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 the years ended December 31, 2017, 2016, 2015 and 2014 in accordance with IFRS (expressed in millions of Colombian pesos).
| For the year ended December 31, | ||||||||||||||||
| Period | 2017 | 2016 | 2015 | 2014 | ||||||||||||
| Income (loss) before income tax and minority interest | 13,769,662 | 7,790,526 | (5,578,626 | ) | 11,104,428 | |||||||||||
| Income (loss) net from equity investees | 93,538 | 61,345 | (46,687 | ) | 166,070 | |||||||||||
| Pre-tax income from continuing operations before adjustment for income or loss from equity investees | 13,676,124 | 7,729,181 | 5,531,939 | ) | 10,938,358 | |||||||||||
| Fixed Charges | ||||||||||||||||
| Interest expensed and capitalized, amortization of debt discount and premium on all indebtedness | 2,577,645 | 3,106,233 | 2,513,045 | 1,394,975 | ||||||||||||
| Estimated of the interest within rental expense | 69,883 | 67,650 | 89,912 | 74,959 | ||||||||||||
| Total Fixed Charges | 2,647,528 | 3,173,883 | 2,602,957 | 1,469,934 | ||||||||||||
| Amortization of capitalized interest | 209,653 | 185,653 | 114,112 | 107,612 | ||||||||||||
| Distributed income of equity investees | 285,961 | 426,837 | 332,438 | 667,014 | ||||||||||||
| Total added Items | 16,819,266 | 11,515,554 | (2,482,432 | ) | 13,182,918 | |||||||||||
| Interest Capitalized | 191,651 | 341,209 | 744,426 | 640,698 | ||||||||||||
| Total subtract Items | 191,651 | 341,209 | 744,426 | 640,698 | ||||||||||||
| Total Earnings | 16,627,615 | 11,174,345 | (3,226,858 | ) | 12,542,220 | |||||||||||
| Total Ratio of earnings | 6.28 | 3.52 | (1.24 | )(1)(2) | 8.53 | |||||||||||
| (1) | The deficiency for the year ended December 31, 2015 in peso terms was COP$5,829,815 million. |
| (2) | The ratio of 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 COP$7,864,875 million and (b) an unrealized loss on exchange rate differences of COP$3,695,754 million. Without the effect of these two factors, our ratio of earnings to fixed charges for the year ended December 31, 2015 would be 3.2. |
Source: Ecopetrol’s accounting records.
