets announced around five years ago. Some of the reasons, such as attacks on pipelines and regulatory delays, were beyond company control.
"I don't think the shareholders wanted his head, because he had a good reputation. But it's a bad period and sometimes they promised to deliver some very difficult things," said analyst Diego Usme, from Bogota stock broker Ultrabursatiles.
Ecopetrol had aimed for output of 1 million barrels by 2015 and 1.3 million barrels by 2020. Just weeks from the million-barrel target date, its most recent production figure showed consolidated output, including subsidiaries, of just 754,800 barrels including gas.
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