Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth Ecopetrol’s ratio of earnings to fixed charges for (i) the years ended December 31, 2015 and 2014 in accordance with IFRS and (ii) the three-month period ended March 31, 2016 and 2015 in accordance with Colombian IFRS (expressed in millions of pesos).
For the year ended December 31, | For the three-months period ended March 31, | |||||||||||||||
Period | 2015 | 2014 | 2016 | 2015 | ||||||||||||
(IFRS, Audited) | (Colombian IFRS, Unaudited) | |||||||||||||||
Income before income tax and minority interest | (5,578,626 | ) | 11,104,428 | 1,435,847 | 828,318 | |||||||||||
Income (loss) from equity investees | (46,687 | ) | 166,070 | (27,418 | ) | 6,334 | ||||||||||
Pre-tax income from continuing operations before adjustment for income or loss from equity investees | (5,531,939 | ) | 10,938,358 | 1,463,266 | 821,984 | |||||||||||
Fixed Charges | ||||||||||||||||
Interest expensed and capitalized | 2,498,110 | 1,385,601 | 799,573 | 515,425 | ||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 14,935 | 9,374 | 4,538 | 5,002 | ||||||||||||
Estimate of the interest within rental expense | 89,912 | 74,959 | 16,487 | 18,433 | ||||||||||||
Total Fixed Charges | 2,602,957 | 1,469,934 | 820,598 | 538,860 | ||||||||||||
Amortization of capitalized interest | 114,112 | 107,612 | 35,348 | 25,782 | ||||||||||||
Distributed income of equity investees | 332,438 | 667,014 | 35,762 | 37,438 | ||||||||||||
Total added items | (2,482,432 | ) | 13,182,918 | 2,354,974 | 1,424,064 | |||||||||||
Interest capitalized | 744,426 | 640,698 | 137,021 | 223,640 | ||||||||||||
Total subtracted items | 744,426 | 640,698 | 137,021 | 223,640 | ||||||||||||
Total Earnings | (3,226,858 | ) | 12,542,220 | 2,217,953 | 1,200,424 | |||||||||||
Total Ratio of Earnings to Fixed Charges | (1.24 | )(1)(2) | 8.53 | 2.70 | 2.23 |
(1) | The deficiency for the year ended December 31, 2015 in peso terms was Ps$5,829,815 million. |
(2) | The ratioof earnings to fixed charges for the year ended December 31, 2015 was affected by the recognition of non-cash accounting items such as: (a) an impairment of non-current assets of Ps$7,864,875 million and (b) an unrealized loss on exchange rate differences of Ps$3,695,754 million. Without the effect of these two factors, our ratioof earnings to fixed charges for the year ended December 31, 2015 would be 3.2. |
Source: Ecopetrol’s accounting records.