Ecopetrol S A : Financial Statements Documents

ECOPETROL S.A.

Unaudited interim condensed consolidated financial statements

March 31, 2024

	Ecopetrol S.A.
	(Figures expressed in millions of Colombian pesos)
Index
Interim condensed consolidated statement of financial position	3
Interim condensed consolidated statement of profit or loss	4
Interim condensed consolidated statement of comprehensive income	5
Interim condensed consolidated statement of changes in equity	6
Interim condensed consolidated statement of cash flows	7
1.	Reporting entity	8
2.	Basis of presentation	8
3.	Significant accounting judgments and estimates	9
4.	Accounting policies	9
5.	New standards	9
6.	Cash and cash equivalents	12
7.	Trade and other receivables	13
8.	Inventories	14
9.	Other financial assets	14
10.	Taxes	15
11.	Other assets	15
12.	Investments in associates and joint ventures	16
13.	Property, plant, and equipment	17
14.	Natural and environmental resources	18
15.	Right-of-use assets	19
16.	Intangible assets	19
17.	Impairment of non-current assets	19
18.	Goodwill	20
19.	Loans and borrowings	20
20.	Trade and other payables	22
21.	Provisions for employees' benefits	23
22.	Accrued liabilities and provisions	23
23.	Equity	25
24.	Revenue from contracts with customers	28
25.	Cost of sales	29
26.	Administrative, operation and project expenses	30
27.	Other operating (expense) income	30
28.	Financial results	31
29.	Risk management	31
30.	Related parties	38
31.	Segments information	39
32.	Relevant events (unaudited)	44

2

Ecopetrol S.A.
(Figures expressed in millions of Colombian pesos)
Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited)	45
Exhibit 2. Consolidated companies, associates, and joint ventures - Interconexión Eléctrica S.A. E.S.P	49

2

Ecopetrol S.A.

(Figures expressed in millions of Colombian pesos)

Interim condensed consolidated statement of financial position

		March 31,			December 31,
	Note	2024	2023
Current Assets		(Unaudited)
Cash and cash equivalents	6	15,166,905	12,336,115
Trade and other receivables	7	34,556,979	33,310,642
Inventories	8	10,813,411	10,202,448
Other financial assets	9	1,703,436	1,860,928
Tax assets		8,727,297	8,111,079
Other assets	11	3,110,139		2,769,029
		74,078,167	68,590,241
Assets held for sale		32,853	24,865
Total current assets		74,111,020			68,615,106
Non-current assets
Trade and other receivables	7	29,319,343	29,781,088
Other financial assets	9	632,660	371,847
Investments in associates and joint ventures	12	8,377,530	8,418,632
Property, plant, and equipment	13	95,443,669	95,171,302
Natural and environmental resources	14	45,661,920	45,216,133
Right-of-use-assets	15	803,787	841,636
Intangibles	16	14,729,856	14,714,809
Tax assets		13,344,972	12,910,032
Goodwill	18	4,615,013	4,606,191
Other assets	11	1,644,784	1,633,812
Total non- current assets		214,573,534			213,665,482
Total assets		288,684,554			282,280,588
Liabilities
Current liabilities
Loans and borrowings	19	15,353,218	15,550,008
Trade and other payables	20	31,893,861	18,890,248
Provisions for employee benefits	21	3,151,000	3,059,204
Tax liabilities		2,862,302	2,869,225
Accrued liabilities and provisions	22	1,439,593	1,595,249
Other liabilities		1,911,520	1,599,443
Total current liabilities		56,611,494			43,563,377
Non-current liabilities
Loans and borrowings	19	93,361,679	90,265,519
Trade and other payables	20	26,048	27,280
Provisions for employee benefits	21	15,415,131	15,213,509
Tax liabilities		12,821,706	12,861,873
Accrued liabilities and provisions	22	14,829,193	14,547,391
Other liabilities		2,448,201	2,702,835
Total non-current liabilities		138,901,958			135,618,407
Total liabilities		195,513,452	179,181,784
Equity
Subscribed and paid in capital	23.1	25,040,067	25,040,067
Additional paid-in capital	23.2	6,607,699	6,607,699
Reserves	23.3	24,156,407	17,922,725
Other comprehensive income	23.5	7,888,344	8,224,452
Retained earnings		5,546,571	20,597,116
Equity attributable to the Company's shareholders		69,239,088			78,392,059
Non-controlling interest		23,932,014	24,706,745
Total equity		93,171,102			103,098,804
Total liabilities and equity		288,684,554	282,280,588

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

2

Ecopetrol S.A.

(Figures expressed in millions of Colombian pesos, except for the earnings per share, expressed in Colombian pesos)

Interim condensed consolidated statement of profit or loss

			Three-month period ended
			March 31,
	Note		2024		2023
			(Unaudited)
Revenue from contracts with customers	24	31,301,693	38,853,579
Cost of sales	25		(19,062,834)		(22,778,147)
Gross profit		12,238,859	16,075,432
Administration expenses	26	(1,136,418)	(1,081,114)
Operation and project expenses	26	(1,152,281)	(1,114,920)
Impairment of non-current assets	17	(10,781)	(92)
Other operating expenses	27		(136,933)		(158,527)
Operating income		9,802,446	13,720,779
Financial results	28
Financial income		405,442	674,092
Financial expenses		(2,461,586)	(2,427,906)
Foreign exchange			54,278		248,217
		(2,001,866)	(1,505,597)
Share of profits of associates and joint ventures	12		196,557		341,699
Profit before income tax expense		7,997,137	12,556,881
Income tax expense	10		(2,920,731)		(5,592,901)
Net profit for the period		5,076,406	6,963,980

Net profit attributable to:

Owners of parent

Non-controlling interest

Basic and diluted earnings per share (Colombian pesos)

4,011,546 5,660,425

1,064,860 1,303,555

5,076,406 6,963,980

97.6 137.7

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

3

Ecopetrol S.A.

(Figures expressed in millions of Colombian pesos)

Interim condensed consolidated statement of comprehensive income

			Three-month period ended
			March 31,
	Note		2024		2023
			(Unaudited)
Net profit for the period	5,076,406	6,963,980
Other comprehensive income:
Items that may be reclassified subsequently to profit or
loss (net of tax):
Unrealized (loss) gain on hedges:
Cash flow hedge for future exports	(91,792)	763,513
Hedge of a net investment in a foreign operation	(30,500)	1,078,288
Cash flow hedge with derivative instruments	(34,051)	(41,619)
Financial instruments measured at fair value	-	4,352
Foreign currency translation and others		(496,412)		(2,461,380)
		(652,755)	(656,846)
Items that will not be reclassified subsequently to profit
or loss (net of tax):
Actuarial (loss) gain		(123,935)		462,510
		(123,935)	462,510
Other comprehensive income, net of tax		(776,690)		(194,336)
Total comprehensive income, net of tax	4,299,716	6,769,644
Comprehensive income attributable to:
Owners of the parent	3,675,438	5,955,977
Non-controlling interest		624,278		813,667
		4,299,716	6,769,644

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

4

Ecopetrol S.A.

(Figures expressed in millions of Colombian pesos)

Interim condensed consolidated statement of changes in equity

													Equity
			Subscribed	Additional			Other			attributable to	Non-
			and paid-in	paid-in			comprehensive	Retained	Company's	controlling		Total
	Note		capital		capital		Reserves		income		earnings		shareholders		interest		Equity
Balance as of December 31, 2023		25,040,067		6,607,699		17,922,725		8,224,452		20,597,116		78,392,059		24,706,745	103,098,804
Net income		-		-		-		-		4,011,546		4,011,546		1,064,860	5,076,406
Release of reserves	23.3	-		-		(8,174,839)		-		8,174,839		-		-	-
Dividends declared	23.4	-		-		-		-		(12,828,409)		(12,828,409)		(1,368,343)	(14,196,752)
Capital restitution		- -	- -	- -	- -	- -	- -	(30,666)	(30,666)
Appropriation of reserves
Legal	23.3	-		-		1,906,209		-		(1,906,209)		-		-	-
Fiscal and statutory	23.3	-		-		509,082		-		(509,082)		-		-	-
Occasional	23.3	-		-		11,993,230		-		(11,993,230)		-		-	-
(Loss) gain on hedging instruments:
Cash flow hedge for future exports		-		-		-		(92,069)		-		(92,069)		277	(91,792)
Hedge of a net investment in a foreign operation		-		-		-		(74,405)		-		(74,405)		43,905	(30,500)
Cash flow hedge with derivative instruments		-		-		-		(34,022)		-		(34,022)		(29)	(34,051)
Foreign currency translation		-		-		-		(59,250)		-		(59,250)		(437,162)	(496,412)
Actuarial loss			-		-		-		(76,362)		-		(76,362)		(47,573)		(123,935)
Balance as of March 31, 2024 (Unaudited)		25,040,067		6,607,699		24,156,407		7,888,344		5,546,571		69,239,088		23,932,014	93,171,102
Balance as of December, 2022		25,040,067		6,607,699		8,898,633		15,546,989		34,941,316		91,034,704		28,052,346	119,087,050
Net income		-		-		-		-		5,660,425		5,660,425		1,303,555	6,963,980
Release of reserves	23.3	-		-		(2,491,377)		-		2,491,377		-		-	-
Dividends declared	23.4	-		-		-		-		(24,382,200)		(24,382,200)		(1,774,187)	(26,156,387)
Capital restitution		-		-		-		-		-		-		(24,070)	(24,070)
Appropriation of reserves		-		-		3,340,629		-		(3,340,629)		-		-	-
Legal	23.3	-		-		509,082		-		(509,082)		-		-	-
Fiscal and statutory	23.3	-		-		7,665,758		-		(7,665,758)		-		-	-
Occasional	23.3															-
(Loss) gains on hedging instruments:
Cash flow hedge for future exports		-		-		-		763,513		-		763,513		-	763,513
Hedge of a net investment in a foreign operation		-		-		-		1,001,776		-		1,001,776		76,512	1,078,288
Cash flow hedge with derivative instruments		-		-		-		(20,559)		-		(20,559)		(21,060)	(41,619)
Financial instruments measured at fair value		-		-		-		4,352		-		4,352		-	4,352
Foreign currency translation		-		-		-		(1,971,037)		-		(1,971,037)		(490,343)	(2,461,380)
Actuarial gain (loss)			-		-		-		517,507		-		517,507		(54,997)		462,510
Balance as of March 31, 2023 (Unaudited)			25,040,067		6,607,699		17,922,725		15,842,541		7,195,449		72,608,481		27,067,756		99,676,237

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

5

Ecopetrol S.A.

(Figures expressed in millions of Colombian pesos)

Interim condensed consolidated statement of cash flows

				Three-month period ended
				March 31,
	Note	2024	2023
				(Unaudited)
Cash flows provided by operating activities:
Net profit for the period		5,076,406	6,963,980
Adjustments to reconcile net income to net cash provided by operating
activities:
Income taxes	10	2,920,731	5,592,901
Depreciation, depletion, and amortization	13-14-15-16	3,572,840	3,162,768
Foreign exchange gain	28	(54,278)	(248,217)
Finance cost of loans and borrowings	28	1,718,199	1,738,514
Finance cost of post-employment benefits and abandonment costs	28	648,976	618,853
Disposal of exploratory assets and dry wells	14	266,855	147,437
Loss on sale or disposal of non-current assets		6,399	7,727
Impairment of non-current assets	17	10,781	92
Impairment of current assets	27	17,344	23,051
Gain on fair value of financial assets		(40,329)	(57,614)
Gain (loss) on hedging transactions with derivatives		(6,413)	741
Share of profit of associates and joint ventures	12	(196,557)	(341,699)
Loss on disposal of assets held for sale		3,305	1,014
Gain on hedge ineffectiveness	29.3	(3,150)	(6,013)
Realized loss on foreign exchange cash flow hedges	24	(36,254)	519,606
Provision expenses	22	162,836	201,252
Net change in operational assets and liabilities:
Trade and other receivables		(2,473,705)	(9,859,055)
Inventories		(490,227)	598,707
Trade and other payables		(758,495)	(2,591,505)
Current tax assets and liabilities		(929,788)	(1,053,813)
Provisions for employee benefits		(67,562)	(32,338)
Provisions and contingencies		(190,677)	(220,841)
Other assets and liabilities		(387,946)	(1,131,216)
				8,769,291			4,034,332
Income tax paid			(2,754,728)		(1,963,309)
Net cash generated by operating activities		6,014,563	2,071,023
Cash flow from investing activities:
Investment in joint ventures		(229)	-
Investment in property, plant, and equipment	13	(1,615,746)	(1,631,079)
Investment in natural and environmental resources	14	(2,444,525)	(3,316,724)
Acquisitions of intangibles	16	(213,597)	(206,152)
Proceeds from the sale of other financial assets		(163,298)	750,353
Interests received	28	382,685	553,488
Dividends received		26,090	104,054
Proceeds from sales of non-current assets		19,143	8,488
Net cash used in investment activities				(4,009,477)			(3,737,572)
Cash flow provided (used) in financing activities:
Proceeds obtained from loans and borrowings	19.1	8,472,897	10,895,757
Payments of loans and borrowings	19.1	(5,632,738)	(7,335,150)
Interest payments	19.1	(1,822,956)	(1,322,103)
Lease payments (principal and interests)	15	(141,796)	(124,926)
Dividends paid	23.4		(270,672)		(226,924)
Net cash used in financing activities		604,735	1,886,654
Exchange difference in cash and cash equivalents				220,969			(123,818)
Net decrease in cash and cash equivalents		2,830,790	96,287
Cash and cash equivalent at the beginning of the period				12,336,115			15,401,058
Cash and cash equivalent at the end of the period	6			15,166,905			15,497,345

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

6