Ecopetrol (EC) 6-K Ecopetrol Announces Its Results for the Fourth Quarter and Full Year 2012

Ecopetrol Announces Its Results for the Fourth
Quarter and Full Year 2012

· In 2012 the average production (Ecopetrol S.A. including interests in affiliates and subsidiaries) was 754.0 mboed¹, an increase of 4.1% compared to the average production in 2011.

· Ecopetrol S.A.’s net income for 2012 was COP$14,972.9 billion, equivalent to COP$364.16 per share. This is the second highest annual net income in the company's history.

· In 2012 revenues increased 5.4% compared to 2011 and EBITDA was COP$27,572.6 billion.

BOGOTA, Feb. 15, 2013. Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results, both consolidated and unconsolidated, for the fourth quarter and full year 2012, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública, RCP) of Colombia’s General Accounting Office.

Some figures in this release are presented in U.S. dollars where indicated. The exhibits in the release have been rounded to one digit. Figures presented in COP$ billion are equivalent to COP$1 one thousand million.

Ecopetrol S.A. Financial Results

Unconsolidated 

(COP$ Billion)	4Q 2012 *		3Q 2012*		Var. %		4Q 2011 *		Var. % **		2012	*	2011		Var. %
Total sales	15,054.4		14,228.7		5.8	%	16,054.2		(6.2	)%	59,524.6		56,492.3		5.4	%
Operating profit	5,037.9		4,913.0		2.5	%	7,045.3		(28.5	)%	22,856.4		24,351.6		(6.1	)%
Net Income	3,706.8		3,247.5		14.1	%	4,432.6		(16.4	)%	14,972.9		15,448.1		(3.1	)%
Earnings per share (COP$)	90.15		78.99		14.1	%	107.81		(16.4	)%	364.16		379.97		(4.2	)%
EBITDA	6,165.0		6,231.7		(1.1	)%	7,474.0		(17.5	)%	27,572.6		28,130.3		(2.0	)%
EBITDA Margin	41	%	44	%			47	%			46	%	50	%

Consolidated 

(COP$ Billion)	4Q 2012 *		3Q 2012*		Var. %		4Q 2011 *		Var. % **		2012	*	2011		Var. %
Total sales	17,758.2		16,556.7		7.3	%	18,917.7		(6.1	)%	68,852.1		65,967.6		4.4	%
Operating profit	4,956.0		5,551.3		(10.7	)%	7,427.2		(33.3	)%	24,206.4		25,873.0		(6.4	)%
Net Income	3,620.8		3,227.3		12.2	%	4,437.9		(18.4	)%	14,779.0		15,452.4		(4.4	)%
Earnings per share (COP$)
EBITDA	6,124.7		6,914.6		(11.4	)%	8,018.0		(23.6	)%	29,274.8		30,236.4		(3.2	)%
EBITDA Margin	34	%	42	%			42	%			43	%	46	%

* Not audited, for illustration purposes only

** Between 4Q 2012 and 4Q 2011

Some figures of 2011 were reclassified to be comparable with 2012

¹ Thousands of barrels of oil equivalent per day

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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In the opinion of Ecopetrol S.A.’s CEO, Javier Gutierrez:

“2012 was quite challenging for Ecopetrol. Various circumstances related to operations and the overall environment were addressed in order to attain growth and positive results for our shareholders. The strategic plan for profitable and sustainable growth is making progress on every front.

Ecopetrol achieved various important milestones in each segment of our business in 2012:

In E&P we highlight the discoveries of hydrocarbons in the Gulf of Mexico (U.S.), the new exploratory blocks granted in Colombia and in the Gulf of Mexico (U.S.), the progress in the offshore strategy along Colombia’s Atlantic coast, the growth in production of the Chichimene field, the 109% Reserves Replacement Ratio and the launch of our strategy in unconventional reservoir hydrocarbons.

In transport and logistics we highlight the incorporation of our affiliate Cenit specialized in hydrocarbon transport and logistics in Colombia, the expansion of transport systems, and the progress in the infrastructure integrity and reliability plans.

In marketing we reached record export volumes, driven by increases in crude oil and products shipped to the Far East.

In refining, during December we began delivering throughout Colombia ultra low sulphur diesel, with the highest quality standards in Latin America.

In finance, our rating outlook was upgraded by Standard & Poor’s, and competitive results were achieved compared to the oil industry, despite the challenges we faced, but in a favorable price environment.

Finally, we consistently improved HSE (health, safety and environment), we obtained 21 patents, and continued to be included in the Dow Jones world sustainability index for a second consecutive year.”

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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Ecopetrol S.A Announces Its Results for the Fourth Quarter and Full Year 2012

Table of Contents

I. Financial results		4
a.	Availability of crude and products	4
b.	Ecopetrol S.A. sales volume	5
c.	Crude and Product Prices	7
d.	Ecopetrol S.A. Financial Results	8
e.	Ecopetrol S.A. cash flow	10
f.	Ecopetrol S.A. Segment Results	10
g.	Ecopetrol S.A. Balance Sheet	11
h.	Risk Rating	12
II. Consolidated Financial Results		13
III. Operating Results		14
a.	Investment Plan	14
b.	Exploration	15
c.	Production	18
d.	Proven Reserves	19
e.	Refining	19
f.	Transportation	21
g.	Biofuels	22
IV. Organizational consolidation, social corporate responsibility and corporate governance		23
a.	Organizational consolidation	23
b.	Corporate Responsibility	23
c.	Corporate Governance	23
V. Results Conference Calls		24
VI. Additional Exhibits of Ecopetrol S.A.		25

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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I. Financial results

a. Availability of crude and products

The availability of Ecopetrol S.A. crude and products are the following:

Ecopetrol S.A. (unconsolidated)

Gross oil and gas production

(MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		600.6		581.9		3.2	%		591.1		569.8		3.7	%
Natural Gas		112.7		103.1		9.3	%		110.9		100.3		10.6	%
Total		713.3		685.0		4.1	%		702.0		670.1		4.8	%

(-) Royalties 

(MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		91.3		87.8		4.0	%		88.7		86.8		2.2	%
Natural Gas		22.0		22.2		(0.9	)%		21.7		21.4		1.4	%
Total		113.3		110.0		3.0	%		110.4		108.2		2.0	%

(=) Net oil and gas production 

(MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		509.3		494.1		3.1	%		502.4		483.0		4.0	%
Natural Gas		90.7		80.9		12.1	%		89.2		78.9		13.1	%
Total		600.0		575.0		4.3	%		591.6		561.9		5.3	%

Local Purchase volume (MBOED)*	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		207.3		201.6		2.8	%		200.5		189.1		6.0	%
Products		12.0		9.1		31.9	%		10.6		7.3		45.2	%
Natural Gas		10.4		40.4		(74.3	)%		19.5		38.3		(49.1	)%
Total		229.7		251.1		(8.5	)%		230.6		234.7		(1.7	)%

Imports volume (MBD)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Products		89.2		97.3		-8.3	%		91.1		80.1		13.7	%

* Purchase volume includes royalties from Ecopetrol and other companies

The following are highlights of the fourth quarter:

· Increased purchases of crude: increased royalty crude purchases from ANH, as well as crude diluents due to higher production in Colombia.

· Increased purchases of refined products: larger purchases from Reficar of naphtha diluent to ensure transport of heavy crude, as well as larger purchases of jet fuel in order to meet the increased Colombian demand.

· Decreased purchases of gas: 1) starting January 2012, some gas producers signed commercialization agreements that authorized the sale of royalties (Decree 2100 of 2011), reducing gas availability; and 2) fewer purchases from the Serafín and Don Pedro production fields.

· Lower naphtha diluent imports due to higher purchases in Colombia.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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b. Ecopetrol S.A. sales volume

The following is a summary of sales volume:

Ecopetrol S.A. (unconsolidated)

Sales volume

Local sales volume (MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		21.5		9.2		133.7	%		13.0		5.2		150.0	%
Natural Gas		55.9		71.6		(21.9	)%		57.4		70.9		(19.0	)%
Gasoline		66.0		64.7		2.0	%		66.3		65.0		2.0	%
Medium Distillates		115.2		114.6		0.5	%		112.8		109.7		2.8	%
LPG and propane		15.3		16.3		(6.1	)%		15.4		16.4		(6.1	)%
Fuel oil		1.9		0.4		375.0	%		2.0		0.6		233.3	%
Industrial and Petrochemical		13.0		16.1		(19.3	)%		13.5		15.7		(14.0	)%
Total Local Sales		288.8		292.9		(1.4	)%		280.4		283.5		(1.1	)%

Export sales volume (MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		456.5		454.2		0.5	%		444.9		413.8		7.5	%
Products		57.1		50.8		12.4	%		54.1		54.5		(0.7	)%
Natural Gas		17.3		28.2		(38.7	)%		22.2		25.4		(12.6	)%
Total Export Sales		530.9		533.2		(0.4	)%		521.2		493.7		5.6	%

Sales to free trade zone (MBOED)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude Oil		74.0		75.9		(2.5	)%		71.1		76.0		(6.4	)%
Products		2.4		1.2		100.0	%		2.9		1.8		61.1	%
Natural Gas		5.4		2.5		116.0	%		4.9		2.4		104.2	%
Total sales to free trade zone		81.8		79.6		2.8	%		78.9		80.2		(1.6	)%
Total sales volume		901.5		905.7		(0.5	)%		880.5		857.4		2.7	%

International market (59% of fourth quarter of 2012 sales, 68% including sales to Free Trade Zones: Reficar and Celsia):

The reduction in volume exported by Ecopetrol during the fourth quarter 2012 was primarily the result of:

· Natural gas:

o Lower sales volume in accordance with Decree 2100 of 2011 by means of which other producers began selling their own gas starting in January 2012.

o Lower availability of Guajira gas to export, which was used to meet the high thermal demand in Colombia.

o Higher sales to the free trade zone in order to meet the demand from Celsia S.A.

· Crude oil:

o Free Trade Zone: Lower availability of Caño Limón crude.

The following is a summary of the main destinations of crude and product exports (does not include natural gas exports to Venezuela). Export volumes of crudes to the Far East, and of products to the Caribbean increased during the year.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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Export destinations - Crudes
Destination	4Q 2012			4Q 2011			2012			2011
Far East		30.9	%		5.3	%		20.3	%		13.2	%
U.S. Gulf Coast		28.6	%		61.3	%		43.5	%		52.4	%
U.S Others		9.2	%		0.2	%		4.1	%		0.0	%
Europe		8.2	%		8.7	%		8.3	%		5.2	%
Central America		8.1	%		1.6	%		4.3	%		1.6	%
South America		7.4	%		4.4	%		4.9	%		5.4	%
U.S. West Coast		5.4	%		5.8	%		8.0	%		7.7	%
U.S. Atlantic Coast		1.9	%		4.8	%		2.6	%		2.3	%
Caribbean		0.3	%		6.2	%		2.8	%		10.6	%
Canada		0.0	%		0.0	%		0.6	%		0.7	%
Africa		0.0	%		1.7	%		0.6	%		0.9	%
		100.0	%		100.0	%		100.0	%		100.0	%

Export destinations - Products
Destination	4Q 2012			4Q 2011			2012			2011
Caribbean		80.7	%		14.9	%		56.7	%		34.3	%
U.S. Atlantic Coast		17.7	%		6.6	%		12.9	%		19.4	%
Central America		1.6	%		0.0	%		0.9	%		1.2	%
Far East		0.0	%		20.3	%		16.4	%		9.2	%
U.S. Gulf Coast		0.0	%		44.6	%		7.1	%		32.9	%
U.S Others		0.0	%		12.4	%		5.9	%		0.0	%
U.S. West Coast		0.0	%		0.0	%		0.1	%		0.0	%
South America		0.0	%		1.2	%		0.0	%		1.3	%
Europe		0.0	%		0.0	%		0.0	%		1.7	%
		100.0	%		100.0	%		100.0	%		100.0	%

Colombian market (41% of fourth quarter 2012 sales, 32% excluding sales to Free Trade Zones: Reficar and Celsia):

The decline in local sales volume in the fourth quarter of 2012 was primarily the net result of:

1) Lower sales volumes of the following products:

· Natural gas (-15.7 mboed): Ecopetrol no longer sold royalties from other producers’ fields (as explained on page 4).

· Petrochemicals and industrial products (-3.1 mboed): asphalt sales fell as demand for the product decreased in Colombia, and aromatics sales decreased due to operational maintenance at the aromatics plant.

· LPG and propane (-1.0 mbod): fewer sales due to reduced availability of these products as a result of turnarounds in transport lines.

The aforementioned decreases were partially offset by:

2) Higher local sales volume of the following products:

· Crude oil (+12.3 mbod): higher demand for blends in the marine fuel market.

· Medium distillates (+0.6 mbod): increase in demand caused by higher economic growth in Colombia, mainly of Jet fuel (+1.6 mboed).

· Fuel oil (+1.5 mbod): higher volumes produced and available for sale.

· Gasoline (+1.3 mbod): increase in demand.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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c. Crude and Product Prices

Prices	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
WTI (average) (US$/Bl)		88.2		94.0		(6.2	)%		94.2		95.1		(1.0	)%
Brent (average) (US$/Bl)		110.1		109.0		1.0	%		111.7		110.9		0.7	%
Export crude oil basket (US$/Bl)		100.2		102.7		(2.4	)%		102.6		99.1		3.5	%
Crudes sold to free trade zone* (US$/Bl)		105.4		112.0		(6.0	)%		105.5		107.7		(2.0	)%
Export products basket (US$/Bl)		102.1		96.6		5.7	%		100.4		96.1		4.5	%
Products sold to free trade zone* (US$/Bl)		68.6		55.3		23.9	%		70.9		101.8		(30.3	)%
Natural gas basket (US$/MMBTU)		6.0		5.8		4.0	%		5.9		5.0		18.1	%
Gas sold to free trade zone* (US$/MMBTU)		5.8		5.8		(0.7	)%		5.7		4.9		16.4	%

* Free trade zone = Reficar

Crude oil:

During the fourth quarter of 2012, the price of export basket fell compared to the same period of 2011, reflecting the lower prices of Ecopetrol´s crudes, mainly Castilla and Nare. This decrease was driven by: 1) a higher supply of Venezuelan heavy crude (low operating level at the Amuay refinery), and 2) weakening of Mexico’s crude oil price.

During the fourth quarter of the year, the export basket of Ecopetrol crude was indexed to Brent (75)%, Maya (22)%, Argus Mars 1M WAVG (2)% and Platts No. 6 of 3% USGC (1)%.

Products:

The summary of the product export basket during the fourth quarter is the following:

· USGC 3%S Fuel Oil: volumes increased on higher demand of raw material for coking units, driven by the increase in refining activity in the United States.

· Products for sale in Free Trade Zones: increase in volumes as a result of the rebound in the propylene price index.

Natural gas:

· Higher sale prices attributed to the higher WTI price in the first half of the year, which affects the natural gas price index.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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d. Ecopetrol S.A. Financial Results

Unconsolidated Income Statement

(COP$ Billion)	4Q 2012 *		4Q 2011		∆(%)		2012*		2011		∆(%)
Local Sales	4,718.8		4,853.5		(2.8	)%	18,341.2		17,920.1		2.3	%
Export Sales	8,550.3		9,266.9		(7.7	)%	34,240.9		31,475.7		8.8	%
Sales to free trade zone	1,352.4		1,530.3		(11.6	)%	5,292.7		5,613.2		(5.7	)%
Sales of services	432.9		403.5		7.3	%	1,649.8		1,483.3		11.2	%
Total Sales	15,054.4		16,054.2		(6.2	)%	59,524.6		56,492.3		5.4	%
Variable Costs	5,912.5		6,122.2		(3.4	)%	25,489.1		22,938.6		11.1	%
Fixed Costs	2,865.4		2,315.7		23.7	%	8,328.7		6,849.2		21.6	%
Cost of Sales	8,777.9		8,437.9		4.0	%	33,817.8		29,787.8		13.5	%
Gross profit	6,276.5		7,616.3		(17.6	)%	25,706.8		26,704.5		(3.7	)%
Operating Expenses	1,238.6		571.0		116.9	%	2,850.4		2,352.9		21.1	%
Operating Profit	5,037.9		7,045.3		(28.5	)%	22,856.4		24,351.6		(6.1	)%
Non Operating Loss	(166.4	)	(562.1	)	(70.4	)%	(1,330.8	)	(1,536.9	)	(13.4	)%
Income tax	1,164.7		2,050.6		(43.2	)%	6,552.7		7,366.6		(11.0	)%
Net Income	3,706.8		4,432.6		(16.4	)%	14,972.9		15,448.1		(3.1	)%
Earnings per share (COP$)	90.2		107.8		(16.4	)%	364.2		380.0		(4.2	)%
EBITDA	6,165.0		7,474.0		(17.5	)%	27,572.6		28,130.3		(2.0	)%
EBITDA Margin	41	%	47	%			46	%	50	%

* Not audited, for illustration purposes only

Some figures of 2011 were reclassified to be comparable with 2012

The explanation of the main variations in results is as follows:

Total salesin the fourth quarter of 2012 fell 6.2% compared to the same period in 2011, due primarily to a 2.4% decline in crude export prices and lower Colombian sales volume of -1.4%. The lower volumes mainly corresponded to reduced volumes of gas royalties (explained in page four).

Cost of sales in the fourth quarter of 2012 increased 4.0% compared to the same period of 2011. The difference was the net result of a 23.7% increase in fixed costs and a 3.4% decline in variable costs.Fixed costs increased primarly due to: 1) increased maintenance work (COP$145 billion) to ensure the integrity of transport infrastructure, wells, and maintenance at the Barrancabermeja refinery; 2) increased utilization of contracted services (COP$124 billion) due to higher subsoil activity and water management volumes driven by the increase in BSW²primarily at the Rubiales and Quifa fields; 3) labor costs derived from the yearly updating of the actuarial estimates (COP$99 billion); 4) higher requirements of materials (COP$36 billion); and 5) non capitalizable project costs (COP$72 billion).

The decrease invariable costs was mainly the result of: 1) a reduction in the price of purchased crude of –US$5/Bl (COP$440 billion), and 2) lower imported product volume due to maintenance at the Barrancabermeja Refinery’s Unibon plant in the last quarter of 2011 that led to higher imports. The higher costs were offset by: 1) COP$153 billion in higher amortization and depletion costs of petroleum investments as a result of the annual reserve update at the end of the period, and 2) a COP$110 billion higher average cost of volume sold during the period.

¹Bottom sediment and water: corresponds to the content of free water (not dissolved) and sediment (lime, sand) contained in crude. It is reported as a percentage in volume over the crude.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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Operating expenses increased 116.9% in the fourth quarter of 2012 compared to the same period of 2011, mainly from: 1) an increase in the provisions for property, plant, and equipment as a result of the appraisal, mandatory at least every three years under Colombian accounting principles, (COP$184 billion); 2) debtor impairment stemming from amounts owed to Ecopetrol by retired and current workers as a result of the withdrawal of some legal actions (COP$57 billion); and 3) the updating of impairment of materials of low turnover (COP$9 billion). Such increases were offset by a decline in: 1) project costs, as a result of the the capitalization of Caño Sur’s field 50% stake in the fourth quarter of 2011, and 2) a COP$45 billion reduction in expenditures related to gas flaring in 2011.

Theoperating margin in the fourth quarter 2012 was 33.5% compared to 43.9% in the same period of 2011.

Non-operating loss decreased mainly as a result of: 1) reversions from pension commutation for COP$665 billion; 2) reversal of litigation provisions amounting to COP$109 billion; 3) provision expense for COP$36 billion from emergency and environmental incidents; and 4) exchange rate loss (the effect of the revaluation of the Colombian peso vs. the U.S. dollar) of COP$26 billion.

The companies in which Ecopetrol holds an interest and whose profit/loss is accounted under the equity method reported a net loss of COP$244.6 billion. This loss was due mainly to the increase in exploration expenses of dry and abandoned wells of the E&P subsidiaries in the last quarter of 2012, (Ecopetrol América Inc: Candy Bars 2 well, and Ecopetrol Oleo & Gas do Brasil: Sabia and Canario wells).

Equity Method: Net income per segment

(COP$ billion)

	4Q 2012			4Q 2011			2012			2011
Exploration and Production		(137.7	)		212.7			357.3			584.6
Refining		(87.9	)		(221.8	)		(118.5	)		(173.0	)
Transportation		(47.6	)		(37.6	)		134.6			58.0
Corporate		28.6			25.7			103.7			82.5
Total		(244.6	)		(21.0	)		477.1			552.1

The decrease inincome tax expenditure in the fourth quarter of 2012 compared to the same quarter of 2011 was mainly the result of the 24.9% reduction in income before tax and adjusted deferred tax related to the mark to market of portfolios with fixed income securities.

The combined effect of lower volumes sold and increases in costs led to a 16.4% reduction innet income compared to the fourth quarter of 2011.

EBITDA in the fourth quarter of 2012 was COP$6,165.0 billion, andEBITDAmargin was 41.0%. 

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

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e. Ecopetrol S.A. cash flow

COP$ Billion*	4Q 2012			4Q 2011			2012			2011
Initial Cash		9,367.1			8,360.2			9,239.6			5,479.4
Cash generated from operations (+)		14,716.0			15,845.5			60,010.9			53,847.5
Cash used in operations (-)		(9,535.0	)		(10,331.1	)		(41,135.6	)		(34,751.4	)
Capex (-)		(4,096.4	)		(5,053.5	)		(10,116.1	)		(12,235.3	)
Acquisitions (-)		0.0			0.0			0.0			(768.9	)
Dividend payments (-)		0.0			(1,973.6	)		(8,419.3	)		(5,899.4	)
Equity offering (+)		0.0			1,959.9			169.8			2,194.7
New debt (+)		0.0			0.0			0.0			0.0
Other inflows (+/-)		250.8			356.5			1,361.1			1,178.1
Fx differences (+)		(9.4	)		75.8			(417.5	)		194.9
Final Cash		10,693.1			9,239.6			10,693.1			9,239.6

*For reporting purposes, balances in USD are estimated in COP$ on a monthly base using the average exchange rate. The initial cash balance for each quarter is estimated based on the average rate for the first month and the final balance is estimated based on the average rate for the last month of the quarter.

As of December 31, 2012, Ecopetrol had a balance of COP$10,693 billion in cash and portfolio investments (42% denominated in U.S. dollars). Of this amount, COP$3.9 trillion corresponded to the the Nation´s 2012 third installment of the ordinary dividend and the 2012 extraordinary dividend. These amounts were paid in the beginning of January 2013 as requested by the Ministry of Finance.

f. Ecopetrol S.A. Segment Results

Quarterly Results by Segment

COP$ Billion	E&P						Refining & Petrochem.						Transportation						Supply and Marketing
	4Q-12			4Q-11			4Q-12			4Q-11			4Q-12			4Q-11			4Q-12			4Q-11
Domestic Sales		3,818.5			4,038.8			4,220.2			4,526.0			631.8			693.7			264.6			301.2
International Sales		6,059.7			6,516.8			818.8			844.2			-			-			3,024.3			3,436.1
Total Sales		9,878.2			10,555.6			5,038.9			5,370.3			631.8			693.7			3,288.9			3,737.3
Operating Income/Loss		5,570.5			7,036.5			(336.1	)		(243.5	)		(275.0	)		112.3			78.4			140.1
Operating Margin		56.4	%		66.7	%		(6.7	)%		(4.5	)%		(43.5	)%		16.2	%		2.4	%		3.7	%
Net Income/Loss		4,215.0			4,812.5			(315.2	)		(392.2	)		(246.4	)		(54.0	)		53.5			66.3
Net Margin		42.7	%		45.6	%		(6.3	)%		(7.3	)%		(39.0	)%		(7.8	)%		1.6	%		1.8	%
EBITDA		6,358.8			7,233.4			(187.0	)		(105.2	)		(89.2	)		204.1			82.4			141.6
Ebitda Margin		64.4	%		68.5	%		(3.7	)%		(2.0	)%		(14.1	)%		29.4	%		2.5	%		3.8	%

Accumulated results by segment

COP$ Billion	E&P						Refining & Petrochem.						Transportation						Supply and Marketing
	2012			2011			2012			2011			2012			2011			2012			2011
Domestic Sales		15,219.7			15,179.9			16,877.6			16,968.4			2,533.4			2,363.1			1,128.1			1,130.8
International Sales		23,564.1			21,352.0			3,300.3			3,470.5			-			-			12,669.2			12,266.4
Total Sales		38,783.8			36,531.9			20,177.9			20,438.9			2,533.4			2,363.1			13,797.3			13,397.2
Operating Income/Loss		22,858.8			22,984.5			(397.3	)		10.3			134.1			657.4			260.8			699.6
Operating Margin		58.9	%		62.9	%		(2.0	)%		0.1	%		5.3	%		27.8	%		1.9	%		5.2	%
Net Income/Loss		15,664.8			15,468.9			(768.1	)		(601.1	)		5.6			354.9			70.8			225.7
Net Margin		40.4	%		42.3	%		(3.8	)%		(2.9	)%		0.2	%		15.0	%		0.5	%		1.7	%
EBITDA		26,559.9			25,945.2			131.0			494.5			607.3			984.8			274.4			705.8
Ebitda Margin		68.5	%		71.0	%		0.6	%		2.4	%		24.0	%		41.7	%		2.0	%		5.3	%

Note: The report by segment is based on transfer prices among business units, using as reference export parity price. In line with the change in methodology, a reclassification of the transport segment took place for comparative purposes with 2011 figures, by which transportation services from third parties were directly allocated to the corresponding segment and were not booked as revenue for the transportation segment. Other figures of 2011 were also reclassified for reporting purposes. 

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10

Exploration and Production:

Revenues in the fourth quarter of 2012 were lower than those of the same period of 2011, due to lower selling prices of the crudes basket. Costs were higher compared to the fourth quarter of 2011, particularly in association contract services, maintenance and project costs, which generated lower operating and net profit. Net income for the full year was higher compared to 2011 as a result of the increase in production and better average price of the basket of crude.

Refining:

Financial results in the fourth quarter of 2012 were lower than those of the same period of 2011, due primarily to: 1) higher maintenance costs, and 2) higher operating and commercialization expenditures. In addition, full year results were negatively affected by the reduction in the refining margins as a consequence of the maintenance during the first quarter of 2012 at the Barrancabermeja refinery, which caused a reduction in throughput and an increase of imported fuels.

Transport:

Financial results in the fourth quarter and for the year 2012 were lower than in 2011. The segment results were affected by the increase in the costs of maintenance and safety of transport infrastructure. New resources were allocated to the Integrity program for a rapid execution of maintenance operations.

Supply and Market:

The results for the fourth quarter of 2012 decreased compared to the same period of 2011 because of: 1) lower volume of natural gas sold (see page 4); 2) lower sales price for crude oil and natural gas; and 3) higher costs of transporting purchased crude and diluents. The previous situations also are reflected in the full year’s results, along with the increased cost of purchasing imported diluents.

g. Ecopetrol S.A. Balance Sheet

Unconsolidated Balance Sheet

(COP$ Billion)	December 31, 2012		December 31, 2011		∆ (%)
Current Assets	17,910.1		15,824.8		13.2		%
Long Term Assets		82,737.9		69,426.4		19.2	%
Total Assets		100,648.0		85,251.2		18.1	%
Current Liabilities		19,496.7		13,818.3		41.1	%
Long Term Liabilities		15,892.8		16,421.8		(3.2	)%
Total Liabilities		35,389.5		30,240.1		17.0	%
Equity		65,258.5		55,011.0		18.6	%
Total Liabilities and Shareholders´ Equity		100,648.0		85,251.1		18.1	%
Debit Memorandum accounts		131,388.4		122,266.3
Credit Memorandum accounts		109,085.7		103,461.1

Some figures of 2011 were reclassified inorder to be comparable with 2012 

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11

The main variation in totalassets was the result of: 1) an increase in advances and deposits in the amount of COP$1,726 billion, the result of the prepayment of income tax due to the Nation for the year 2012; 2) increases in property, plant and equipment totaling COP$3,816 billion from capitalizations; 3) net capitalizations in natural resources and the environment of COP$3,961 billion as reflected in oil investments in the Chichimene, Castilla Norte, Rubiales, La Cira, Yarigui-Cantagallo, Casabe, Pauto, Apiay, Matachín Norte, Infantas, Suria, Cusiana, and Quifa fields, among others; and 4) adjustment in fixed asset appraisals in 2012 amounting COP$7,197 billion.

At the end of December 2012, liabilities increased 17.0% compared to the previous year, mainly in accounts payable for COP$3,915 billion from dividends to be paid the Nation. Financial obligations accounted for 15.5% of total liabilities and include: 1) a loan facility with Colombian banks with an outstanding balance of COP$1,556 billion; 2) dollar-denominated bonds for US$1,500 million; 3) local bonds for COP$1,000 billion; and 4) a Gibraltar Gas Plant Contract (BOMT) with a balance of COP$100 billion.

The 18.6% variation inEquity was mainly the result of: 1) accumulated earnings of COP$14,973 billion; 2) a COP$434 billion decrease in surplus on the equity participation method, explained from exchange rate appreciation; 3) an equity increase of COP$680 billion from the reversion of provisions stemming from the 2012 update of the technical appraisal of fixed assets.

h. Risk Rating

In December, the credit rating agency Standard & Poor’s maintained the company's international foreign currency rating at BBB- with a "positive" outlook. This rating encompasses the issuances of debt by Ecopetrol S.A. in international markets. With these ratings, the company retains its investment grade status.

The following are Ecopetrol S.A.’s risk ratings through December 31, 2012.

	Rating		Outlook
Foreign Currency
Standard & Poor´s		BBB-		Positive
Fitch Ratings		BBB-		Stable
Moody´s		Baa2		Stable
Local Currency
Fitch Ratings		AAA		Stable

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12

II. Consolidated Financial Results³

The following are Ecopetrol’s consolidated financial statements:

Consolidated Income Statement

(COP$ Billion)	4Q 2012 *			4Q 2011			∆(%)			2012*			2011			∆(%)
Local Sales		6,000.7			6,093.6			(1.5	)%		22,284.1			21,792.6			2.3	%
Export Sales		11,262.7			12,341.5			(8.7	)%		44,490.1			42,412.9			4.9	%
Sales to free trade zone		-			-			0.0	%		-			-			0.0	%
Sales of services		494.8			482.6			2.5	%		2,077.9			1,762.1			17.9	%
Total Sales		17,758.2			18,917.7			(6.1	)%		68,852.1			65,967.6			4.4	%
Variable Costs		7,671.8			7,828.0			(2.0	)%		30,458.1			28,086.6			8.4	%
Fixed Costs		3,334.2			2,857.1			16.7	%		10,077.4			8,618.0			16.9	%
Cost of Sales		11,006.0			10,685.1			3.0	%		40,535.5			36,704.6			10.4	%
Gross profit		6,752.2			8,232.6			(18.0	)%		28,316.6			29,263.0			(3.2	)%
Operating Expenses		1,796.2			805.4			123.0	%		4,110.2			3,390.0			21.2	%
Operating Profit		4,956.0			7,427.2			(33.3	)%		24,206.4			25,873.0			(6.4	)%
Non Operating Loss		(8.8	)		(636.4	)		(98.6	)%		(1,874.6	)		(2,231.5	)		(16.0	)%
Income tax		1,282.8			2,239.7			(42.7	)%		7,133.4			7,955.7			(10.3	)%
Minority interest		43.6			113.2			(61.5	)%		419.4			233.4			79.7	%
Net Income		3,620.8			4,437.9			(18.4	)%		14,779.0			15,452.4			(4.4	)%
EBITDA		6,124.7			8,018.0			(23.6	)%		29,274.8			30,236.4			(3.2	)%
EBITDA Margin		34	%		42	%					43	%		46	%

* Not audited, for illustration purposes only

Some figures of 2011 were reclassified to be comparable with 2012

The highest individual contributions tototal sales (before eliminations) among subsidiaries during the fourth quarter of 2012 came from the Cartagena Refinery with COP$2,576.3 billion, followed by Hocol with COP$826.7 billion, Equion with COP$498.6 billion and Propilco S.A. with COP$319.8 billion.

The affiliates with the highest net incomes were Hocol, COP$69.4 billion, Equión, COP$59.3 billion, and Propilco, COP$14.1 billion. The highest net losses were reported by Ecopetrol America Inc. with COP$150.7 billion, Ecopetrol Oleo e Gas do Brasil with COP$144.7 billion, and Reficar, COP$86.5 billion.

³ For purposes of consolidation of the fourth quarter of 2012, in addition to Ecopetrol’s results, the following subsidiaries are included:

Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A., Hocol S.A., Hocol Petroleum Limited, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Pipelines Limited, Oleoducto de Colombia, Ocensa S.A., Reficar S.A., Oleoducto Bicentenario, Ecopetrol Capital A.G., Equión Energía Limited, Ecopetrol Global Capital SLU, and Cenit Transporte y Logística de Hidrocarburos S.A.S. (“Cenit”).

The consolidated financial statements for the fourth quarter of 2011 include the following affiliates: Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A., Hocol S.A., Hocol Petroleum Limited, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Transportation Company, Oleoducto de Colombia, Ocensa S.A., Reficar S.A., Oleoducto Bicentenario, Ecopetrol Capital A.G., Ecopetrol Transportation Investments Ltd., Equión Energía Limited (since January 24, 2011) and Ecopetrol Global Capital SLU. 

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13

Ecopetrol del Perú, Ecopetrol Oleo & Gas do Brasil, Ecopetrol América, Bioenergy and Oleoducto Bicentenario have not yet reported earnings, either because they are in the pre-operating stage or are carrying out exploratory activities that have not yielded production (with the exception of Ecopetrol America). A majority of affiliates in the crude oil and product transport business have been generating earnings for the group by lowering transport costs; however, from 2013 onward these companies will turn into profit business units, charging every barrel transported for Ecopetrol, or for third parties, with the fees approved by the Colombian Ministry of Mines and Energy.

By means of the equity participation method, Offshore International Group generated income of COP$28.9 billion, Invercolsa, COP$19.2 billion, and Serviport, COP$0.3 billion, whereas Transgas de Occidente generated a loss of COP$ 0.1 billion.

EBITDA in fourth quarter 2012 was COP$6,124.7 billion, equivalent to and EBITDA margin of 34%. EBITDA in the fourth quarter of 2012 decreased compared to 2011 primarily inform higher exploratory expenditures of subsidiaries.

Consolidated Balance Sheet

(COP$ Billion)	December 31, 2012		December 31, 2011		Δ (%)
Current Assets		22,883.6		19,038.0		20.2	%
Long Term Assets		90,996.0		73,239.4		24.2	%
Total Assets		113,879.6		92,277.4		23.4	%
Current Liabilities		23,133.7		15,752.4		46.9	%
Long Term Liabilities		23,402.8		19,583.5		19.5	%
Total Liabilities		46,536.5		35,335.9		31.7	%
Equity		64,740.9		54,688.9		18.4	%
Minority interest		2,602.2		2,252.6		15.5	%
Total Liabilities and Shareholders´ Equity		113,879.6		92,277.4		23.4	%
Debit Memorandum accounts		144,971.4		130,221.9
Credit Memorandum accounts		115,482.1		111,784.6

III. Operating Results

a. Investment Plan

Ecopetrol´s Capex:

						Capex (US$ million)
Business Segment	4Q 2012		Allocation by segment			4Q 2011			Δ (%)			2012		Allocation by segment			2011		Δ (%)
Exploration		175.3		6.7	%		134.6			30.2	%		422.2		6.7	%		565.3		(25.3	)%
Production		1,433.5		54.7	%		1,288.5			11.3	%		3,753.0		59.4	%		3,626.5		3.5	%
Refining and Petrochemicals		151.8		5.8	%		146.7			3.5	%		403.4		6.4	%		358.1		12.7	%
Transportation		481.4		18.4	%		453.0			6.3	%		988.8		15.7	%		1,055.6		(6.3	)%
Supply and Marketing		0.7		0.0	%		0.9			(22.2	)%		4.1		0.1	%		1.8		127.8	%
Subsidiaries*		293.2		11.2	%		349.9			(16.2	)%		599.3		9.5	%		1,034.0		(42.0	)%
Acquisitions		1.6		0.1	%		(0.1	)		(1,700.0	)%		2.2		0.0	%		450.3		(99.5	)%
Corporate		84.7		3.2	%		64.9			30.5	%		143.2		2.3	%		122.1		17.3	%
Total		2,622.2		100.0	%		2,438.4			7.5	%		6,316.2		100.0	%		7,213.7		(12.4	)%

* Amounts correspond to Ecopetrol S.A.´s interest in each company and does not include partner contributions 

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14

During the fourth quarter of 2012, investments increased 7.5% as a result of the approval of requested environmental licenses.

Investments for the full year fell 12.4%, primarily because of: 1) delays in obtaining environmental licenses for exploration and production; 2) increased social requests from communities (employment, roads, education infrastructure, and health infrastructure) in regions with projects; 3) delays in key projects (including the construction of the San Fernando-Monterrey oil pipeline, expansion of the line for transporting diluents, and construction of a gas line between Cupiagua and Cusiana).

b. Exploration

Exploration in Colombia:

Ecopetrol S.A.:

Drilling in Colombia (A3/A2 and Stratigraphic)
Ecopetrol S.A.

	4Q 2012									2012
Type of well	Number of wells		Hydrocarbon  Presence			In  evaluation		Dry		Number of wells		Hydrocarbon  Presence			In  evaluation		Dry
A3/A2		1		0	*		1		0		7		5	*		1		1
Stratigraphic		10		9	**		0		1		25		18	**		0		7
Total		11		9			1		1		32		23			1		8

*Geological success, **Hydrocarbon presence

In the fourth quarter of 2012, three appraisal wells (A1) were drilled, totalling 27 wells drilled of this type in 2012.

The wells with hydrocarbon presence of Ecopetrol S.A. were the following in 2012: 

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15

Ecopetrol S.A.

Quarter	Type of well	Basin	Block	Well
1	A3/A2	VMM	Tisquirama	Tisquirama Este-1
2	A3/A2	VMM	Tisquirama	Caronte
3	A3/A2	VMM	Playón	Aullador-1
3	A3/A2	LLA	Caño Sur	Embrujo-1 ST-2
3	A3/A2	OFF	RC5	Mapalé
1	Stratigraphic	VMM	VMM	La Luna-1
2	Stratigraphic	LLA	CPO-9	Akacías EST-1
3	Stratigraphic	LLA	Caño Sur	Cumanday-1
3	Stratigraphic	LLA	Caño Sur	CSE-X-12
3	Stratigraphic	LLA	Caño Sur	CSE-X-3
3	Stratigraphic	LLA	Caño Sur	CSE-X-4
3	Stratigraphic	LLA	Caño Sur	CSE-X-14
3	Stratigraphic	LLA	Caño Sur	CSE-X-11
3	Stratigraphic	LLA	Caño Sur	CSE-X-9A
4	Stratigraphic	LLA	Caño Sur	CSE - X-7
4	Stratigraphic	LLA	Caño Sur	CSE - X-10
4	Stratigraphic	LLA	Caño Sur	CSE - X-15
4	Stratigraphic	LLA	Caño Sur	CSE X-13
4	Stratigraphic	LLA	Caño Sur	CSE X-8
4	Stratigraphic	LLA	Caño Sur	CSE X-1
4	Stratigraphic	LLA	Caño Sur	CSE X-2
4	Stratigraphic	LLA	Caño Sur	CSE- X-5
4	Estratigráfico	VMM	De Mares	Coyote-1

The following are the highlights of the exploratory block portfolio in Colombia:

National Hydrocarbon Agency (ANH) 2012 Round:

Ecopetrol submitted the highest bids for 12 exploratory blocks, six of which are 100% owned by the company and the remaining in partnerships with Anadarko, ExxonMobil, Repsol and Hocol. The blocks cover a total area of approximately 3.1 million hectares and are located in the Llanos, Valle Medio del Magdalena, Caguán-Putumayo, Catatumbo, and Cordillera basins, and offshore Colombia in the Caribbean. The blocks include the following:

· Unconventional reservoir hydrocarbons: three new blocks for unconventional reservoir, a strategic area for the Company. All of these blocks are in partnership with ExxonMobil, and Ecopetrol is the operator in two of them.

· Caribbean offshore: Two joint ventures with Anadarko Colombia Company and one with Repsol Exploración Colombia S.A. as part of a strategy for strengthening the presence in this basin in partnership with oil companies with significant expertise.

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16

Hocol S.A.:

Drilling in Colombia (A3/A2 and Stratigraphic)
Hocol S.A.

	4Q 2012									2012
Type of well	Number of wells		Hydrocarbon  Presence			In evaluation		Dry		Number of wells		Hydrocarbon  Presence			In evaluation		Dry
A3/A2		2		1	*		0		1		8		4	*		0		4
Stratigraphic		2		2	**		0		0		13		6	**		0		7
Total		4		3			0		1		21		10			0		11

*Geological successl, **Hydrocarbon presence

The following is a summary of the wells with hydrocarbon presence of Hocol S.A. in 2012:

Hocol S.A.
Quarter	Type of well	Basin	Block	Well
1	A3/A2	LLA	Guarrojo	Pintado
1	A3/A2	LLA	CPO 17	Dorcas
1	A3/A2	VIM	Samán	Mamey
4	A3/A2	LLA	CPO 17	Merlín 6
1	Stratigraphic	LLA	CPO 16	ST3A
1	Stratigraphic	LLA	CPO 16	ST6
2	Stratigraphic	LLA	CPO 16	ST7
3	Stratigraphic	LLA	CPO 16	ST8
4	Stratigraphic	VIM	SSJN1	Curramba
4	Stratigraphic	LLA	Guarrojo	Godric

Equión S.A:

During the fourth quarter of 2012, the technical analysis on the results of the Mapale exploratory well evidenced the presence of gas. This well was drilled during the third quarter of the year.

International exploration:

Ecopetrol America Inc:

During 2012, three exploratory wells were drilled in the Gulf of Mexico (U.S.): Parmer and Dalmatian (both with presence of hydrocarbons), and Candy Bars (dry).

Ecopetrol Oleo e Gas do Brasil:

During 2012, the appraisal well Itauna 2 was drilled but did not show evidence of hydrocarbons. Additionally, three exploratory wells were drilled: Sabia and Canario (both dry) and Jandaia, (drilled in the fourth quarter and under evaluation).

Savia:

During 2012, the affiliate Savia Peru drilled two exploratory wells: Colan-1 and Pelusa-1 (drilled in the fourth quarter), which showed presence of hydrocarbons but were commercially unsuccessful.

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17

c. Production

Total Production (Ecopetrol S.A., including interests in affiliates and subsidiaries):

Production

Ecopetrol S.A. gross oil and gas production (mboed)	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		600.6		581.9		3.2	%		591.1		569.8		3.7	%
Natural Gas		112.7		103.1		9.3	%		110.9		100.3		10.6	%
Total		713.3		685.0		4.1	%		702.0		670.1		4.8	%

Hocol (mboed)	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		22.7		29.9		(24.1	)%		24.8		30.3		(18.2	)%
Natural Gas		0.0		0.6		(100.0	)%		0.2		0.5		(60.0	)%
Total		22.7		30.5		(25.6	)%		25.0		30.8		(18.8	)%

Savia (mboed)	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		5.9		6.5		(9.2	)%		6.6		6.0		10.0	%
Natural Gas		0.5		0.7		(28.6	)%		0.7		1.0		(30.0	)%
Total		6.4		7.2		(11.1	)%		7.3		7.0		4.3	%

Equion (mboed)	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		10.6		10.3		2.9	%		10.6		8.2		29.3	%
Natural Gas		7.4		6.7		10.4	%		7.3		6.1		19.7	%
Total		18.0		17.0		5.9	%		17.9		14.3		25.2	%

Ecopetrol America-K2 (mboed)	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		1.4		1.8		(22.2	)%		1.6		1.7		(5.9	)%
Natural Gas		0.2		0.2		0.0	%		0.2		0.2		0.0	%
Total		1.6		2.0		(20.0	)%		1.8		1.9		(5.3	)%

Ecopetrol including affiliates and subsidiares	4Q 2012*		4Q 2011		∆(%)			2012*		2011		∆(%)
Crude Oil		641.2		630.4		1.7	%		634.7		616.0		3.0	%
Natural Gas		120.8		111.3		8.5	%		119.3		108.1		10.4	%
Total Group's production		762.0		741.7		2.7	%		754.0		724.1		4.1	%

* Gas production includes white products

Ecopetrol S.A. production:

Production per type of crude*
	4Q 2012		4Q 2011		Δ (%)			2012		2011		Δ (%)
Light crudes		54.7		63.3		(13.6	)%		59.6		60.9		(2.2	)%
Medium crudes		224.9		227.3		(1.1	)%		227.9		230.6		(1.2	)%
Heavy crudes		321.0		291.3		10.2	%		303.6		278.3		9.1	%
Total		600.6		581.9		3.2	%		591.1		569.8		3.7	%

*Does not include subsidiary companies

In 2012 heavy crude accounted for 51% of total crude production. The fields with the highest growths in 2012 were Chichimene, Foothills (Pauto and Floreña), and Quifa.

During the year, the Cupiagua and Sardinata gas plants began operating, providing household gas to municipalities in the province of Norte de Santander.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

18

Lifting costs of Ecopetrol S.A.:

Lifting cost per barrel produced for Ecopetrol S.A. in 2012 was US$11.53 (based on the U.S. SEC methodology, which does not include royalties), US$1.25 per barrel more than in the same period of the prior year, which was the net result of:

· Higher variable costs for management and disposal of water: +US$1.33 per barrel

· Revaluation of the Colombian peso vs. the U.S. dollar: +US$0.31 per barrel

· Lower costs from higher production : -US$0.39 per barrel

d. Proven Reserves

Ecopetrol´s net proven reserves of hydrocarbons (including its interest in affiliates and subsidiaries) at the end of 2012 were 1,877 million barrels equivalent (mmboe), an increase of 1.1% compared to the 1,857 mmboe in 2011.

In 2012 proven reserves increased by 252 mmboe, and net production was 232 mmboe. The reserves replacement ratio for 2012 was 109%. The reserves/production ratio, assuming production remains at 2012 levels, is 8.1 years. The increase in proven reserves was mainly the result of increases in the size of proven areas, improved recovery and restatement of prior estimates in certain fields.

Reserves were calculated based on the U.S. Securities and Exchange Commission standards and methodology (estimation net of royalties) and were 99% audited by three different specialized, independent firms.

e. Refining

Barrancabermeja Refinery:

Barrancabermeja Refinery	4Q 2012			4Q 2011			∆ (%)			2012			2011			∆ (%)
Refinery runs* (mbod)		223.1			217.6			2.5	%		219.4			226.0			(2.9	)%
Utilization factor (%)		79.2	%		71.6	%		10.6	%		76.7	%		77.0	%		(0.4	)%

* Includes volumes used in the refinery, not total volumes received.

Both the refinery’s throughput and the utilization factor in the fourth quarter of 2012 increased compared to the same period of last year, due to: 1) the operational availability of crude processing units, and 2) logistical and intermediate flow management enabling throughput to be unchanged despite turnarounds of the orthoflow cracking unit.

The modernization project was 13.8% complete by the end of the year. Another milestone was the start of construction site to upgrade the U-250 crude unit.

The master plan for industrial services reached a 61.4% progress at the end of the fourth quarter, with five new centrifugal air compressors and four refurbished compressors with drying systems placed in service.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

19

During December 2012 the optimizatrion center of the refinery began operating. This new facility integrated, updated and centralized the systems (control, protection, monitoring and communication) of 16 existing local control units into one new center.

Costs and margins of the Barrancabermeja Refinery:

The refinery’s operating cash cost for the year 2012 was US$6.03 per barrel, US$0.14 per barrel higher than the same period the last year, which was the result of:

· Increase in cost per barrel associated with lower accumulated throughput from scheduled turnarounds during the year: + US$0.16

· Revaluation of the Colombian peso vs. the U.S. dollar: +US$0.16 per barrel

· A US$0.18 decrease in cost per barrel due to:

o Greater efficiencies in the use of catalysts and a lower cost as a result of supply agreements with reduced fees.

o Higher efficiency in fuel consumption for the generation of electricity and steam.

Barrancabermeja Refinery	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Refining Margin (USD/bl)		9.9		4.7		110.6	%		10.9		11.2		(2.7	)%

Gross refining margin in fourth quarter 2012 increased compared to the same period of the prior year thanks to the higher price differential between diesel and crude.

Reficar (Cartagena Refinery):

Cartagena Refinery	4Q 2012			4Q 2011			∆ (%)			2012			2011			∆ (%)
Refinery runs* (mbod)		77.3			76.4			1.2	%		74.6			76.8			(2.9	)%
Utilization factor (%)		85.8	%		84.0	%		2.1	%		71.6	%		84.2	%		(15.0	)%

* Includes volumes used in the refinery, not total volumes received

A comparison of fourth quarter 2012 with the same period of the previous year indicates stable throughput, and higher utilization factor. These results are due to the improvements in operating conditions at the crude and cracking units following the turnarounds in the first half of the year.

Cartagena Refinery	4Q 2012		4Q 2011			∆ (%)			2012		2011		∆ (%)
Refining Margin (USD/bl)		4.7		(1.5	)		413.3	%		5.4		6.6		(18.2	)%

Gross refining margin in fourth quarter 2012 was higher compared to the same period of the previous year due to: 1) the higher diesel price differential compared to crude, and 2) a reduction in the price of the refinery’s crude feedstock caused by a decrease in price differentials of Vasconia and Caño Limon crudes.

As of December 31, 2012, the expansion and modernization project had advanced 74%.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

20

The progress in each of the work streams was the following:

·	Detail engineering:	99.7	%
·	Procurement:	95.8	%
·	Module construction:	100.0	%
·	Construction (begun in October 2011):	35.8	%

The project is expected to be finished during the first half of 2014.

f. Transportation

Transported volumes:

Transported volumes (mbod)	4Q 2012		4Q 2011		∆ (%)			2012		2011		∆ (%)
Crude		928.8		926.1		0.3	%		916.2		915.6		0.1	%
Refined Products		299.9		305.7		(1.9	)%		302.7		288.9		4.8	%
Total		1,228.7		1,231.8		(0.3	)%		1,218.9		1,204.5		1.2	%

Transported volumes in the fourth quarter of 2012 were lower than in the fourth quarter of 2011, primarily in refined products due to lower product demand from the refineries. However, there was an increase in volume transported by crude systems mainly of heavy crude.

The following are the highlights of 2012:

Primary Oil Pipeline Network

· Increase in transport capacity of the Vasconia GRB Galán system from 168 to 180 mbod.

· Increase in capacity of Transandino oil pipeline system from 48 to 60 mbod.

· Increase in pumping capacity of the Ayacucho – Coveñas from 60.5 to 75.0 mbod.

Secondary Oil Pipeline Network

· Increase in pumping capacity of the Monterrey - Porvenir system from 36 to 54 mbod.

· Start of operations of the Galán – Ayacucho system from 16 to 35 mbod

Product Pipeline Network

· Transporting of diluents by pipeline from Apiay to the production fields Acacias, Chichimene and Castilla (+40 mbod).

· Increase in the capacity of the Pozos Colorados – Galán system from 90 to 105 mbod.

Gas Pipeline Network

· Start of operations of the Cupiagua – Cusiana gas pipeline with a capacity of 1.1 million cubic feet.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

21

Bicentenario Oil Pipeline:

The overall progress of the project was 60.8% by the end of 2012 (includes the Araguaney – Banadía line and Conveñas stations and storage facilites). The process of filling the Araguaney - Banadía pipeline is expected to begin in the second quarter of 2013.

CENIT S.A.:

The following were the milestones of the fourth quarter:

· Staffing of the multidisciplinary team to determine the scope and implementation of 4 contracts between Cenit and Ecopetrol

· Testing of the operation model (with emphasis on billings, reports and operational briefs).

It is expected that CENIT begins operations during the first quarter of 2013.

Transportation costs:

The barrel/kilometer transport cost for 2012 was COP$11.16/BKM, an increase of COP$3.13/BKM compared to the same period of the previous year, which was the result of:

· Higher costs of COP$3.06/BKM associated with expedite maintenance to ensure system reliability and to prevent geotechnical problems that could arise after the harsh rainy seasons of 2011 - 2012.

· Higher costs of COP$0.07/BKM due to lower volumes transported.

g. Biofuels

Ecodiesel Colombia S.A.:

Biofuel production in the fourth quarter of 2012 was 26,248 tons, an increase of 4% compared to the same quarter of the prior year, which was the result of: 1) the stabilization of the acid esterification process allowing for conversion of fatty acids (process byproduct) into biodiesel; and 2) greater operating efficiencies.

Bioenergy S.A.:

As of December 31, 2012, the Bioenergy project reached 59.3% progress (59.5% in its industrial stream and 59.0% in its agricultural stream).

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

22

IV. Organizational consolidation, social corporate responsibility and corporate governance

a. Organizational consolidation

Health, Safety and Environment (HSE):

HSE Index	4Q 2012		4Q 2011		2012		2011
Accident frequency index (accidents per million labor hours)		0.67		0.94		0.79		1.02
Environmental incidents*		4		11		27		41

* Results are subject to change after the end of the quarter given that certain accidents and incidents could be reclassified depending on the final results of the investigations.

The accident frequency index during the year 2012 reached a historical minimum.

Science and technology:

During the fourth quarter of 2012, seven patents were granted to Ecopetrol (six in Colombia and one in Peru), regarding production, transportation, refining and biofuels. In 2012, a total of 21 patents were granted (13 in Colombia, 4 in Mexico, 2 in Russia, 1 in Peru, and 1 in the United States).

Recognitions:

· Ecopetrol received the first Accenture Award for Innovation in Colombia, due to its contribution to the “Strategy for controlling theft of hydrocarbons���.

· Ecopetrol was the first Colombian company and one of the few in Latin America to win the MAKE Americas award (Most Admired Knowledge Enterprises).

· In October, Ecopetrol rose nine positions to the 14th spot among the world’s energy companies with the best performances, according to Platts’ ‘Top Global Energy Company Rankings 2012’.

· For the fifth year in a row, Ecopetrol came in first place in corporate reputation in Colombia and was selected for a second time as the most responsible company in the country, according to Corporate Reputation Business Monitor (MERCO – Colombia).

b. Corporate Responsibility

Social investment: 

In 2012, social investment increased by 42.2%, amounting COP$304.5 billion, allocated as follows: 1) COP$188.1 billion for regional competitiveness; 2) COP$74.3 billion for education and culture; and 3) COP$42.1 billion for citizenship and democracy.

c. Corporate Governance

Extraordinary Shareholder Meeting and changes in the Board of Directors:

During the meeting held on December 6, 2012, Mr. Jorge Pinzón was designated to fill the fourth post on the Board of Directors.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

23

V. Results Conference Calls

Ecopetrol’s management will hold two webcasts to review the fourth quarter and full year 2012 results:

Spanish	English
February 19, 2013	February 19, 2013
1:30 p.m. Bogota / New York / Toronto	3:00 p.m. Bogota / New York / Toronto

The webcast will be available on Ecopetrol’s website:www.ecopetrol.com.co

Please access the website 10 minutes beforehand in order to download the necessary software. A copy of the webcast will remain available for one year following the live event.

About Ecopetrol S.A.

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) is the largest company in Colombia based on revenue, profit, assets and net equity. Ecopetrol is the only Colombian vertically integrated crude oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast. Its affiliates include the following companies: Andean Chemicals Limited, Bioenergy S.A., Bioenergy Free Trade Zone, Black Gold Re Ltd, Cenit Transporte y Logística de Hidrocarburos S.A.S. , COMAI, Ecopetrol America Inc., Ecopetrol del Perú S.A., Ecopetrol Oleo e Gas do Brasil Ltda., Ecopetrol Capital AG, ECP Global Energy, Ecopetrol Capital S.L.U., Ecopetrol Pipelines International, Equión Energía Limited, Hocol Petroleum Limited, Hocol S.A., ODL Finance S.A., ODL S.A., Propilco, Oleoducto Bicentenario de Colombia S.A.S., Ocensa S.A., Oleoducto de Colombia and Refinería de Cartagena S.A. Ecopetrol S.A. is one of the 50 largest oil companies in the world and one of the four main oil companies in Latin America. The company is majority owned by the Republic of Colombia (88.5%), and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL, in the New York Stock Exchange (NYSE) under the ticker EC and the Toronto Stock Exchange (TSX) under the ticker ECP. The company has four business segments : 1) exploration and production, 2) transport, 3) refining and petrochemicals, and 4) supply and marketing.

For more information about Ecopetrol, please visit the website: www.ecopetrol.com.co

Forward-Looking Statements

This news release may contain forward-looking statements related to the prospects of the business, estimates for operating and financial results, and growth forecasts of Ecopetrol. These are projections, and, as such, are solely based on the expectations of management with regard to the company’s future and its continued access to capital to finance the company’s business plan. Such forward-looking statements depend essentially on changes in market conditions, government regulations, competitive pressures, performance of the Colombian economy and industry, among other factors; therefore, they are subject to change without prior notice.

Contact Information:

Investor Relations Director

Alejandro Giraldo

Telephone: +571-234-5190

E-mail:investors@ecopetrol.com.co

Media Relations (Colombia)

Jorge Mauricio Tellez

Telephone: + 571-234-4329

E-mail:mauricio.tellez@ecopetrol.com.co

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

24

VI. Additional Exhibits of Ecopetrol S.A.

Unaudited Income Statement

Ecopetrol S.A.

COP$ Million		4Q 2012*			4Q 2011*		∆(%)			3Q 2012*			2012*			2011		∆(%)
Income
Local Sales		4,718,789			4,853,536		(2.8	)%		4,395,549			18,341,240			17,920,112		2.4	%
Export Sales		8,550,306			9,266,890		(7.7	)%		8,094,825			34,240,864			31,475,732		8.8	%
Sales to free trade zone		1,352,388			1,530,298		(11.6	)%		1,297,320			5,292,658			5,613,158		(5.7	)%
Sale of Services		432,877			403,455		7.3	%		441,097			1,649,824			1,483,320		11.2	%
Total Income		15,054,360			16,054,179		(6.2	)%		14,228,791			59,524,586			56,492,322		5.4	%
Cost of Sales
Variable Costs
Purchase of Hydrocarbons		3,366,750			3,771,090		(10.7	)%		3,371,585			13,720,804			12,697,409		8.1	%
Amortization and Depletion		168,971			15,495		990.5	%		867,518			2,586,940			2,262,560		14.3	%
Imported products		1,708,437			1,873,549		(8.8	)%		1,413,346			6,863,138			6,265,906		9.5	%
Hydrocarbon Transportation Services (1)		507,661			411,635		23.3	%		491,696			2,015,050			1,652,461		21.9	%
Inventories and other		160,683			50,404		218.8	%		509,820			303,147			60,223		403.4	%
Fixed Costs
Depreciation		359,221			286,544		25.4	%		335,018			1,307,679			1,132,520		15.5	%
Contracted Services		993,196			869,197		14.3	%		756,493			3,077,898			2,599,206		18.4	%
Maintenance		595,929			450,956		32.1	%		415,454			1,560,369			1,176,034		32.7	%
Labor Costs		432,925			334,174		29.6	%		253,222			1,191,219			986,682		20.7	%
Other		484,122			374,784		29.2	%		351,074			1,191,526			954,719		24.8	%
Total Cost of Sales		8,777,895			8,437,828		4.0	%		8,765,226			33,817,770			29,787,720		13.5	%
Gross Profits		6,276,465			7,616,351		(17.6	)%		5,463,565			25,706,816			26,704,602		(3.7	)%
Operating Expenses
Administration		178,633			178,794		(0.1	)%		149,130			630,952			631,891		(0.1	)%
Selling expenses		836,224			239,405		249.3	%		286,816			1,628,042			1,213,992		34.1	%
Exploration and Projects		223,774			152,836		46.4	%		114,481			591,412			506,969		16.7	%
Operating Income/Loss		5,037,834			7,045,316		(28.5	)%		4,913,138			22,856,410			24,351,750		(6.1	)%
Non Operating Income (expenses)
Financial Income		812,008			1,447,046		(43.9	)%		646,260			4,024,720			4,910,696		(18.0	)%
Financial Expenses		(656,530	)		(1,319,596	)	(50.2	)%		(553,117	)		(3,856,285	)		(5,350,168	)	(27.9	)%
Interest expenses		(121,419	)		(153,788	)	(21.0	)%		(94,198	)		(394,028	)		(278,636	)	41.4	%
Non Financial Income		522,359			498,856		4.7	%		127,009			1,022,549			1,117,071		(8.5	)%
Non Financial Expenses		(478,195	)		(1,013,595	)	(52.8	)%		(641,488	)		(2,604,879	)		(2,487,972	)	4.7	%
Results from Subsidiaries		(244,621	)		(21,033	)	1,063.0	%		311,150			477,145			552,148		(13.6	)%
Income before income tax		4,871,436			6,483,206		(24.9	)%		4,708,754			21,525,632			22,814,889		(5.7	)%
Provision for Income Tax		1,164,666			2,050,593		(43.2	)%		1,461,105			6,552,683			7,366,556		(11.0	)%
Minority interest
Net Income		3,706,770			4,432,613		(16.4	)%		3,247,649			14,972,949			15,448,333		(3.1	)%
EBITDA (2)		6,165,015			7,473,982		(17.5	)%		6,231,682			27,572,592			28,130,326		(2.0	)%
EBITDA MARGIN		41	%		47	%				44	%		46	%		50	%
EARNINGS PER SHARE	$	90.15		$	107.81		(16.4	)%	$	78.99		$	364.16		$	379.97		(4.2	)%

* Not audited, for illustration purposes only

(1) Fourth Quarter 2011. For presentation purposes, COP$76 billion was transferred from the trade expenditure, and cumulative for the year, also COP$530.5 billion, corresponding to Transport and Hydrocarbons.

Starting 2011, for comparative purposes only, cost of sales includes internal reclassifications between line items.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

25

(2) From 2102 the income coming from extensive production tests is booked as an operational income and impacts Ebitda.

Some figures of 2011 were reclassified to be comparable with 2012.

Unaudited Income Statement

Ecopetrol Consolidated

COP$ Million	4Q-2012*		4Q-2011 *		∆(%)		3Q-2012*		2012*		2011		∆(%)
Income
Local Sales	6,000,703		6,093,608		(1.5	)%	5,335,365		22,284,055		21,792,569		2.3	%
Export Sales	11,262,668		12,341,453		(8.7	)%	10,632,363		44,490,089		42,412,885		4.9	%
Sale of Services	494,814		482,606		2.5	%	588,946		2,077,858		1,762,060		17.9	%
Total Income	17,758,185		18,917,667		(6.1	)%	16,556,674		68,852,002		65,967,514		4.4	%
Cost of Sales
Variable Costs
Purchase of Hydrocarbons	4,321,417		3,843,310		12.4	%	3,991,916		16,278,758		14,750,481		10.4	%
Amortization and Depletion	235,106		133,869		75.6	%	994,921		3,106,563		2,767,615		12.2	%
Imported products	2,466,102		2,716,832		(9.2	)%	2,004,988		9,447,041		8,840,450		6.9	%
Hydrocarbon Transportation Services	371,094		310,687		19.4	%	155,842		1,152,081		938,036		22.8	%
Inventories and other	278,046		823,321		(66.2	)%	494,275		473,642		790,037		(40.0	)%
Fixed Costs
Depreciation	472,135		464,916		1.6	%	495,400		1,886,620		1,809,546		4.3	%
Contracted Services	1,010,351		810,402		24.7	%	772,412		3,125,802		2,460,754		27.0	%
Maintenance	706,485		567,779		24.4	%	507,081		1,923,736		1,593,327		20.7	%
Labor Costs	453,024		388,999		16.5	%	284,988		1,267,381		1,219,219		4.0	%
Other	692,244		625,008		10.8	%	527,564		1,873,884		1,535,119		22.1	%
Total Cost of Sales	11,006,004		10,685,123		3.0	%	10,229,387		40,535,508		36,704,584		10.4	%
Gross Profits	6,752,181		8,232,544		(18.0	)%	6,327,287		28,316,494		29,262,930		(3.2	)%
Operating Expenses
Administration	190,835		245,725		(22.3	)%	210,919		874,980		1,018,917		(14.1	)%
Selling expenses	1,031,751		265,119		289.2	%	316,099		1,815,693		1,458,545		24.5	%
Exploration and Projects	573,580		294,550		94.7	%	249,087		1,419,531		912,488		55.6	%
Operating Income/Loss	4,956,015		7,427,150		(33.3	)%	5,551,182		24,206,290		25,872,980		(6.4	)%
Non Operating Income (expenses)
Financial Income	849,442		1,653,381		(48.6	)%	35,947		4,833,469		8,322,362		(41.9	)%
Financial Expenses	(636,347	)	(1,605,927	)	(60.4	)%	66,783		(4,419,761	)	(8,811,442	)	(49.8	)%
Interest expenses	(166,354	)	(178,840	)	(7.0	)%	(137,064	)	(581,597	)	(415,222	)	40.1	%
Non Financial Income	527,281		587,600		(10.3	)%	155,253		1,101,694		1,369,991		(19.6	)%
Non Financial Expenses	(582,856	)	(1,092,658	)	(46.7	)%	(686,231	)	(2,808,394	)	(2,697,237	)	4.1	%
Income before income tax	4,947,181		6,790,706		(27.1	)%	4,985,870		22,331,701		23,641,432		(5.5	)%
Provision for Income Tax	1,282,826		2,239,731		(42.7	)%	1,595,481		7,133,395		7,955,721		(10.3	)%
Minority interest	43,646		113,214		(61.4	)%	163,234		419,359		233,377		79.7	%
Net Income	3,620,709		4,437,761		(18.4	)%	3,227,155		14,778,947		15,452,334		(4.4	)%
EBITDA	6,124,688		8,018,008		(23.6	)%	6,914,600		29,274,801		30,236,379		(3.2	)%
EBITDA MARGIN	34	%	42	%			42	%	43	%	46	%

Notes

* This statement is not audited

Some figures of 2011 were reclassified to be comparable with 2012

According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year. Therefore, the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol's financial statements though they do adjust to the methodology defined for this purpose.

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

26

Balance Sheet

Unaudited

	Ecopetrol S.A.							Ecopetrol Consolidated
	December 31, 2012		December 31, 2011		∆ (%)			December 31, 2012		December 31, 2011		∆ (%)
COP$ Million
Assets
Current Assets
Cash and cash equivalents		5,260,111		4,497,352		17.0	%		7,940,690		6,779,937		17.1	%
Investments		1,367,014		1,069,628		27.8	%		1,371,559		1,337,602		2.5	%
Accounts and notes receivable		4,512,756		5,257,684		(14.2	)%		5,261,501		4,636,536		13.5	%
Inventories		2,393,400		2,395,929		(0.1	)%		2,806,282		2,761,605		1.6	%
Other		4,376,821		2,604,195		68.1	%		5,503,595		3,522,335		56.2	%
Total Current Assets		17,910,102		15,824,788		13.2	%		22,883,627		19,038,015		20.2	%
Non Current Assets
Investments		18,651,177		17,353,028		7.5	%		5,812,223		5,474,805		6.2	%
Accounts and notes receivable		1,562,097		2,033,465		(23.2	)%		503,451		407,227		23.6	%
Property, plant and equipment, net		22,935,477		19,119,854		20.0	%		37,134,955		30,033,380		23.6	%
Natural and environmental properties, Net		15,694,807		13,753,201		14.1	%		18,568,730		15,440,787		20.3	%
Resources delivered to administration		323,665		283,504		14.2	%		478,810		321,361		49.0	%
Other		23,570,656		16,883,334		39.6	%		28,497,782		21,561,811		32.2	%
Total Non Current Assets		82,737,878		69,426,386		19.2	%		90,995,951		73,239,371		24.2	%
Total Assets		100,647,980		85,251,174		18.1	%		113,879,578		92,277,386		23.4	%
Liabilities and Equity
Current Liabilities
Financial obligations		454,363		452,692		0.4	%		2,239,139		831,594		169.3	%
Accounts payable and related parties		10,522,981		4,391,709		139.6	%		10,905,375		4,683,148		132.9	%
Estimated liabilities and provisions		1,134,859		1,199,646		(5.4	)%		1,872,335		1,695,193		10.4	%
Other		7,384,478		7,774,276		(5.0	)%		8,116,877		8,542,502		(5.0	)%
Total Current Liabilities		19,496,680		13,818,323		41.1	%		23,133,726		15,752,437		46.9	%
Long Term Liabilities
Financial obligations		5,021,256		5,718,463		(12.2	)%		11,466,686		7,969,978		43.9	%
Labor and pension plan obligations		4,063,881		3,180,270		27.8	%		4,070,744		3,190,229		27.6	%
Estimated liabilities and provisions		4,227,341		3,984,580		6.1	%		4,376,004		4,084,829		7.1	%
Other		2,580,310		3,538,500		(27.1	)%		3,489,370		4,338,427		(19.6	)%
Total Long Term Liabilities		15,892,788		16,421,813		(3.2	)%		23,402,804		19,583,463		19.5	%
Total Liabilities		35,389,468		30,240,136		17.0	%		46,536,530		35,335,900		31.7	%
Minority Interest									2,602,167		2,252,631		15.5	%
Equity		65,258,512		55,011,038		18.6	%		64,740,881		54,688,855		18.4	%
Total Liabilities and Shareholders' Equity		100,647,980		85,251,174		18.1	%		113,879,578		92,277,386		23.4	%
Memorandum Debtor Accounts *		131,388,436		122,266,344					144,971,427		130,221,873
Memorandum Creditor Accounts *		109,085,670		103,461,130					115,482,125		111,784,599

Notes

* Under Colombian GAAP, these accounts represent facts or circumstances from which rights or obligations could derive and affect the Company, however, these accounts are not included in the Balance Sheet

Some figures of 2011 were reclassified to be comparable with 2012

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

27

Unaudited Cash Flow Statement

Ecopetrol S.A.

COP$ million	4Q 2012 *		4Q 2011 *		∆(%)		3Q 2012 *		2012*		2011		∆(%)
Cash flow provided by operating activities:
Net income	3,706,770		4,432,613		(16.4	)%	3,247,649		14,972,950		15,448,333		(3.1	)%
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	885,315		927,255		(4.5	)%	1,462,408		5,020,204		4,594,483		9.3	%
Net provisions	(195,940	)	211,883		(192.5	)%	256,217		294,003		150,854		94.9	%
Disposal of property, plant and equipment	-		(2,320	)	(100.0	)%	13		127		-		100.0	%
Loss for disposal of property, plant and equipment	-		418		-100.0	%	-		-		418		(100.0	)%
Loss for disposal of natural and environmental resources	30,701		-		100.0	%	-		34,191		-		100.0	%
Loss for disposal of other assets	(78	)	12		(750.0	)%	78		-		300		(100.0	)%
Income (loss) from equity method on affiliated companies	244,620		21,031		1,063.1	%	(311,149	)	(477,145	)	(552,148	)	(13.6	)%
Net changes in operating assets and liabilities:
Accounts and notes receivable	(162,023	)	1,607,939		(110.1	)%	(577,331	)	(519,046	)	(2,071,923	)	(74.9	)%
Inventories	(155,892	)	(375,343	)	(58.5	)%	137,954		(334,681	)	(563,619	)	(40.6	)%
Deferred and other assets	(21,881	)	132,934		(116.5	)%	152,040		525,302		(1,579,232	)	(133.3	)%
Accounts payable and related parties	77,336		(2,280,447	)	-103.4	%	102,380		1,875,943		(133,719	)	-1502.9	%
Taxes payable	1,334,531		1,919,131		(30.5	)%	1,166,604		(886,367	)	5,401,192		(116.4	)%
Labor obligations	16,543		(117,336	)	(114.1	)%	31,917		34,197		(97,256	)	(135.2	)%
Estimated liabilities and provisions	(27,028	)	50,384		(153.6	)%	(228,424	)	(438,996	)	(7,497	)	5755.6	%
Cash provided by operating activities	5,732,974		6,528,154		-12.2	%	5,440,356		20,100,682		20,590,186		-2.4	%
Cash flows from investing activities:
Payment for purchase of Companies, net of cash acquired	2,300		-		100.0	%	(2,300	)	-		(868,954	)	(100.0	)%
Purchase of investment securities	(6,808,670	)	(2,027,495	)	235.8	%	(1,157,185	)	(15,281,566	)	(11,685,030	)	30.8	%
Redemption of investment securities	5,327,087		1,230,037		333.1	%	1,558,443		13,728,774		8,614,979		59.4	%
Sale of property, plant and equipment	-		-		0.0	%	-		-		-		0.0	%
Investment in natural and environmental resources	(1,874,056	)	(1,386,313	)	35.2	%	(796,721	)	(4,221,959	)	(3,566,030	)	18.4	%
Additions to property, plant and equipment	(1,835,509	)	(1,739,619	)	5.5	%	(825,278	)	(4,686,842	)	(6,109,240	)	(23.3	)%
Net cash generated by investing activities	(5,188,848	)	(3,923,390	)	32.3	%	(1,223,041	)	(10,461,593	)	(13,614,275	)	-23.2	%
Cash flows from financing activities:
Financial obligations	(188,164	)	(387,572	)	(51.5	)%	(56,074	)	(489,540	)	(440,939	)	11.0	%
Received from associates - capitalization	-		1,750,189		(100.0	)%	-		-		2,228,683		(100.0	)%
Dividends	-		(1,942,683	)	(100.0	)%	(3,499,555	)	(8,386,790	)	(5,858,386	)	43.2	%
Net cash used in financing activities	(188,164	)	(580,066	)	(67.6	)%	(3,555,629	)	(8,876,330	)	(4,070,642	)	118.1	%
Net increase (decrease) in cash and cash equivalents	355,962		2,024,698		(82.4	)%	661,686		762,759		2,905,269		(73.7	)%
Cash and cash equivalents at the beginnig of the year	4,904,149		2,472,654		98.3	%	4,242,463		4,497,352		1,592,083		182.5	%
Cash and cash equivalents at the end of the year	5,260,111		4,497,352		17.0	%	4,904,149		5,260,111		4,497,352		17.0	%

NOTES:

* Not audited, for illustration purposes only.

Some figures of 2011 were reclassified to be comparable with 2012

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

28

Unaudited Cash Flow Statement

Ecopetrol Consolidated

COP$ million	4Q 2012 *		4Q 2011 *		∆(%)		3Q 2012 *		2012*		2011		∆(%)
Cash flow provided by operating activities:
Net income	3,620,709		4,437,761		(18.4	)%	3,227,155		14,778,947		15,452,334		(4.4	)%
Adjustments to reconcile net income to cash provided by operating activities:
Minority interest	43,646		113,214		-61	%	163,234		419,359		233,377		80	%
Depreciation, depletion and amortization	1,132,071		1,270,254		(10.9	)%	1,738,912		6,278,199		5,849,166		7.3	%
Net provisions	(186,376	)	193,519		(196.3	)%	261,764		319,297		141,137		126.2	%
Disposal of property, plant and equipment	-		418		(100.0	)%	-		-		418		(100.0	)%
Loss for disposal of property, plant and equipment	-		(2,320	)	(100.0	)%	13		127		-		100.0	%
Loss for disposal of natural and environmental resources	34,113		-		100.0	%	(3,412	)	34,191		-		100.0	%
Loss for disposal of other assets	(3,490	)	12		(29,183.3	)%	3,490		-		300		(100.0	)%
Income (loss) from equity method on affiliated companies	(56,518	)	(53,055	)	6.5	%	(15,224	)	(125,277	)	(141,275	)	(11.3	)%
Net changes in operating assets and liabilities:
Accounts and notes receivable	403,861		1,801,381		(77.6	)%	(954,023	)	(2,517,198	)	(1,324,033	)	90.1	%
Inventories	(70,573	)	(150,428	)	(53.1	)%	78,077		(390,847	)	(561,846	)	(30.4	)%
Deferred and other assets	(259,420	)	(1,614,876	)	(83.9	)%	48,745		(78,865	)	(2,165,464	)	(96.4	)%
Accounts payable and related parties	2,191,891		(2,735,522	)	(180.1	)%	(2,222,230	)	2,318,922		(121,422	)	(2,009.8	)%
Taxes payable	1,699,562		2,810,399		(39.5	)%	1,261,123		(730,923	)	5,073,370		(114.4	)%
Labor obligations	24,655		(126,068	)	(119.6	)%	39,681		34,632		(85,757	)	(140.4	)%
Estimated liabilities and provisions	(256,773	)	393,582		(165.2	)%	(434,250	)	(744,197	)	646,008		(215.2	)%
Cash provided by operating activities	8,317,358		6,338,271		31.2	%	3,193,054		19,596,367		22,996,312		(14.8	)%
Cash flows from investing activities:
Payment for purchase of Companies, net of cash acquired	-		-		0.0	%	-		-		(868,954	)	(100.0	)%
Purchase of investment securities	(6,806,370	)	(2,027,495	)	235.7	%	(1,159,485	)	(15,281,566	)	(11,685,030	)	30.8	%
Redemption of investment securities	3,871,133		1,897,891		104.0	%	3,873,231		14,725,312		9,861,330		49.3	%
Sale of property, plant and equipment	-		-		0.0	%	-		-		-		0.0	%
Investment in natural and environmental resources	(1,977,201	)	(951,919	)	107.7	%	(1,198,543	)	(5,888,588	)	(4,311,149	)	36.6	%
Additions to property, plant and equipment	(3,490,053	)	(2,964,235	)	17.7	%	(1,869,633	)	(8,644,408	)	(10,189,522	)	(15.2	)%
Net cash used in investing activities	(8,402,490	)	(4,045,759	)	107.7	%	(354,431	)	(15,089,250	)	(17,193,325	)	(12.2	)%
Cash flows financing activities:
Minority interest	(65,687	)	413,349		(115.9	)%	2,939		(69,823	)	1,027,567		(106.8	)%
Financial obligations	935,041		(157,817	)	(692.5	)%	1,855,686		5,110,249		(109,192	)	(4,780.1	)%
Received from associates - capitalization	-		1,750,189		(100.0	)%	-		-		2,228,683		(100.0	)%
Dividends	-		(1,981,183	)	(100.0	)%	(3,499,555	)	(8,386,790	)	(5,896,886	)	42.2	%
Net cash used in financing activities	869,354		24,538		3,442.9	%	(1,640,930	)	(3,346,364	)	(2,749,828	)	21.7	%
Net increase (decrease) in cash and cash equivalents	784,223		2,317,050		(66.2	)%	1,197,694		1,160,753		3,053,159		(62.0	)%
Cash and cash equivalents at the beginnig of the year	7,156,467		4,268,578		67.7	%	5,958,773		6,779,937		3,726,778		81.9	%
Cash and cash equivalents at the end of the year	7,940,690		6,585,628		20.6	%	7,156,467		7,940,690		6,779,937		17.1	%

Notes

* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements t the end of each fiscal year, therefore the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol's financial statement, though they do adjust to the methodology defined for this purpose.

Some figures of 2011 were reclassified to be comparable with 2012

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

29

Calculation and Reconciliation of EBITDA

Ecopetrol S.A.

COP$ Millions	4Q 2012 *		4Q 2011 *		∆(%)		3Q 2012*		2012*		2011		∆(%)
EBITDA CALCULATION
Operating income	5,037,834		7,045,316		(28.5	)%	4,913,138		22,856,410		24,351,750		(6.1	)%
Plus: Depreciations, depletions and amortizations	1,127,181		428,666		163.0	%	1,318,544		4,716,182		3,778,576		24.8	%
UNCONSOLIDATED EBITDA	6,165,015		7,473,982		(17.5	)%	6,231,682		27,572,592		28,130,326		(2.0	)%
RECONCILIATION NET INCOME TO EBITDA
Net Income	3,706,765		4,432,613		(16.4	)%	3,247,649		(4,024,720	)	15,448,333		(126.1	)%
Depreciations, depletions and amortizations	1,127,181		428,666		163.0	%	1,318,544		4,250,313		3,778,576		12.5	%
Financial income	(812,008	)	(1,447,046	)	43.9	%	(646,260	)	(1,022,549	)	(4,910,696	)	79.2	%
Financial expenses	777,949		1,473,384		(47.2	)%	647,315		2,604,879		5,628,804		(53.7	)%
Non financial income	(522,359	)	(498,856	)	4.7	%	(127,009	)	(1,022,549	)	(1,117,071	)	8.5	%
Non financial expenses	478,200		1,013,595		(52.8	)%	641,488		2,604,879		2,487,972		4.7	%
Results in subsidiaries	244,621		21,033		1,063.0	%	(311,150	)	(477,145	)	(552,148	)	13.6	%
Provision for income tax	1,164,666		2,050,593		(43.2	)%	1,461,105		6,552,683		7,366,556		(11.0	)%
UNCONSOLIDATED EBITDA	6,165,015		7,473,982		(17.5	)%	6,231,682		27,572,592		28,130,326		(2.0	)%

Ecopetrol Consolidated

COP$ Millions	4Q 2012 *		4Q 2011 *		∆(%)		3Q 2012*		2012*		2011		∆(%)
EBITDA CALCULATION
Operating income	4,956,016		7,397,969		(33.0	)%	5,551,182		24,206,291		25,690,963		(5.8	)%
Plus: Depreciations, depletions and amortizations	1,597,709		751,784		112.5	%	1,583,182		6,162,214		5,033,025		22.4	%
Minority interest	(150,449	)	(197,708	)	23.9	%	(219,764	)	(815,116	)	(702,855	)	16.0	%
CONSOLIDATED EBITDA	6,403,276		7,952,045		(19.5	)%	6,914,600		29,553,389		30,021,133		(1.6	)%
RECONCILIATION NET INCOME TO EBITDA
Net income	3,620,709		4,437,761		(18.4	)%	3,227,155		14,778,947		15,452,334		(4.4	)%
Depreciations, depletions and amortizations	1,597,709		751,784		112.5	%	1,583,182		6,162,214		5,033,025		22.4	%
Financial income	(794,124	)	(1,653,381	)	52.0	%	(20,724	)	(4,707,994	)	(8,322,362	)	(43.4	)%
Financial expenses	803,901		1,784,766		(55.0	)%	70,282		5,001,159		9,226,664		(45.8	)%
Non financial income	(582,598	)	(679,168	)	14.2	%	(170,477	)	(1,227,168	)	(1,634,884	)	(24.9	)%
Non financial expenses	581,656		1,155,046		(49.6	)%	686,231		2,808,593		2,780,113		1.0	%
Minority interest on net income	43,646		113,214		(61.4	)%	163,234		419,359		233,377		79.7	%
Provision for income taxes	1,282,826		2,239,731		(42.7	)%	1,595,481		7,133,395		7,955,721		(10.3	)%
Minority interest on Ebitda	(150,449	)	(197,708	)	23.9	%	(219,764	)	(815,116	)	(702,855	)	16.0	%
CONSOLIDATED EBITDA	6,403,276		7,952,045		(19.5	)%	6,914,600		29,553,389		30,021,133		(1.6	)%

* Not audited, for illustration purposes only

Some figures of 2011 were reclassified to be comparable with 2012

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

30

VII. Subsidiaries results

Note: The financial statements of subsidiaries are not audited.

Exploration and Production

1. Hocol

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Local Sales		0.1			2.9			3.4			9.1
Export Sales		826.6			1,228.1			3,738.8			3,922.5
Sales of services		-			-			-			-
Total Sales		826.7			1,231.0			3,742.2			3,931.6
Variable Costs		540.0			742.5			2,461.3			2,412.9
Fixed Costs		91.3			115.8			407.0			438.6
Cost of Sales		631.3			858.3			2,868.3			2,851.4
Gross profit		195.4			372.7			873.9			1,080.2
Operating Expenses		83.7			63.8			252.3			173.8
Operating Profit		111.7			308.9			621.6			906.4
Profit/(Loss) before taxes		107.4			280.9			653.4			915.2
Income tax		38.0			78.1			198.4			285.3
Net Income/Loss		69.4			202.8			455.0			629.9
TOTAL EBITDA *		154.2			359.2			857.7			1,179.5
EBITDA margin		19	%		29	%		23	%		30	%
EBITDA to EC GROUP**		154.2			359.2			857.7			1,179.5

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
(COP$ Billion)	As of December 31, 2012		As of December 31, 2011
Current Assets		1,028.1		996.3
Long Term Assets		1,789.4		1,711.2
Total Assets		2,817.5		2,707.5
Current Liabilities		674.0		674.1
Long Term Liabilities		203.2		153.6
Deferred taxes		-		-
Total Liabilities		877.2		827.7
Equity		1,940.3		1,879.8
Total Liabilities and Shareholders´ Equity		2,817.5		2,707.5

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

31

2. Savia Peru

Income Statement
US$ million	4Q 2012			4Q 2011			2012			2011
Local Sales		100.5			119.6			452.4			428.1
Export Sales		-			-			-			-
Sales of services		-			-			-			-
Total Sales		100.5			119.6			452.4			428.1
Variable Costs		38.1			25.9			124.8			134.8
Fixed Costs		35.4			38.5			125.5			78.4
Cost of Sales		73.5			64.4			250.3			213.2
Gross profit		27.0			55.2			202.2			214.9
Operating Expenses		38.8			24.5			91.7			78.9
Operating Profit		(11.8	)		30.7			110.5			136.0
Profit/(Loss) before taxes		(11.8	)		30.7			110.5			136.0
Income tax		(1.0	)		3.9			33.4			18.5
Employee profit sharing		-			-			-			-
Deferred taxes		(2.6	)		(2.7	)		2.1			18.1
Minority interest		-			-			-			-
Net Income/Loss		(8.3	)		29.6			75.0			99.3
TOTAL EBITDA *		19.8			68.8			222.3			211.8
EBITDA margin		20	%		58	%		49	%		49	%
EBITDA to EC GROUP**		-			-			-			-

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
US$ million	As of December 31, 2012		As of December 31, 2011
Current Assets		205.8		237.5
Long Term Assets		693.9		583.7
Total Assets		899.7		821.2
Current Liabilities		250.3		256.4
Long Term Liabilities		128.7		119.1
Deferred taxes		-		-
Total Liabilities		379.0		375.5
Equity		520.7		445.7
Total Liabilities and Shareholders´ Equity		899.7		821.2

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

32

3. Equion

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Local Sales		45.6			53.4			194.2			150.3
Export Sales		453.0			629.1			1,964.0			1,924.6
Sales of services		-			1.3			-			3.9
Total Sales		498.6			683.8			2,158.2			2,078.8
Variable Costs		188.6			317.6			846.7			1,022.1
Fixed Costs		48.2			56.6			169.1			144.7
Cost of Sales		236.8			374.1			1,015.8			1,166.9
Gross profit		261.8			309.7			1,142.4			911.9
Operating Expenses		97.6			8.9			144.5			156.2
Operating Profit		164.2			300.7			997.9			755.7
Profit/(Loss) before taxes		179.2			364.2			1,066.2			699.0
Income tax		62.9			98.0			346.5			272.6
Employee profit sharing		-			-			-			-
Deferred taxes		-			-			-			-
Minority interest		-			-			-			-
Net Income/Loss		116.3			266.2			719.7			426.4
TOTAL EBITDA *		134.2			351.1			1,154.9			899.4
EBITDA margin		27	%		51	%		54	%		43	%
EBITDA to EC GROUP**		68.4			179.1			589.0			458.7

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
(COP$ Billion)	As of December 31, 2012		As of December 31, 2011
Current Assets		1,528.0		1,491.4
Long Term Assets		1,502.9		2,313.6
Total Assets		3,030.9		3,805.0
Current Liabilities		769.1		812.3
Long Term Liabilities		178.8		181.3
Deferred taxes		-		-
Total Liabilities		947.9		993.6
Equity		2,083.0		2,811.4
Total Liabilities and Shareholders´ Equity		3,030.9		3,805.0

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

33

Refining and Petrochemical

1. Propilco

Sales volume (tons)	4Q 2012		4Q 2011		2012		2011
Polypropylene		100,798		93,646		406,800		376,707
Polypropylene marketing for COMAI		2,649		4,397		10,595		13,019
Polyethylene marketing		3,332		0		12,352		0
Total		106,779		98,043		429,748		389,726

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Local Sales		147.2			152.0			620.4			703.5
Export Sales		172.6			186.4			731.9			778.2
Sales of services		-			-			-			-
Total Sales		319.8			338.4			1,352.3			1,481.7
Variable Costs		250.0			289.0			1,095.2			1,248.5
Fixed Costs		32.0			28.0			114.6			106.6
Cost of Sales		282.0			317.0			1,209.8			1,355.1
Gross profit		37.8			21.4			142.5			126.6
Operating Expenses		28.6			25.7			110.4			99.6
Operating Profit		9.2			(4.2	)		32.1			27.0
Profit/(Loss) before taxes		15.7			3.4			52.2			38.3
Income tax provision		1.6			1.6			(0.4	)		6.5
Minority interest		-			-			-			-
Net Income/Loss		14.1			1.8			52.6			31.8
TOTAL EBITDA *		23.1			8.3			85.0			77.9
EBITDA margin		7	%		2	%		6	%		5	%
EBITDA to EC GROUP**		23.1			8.3			85.0			77.9

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of December 31, 2012		As of December 31, 2011
Current Assets		565.3		633.7
Long Term Assets		549.9		540.9
Total Assets		1,115.2		1,174.6
Current Liabilities		287.2		362.6
Long Term Liabilities		108.2		155.8
Total Liabilities		395.4		518.4
Equity		719.8		656.2
Total Liabilities and Shareholders´ Equity		1,115.2		1,174.6

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

34

2. Reficar

Sales Volume (MBD)	4Q-2012		4Q-2011		2012		2011
Local		50.2		45.4		46.8		43.0
International		49.9		55.6		51.5		55.5
Total		100.1		101.0		98.2		98.5

Income Statement
(COP$ Billion)	4Q 2012**			4Q 2011**			2012			2011
Local Sales		1,349.7			1,226.6			3,835.9			3,518.9
Export Sales		1,226.6			1,368.9			3,794.5			4,127.9
Sales of services		-			-			-			-
Total Sales		2,576.3			2,595.5			7,630.4			7,646.7
Variable Costs		2,532.5			2,569.2			7,513.8			7,299.1
Fixed Costs		90.2			103.0			287.8			272.9
Cost of Sales		2,622.7			2,672.3			7,801.6			7,572.0
Gross profit		(46.4	)		(76.8	)		(171.2	)		74.7
Operating Expenses		27.0			28.6			123.7			128.3
Operating Profit		(73.4	)		(105.4	)		(294.9	)		(53.6	)
Non Operating income		61.9			109.3			400.9			247.0
Non Operating expenses		(73.3	)		(206.5	)		(251.3	)		(350.5	)
Profit/(Loss) before taxes		(84.8	)		(202.5	)		(145.3	)		(157.1	)
Income tax provision		1.7			1.5			4.7			4.9
Minority interest		-			-			-			-
Net Income/Loss		(86.5	)		(204.0	)		(150.0	)		(162.0	)
TOTAL EBITDA *		(28.40	)		(71.22	)		(190.00	)		65.85
EBITDA margin		-1.1	%		-2.7	%		-2.5	%		0.9	%
EBITDA to EC GROUP***		(28.4	)		(71.2	)		(190.0	)		65.9

* Total EBITDA of the company under COLGAAP

** The quarter corresponds to September-December

***EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of December 31, 2012		As of December 31, 2011
Current Assets		1,669.0		1,307.3
Long Term Assets		9,232.3		5,753.7
Total Assets		10,901.3		7,061.0
Current Liabilities		1,768.3		2,494.3
Long Term Liabilities		6,724.5		2,006.1
Total Liabilities		8,492.8		4,500.4
Equity		2,408.5		2,560.6
Total Liabilities and Shareholders´ Equity		10,901.3		7,061.0

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

35

Transport

1. Ocensa

Transported volumes (thousand barrels per day)	4Q 2012		4Q 2011		2012		2011
Cusiana-Porvenir		171.6		129.3		168.2		152.3
Porvenir-Vasconia		588.8		573.8		591.2		563.3
Vasconia-Coveñas		404.0		393.8		404.6		367.7
Coveñas-Export Port		406.0		389.0		413.5		365.1

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Sales of services		171.2			138.8			915.5			857.3
Total Sales		171.2			138.8			915.5			857.3
Variable Costs		-			-			-			-
Fixed Costs		313.5			313.5			155.9			313.5
Cost of Sales		163.9			199.6			656.1			716.8
Gross profit		7.3			(60.9	)		259.4			140.5
Operating Expenses		15.6			18.7			70.9			65.8
Operating Profit		(8.3	)		(79.6	)		188.5			74.8
Profit/(Loss) before taxes		(47.8	)		(91.2	)		23.4			5.3
Income tax provision		6.1			1.3			13.0			5.3
Minority interest		-			-			-			-
Net Income/Loss		(53.9	)		(92.5	)		10.4			-
TOTAL EBITDA *		40.7			26.1			532.1			498.3
EBITDA margin		24	%		19	%		58	%		58	%
EBITDA to EC GROUP**		(30.2	)		15.7			386.5			299.0

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of December 31, 2012		As of December 31, 2011
Current Assets		638.6		855.8
Long Term Assets		3,673.0		3,588.2
Total Assets		4,311.6		4,444.0
Current Liabilities		431.6		321.8
Long Term Liabilities		711.0		712.0
Total Liabilities		1,142.6		1,033.8
Equity		3,169.0		3,410.2
Total Liabilities and Shareholders´ Equity		4,311.6		4,444.0

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

36

2. ODL

	4Q 2012		4Q 2011		2012		2011
Transported volumes (MBOD)		221.6		220.5		217.3		208.1

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Sales of services		107.3			122.7			503.0			380.5
Total Sales		107.3			122.7			503.0			380.5
Variable Costs		18.6			22.0			70.5			62.2
Fixed Costs		66.9			70.0			244.3			188.5
Cost of Sales		85.5			92.0			314.8			250.7
Gross profit		21.8			30.6			188.2			129.8
Operating Expenses		0.3			4.8			14.8			15.0
Operating Profit		21.5			25.9			173.4			114.8
Profit/(Loss) before taxes		1.1			14.0			199.4			86.3
Income tax provision		1.7			1.1			6.8			4.3
Minority interest		-			-			-			-
Net Income/Loss		(0.6	)		12.9			192.6			82.0
TOTAL EBITDA *		51.6			49.4			298.1			197.1
EBITDA margin		48	%		40	%		59	%		52	%
EBITDA to EC GROUP**		33.6			32.1			193.8			128.1

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of December 31, 2012		As of December 31, 2011
Current Assets		262.90		361.30
Long Term Assets		2,059.10		1,780.06
Total Assets		2,322.00		2,141.36
Current Liabilities		231.70		146.68
Long Term Liabilities		1,220.10		1,316.93
Total Liabilities		1,451.80		1,463.61
Equity		870.20		677.76
Total Liabilities and Shareholders´ Equity		2,322.0		2,141.36

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

37

Biofuels

1. Ecodiesel

Sales volume (thousand barrels per day)	4Q 2012		4Q 2011		2012		2011
Biodiesel		0.040		0.038		0.042		0.038
Glycerin		0.005		0.005		0.005		0.005
Total		0.045		0.043		0.047		0.043

Income Statement
(COP$ Billion)	4Q 2012			4Q 2011			2012			2011
Domestic sales		67.3			71.8			322.1			290.9
Sales of services		-			-			-			-
Total Sales		67.3			71.8			322.1			290.9
Variable Costs		58.1			66.7			277.9			269.8
Fixed Costs		-			-			-			-
Cost of Sales		58.1			66.7			277.9			269.8
Gross profit		9.2			5.0			44.2			21.1
Operating Expenses		2.9			3.1			20.0			13.1
Operating Profit		6.3			1.9			24.2			8.0
Profit/(Loss) before taxes		4.7			-			16.8			-
Income tax provision		0.0			-			0.1			-
Minority interest		-			-			-			-
Net Income		4.7			0.0			16.7			0.0
TOTAL EBITDA *		7.7			11.0			40.8			20.8
EBITDA margin		11	%		15	%		13	%		7	%
EBITDA to EC GROUP **		-			-			-			-

* Total EBITDA of the company under COLGAAP

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of December 31, 2012		As of December 31, 2011
Current Assets		47.6		47.9
Long Term Assets		81.3		90.3
Total Assets		128.9		138.2
Current Liabilities		42.5		54.9
Long Term Liabilities		48.3		61.9
Total Liabilities		90.8		116.81
Equity		38.1		21.4
Total Liabilities and Shareholders´ Equity		128.9		138.2

Investor Relations. Tel: 571+2345190. Email: investors@ecopetrol.com.co. www.ecopetrol.com.co

38