I’m going to the third question, and then I’ll give the floor to Ricardo and to Nicolas. In the downstream, the margins are solid. We have to recognize that they’re lower than the ones we had last year. And this is related to a reduction in the prices of gasoline and diesel at the international level. And that of course has an incidence in the result of the margins, but we’re seeing margins between $14 per barrel, and we expect that that perspective will be maintained throughout the year.
Nicolás Azcuénaga Ramírez: Good morning. This is Nicolas Azcuenaga. In relation to the opportunities of expanding our presence in Permian with Oxy. Following my earlier answer, we analyzed the portfolio not only with Oxy, but also with other opportunities that could come up in that area and in other areas. And if the opportunity matures, we would communicate it in a timely manner to the market. Thank you.
Unidentified Analyst: Thank you all.
Operator: Now we have Ann Mills [ph] from the Bank of America. Ms. Mills, you may proceed. And we also have from Berkeley. Mr. Badr [ph] you can ask your question now.
Unidentified Analyst: You can hear me. Some of my questions have already been answered before. So my final one would be about your cash balance, if we can have an update. So if we can if based on your 1Q earnings, your cash balance ended around $4 billion and you also suggested that you get between $1.5 billion to $2 billion of the Fed payments from Ascienda on the earlier side of April. So pushing the cash balance to $5.5 billion to $6 billion. And I think that in the slides, you only show that you have something around $1.5 billion to $1.8 billion of maturities for the remainder of 2024. And part of that is going to be covered with the revolver of $1.2 billion that you will, get the funding from in 2Q. So my question is that why are you keeping the cash balances so high at the moment?
Is that, related to the previous questions for potentially, some sort of M&A or I have not seen cash balances for Ecopetrol around $5.5 billion to $6 billion in the past. So what are you planning to do with that? Thank you so much.
María Catalina Escobar Hoyos: Good morning. This is Maria Catalina Escobar. Thank you for your question. Here, we have two important subjects in effect. The balance, the cash balance of approximately well, what we have in dollars is what we reported for the business group. And it’s important to say that out of those $6.5 billion, approximately $1.7 billion is the cash position of ISA. And so in that sense, those resources from ISA or the resources that ISA will be using during the year to guarantee their operations. ISA is an affiliate where in the different areas, depending on the business it manages, it requires high levels of cash availabilities, especially in many of the big businesses it’s doing or it’s carrying out in Chile.
So that’s important to mention. And the second one I’d like to mention is that the figure you mentioned reflects the cash position after receiving the payment of a pick. From the beginning of April what it does not reflect is that we, in the beginning of April, made a payment to the nation and to the shareholders, to the minority shareholders of a capital of more or less COP 4 trillion, that is $1 billion more or less. That’s what we ended up, drawing in dividends at the beginning of the year. We will also be making additional payments in dividends to those shareholders in the remainder of the year starting in the second quarter of more or less, $1 billion or COP 8 trillion approximately. So when we talk about the fact that ISA has part of the — a big part of the cash and that we have to draw to pay dividends during the rest of the year, that we need resources to guarantee the operations of the company, the investments of the year, which are quite considerable, the company is having a cash balance that even though it looks high right now and in addition to the receipt of the funds from that, we’ll have a seasonality that’s normal throughout the year.
And right now, we’re not seeing it as a very high balance that would allow us to make possible mergers or acquisitions or maybe an organic, higher CapEx, but we’ll be monitoring the cash balance as the year goes forward and also depending on the prices of the crude oil.
Unidentified Analyst: Thank you so much.
Operator: The next question comes from Ed Paso Vasconcelles [ph] from UBS. You may proceed with your question, Mr. Vasconcelles.
Unidentified Analyst: Hi, thanks for taking my question. It’s on the energy transition theme, and taking advantage of the company’s stake. I would like to get your updated view on the best way to balance investments in the core business, hydrocarbons with investments in alternative sources of energies. In your view, what would be the best alternative to invest in other sources? Is it organically, inorganically, other than Colombia, what would be the top priorities in terms of regions? And also are you seeing more difference in returns in each one of the regions? This is my question. Thank you.
Ricardo Roa Barragan: Thank you, Tasso for your question. This is Ricardo Roa speaking. ISA in the business model, the original business model has shown better performance, economic performance. The nature of the core of the essential business of ISA is the transmission of electricity. Today in Brazil, the business is larger in assets and in revenues than the one ISA has in Colombia. And with its presence in seven countries, it’s been developing intensive CapEx investments and assets to roads and also in the transmission assets. ISA has the possibility today of developing additional services to their core business of transmission that we’ve been evaluating permanently. For example, going into the business of generation or into the storage of energy with batteries or accumulators.
We have thought that if that because of that could grow and contribute to the results of the first quarter of 2024, it’s 16% of the EBITDA of the whole company, of the whole Ecopetrol Group. That would be like COP 2.3 trillion of net profits of EBITDA. I’m sorry. That would denote a very good performance. The possibility of having more business or more deals as part of that portfolio. We have of course, restrictions related to the debt, relationship with EBITDA at higher with Ecopetrol, at EBITDA relationship. And in those investment plans, we’ve been working jointly with ISA’s administration or management to try to allocate CapEx and allocate resources mainly focused on continuing developing the traditional business of energy transmission.
Other options that we’re looking at either organically or inorganically outside of Colombia. Obviously, in ISA portfolio, there are many, but all of them centered were focused on transmissions and roadways. And in the hydrocarbon sector, we’ve continued to evaluate opportunities of business outside of the country provided they represent; one, a contribution of growth in our economic indicators, and two, a contribution of reserves and the intention of maintaining reserve reposition indicator of 3%, which is our target. And on that line, they should generate the adequate returns or value. Those assets should generate those returns, and we’re permanently evaluating them from the vice presidency of strategies.
Operator: Thank you very much. Right now, we don’t have any questions live. Now we have questions from the chat. Bruno, since the government has paid a significant part of the balance and accounts payable of the FEPC. Those were reduced to COP 23,000 million to COP 15,000 billion on 1st of April to expect important quarterly payments from the government. In that case, how quickly would the balance of the FEPC should converge to zero? The second one is given the free cash flow and the recent agreement with the FEPC, what level of payment are you considering for the next 12 months? And the third question is, would you be able to remind us about the gap that you have between the prices of gasoline and diesel in Colombia with respect to the international prices? Could you comment on the trends of prices both of gasoline and diesel in the country?
María Catalina Escobar Hoyos: Bruno, good morning. This is María Catalina Escobar. Thank you. for your questions. The relation to the first question on the payments that we expect from the FEPC of the civilization and fuels. First, I’d like to reiterate that Ecopetrol sees that its outcome is very much benefited from the payments we continue to receive from the national government that have allowed us to reduce significantly the accumulation of monies into the fund to the almost COP 15,000 million we had to date in effect to date. Of those COP 15,000 million, we have approximately COP 12.7 trillion that would correspond to the balances of effect that were accumulated during the second and third and fourth quarter of 2023, and approximately 2.2 trillion correspond to the accumulation we’ve had during the first quarter of 2024.
Our expectation and what we’ve been talking with the Ministry of Finance we’re discussing with the Ministry of Finance is that we could receive during 2024 these balances that are still pending payment of 2023. That is COP 12.7 million that I just mentioned that in relation to the first part of your question. Now what are we expecting in terms of the cause of the FEPC, and what might make it converge to zero? Right now, Ecopetrol is starting off from the basis that we would not have. At least during 2024, we would not potentially have an increase in the prices of diesel unless the government makes a decision besides otherwise. And that since we would have to have the higher rent prices into account that they could pressure that accumulation of prices upward.
We’re seeing the accumulation of FEPC during the 2024 term. It will be between COP 8 million and COP 10 million. This is a range that will, of course, depend on the behavior of those prices. In relation to I think the President wants to add something.
