Ecopetrol S.A.
(Figures expressed in millions of Colombian pesos)
Index
Interim condensed consolidated statement of financial position | 4 | |
| ||
5 | ||
| ||
Interim condensed consolidated statement of comprehensive income | 6 | |
| ||
Interim condensed consolidated statement of changes in equity | 7 | |
| ||
8 | ||
9 | ||
|
| |
9 | ||
|
| |
12 | ||
|
| |
12 | ||
|
| |
12 | ||
|
| |
14 | ||
|
| |
14 | ||
|
| |
15 | ||
|
| |
16 | ||
|
| |
17 | ||
|
| |
17 | ||
|
| |
18 | ||
|
| |
19 | ||
|
| |
22 | ||
|
| |
23 | ||
|
| |
24 | ||
|
| |
24 | ||
|
| |
25 |
2
Ecopetrol S.A.
(Figures expressed in millions of Colombian pesos)
25 | ||
|
| |
26 | ||
|
| |
27 | ||
|
| |
28 | ||
|
| |
29 | ||
|
| |
31 | ||
|
| |
34 | ||
|
| |
35 | ||
|
| |
36 | ||
|
| |
36 | ||
|
| |
37 | ||
|
| |
37 | ||
|
| |
42 | ||
|
| |
43 | ||
48 | ||
Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited) | 50 | |
| ||
54 |
3
Ecopetrol S.A.
(Figures expressed in millions of Colombian pesos)
Interim condensed consolidated statement of financial position
September 30, | December 31, | |||||
| Note |
| 2022 |
| 2021 | |
|
|
| (Unaudited) |
|
| |
Current Assets | ||||||
Cash and cash equivalents |
| 6 |
| |
| |
Trade and other receivables |
| 7 |
| |
| |
Inventories |
| 8 |
| |
| |
Other financial assets |
| 9 |
| |
| |
Tax assets |
|
| |
| | |
Other assets |
| 11 |
| |
| |
|
| |
| | ||
Assets held for sale |
|
| |
| | |
Total current assets |
|
| |
| | |
Non–current assets |
|
|
|
|
| |
Trade and other receivables | 7 | | | |||
Other financial assets |
| 9 |
| |
| |
Investments in associates and joint ventures |
| 13 |
| |
| |
Property, plant, and equipment |
| 14 |
| |
| |
Natural and environmental resources |
| 15 |
| |
| |
Right-of-use-assets | 16 | | | |||
Intangible assets |
| 17 |
| |
| |
Tax assets |
|
| |
| | |
Goodwill |
| 19 |
| |
| |
Other assets |
| 11 |
| |
| |
Total non–current assets |
|
| |
| | |
Total assets |
|
| |
| | |
Liabilities |
|
|
|
|
| |
Current liabilities |
|
|
|
|
| |
Loans and borrowings |
| 20 |
| |
| |
Trade and other payables |
| 21 |
| |
| |
Provisions for employee benefits |
| 22 |
| |
| |
Tax liabilities |
|
| |
| | |
Accrued liabilities and provisions |
| 23 |
| |
| |
Other liabilities |
|
| |
| | |
| | |||||
Liabilities related to assets held for sale | | | ||||
Total current liabilities |
|
| |
| | |
Non–current liabilities |
|
|
| |||
Loans and borrowings |
| 20 |
| |
| |
Trade and other payables |
| 21 |
| |
| |
Provisions for employee benefits |
| 22 |
| |
| |
Tax liabilities | | | ||||
Accrued liabilities and provisions |
| 23 |
| |
| |
Other liabilities |
|
| |
| | |
Total non–current liabilities |
|
| |
| | |
Total liabilities |
|
| |
| | |
Equity |
|
|
| |||
Subscribed and paid in capital |
| 24.1 |
| |
| |
Additional paid-in capital |
| 24.2 |
| |
| |
Reserves |
| 24.3 |
| |
| |
Other comprehensive income |
| 24.5 |
| |
| |
Retained earnings |
|
|
| |
| |
Equity attributable to the Company's shareholders |
|
|
| |
| |
Non–controlling interest |
|
|
| |
| |
Total equity |
|
|
| |
| |
Total liabilities and equity |
|
|
| |
| |
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, except for the earnings per share, expressed in Colombian pesos)
Interim condensed consolidated statement of profit or loss
Nine-month period ended September 30, | ||||||
|
| Note |
| 2022 |
| 2021 |
(Unaudited) | ||||||
Revenue from contracts with customers | 25 | | | |||
Cost of sales |
| 26 |
| ( |
| ( |
Gross profit |
|
|
| |
| |
Administration expenses |
| 27 |
| ( |
| ( |
Operation and project expenses |
| 27 |
| ( |
| ( |
Impairment (loss) reversal of non-current assets |
| 18 |
| ( |
| |
Other operating expenses |
| 28 |
| ( |
| ( |
Operating income |
|
|
| |
| |
Financial results |
| 29 |
|
| ||
Financial income |
|
|
| |
| |
Financial expenses |
|
|
| ( |
| ( |
Foreign exchange (loss) gain |
|
|
| ( |
| |
|
|
| ( |
| ( | |
Share of profits of associates and joint ventures |
| 13 |
| |
| |
Profit before income tax expense |
|
|
| |
| |
Income tax expense |
| 10 |
| ( |
| ( |
Net profit for the period |
|
|
| |
| |
Net profit attributable to: |
|
|
|
| ||
Owners of parent |
|
|
| |
| |
Non–controlling interest |
|
|
| |
| |
|
|
| |
| | |
Basic and diluted earnings per share (Colombian pesos) |
|
| |
| |
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 comprehensive income
Nine-month period ended September 30, | ||||||
| Note |
| 2022 |
| 2021 | |
(Unaudited) | ||||||
Net income for the period | | | ||||
Other comprehensive income: |
|
|
|
|
|
|
Items that may be reclassified to profit or loss in subsequent periods (net of taxes): |
|
|
|
|
|
|
Unrealized (loss) gain on hedges: |
|
|
|
|
|
|
Cash flow hedge for future exports |
|
| ( |
| ( | |
Hedge of a net investment in a foreign operation |
|
| ( |
| ( | |
Cash flow hedge with derivative instruments |
|
| |
| ( | |
Financial instruments measured at fair value | ( | ( | ||||
Foreign currency translation |
|
| |
| | |
Realized other comprehensive income for joint venture sales | 29 | — | ( | |||
|
| |
| | ||
Items that will not be reclassified to profit or loss in subsequent periods (net of taxes): |
|
|
|
|
| |
Remeasurement loss on defined benefit plans |
|
| ( |
| ( | |
|
| ( |
| ( | ||
Other comprehensive income, net of tax |
|
| |
| | |
Total comprehensive income, net of tax |
|
| |
| | |
Comprehensive income attributable to: |
|
|
| |||
Owners of the parent |
|
| |
| | |
Non–controlling interest |
|
| |
| | |
|
| |
| |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
6
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 January 1, 2022 |
|
| |
| |
| |
| |
| | | | | ||||
Adoption of new standards | 5.1 | — | — | — | — | | | — | | |||||||||
Balance as of January 1, 2022, after adoption (unaudited) | | | | | | | | | ||||||||||
Net profit |
|
|
| — |
| — |
| — |
| — |
| | | | | |||
Release of reserves | 24.3 | — | — | ( | — | | — | — | — | |||||||||
Dividends declared |
| 24.4 |
| — |
| — |
| ( |
| — |
| ( | ( | ( | ( | |||
Business combinations | 12 | — | — | — | — | — | — | ( | ( | |||||||||
Equity restitution |
|
| — |
| — |
| — |
| — |
| — | — | ( | ( | ||||
Appropriation of reserves |
|
|
|
|
|
| ||||||||||||
Legal | 24.3 | — | — | | — | ( | — | — | — | |||||||||
Fiscal and statutory | 24.3 | — | — | | — | ( | — | — | — | |||||||||
Occasional | 24.3 | — | — | | — | ( | — | — | — | |||||||||
(Loss) gain on hedging instruments: |
|
|
|
|
|
|
|
|
| |||||||||
Cash flow hedge for future exports |
|
|
| — |
| — |
| — |
| ( |
| — | ( | — | ( | |||
Hedge of a net investment in a foreign operation |
|
|
| — |
| — |
| — |
| ( |
| — | ( | ( | ( | |||
Cash flow hedge with derivative instruments |
|
|
| — |
| — |
| — |
| |
| — | | | | |||
Financial instruments measured at fair value | — | — | — | ( | — | ( | ( | ( | ||||||||||
Foreign currency translation |
|
|
| — |
| — |
| — |
| |
| — | | | | |||
Remeasurement loss on defined benefit plans |
|
|
| — |
| — |
| — |
| ( |
| — | ( | ( | ( | |||
Balance as of September 30, 2022 (Unaudited) |
|
|
| |
| |
| |
| |
| | | | | |||
Balance as of January 1, 2021 | |
| |
| |
| |
| | | | | ||||||
Net profit |
|
|
| — |
| — |
| — |
| — |
| | | | | |||
Release of reserves | 24.3 | — | — | ( | — | | — | — | — | |||||||||
Dividends declared |
| 24.4 |
| — |
| — |
| — |
| — |
| ( | ( | ( | ( | |||
Business combination | — | — | — | — | — | — | | | ||||||||||
Change of participation in controlled companies | — | — | — | — | | | ( | ( | ||||||||||
Equity restitution | — | — | — | — | — | — | ( | ( | ||||||||||
Appropriation of reserves | ||||||||||||||||||
Legal | 24.3 | — | — | | — | ( | — | — | — | |||||||||
Fiscal and statutory | 24.3 | — | — | | — | ( | — | — | — | |||||||||
Occasional | 24.3 | — | — | | — | ( | — | — | — | |||||||||
Loss on hedging instruments: | ||||||||||||||||||
Cash flow hedge for future exports | — | — | — | ( | — | ( | — | ( | ||||||||||
Hedge of a net investment in a foreign operation | — | — | — | ( | — | ( | — | ( | ||||||||||
Cash flow hedge with derivative instruments | — | — | — | ( | — | ( | ( | ( | ||||||||||
Financial instruments measured at fair value | — | — | — | ( | — | ( | ( | ( | ||||||||||
Foreign currency translation | — | — | — | | — | | ( | | ||||||||||
Sale of a joint venture | — | — | — | ( | — | ( | — | ( | ||||||||||
Remeasurement loss on defined benefit plans | — | — | — | ( | — | ( | — | ( | ||||||||||
Balance as of September 30, 2021 (Unaudited) | | | | | | | | |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
7
Ecopetrol S.A.
(Figures expressed in millions of Colombian pesos)
Interim condensed consolidated statement of cash flows
Nine-month period ended September 30, | ||||||
| Note |
| 2022 |
| 2021 | |
(Unaudited) | ||||||
Cash flows provided by operating activities: |
|
|
|
|
|
|
Net profit for the period |
|
|
| | | |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| |||
Income tax expense |
| 10 |
| | | |
Depreciation, depletion, and amortization |
| 14,15,16,17 |
| | | |
Foreign exchange loss |
| 29 |
| | | |
Gain on realization of other comprehensive income from the sale of a joint venture | 29 | | ( | |||
Finance cost of loans and borrowings |
| 29 |
| | | |
Finance cost of post–employment benefits and abandonment costs |
| 29 |
| | | |
Write off exploratory assets and dry wells |
| 15 |
| | | |
Loss on sale or disposal of non-current assets |
|
| | | ||
Impairment loss (reversal) of non-current assets |
| 18 |
| | ( | |
Impairment of current assets | 28 | | | |||
(Gain) loss on fair value adjustment of financial assets |
|
| ( | | ||
Loss (gain) on hedging transactions with derivatives |
|
| | ( | ||
Share of profit of associates and joint ventures |
| 13 |
| ( | ( | |
Gain on disposal of assets held for sale | ( | ( | ||||
(Gain) loss on hedge ineffectiveness |
| 30.3 |
| ( | | |
Realized loss on foreign exchange cash flow hedges |
| 25 |
| | | |
Net change in operational assets and liabilities: |
|
| ||||
Trade and other receivables |
|
| ( | ( | ||
Inventories |
|
| ( | ( | ||
Trade and other payables |
|
| ( | | ||
Tax assets and liabilities |
|
| ( | ( | ||
Provisions for employee benefits |
|
| ( | ( | ||
Provisions and contingencies |
|
| ( | ( | ||
Other assets and liabilities |
|
| ( | | ||
| | |||||
Income tax paid | ( | ( | ||||
Net cash provided by operating activities |
|
| | | ||
Cash flow from investing activities: |
|
| ||||
Investment in joint ventures |
| 13.1 |
| ( | ( | |
Acquisition of subsidiaries, net of cash acquired |
|
| | ( | ||
Investment in property, plant, and equipment | 14 | ( | ( | |||
Investment in natural and environmental resources |
| 15 |
| ( | ( | |
Acquisitions of intangibles |
| 17 |
| ( | ( | |
Proceeds from the sale of other financial assets |
|
| | | ||
Interests received |
| 29 |
| | | |
Dividends received |
| 13.1 |
| | | |
Proceeds from sales of non-current assets |
|
| | | ||
Net cash used in investment activities |
|
| ( | ( | ||
Cash flow used in financing activities: |
|
| ||||
Proceeds obtained from loans and borrowings |
| 20.1 |
| | | |
Repayment of loans and borrowings |
| 20.1 |
| ( | ( | |
Interest payments |
|
| ( | ( | ||
Lease payments | 16 | ( | ( | |||
Payment of restitution of equity to minority shareholders | ( | | ||||
Dividends paid |
| 24.4 |
| ( | ( | |
Net cash (used in) provided by financing activities |
|
| ( | | ||
Exchange difference in cash and cash equivalents |
|
| | | ||
Net (decrease) increase in cash and cash equivalents |
|
| ( | | ||
Cash and cash equivalent at the beginning of the period |
|
| | | ||
Cash and cash equivalent at the end of the period |
| 6 |
| | |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
8
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
1.Reporting entity
Ecopetrol S.A. is a mixed economy company, with a commercial nature, formed in 1948 in Bogotá – Colombia, headquarters of the Ecopetrol Business Group (collectively called “Ecopetrol Business Group”); which is dedicated to commercial or industrial activities related to the exploration, exploitation, refining, transportation, storage, distribution and marketing of hydrocarbons, their derivatives and products, as well as the electric power transmission services, design, development, construction, operation and maintenance of road and energy infrastructure projects and the provision of information technology and telecommunications services.
An
The address of the main office of Ecopetrol S.A. is Bogotá – Colombia, Carrera 13 No. 36 – 24.
2.Basis of presentation
2.1. | Statement of compliance and authorization of financial statements |
The financial information contained in this report has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements are unaudited and in the management opinion, include all necessary adjustments for a fair presentation of the results of each period. All such adjustments are of a normal recurring nature. This report should be read in conjunction with the consolidated financial statements and notes for the year ended 31 December 2021 included in Form 20-F 2021.
Ecopetrol Business Group prepares its consolidated financial statements included within Form 20-F based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in Form 20-F 2022 which are the same as those used in the previous year.
These interim condensed consolidated financial statements were approved by the Company's Management on December 16, 2022.
2.2.Basis of consolidation
The interim condensed consolidated financial statements were prepared by consolidating all the subsidiary companies described in Exhibits 1 and 2, in which Ecopetrol exercises, directly or indirectly, control.
Control is achieved when the Ecopetrol Business Group:
- | Has power over the company (existing rights that give it the power to direct the relevant activities) |
- | It is exposed to, or has rights to, variable returns from its relationship with the company and |
- | Has the ability to use his power to affect his operating results. This occurs when the Company has less than most of the voting rights of an investee, and still has power over the investee to give it the practical ability to direct the relevant activities of the company unilaterally. The Ecopetrol Business Group considers all relevant facts and circumstances when evaluating whether the voting rights in an investee are sufficient to give it power, including: |
a) | The percentage of voting rights of the Company relative to the size and dispersion of the percentages of other voting holders |
b) | Potential voting rights held by the Company, other shareholders, or other parties |
c) | Rights derived from contractual agreements and |
d) | Any additional facts or circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities, at the time that decisions need to be made, including voting patterns in previous shareholders' meetings. |
9
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Subsidiaries are consolidated from the date control is obtained until the date control ceases.
All intercompany assets and liabilities, equity, income, expenses, and cash flows related to transactions between Group companies were eliminated in consolidation. Unrealized profits and losses are also eliminated. Non-controlling interest represents the portion of profit, other comprehensive income and net assets in subsidiaries that are not attributable to Ecopetrol shareholders.
All business combinations are recognized using the acquisition method.
Acquisition of Interconexión Eléctrica S.A. E.S.P.
On August 20, 2021, Ecopetrol S.A completed the acquisition of Interconexión Eléctrica S.A. ESP ("ISA"). On such date, the closing conditions of the Inter-Administrative Agreement signed on August 11 between Ecopetrol S.A. and the Colombian Ministry of Finance and Public Credit ("MHCP") for the acquisition of $
The accounting for transactions under common control are not provided for in IFRS, therefore, the Ecopetrol Business Group evaluated the purpose of the transaction and concluded that since the transaction was not a mere corporate reorganization, had a commercial substance, was carried out at market conditions and settled in cash, it elected to recorded the transaction as a business combination pursuant to IFRS 3, Business Combinations.
During August 2022, the final purchase price allocation was completed, considering the new information obtained to the acquisition date. An update was made to the fair values calculated preliminarily as of December 31, 2021, of property, plant, and equipment, intangibles, deferred tax, goodwill, and the non-controlling interest of Interconexión Eléctrica S.A. E.S.P. (See Note 12 – Business combination).
Additionally, on July 12, 2022, the liquidation of Gasoducto de Oriente S.A. was registered in the Bogotá Chamber of Commerce, which is subsidiary of Inversiones de Gases de Colombia S.A.
2.3.Conflict between Russia and Ukraine
After weeks of heightened tensions between Russia and Ukraine, on February 24, 2022, Russia launched a full-scale military invasion of Ukraine. This war has increased volatility in the capital markets and has caused many raw materials to rise due to supply risk.
Ecopetrol's ability to access international and local capital markets, finance operations and potentially refinance debt maturities on terms acceptable to Ecopetrol could be affected due to price volatility in the oil and gas sector, the escalation military conflict between Ukraine and Russia, disruptions to Russia's energy exports as a result of sanctions, impacts to the global economy due to energy supply shocks, potential demand impacts from lockdowns or outbreaks of COVID-19, the lack of consensus among OPEC members, politics and uncertainty in the region, among others.
Likewise, the current situation of international crude oil prices (average price for the third quarter of 2022 of
Although high prices have favored the Company's income, they have also generated challenges in terms of inflation, high energy costs added to the international logistics crisis, which are beginning to generate pressure on operating costs and project execution times. Ecopetrol continues to permanently monitor the direct and indirect impacts to take actions to mitigate their effect.
2.4.Considerations on climate change and energy transition
On February 8, 2022, Ecopetrol communicated to the market its 2040 long-term strategy, called "Energy that Transforms", which comprehensively responds to current environmental, social and governance challenges, maintaining the focus on generating sustainable value for all your interest groups. Its objective is to consolidate an agile and dynamic organization that adapts in a timely manner to the
10
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
changes facing the energy industry, the challenges of a world that advances in the generation and use of clean energy, traveling a path of opportunities for growth and leadership in the Americas.
“Energy that Transforms” positions Ecopetrol as an integrated energy group, which participates in all the links of the hydrocarbon chain and in linear infrastructure, both in energy transmission and road concessions, and hopes to continue diversifying into businesses that allow it to continue to reduce its carbon footprint and advance in meeting its goal of being a company with zero net carbon emissions by 2050 (scopes 1 and 2). The strategy is supported by four strategic pillars: (i) Grow with the Energy Transition, (ii) Generate Value with Sustainability, (iii) Cutting-Edge Knowledge and (iv) Competitive Returns.
Within the first three pillars described in the strategy, the following actions associated with the energy transition and climate change were included:
Grow with the energy transition
- | On average, between USD $ |
- | Gas, as a fundamental source of energy in the energy transition, the 2022-2024 Plan includes investments in projects for more than USD $ |
- | Investments will be made for USD $ |
The foregoing will be supported by, in addition to ISA, the gradual foray into emerging businesses aligned with new global trends, to mitigate the effects of climate change, such as the production of low-carbon hydrogen as an energy source, the capture, use and storage of (CCUS) and Natural Climate Solutions (NCS). Over the next
Generate value with sosTECnibilidad (sustainability + technology)
The 2022 - 2024 Plan (without ISA) includes investments of more than USD $
In this sense, the Plan has a clear focus on supporting the energy transition strategy, including the incorporation of renewable energy sources for self-consumption, taking advantage of wind, solar and geothermal energy technologies, strengthening socio-environmental investment programs, deepening digital transformation and acceleration of the development and implementation of technologies to optimize operations throughout the chain.
The Business Group will increase its self-generation capacity with renewable energies in a range between
On the other hand, the long-term objectives include for environmental matters, achieve (i) a
11
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
terms of social component, it is expected to promote the generation of about
Cutting edge knowledge
This pillar seeks to develop the necessary capacities for sosTECnibilidad (sustainability + technology), through a comprehensive science, technology, and innovation (CT+i) strategy to contribute to diversification, increase clean energy, decarbonize operations, and enhance human talent.
As part of the goals of the 2022-2024 Plan, more than USD $
3.Significant accounting judgments and estimates
The preparation of the consolidated financial statements requires that the Company's Management make judgments, estimates and assumptions to quantify some of the assets, liabilities, income, expenses, and commitments recognized in the consolidated financial statements and their disclosures. These estimates have been made based on the best information available on the facts analyzed, management experience and other factors at the date of preparation of the financial statements. Uncertainty about assumptions and estimates could result in future material changes affecting the value of assets or liabilities. Changes in these estimates are recognized prospectively in the period in which they are reviewed.
As of the date of this report, there have been no changes in the significant accounting estimates and judgments used in the preparation of the consolidated financial statements as of December 31, 2021.
4.Accounting policies
The Group’s main accounting policies are described in the consolidated financial statements as of December 31, 2021, and for the year then ended, and they have been applied consistently for the period comprising these interim condensed consolidated financial statements, except for the adoption of new standards effective as of January 1, 2022.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annuals, and therefore should be read in conjunction with the consolidated financial statements as of December 31, 2021.
5.New standards
5.1.New standards adopted by the Group, effective as of January 1, 2022
The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2022. It has not early adopted any other standards, interpretations or amendments that have been issued and not yet effective as of the date of this report:
● | IAS 16 – Property, plant, and equipment: amendment that expresses the prohibition of deducting from the cost of property, plant, and equipment the value of sales of items produced, while the company prepares the asset for its intended use. As of January 1, 2022, Ecopetrol adopted for the first time the Amendment IAS 16 "Property, Plant and Equipment - Proceeds before intended use" in a mandatory manner, the nature and effects of these changes are mentioned below: |
12
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
In May 2020, the International Accounting Standards Committee - IASB issued amendments to IAS 16 - Property, Plant and Equipment referring to the part of proceeds before intended use, in terms of:
o | The sales obtained from the elements produced during the installation and start-up process of the asset, that is, products obtained in the project stage or extensive tests, are recognized in the results of the period as ordinary income. |
o | The costs associated with the production of products obtained in the project stage or extensive tests sold according to IAS 2 are also recognized in the result of the period. |
o | The value of the income and costs related to the sale of products obtained in the project stage or extensive tests is disclosed in the notes to the consolidated financial statements, detailing in which items of the Financial Statement they are included. |
The amendment was effective for the annual reporting periods from January 1, 2022, and its application accepted in Colombia by Decree 938 issued on August 19, 2021, by the Ministry of Industry and Tourism, without generating differences with what given by the IASB for full IFRS.
In the oil sector, this amendment has effects on the treatment of the sale to third parties of extensive oil field tests, which are sales of crude oil or gas from a well under development before entering the market in full production.
Retroactive application was only made for property, plant and equipment or natural and environmental resources that were in the construction stage at the beginning of the first period presented in the consolidated financial statements in which the Ecopetrol Business Group adopted the standard, that is, on January 1, 2021. The impact of the adoption of this standard was as follows:
o | An increase of $ |
o | An effect of $ |
● | IFRS 3 – Business combinations: in which they update a reference from the standard to the Conceptual Framework. The amendments are intended to replace the reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, by the reference to the Conceptual Framework for Financial Information, issued in March 2018, without significantly changing its requirements. This amendment had no impact on the interim condensed consolidated financial statements of the Group. |
● | IAS 37 – Provisions, contingent assets, and liabilities: in which it details what costs an entity must include when determining whether a contract is onerous. The amendments state that a directly related cost approach should be applied. Costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs are not directly related to the contract and should be excluded, unless they are explicitly, attributable to the counterparty under the contract. This amendment had no impact on the interim condensed consolidated financial statements of the Group. |
● | Cycle of annual improvements 2018 – 2020 involving adjustments to IFRS 1 - subsidiary as first-time adopter, IAS 41 - taxes on fair value measurements, IFRS 16 - lease incentives and IFRS 9 - charges in the 10% test for the derecognition of financial liabilities, which clarifies the charges that an entity includes when evaluating whether the terms of a new or modified financial liability are materially different from the terms of the original financial liability. This amendment had no impact on the interim condensed consolidated financial statements of the Group. |
5.2.New standards issued but not yet effective
The IASB issued amendments to the following standards, with an effective date on January 1, 2023, or later periods:
● | Amendment to IAS 1 - Classifications of liabilities as current or non-current, modifies the requirement to classify a liability as current, by establishing that a liability is classified as current when it does not have the right at the end of the reporting period to |
13
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
defer the liquidation of the liability during, at least, the twelve months following the date of the reporting period. This amendment will be effective as of January 1, 2023. |
● | Amendments to IAS 1 – Presentation of financial statements. Companies must disclose material information about their accounting policies and apply the concept of materiality to accounting policy disclosures. The amendments clarify the following points: |
- | The word “significant” is changed to “material or relative importance”. |
- | The accounting policies that must be disclosed in the notes to the financial statements are clarified, "an entity will disclose information about its material or relative importance accounting policies." |
- | It is clarified when an accounting policy is considered material or relatively important. |
- | Adds the following paragraph: “Information on accounting policies that focuses on how an entity has applied the requirements of IFRS to its own circumstances provides specific information about the entity that is more useful to users of financial statements than standardized information or information that only doubles or summarizes the requirements of IFRS standards”. |
● | Amendments to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors. They clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. The amendment was published by the IASB in February 2021 and clearly defines an accounting estimate to distinguish it from an accounting policy: “Accounting estimates are monetary amounts, in financial statements, that are subject to measurement uncertainty”. The amendments are effective for the annual periods beginning on January 1, 2023. |
● | Amendments to IAS 12 Deferred taxes related to assets and liabilities that are recognized in a single transaction. The purpose of the amendments is to reduce diversity in the reporting of deferred taxes on leases and decommissioning obligations. The amendments are effective for annual periods beginning on January 1, 2023. |
● | IFRS 17 was issued by the IASB in 2017 with application beginning on January 1, 2021, to replace IFRS 4 - Insurance Contracts. However, the entry into force was postponed until January 1, 2023. This Standard has not been introduced into the Colombian accounting framework by means of a decree to date and it has not been included in the public discussion process initiated by the Technical Council of Public Accounting, nor in the draft decree of the Ministry of Commerce, Industry and Tourism generated in May 2022. |
6.Cash and cash equivalents
September 30, | December 31, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Banks and corporations |
| |
| |
Short–term investments |
| |
| |
Cash |
| |
| |
| |
| |
As of September 30, 2022, the balance of cash and cash equivalents includes $
The fair value of cash and equivalents is close to its book value due to its short-term nature (less than three months) and its high liquidity. Cash equivalents are convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
7.Trade and other receivables
14
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
September 30, | December 31, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Current |
|
|
| |
Customers |
|
|
|
|
Foreign |
| |
| |
Domestic |
| |
| |
Concessions (1) | | | ||
Fuel Price stabilization fund (2) |
| |
| |
Accounts receivable from employees |
| |
| |
Industrial services |
| |
| |
Related parties (Note 31) | | | ||
Other |
| |
| |
| |
| | |
Non–current |
|
|
|
|
Customers | ||||
Foreign | | | ||
Domestic | | | ||
Concessions (1) | | | ||
Accounts receivable from employees |
| |
| |
Related parties (Note 31) | | | ||
Other (3) |
| |
| |
| |
| |
(1) | Includes electric power transportation concessions and roads. |
(2) | Corresponds to the application of Resolution 180522 of March 29, 2010, and other regulations that modify and add it (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of motor gasoline current and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative). |
For 2022, the increase in accounts receivable is due to the increase in international indicators (brent reference price). During the period, the Ministry of Finance and Public Credit contributed approximately $
(3) | Corresponds mainly to accounts receivable from the Government of Brazil for employee benefits governed by Law 4819 of 1958 to ISA CTEEP, and crude loan agreements of the Business Group for transportation systems. The gross value of these accounts receivable is $ |
The book value of trade accounts and other accounts receivable approximates their fair value.
8.Inventories
15
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
September 30, | December 31, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Crude oil (1) |
| |
| |
Fuels and petrochemicals (2) |
| |
| |
Materials for goods production |
| |
| |
| |
| |
(1) | The variation is mainly due to the increase in Brent prices. |
(2) | The variation is mainly due to the increase of the international references prices and the receipt of fuel imports to accomplish with the national demand for fuels. |
9.Other financial assets
September 30, | December 31, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Assets measured at fair value |
|
|
|
|
Investment portfolio – Foreign currency |
| |
| |
Investments in equity securities (1) |
| |
| |
Investment portfolio – Local currency |
| | | |
Hedging instruments (2) |
| |
| |
Assets measured at fair value through other comprehensive income | | | ||
| | |||
Assets measured at amortized cost (3) | | | ||
| |
| | |
Current |
| |
| |
Non–current |
| |
| |
| |
| |
(1) | Includes deposits in trust companies and restricted funds in Brazil, Peru, Chile, and Colombia. |
(2) | Corresponds to swap contracts and a put option to hedge commodity price risk and forwards to hedge exchange rate risk. |
(3) | Includes investments with maturities greater than 90 days, in Chile and Colombia. |
Fair value
The following is the classification of other financial assets recognized at fair value, corresponding to the investment portfolio:
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Level 1 |
| |
| |
Level 2 |
| |
| |
| |
| |
There were no transfers between hierarchy levels during the periods.
16
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
10.Taxes
Income taxes
The Group calculates the income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the interim consolidated statement of profit or loss are:
Nine-month period ended | ||||
September 30, | ||||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Current income tax expense |
| |
| |
Deferred income tax expense |
| |
| |
Adjustments to prior years’ current and deferred tax |
| |
| ( |
Income tax expense |
| |
| |
The effective tax rate was
The
The better results in the Ecopetrol Business Group are mainly due to the growth in operations, considering: i) an increase of
11.Other assets
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Current |
|
|
|
|
Prepaid expenses | | | ||
Partners in joint operations |
|
| | |
Advanced payments to contractors and suppliers |
|
| | |
Trust funds |
|
| | |
Related parties (Note 31) |
| |
| |
Other |
| |
| |
| |
| | |
Non–current |
|
| ||
Wells abandonment and pension funds |
|
| | |
Trust funds |
|
| | |
Employee benefits |
|
| | |
Advanced payments and deposits |
|
| | |
Judicial deposits and judicial attachments |
|
| | |
Other |
| |
| |
| |
| |
17
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
12.Business combination
12.1.Acquisition of Interconexión Eléctrica S.A. E.S.P.
On August 20, 2021, the closing conditions of the Inter-Administrative Agreement signed on August 11 between Ecopetrol S.A. and the Ministry of Finance and Public Credit ("MHCP") for the acquisition of
Considering the final purchase price allocation on August 31, 2022, the fair value of the identifiable assets and liabilities of ISA as at the date of acquisition were:
| Fair Value | |
Assets | ||
Cash and cash equivalents |
| |
Accounts receivable |
| |
Inventories |
| |
Other financial assets |
| |
Current tax assets |
| |
Other assets |
| |
Investments in subsidiaries and joint ventures |
| |
Properties, plant, and equipment |
| |
Right of use assets |
| |
Intangibles |
| |
Deferred tax assets |
| |
Total assets |
| |
Liabilities |
|
|
Loans |
| |
Leases |
| |
Accounts payable |
| |
Employee Benefits |
| |
Tax liabilities |
| |
Provisions and contingencies |
| |
Other liabilities |
| |
Deferred tax liabilities |
| |
Total liabilities |
| |
Total identifiable net assets |
| |
Non-controlling interest |
| ( |
Goodwill derived from the acquisition |
| |
Consideration transferred |
| |
18
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
The net assets recognized in the consolidated financial statements as of December 31, 2021, were based on a provisional assessment of their fair value and could be adjusted in case of obtaining new information as referred to in paragraph 46 of IFRS 3.
In August 2022, the valuation was completed, considering the new information obtained to the acquisition date, and the fair value of the properties, plant, and equipment was $
From the date of acquisition, ISA contributed $
13.Investments in associates and joint ventures
13.1.Composition and movements
19
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
September 30, | December 31, | |||
| 2022 |
| 2021 | |
| (Unaudited) |
|
| |
Join ventures | ||||
Equion Energía Limited |
| |
| |
Interligação Elétrica do Madeira S.A. | | | ||
Transmissora Aliança de Energia Elétrica S.A. | | | ||
Interligação Elétrica Paraguaçu S.A. | | | ||
Interligação Elétrica Ivaí S.A. | | | ||
Interligação Elétrica Garanhuns S.A. | | | ||
Interligação Elétrica Aimorés S.A. | | | ||
Conexión Kimal Lo Aguirre S.A. (1) | | |||
Ecodiesel Colombia S.A. | | | ||
Interconexión Eléctrica Colombia Panamá S.A. | | | ||
Transnexa S.A. E.M.A. | | | ||
Derivex S.A. | | | ||
Parques de Rio | | | ||
Interconexión Eléctrica Colombia Panamá S.A.S E.S.P. | | | ||
| |
| | |
Less impairment: |
|
|
|
|
Equion Energía Limited |
| ( |
| ( |
Transnexa S.A. E.M.A. |
| ( |
| ( |
| |
| | |
Associates |
|
|
| |
Gases del Caribe S.A. E.S.P. |
| |
| |
ATP Tower Holdings |
| |
| |
Gas Natural del Oriente S.A. E.S.P. |
| |
| |
Gases de la Guajira S.A. E.S.P. | | | ||
E2 Energía Eficiente S.A. E.S.P. | | | ||
Extrucol S.A. | | | ||
Serviport S.A. | | | ||
Sociedad Portuaria Olefinas | | | ||
| |
| | |
Less impairment: Serviport S.A. |
| ( |
| ( |
| |
| | |
| |
| |
(1) | In July 2022, ISA Inversiones Chile, Transelec, and China Southern Power Grid International (CSG) established the company Conexión Kimal Lo Aguirre S.A. This company will build and operate the Kimal-Lo Aguirre project in Chile obtained in 2021. |
The movement of investments in associates and joint ventures for the period ended September 30, 2022, is as follows:
| Associates |
| Join ventures |
| Total | |
Balance as of December 31, 2021 |
| |
| |
| |
Capitalizations (1) | | | | |||
Equity method recognized in: | ||||||
Profit or loss |
| |
| |
| |
Equity | | | | |||
Dividends declared (2) |
| ( |
| ( |
| ( |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
20
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
(1) | The capitalizations correspond to $ |
(2) | During 2022, the company received dividends corresponding to $ |
21
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
14.Property, plant, and equipment
The movement of property, plant and equipment for the period ended September 30, 2022, with its corresponding depreciation and impairment, is as follows:
|
| Pipelines, |
|
|
|
|
| |||||||
Plant and | networks, and | Work in | ||||||||||||
equipment | lines | progress | Buildings | Lands | Other | Total | ||||||||
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2021 |
| |
| |
| |
| |
| |
| |
| |
Additions/capitalizations (1) |
| |
| |
| |
| |
| |
| |
| |
Abandonment cost update (Note 23) | | ( | | | | | ( | |||||||
Capitalized financial interests (2) | | | | | | | | |||||||
Exchange differences capitalized |
| |
| |
| |
| |
| |
| |
| |
Disposals | ( | ( | ( | ( | ( | ( | ( | |||||||
(Decrease) increase related to business combination (Note 12) | | ( | | | ( | | ( | |||||||
Effect of adopting new standards (3) | | | | | | | | |||||||
Foreign currency translation |
| |
| |
| |
| |
| |
| |
| |
Reclassifications/transfers |
| ( |
| |
| ( |
| |
| ( |
| ( |
| ( |
Balance as of September 30, 2022 (Unaudited) | | | | | | | | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Accumulated depreciation and impairment losses |
| |||||||||||||
Balance as of December 31, 2021 |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
Depreciation expense |
| ( |
| ( |
| |
| ( |
| |
| ( |
| ( |
Impairment loss (Note 18) |
| ( |
| |
| |
| ( |
| |
| |
| ( |
Disposals | | | | | | | | |||||||
Foreign currency translation |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
Reclassifications/transfers |
| |
| ( |
| |
| ( |
| |
| ( |
| |
Balance as of September 30, 2022 (Unaudited) | ( | ( | ( | ( | ( | ( | ( | |||||||
Balance as of December 31, 2021 |
| |
| |
| |
| |
| |
| |
| |
Balance as of September 30, 2022 (Unaudited) |
|
|
|
|
|
|
|
22
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
(1) |
(2) |
(3) |
15.Natural and environmental resources
The movement of natural and environmental resources for the period ended September 30, 2022, with their corresponding depletions and impairment, is as follows:
Oil and gas | Assets retirement | Exploration and | ||||||
| investments |
| obligations |
| evaluation |
| Total | |
Cost |
|
|
|
|
|
|
|
|
Balance as of December 31, 2021 |
| |
| |
| |
| |
Additions/capitalizations (1) |
| |
| |
| |
| |
Abandonment cost update (Note 23) | | ( | | ( | ||||
Disposals (2) |
| ( |
| ( |
| ( |
| ( |
Write off exploratory assets and dry wells (3) | | | ( | ( | ||||
Capitalized financial interests (4) |
| |
| |
| |
| |
Exchange differences capitalized |
| |
| |
| |
| |
Effect of adopting new standards (5) | | | | | ||||
Foreign currency translation |
| |
| |
| |
| |
Reclassifications/transfers |
| |
| ( |
| ( |
| ( |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
| |
Accumulated depletion and impairment losses |
|
|
|
|
|
|
|
|
Balance as of December 31, 2021 |
| ( |
| ( |
| ( |
| ( |
Depletion expense | ( | ( | | ( | ||||
Disposals |
| |
| |
| |
| |
Foreign currency translation |
| ( |
| ( |
| |
| ( |
Reclassifications/transfers |
| |
| ( |
| |
| |
Balance as of September 30, 2022 (Unaudited) |
| ( |
| ( |
| ( |
| ( |
Balance as of December 31, 2021 |
| |
| |
| |
| |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
| |
(1) |
(2) |
(3) |
(4) |
(5) |
23
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
16.Right-of-use assets
The movement of right-of-use assets and lease liabilities for the period ended September 30, 2022, is as follows:
Right-of-use assets | ||||||||||||
|
|
|
|
| Right-of- |
| Lease | |||||
|
| Lands and | Plant and |
| use |
| liabilities | |||||
Pipelines | buildings | equipment | Vehicles | assets | (Note 20.1) | |||||||
Balance as of December 31, 2021 |
| |
| |
| |
| |
| |
| |
Additions |
| |
| |
| |
| |
| |
| |
Amortization of the period |
| ( |
| ( |
| ( |
| ( |
| ( |
| — |
Remeasurements(1) |
| ( |
| ( |
| |
| |
| |
| |
Disposals |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
Finance cost |
| — |
| — |
| — |
| — |
| — |
| |
Payment of capital and interests |
| — |
| — |
| — |
| — |
| — |
| ( |
Reclassifications/transfers | ( | | | ( | | ( | ||||||
Exchange difference |
| |
| |
| |
| |
| |
| |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
| |
| |
| |
(1) |
.
17.Intangible assets
The movement of intangibles assets for the period ended September 30, 2022, with their corresponding amortizations, is as follows:
| Licenses |
|
|
|
| |||||
and | Other | Concessions | ||||||||
software | intangibles | and rights | Easements | Total | ||||||
Cost |
|
|
|
|
|
|
|
| ||
Balance as of December 31, 2021 |
| |
| |
| | |
| | |
Additions/capitalizations | | | | | | |||||
Increase (decrease) related to business combination (Note 12) | | | ( | ( | ( | |||||
Disposals | ( | | ( | — | ( | |||||
Foreign currency translation |
| |
| |
| | |
| | |
Reclassifications/transfers |
| |
| ( |
| | |
| | |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| | |
| | |
Accumulated amortization and impairment losses |
|
|
|
|
|
| ||||
Balance as of December 31, 2021 |
| ( |
| ( |
| ( | ( |
| ( | |
Amortization expense |
| ( |
| ( |
| ( | ( |
| ( | |
Disposals |
| |
| |
| | — |
| | |
Foreign currency translation |
| ( |
| ( |
| ( | — |
| ( | |
Reclassifications/transfers |
| |
| ( |
| | — |
| ( | |
Balance as of September 30, 2022 (Unaudited) |
| ( |
| ( |
| ( | ( |
| ( | |
Balance as of December 31, 2021 |
| |
| |
| | |
| | |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| | | |
24
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
18.Impairment of non-current assets
According to the behavior of the key market assumptions, as of September 30, 2022, no factors or circumstances were identified that indicate that the book value of its assets may be above its recoverable value, considering the market conditions, the international prices and indicators of crude oil and products, and the geopolitical context, particularly, produced by the conflict between Russia and Ukraine (See note 2.4).
As of September 30, 2022, no indicators of impairment exist for non-current assets, especially considering the higher prices of crude oil and products during the nine-month period of 2022. The most significant movements in 2022 are presented mainly by the impairment recognized in office-type containers of $
19.Goodwill
September 30, | December 31, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Interconexión Eléctrica S.A. E.S.P. (1) | | | ||
Oleoducto Central S.A. |
| |
| |
Hocol Petroleum Ltd |
| |
| |
Invercolsa S.A. | | | ||
Andean Chemical Limited |
| |
| |
Esenttia S.A. |
| |
| |
| |
| | |
Less Impairment Hocol Petroleum Ltd |
| ( |
| ( |
Total |
| |
| |
(1)The variation corresponds to the updating related to the final purchase price allocation in business combination process.
25
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
20.Loans and borrowings
20.1.Composition of loans and borrowings
Interest rate* | September 30, | December 31, | ||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | |
(Unaudited) | ||||||||
Local currency |
|
|
|
| ||||
Bonds |
| | % | | % | |
| |
Syndicate loans |
| | % | | % | |
| |
Lease liabilities (1) | | % | | % | | | ||
Commercial loans and others | | % | | % | | | ||
| |
| | |||||
Foreign currency |
|
|
|
|
|
|
|
|
Bonds (2) |
| | % | | % | |
| |
Commercial and syndicate loans |
| | % | | % | |
| |
Loans from related parties (Nota 31) |
| | % | | % | |
| |
Lease liabilities (1) |
| | % | | % | |
| |
| |
| | |||||
| |
| | |||||
Current |
|
| |
| | |||
Non–current |
|
| |
| | |||
| |
| |
* Weighted average effective interest rate for the end of each period.
(1) | Corresponds to the present value of the payments to be made during the term of the operating lease contracts for pipelines, tanks, real estate, and vehicles, recognized because of the implementation of IFRS 16 – Leases. See Note 16. |
(2) | Corresponds to the increase in the exchange rate of $ |
During 2022, proceeds obtained from loans and borrowings totaled $
The repayment of loans and borrowings totaled $
20.2.Fair value
The fair value of the financial obligations is $
26
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
20.3.Maturity
The following is the maturity profile of loans and borrowings as of September 30, 2022:
| Up to 1 year |
| 1 – 5 years |
| 5-10 years |
| > 10 years |
| Total | |
Local currency |
|
|
|
|
|
|
|
|
|
|
Bonds |
| |
| |
| |
| |
| |
Syndicate loans |
| |
| |
| |
| |
| |
Lease liabilities | | | | | | |||||
Commercial loans and others |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | |
Foreign currency |
|
|
|
|
| |||||
Bonds |
| |
| |
| |
| |
| |
Syndicate loans | | | | | | |||||
Commercial loans |
| |
| |
| |
| |
| |
Lease liabilities |
| |
| |
| |
| |
| |
Loans from related parties | | | | | | |||||
| |
| |
| |
| |
| | |
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
| |
| |
20.4.Loans designated as hedging instrument
As of September 30, 2022 (unaudited), Ecopetrol Business Group has designated USD$
20.5.Guarantees and covenants (unaudited)
As of September 30, 2022, the total value of the current guarantees provided by Interconexión Eléctrica S.A. E.S.P. and its companies, within the framework of the definition of paragraph 14 of IFRS 7, used to support growth in its different business units and ensure strategic commercial and operational viability amount to $
The syndicated loan acquired by Oleoducto Bicentenario de Colombia S.A.S. establishes as a requirement that this subsidiary maintain an established relationship of leverage and solvency and cash flow/debt service.
21.Trade and other payables
27
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Current | ||||
Suppliers |
| |
| |
Dividends payable (1) |
| |
| |
Withholding tax |
| |
| |
Partner's advances |
| |
| |
Insurance and reinsurance |
| |
| |
Deposits received from third parties |
| |
| |
Related parties (Note 31) | | | ||
Agreements in transport contracts | | | ||
Hedging operations (2) |
| |
| |
Various creditors |
| |
| |
| |
| | |
Non-current | ||||
Suppliers | | | ||
Various creditors |
| |
| |
| |
| |
(1) |
(2) |
The book values of trade accounts and other accounts payable approximate their fair values due to the short-term nature of these accounts.
22.Provisions for employees’ benefits
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Post-employment benefits |
|
|
|
|
Health |
| |
| |
Pension |
| |
| |
Education |
| |
| |
Bonds |
| |
| |
Other plans |
| |
| |
Termination benefits - Voluntary retirement plan |
| |
| |
| |
| | |
Social benefits and salaries |
| |
| |
Other long-term benefits |
| |
| |
| |
| | |
Current |
| |
| |
Non-current |
| |
| |
| |
| |
28
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
22.1.Plans assets
The assets of the plan are represented by the resources delivered to the Autonomous Pension Funds for the payment of the pension liability of the obligations for pension and pension bonds; what concerns health and education oversees Ecopetrol S.A.. The destination of the resources of the autonomous patrimonies, as well as their yields, cannot be changed or returned to the Company until all the obligations are fulfilled.
Plan asset balance is $
23.Accrued liabilities and provisions
| Abandonment |
|
| Environmental |
| |||
and dismantling | contingencies | |||||||
costs | Litigations | and others | Total | |||||
Balance as of December 31, 2021 |
| |
| |
| |
| |
Abandonment cost update |
| ( |
| |
| |
| ( |
Additions |
| |
| |
| |
| |
Uses |
| ( |
| ( |
| ( |
| ( |
Financial cost |
| |
| |
| |
| |
Foreign currency translation |
| |
| |
| |
| |
Reversal of provision for sale of assets (1) |
| ( |
| — |
| — |
| ( |
Transfers |
| | ( | ( | ( | |||
Balance as of September 30, 2022 (Unaudited) |
| |
| |
| |
| |
Current |
| |
| |
| |
| |
Non-current | |
| |
| |
| | |
|
| |
| |
| |
(1) | Corresponding to the provision for abandonment associated with the assets related to the participation of Ecopetrol S.A. in Casanare, Estero, Garcero, Orocué and Corocora Join Venture (CEGOC), which were sold to Perenco Oil and Gas Colombia. This transaction closed on August 26, 2022. |
23.1.Contingencies
Refinería de Cartagena S.A.S
1. | Court of arbitration |
On April 29, 2022, the International Chamber of Commerce extended the time for the arbitration process to November 20, 2022.
Once the arbitration process is completed, the filing of an annulment appeal may proceed.
2. | Investigations of control entities |
Prosecutor’s Office:
To date, three legal proceedings are being carried out arising from the events related to the expansion and modernization project of the Refinería de Cartagena (the “project”).
29
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Process 1 – No. 110016000101201600023 - MOA - PIP and EPC
This process is being carried out against some ex-members of the Board of Directors and ex-workers of the Cartagena Refinery, workers of the Chicago Bridge and Iron Company (CB&I) and the Statutory Auditor of the Cartagena Refinery between 2013 and 2015, for the crimes of improper interest in the execution of contracts, embezzlement by appropriation in favor of third parties, illicit enrichment of individuals in favor of third parties and ideological falsehood in public documents.
On March 29, 2022, a hearing was held to lift the house arrest measure for Felipe Laverde Concha and on April 5, 2022, the 34th Municipal Criminal Court with a Function of Guarantees granted him freedom due to the expiration of terms.
From July 25 to 29, 2022, the preparatory hearing was held, where the interlocutory order of decree of evidence was issued, against which the defenders filed appeals. The appeals were granted and will be resolved by the Superior Court of Bogotá.
Process 2 – No. 110016000101201800132 Business line
This process is being carried out against ex-members of the Board of Directors and an ex-employee of the Refinería de Cartagena for the crimes of aggravated unfair administration and obtaining a false public document against ex-members of the Board of Directors of the Refinery and an ex-President of this company.
On November 18, 2019, the preparatory trial hearing was installed, which has been resumed on several occasions, but to date it is suspended pending rescheduling.
No changes occurred in the status of this litigation since December 31, 2021.
Process 3 – No. 110016000101201800134 - Subscription of the PMC Contract - Foster Wheeler
This process is carried out against
On February 7, 2022, the oral trial began, and the evidence requested by the FGN, and the defense was taken. On April 5, 2022, the practice of evidence concluded.
On May 10, 2022, at the hearing of closing arguments, the 9th Circuit Criminal Judge announced the sense of the conviction against two former workers of the Cartagena Refinery for entering a contract without legal requirements.
On August 18, 2022, a sentence was handed down imposing the minimum sentence for the crime charged, equivalent to
The defendants will remain free until the appeals are resolved and, if applicable, the extraordinary appeal before the Supreme Court of Justice.
Office of the Comptroller General (Contraloría General de la Nación – CGR):
Financial Audit for the 2021
The CGR carried out a financial audit of Refinería de Cartagena between January 20, 2022, and May 31, 2022.
On July 5, 2022, the improvement plan for
30
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Fiscal Responsibility Process
(1) | PRF-2018-00684-PRF-017-2018 |
Due to the late entry into operation that generated lost profits, the CGR is carrying out an independent process in which various requirements have been met.
Through order 0167 dated February 3, 2022, the CGR has ended the litigation related to the tax liability process for lost profits, that is, for the possible damage associated with the late entry into operation of the refinery, which was initially estimated at $
Among the fundamentals for the decision are the non-existence of the damage and the non-accreditation of injury to public property, since the circumstances that caused the late entry into operation of the refinery were due to a series of situations unrelated to the managerial decisions of those investigated, such as, the winter wave, the labor abnormality presented in the execution of the project, among others.
By order of March 1, 2022, the Fiscal and Sanctioning Decision Chamber of the CGR decided to confirm the termination of this litigation. Additionally, it ordered to carry out “monitoring and supervision of the investment and production of the refinery to determine losses due to foregone profits, as a consequence of the damage determined in the ruling with fiscal responsibility No. 749 of April 26, 2021, and confirmed by order 801119 -158-021 of July 6, 2021”.
(2) | PRF-80011-2018-33300 |
No changes occurred in the status of this litigation since December 31, 2021.
24.Equity
24.1.Subscribed and paid–in capital
Ecopetrol’s authorized capital is $
24.2.Additional and paid–in capital
It mainly corresponds to: (i) surplus with respect to its nominal value derived from the sale of shares upon capitalization in 2007, for $
24.3.Equity reserves
31
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Legal reserve |
| |
| |
Fiscal and statutory reserves |
| |
| |
Occasional reserves (1) |
| |
| |
Total |
| |
| |
(1) |
The movement of the equity reserves in the periods ended September 30, is the following:
| September 30, |
| September 30, | |
2022 | 2021 | |||
(Unaudited) | ||||
Opening balance |
| |
| |
Release of reserves |
| ( |
| ( |
Appropriation of reserves |
| |
| |
Dividends declared | ( | — | ||
Closing balance |
| |
| |
24.4.Retained earnings and payment of dividends
The Group distributes dividends based on its financial statements prepared under International Financial Reporting Standards accepted in Colombia (NCIF, as its acronym in Spanish).
The Ordinary General Assembly of Shareholders of Ecopetrol S.A., held on March 30, 2022, approved the profit distribution project for fiscal year 2021 and defined the distribution of dividends in the amount of $
Additionally, the Extraordinary General Assembly of Ecopetrol S.A. of June 17, 2022, approved the modification of the destination of a part of the occasional reserve to distribute it as an extraordinary dividend for $
As of September 30, 2022, dividends of $
32
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
24.5.Other comprehensive income
The following is the composition of the other comprehensive results attributable to the shareholders of the parent company, net of deferred income tax:
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Foreign currency translation and others (1) |
| |
| |
Hedges of a net investment in a foreign operation |
| ( |
| ( |
Loss on defined benefit obligation |
| ( |
| ( |
Cash flow hedging - Future crude oil exports | ( | ( | ||
Cash flow hedging - Derivative financial instruments |
| ( |
| ( |
Financial instruments measured at fair value | | | ||
| |
| |
(1)The variation mainly corresponds to the increase in the exchange rate during 2022.
24.6.Earnings per share
| September 30, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Profit attributable to Ecopetrol’s shareholders | | | ||
Weighted average number of outstanding shares | | | ||
Net basic earnings per share (Colombian pesos) | | |
33
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
25.Revenue from contracts with customers
Nine-month period ended September 30, | ||||
| 2022 |
| 2021 | |
(Unaudited) | ||||
National sales |
|
|
|
|
Mid-distillates (1) |
| |
| |
Gasolines (1) |
| |
| |
Natural gas (2) |
| |
| |
Services |
| |
| |
Electric power transmission services (3) |
| |
| |
Plastic and rubber |
| |
| |
L.P.G. and propane |
| |
| |
Asphalts |
| |
| |
Fuel gas Service |
| |
| |
Roads and construction services (3) | | | ||
Aromatics | | | ||
Polyethylene | | | ||
Crude oil | | | ||
Fuel oil |
| | | |
Other income – Gas contracts | | | ||
Other products |
| |
| |
Cash flow hedging (4) | — | ( | ||
| |
| | |
Foreign sales |
|
|
|
|
Crude oil (2) |
| |
| |
Diesel | | | ||
Roads and construction services (3) |
| |
| |
Electric power transmission services (3) | | | ||
Fuel oil | | | ||
Plastic and rubber |
| |
| |
L.P.G. and propane |
| |
| |
Natural gas | | | ||
Gasolines | | — | ||
Cash flow hedging (4) | ( | ( | ||
Other products (5) |
| |
| |
| |
| | |
| |
| |
(1) | Includes the value corresponding to the application of Resolution 180522 of March 29, 2010, and other regulations that modify and add to it (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of regular motor gasoline and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative). As of September 30, 2022, the value recognized for price differential corresponds to $ |
(2) | With the implementation of the IAS 16 Amendment on the management of the sale of products obtained in the project stage or extensive tests mandatory as of January 1, 2022, the Group recognizes as of that date, the income received from the product of the sale of hydrocarbons in the stage prior to their declaration of commerciality of the oil fields. The cost related to these revenues is disclosed in Note 26 – Cost of sales. As of September 30, 2022, the value recognized for extensive tests is as follows: natural gas for national sales $ |
34
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
(3) | Corresponds to the income derived from the energy transmission and road concession contracts of Interconexión Eléctrica S.A. E.S.P. |
(4) | Includes the result of hedges for future exports (Note 30.3) for $( |
(5) | Includes income from telecommunications services provided by Interconexión Eléctrica S.A. E.S.P. and the sale of asphalt, and other products by other Group Companies. |
26.Cost of sales
| Nine-month period ended September 30, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Costs variables |
|
|
|
|
Imported products (1) |
| |
| |
Purchases of crude in associations and concessions |
| |
| |
Hydrocarbon purchases - ANH (2) |
| |
| |
Depreciation, depletion, and amortization |
| |
| |
Gas royalties in cash |
| |
| |
Electric Energy |
| |
| |
Hydrocarbon transportation services | |
| | |
Purchases of other products and gas |
| |
| |
Processing materials |
| |
| |
Services contracted in association |
| |
| |
Extensive tests | | — | ||
Others (3) |
| ( |
| ( |
| |
| | |
Fixed cost |
|
| ||
Depreciation and amortization |
| |
| |
Maintenance |
| |
| |
Construction services | | | ||
Labor costs |
| |
| |
Contracted services |
| |
| |
Contracted services in associations |
| |
| |
Taxes and contributions |
| |
| |
Materials and operating supplies |
| |
| |
Hydrocarbon transportation services | | | ||
General costs |
| |
| |
| |
| | |
| |
| |
(1) | Imported products correspond mainly to gasoline, naphtha, and diluent to facilitate the transportation of heavy crude oil. |
(2) | Corresponds mainly to royalty crude purchases made by Ecopetrol from the National Hydrocarbons Agency (ANH), derived from national production. |
(3) | Corresponds to i) result of the process of use and valuation of core inventories, ii) measurement at net realizable value (NRV) and iii) other capitalizable charges to projects. The variation corresponds to a higher level of sold inventories of crude oil. |
35
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
27.Administrative, operation and project expenses
| Nine-month period ended September 30, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Administration expenses |
|
|
|
|
General expenses |
| |
| |
Labor expenses |
| |
| |
Depreciation and amortization |
| |
| |
Taxes |
| |
| |
| |
| | |
Operation and project expenses |
|
| ||
Commissions, fees, freights, and services |
| |
| |
Taxes |
| |
| |
Labor expenses |
| |
| |
Exploration expenses |
| |
| |
Depreciation and amortization |
| |
| |
Fee for regulatory entities |
| |
| |
Maintenance |
| |
| |
Other | | | ||
| |
| |
28.Other operating income (expense)
| Nine-month period ended September 30, | |||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Litigation and contingencies | ( | ( | ||
Loss on sale of assets (1) |
| ( |
| ( |
Impairment of current assets |
| ( |
| ( |
Other income |
| |
| |
| ( |
| ( |
(1) | It mainly corresponds to the end of Rygberg's association contract in Ecopetrol America, and the profit on the sale of the total participation of Ecopetrol S.A. in the Casanare, Estero, Garcero, Orocué and Corocora Association (CEGOC). This sale of fields was made to itse partner Perenco Oil and Gas Colombia. |
36
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
29.Financial results
Nine-month period ended September 30, | ||||
| 2022 |
| 2021 | |
(Unaudited) | ||||
Finance income |
|
|
|
|
Yields and interests |
| |
| |
Results from financial assets |
| |
| |
Gain on derivatives valuation/ settlement | | | ||
Other financial income |
| |
| |
| |
| | |
Financial expenses |
|
| ||
Financial cost of loans and borrowings |
| ( |
| ( |
Financial cost of other liabilities (1) |
| ( |
| ( |
Results from financial assets |
| ( |
| ( |
Other financial expenses |
| ( |
| ( |
| ( |
| ( | |
Foreign exchange |
| |||
Foreign exchange loss | ( | ( | ||
Realized gain of other comprehensive income from the sale of joint ventures | | | ||
( | | |||
| ( |
| ( |
(1) | It includes the financial expense for the updating of the liability for abandonment costs, and the interest, net of post-employment benefits and other long-term employee benefits. |
30.Risk management
30.1.Exchange rate risk
The Group operates both in the local (Colombia) and international markets, for this reason, it is exposed to exchange rate risk, to a greater extent due to fluctuations in exchange rates, especially the peso/US dollar rate.
As of September 30, 2022, the Colombian peso appreciated
The book values of financial assets and liabilities denominated in foreign currency are presented in the following table:
| September 30, |
| December 31, | |
(USD$ Millions) | 2022 | 2021 | ||
(Unaudited) | ||||
Cash and cash equivalents |
| |
| |
Other financial assets |
| |
| |
Trade receivables and payables |
| |
| |
Loans and borrowings |
| ( |
| ( |
Other assets and liabilities |
| |
| |
Net liability position |
| ( |
| ( |
Of the total net position, USD$(
37
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
the exchange difference valuation of the remaining net liabilities for USD$
30.2. | Sensitivity analysis for exchange rate risk |
The following is the effect that a variation of
Scenario / variation in the |
| Effect on income |
| Effect on other |
exchange rate | before taxes +/– | comprehensive income +/ | ||
| % | |
| |
| % | |
| |
30.3.Cash flow hedge for future exports
To express in the consolidated financial statements, the effect of the existing natural hedge between exports and indebtedness, understanding that the exchange rate risk materializes when exports are made, on September 30, 2015, the Board of Directors designated the sum of USD$
In 2021 an additional USD$
The following is the movement of this non-derivative hedging instrument:
| September 30, |
| December 31, | |
(USD$ Millions) | 2022 | 2021 | ||
(Unaudited) | ||||
Opening balance |
| |
| |
Reassignment of hedging instruments |
| |
| |
Realized exports |
| ( |
| ( |
Designation of new hedges |
| |
| |
Closing balance |
| |
| |
The following is the movement in the other comprehensive income:
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Opening balance |
| ( |
| ( |
Exchange difference |
| ( |
| ( |
Realized exports (Note 25) |
| |
| |
Ineffectiveness |
| ( |
| |
Deferred tax |
| |
| |
Closing balance |
| ( |
| ( |
38
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
The expected reclassification of exchange differences accumulated in other comprehensive income to profit or loss is as follows:
Year |
| Before taxes |
| Taxes |
| After taxes |
2022 (Oct-Dec) |
| |
| ( |
| |
2023 | ( | | ( | |||
2024 | | ( | | |||
2025 |
| |
| ( |
| |
2026 |
| |
| ( |
| |
| |
| ( |
| |
30.4.Hedge of a net investment in a foreign operation
The Board of Directors approved the application of hedge accounting of net investment from June 8, 2016. The measure seeks to reduce the volatility of non-operating income due to the exchange difference. The hedge of a net investment applies to a portion of the investments the Company has in foreign currency, in this case in subsidiaries with the US dollars as their functional currency, using as hedging instrument a portion of the Company’s debt denominated in U.S. dollars.
Ecopetrol designated as hedged items its net investments in Oleoducto Central S.A. (Ocensa), Ecopetrol América LLC., Hocol Petroleum Ltd. (HPL) and Refinería de Cartagena S.A.S. (Reficar); and as a hedging instrument a portion of its debt denominated in US dollars in a total amount equivalent to USD$
During 2021, the Company made an extension for USD$
During 2022, an extension was made for USD$
Additionally, ISA Colombia made a net investment hedge on the investments in the companies REP, ISA Peru, CTM and PDI for a value of USD$
The following is the movement in the other comprehensive income:
| September 30, |
| December 31, | |
2022 | 2021 | |||
(Unaudited) | ||||
Opening balance |
| |
| |
Exchange difference |
| |
| |
Deferred tax |
| ( |
| ( |
Closing balance |
| |
| |
30.5.Commodity Price risk
The price risk of raw materials is associated with the Group’s operations, both exports and imports of crude oil, natural gas, and refined products. To mitigate this risk, the Group has implemented hedges to partially protect the results from price fluctuations, considering that part of the financial exposure under contracts for the purchase of crude oil and refined products depends on the international oil prices.
The risk of such exposure is partially hedged in a natural way, as an integrated Group (with operations in the exploration and production, transportation and logistics and refining segments) and carries out both crude exports at international market prices and sales of refined products at prices correlated with international prices.
39
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
The Group has a policy for the execution of (strategic and tactical) hedges and implemented processes, procedures, and controls for their management.
The main purpose of the strategic hedging program is to protect the Group’s consolidated financial statements from the volatility of market variables in each period, to protect income and thus cash flow. During 2022, a hedging plan was executed to protect the cash against low price scenarios below the budget base price, in this sense, put options were purchased. The balance of these financial instruments as of September 30 corresponds to $
On the other hand, tactical hedges allow to capture value in trading operations and Asset Backed Trading (ABT), thereby mitigating the market risk of specific operations. In the trading activity, commitments in physical spot and forward contracts could represent an exposure to commodity price risk, in particular the risk associated with the volatility of the price of crude oil and refined products. Although this exposure is part of the natural risk of the production, refining, and marketing activity made by Ecopetrol, sometimes marketing, to maximize value capture, can concentrate the exposure to risk in terms of time and/or or indicator that differs from the Company's natural price risk profile. As of the date of this report, Ecopetrol S.A. recognizes a total net asset position in swaps for $
30.6.Risk and opportunities related to climate
According to the process of identification, assessment, and management of climate-related risks and opportunities by Ecopetrol, the following identification is presented below:
● | Physical risks: related to the Company's exposure and vulnerability to the impacts of climate change and climate variability in Colombia, which could affect the availability of water and increase the exposure of assets and operations to possible damage. |
o | For Ecopetrol, the risks classified as acute are those caused by extreme climatic events whose frequency and intensity have been increasing due to the gradual increase in global temperature. In Colombian territory, it is reflected in the occurrence of the climatic variability phenomenon “El Niño”, and its opposite phase “La Niña”. |
o | Risks classified as chronic are those that result from a medium and long-term change in climate conditions, which for the Company can be reflected in the rise in sea level or changes in the level and frequency of rainfall. |
● | Transition risk: related to the challenges that the company has identified to move towards a low-carbon, sustainable and competitive operation. |
o | Regulatory risk, associated with regulatory changes that may directly affect the Company in the short and medium term. Among the regulatory changes, the following can be highlighted: (i) new information requirements for the application or modification of current and future licenses, of which the Company does not have the information available, (ii) new regulations for the detection and repair of leaks, burning and venting of gas, (iii) disclosure requirements on environmental and social matters by the Financial Superintendence of Colombia, (iv) new requirements for the verification of projects, among others. |
o | Legal risk, associated with the negative reactions and lawsuits against the climate action of Ecopetrol S.A. |
o | Risk of assets trapped in the traditional business of hydrocarbon production, transportation, and refining, considering factors such as fuel demand prospects and asset profit horizons. |
o | Market risk, related to the change in preferences in the use of low-carbon products in the long term, which implies a risk for the Company of not being able to meet market demand and of not advancing effectively in the development of these products. |
40
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
o | Reputational risk, associated with the impossibility of responding in a timely way to the expectations and demand of investors and other interest groups to establish ambitious objectives regarding climate change, which would affect the image of the Company. |
o | Technological risk, associated with the negative effects on the profitability of the business if there is no preparation and capacity to adapt to new technologies because of the transition process. |
The opportunities derive from the analysis of risks associated with the climate, the review of the energy transition scenarios, the implementation of the decarbonization plan and the alignment with the 2040 strategy. Opportunities have been identified related to the diversification of the traditional business, the incorporation into the portfolio of sustainable and low-emission businesses, the diversification in energy power and infrastructure markets, and the strengthening of energy efficiency and renewable energies.
30.7.Capital management
The main objective of Ecopetrol Business Group’s Capital Management is to ensure a financial structure that will optimize the Company’s cost of capital, maximize the returns to its shareholders and allow access to financial markets at a competitive cost to cover its financing needs.
The following is the leverage index over the periods reported:
| September 30, |
| December 31, |
| |
2022 | 2021 | ||||
(Unaudited) | |||||
Loans and borrowings (Note 20) |
| |
| | |
Cash and cash equivalents (Note 6) |
| ( |
| ( | |
Other financial assets (Note 9) |
| ( |
| ( | |
Net financial debt |
| |
| | |
Equity |
| |
| | |
Leverage (1) |
| | % | | % |
(1)Net financial debt / (Net financial debt + Equity)
41
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
31.Related parties
The balances with associated companies and joint ventures as of September 30, 2022 (unaudited), and December 31, 2021, are as follows:
| ||||||||||||
Accounts | Loans | Other | Accounts | Loans | Other | |||||||
| receivable |
| receivable |
| assets |
| payable |
| payable |
| liabilities | |
Joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
Equion Energía Limited |
| |
| — |
| |
| |
| |
| |
Ecodiesel Colombia S.A. |
| |
| — |
| — |
| |
| — |
| |
Interligação Elétrica do Madeira S.A. |
| |
| — |
| — |
| — |
| — |
| — |
Interligação Elétrica Garanhuns S.A. | | | — | — | — | — | ||||||
Interligação Elétrica Paraguaçu S.A. | — | | — | — | — | — | ||||||
Interligação Elétrica Ivaí S.A. | — | | — | — | — | — | ||||||
Derivex S.A. | — | | — | — | — | — | ||||||
Associates |
|
|
|
|
|
| ||||||
Gases del Caribe S.A. E.S.P. | | — | — | — | — | — | ||||||
Gas Natural del Oriente S.A. E.S.P. | | — | — | — | — | |||||||
Gases de la Guajira S.A. E.S.P. | | — | — | — | — | — | ||||||
Extrucol S.A. | — | — | — | — | ||||||||
E2 Energía Eficiente S.A. E.S.P. |
| |
| — |
| — |
| |
| — |
| — |
Balance as of September 30, 2022 (unaudited) |
| |
| |
| |
| |
| |
| |
Current |
| |
| |
| |
| |
| |
| |
Non-current |
| — |
| |
| — |
| — |
| — |
| — |
| |
| |
| |
| |
| |
| | |
| (Note 7) |
| (Note 7) |
| (Note 11) |
| (Note 21) |
| (Note 20) |
|
| ||||||||||||
Accounts | Loans | Other | Accounts | Loans | Other | |||||||
| receivable |
| receivable |
| assets |
| payable |
| payable |
| liabilities | |
Joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
Equion Energía Limited (1) |
| |
| — |
| |
| |
| |
| |
Ecodiesel Colombia S.A. |
| |
| — |
| — |
| |
| — |
| — |
Interligação Elétrica Garanhuns S.A. |
| — |
| |
| — |
| — |
| — |
| — |
Interligação Elétrica Paraguaçu S.A. | — |
| |
| — |
| — |
| — |
| — | |
Interligação Elétrica Aimorés S.A. | — |
| |
| — |
| — |
| — |
| — | |
Interligação Elétrica Ivaí S.A. | — |
| |
| — |
| — |
| — |
| — | |
Derivex S.A. | — | | — |
| — |
| — |
| — | |||
Associates |
|
|
|
|
|
| ||||||
Gas Natural del Oriente S.A. E.S.P. | — | — | — | | — | — | ||||||
Extrucol S.A. | — | — | — | | — | — | ||||||
E2 Energía Eficiente S.A. E.S.P. |
| | — | — | | — | — | |||||
Balance as of December 31, 2021 |
| | | | | | | |||||
Current |
| |
| |
| |
| |
| |
| |
Non-current |
| — |
| |
| — |
| — |
| — |
| — |
| |
| |
| |
| |
| |
| | |
| (Note 7) |
| (Note 7) |
| (Note 11) |
| (Note 21) |
| (Note 20) |
|
Loans payable:
(1) | Deposits held by Equion in Ecopetrol Capital AG. |
42
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
The main transactions with related parties for the periods ended September 30, are detailed as follows:
| 2022 | 2021 | ||||||
| Purchases of | Purchases of | ||||||
Sales and | product and | Sales and | product and | |||||
| services |
| other |
| services |
| other | |
(Unaudited) | (Unaudited) | |||||||
Joint ventures |
|
|
|
|
|
|
|
|
Equion Energía Limited |
| |
| |
| |
| |
Ecodiesel Colombia S.A. |
| |
| |
| |
| |
| | | | |||||
Associates |
|
|
|
| ||||
Gas Natural del Oriente S.A. E.S.P. |
| — |
| |
| — |
| |
Extrucol S.A. | | | — | | ||||
E2 Energía Eficiente S.A. E.S.P. | | | | | ||||
| |
| |
| |
| | |
|
| |
| |
| |
32.Segments information
The description of the business segments can be seen in note 4.20 of the consolidated financial statements December 31, 2021.
The following information by segments is reported based on the information used by the Board of Directors, as the highest body for making strategic and operational decisions of the business segments. The performance of the segments is based mainly on analyzes of income, costs, expenses, and results for the period generated by each segment, which are monitored periodically.
The information disclosed in each segment is presented net of the transactions carried out between the Group companies.
43
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
32.1.Statement of profit or loss by segment
Below is the profit and loss statement by segment as of and for the periods ended September 30:
| Nine-month period ended September 30, 2022 (Unaudited) | |||||||||||
| Concessions, | |||||||||||
Exploration | electricity | |||||||||||
| and |
| Refining and |
| Transportation |
| transport |
| ||||
Production | Petrochemicals | and Logistics | and roads | Eliminations |
| Total | ||||||
Third party sales |
| |
| |
| | |
| ( |
| | |
Inter-segment sales |
| |
| |
| | |
| ( |
| — | |
Revenue from contracts with customers |
| |
| |
| | |
| ( |
| | |
Costs of sales |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Gross profit |
| |
| |
| | |
| ( |
| | |
Administration expenses |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Operation and projects expenses |
| ( |
| ( |
| ( | — |
| |
| ( | |
Impairment of non–current assets |
| — |
| ( |
| — | — |
| — |
| ( | |
Other operating expenses |
| ( |
| ( |
| ( | ( |
| ( |
| ( | |
Operating income |
| |
| |
| | |
| |
| | |
Financial results |
|
|
|
|
| |||||||
Financial income |
| |
| |
| | |
| ( |
| | |
Financial expenses |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Foreign exchange (loss) gain |
| ( |
| ( |
| ( | |
| — |
| ( | |
| ( |
| ( |
| ( | ( |
| ( |
| ( | ||
Share of profit of associates and joint ventures |
| |
| |
| ( | |
| — |
| | |
Profit before income tax expense |
| |
| |
| | |
| |
| | |
Income tax expense |
| ( |
| ( |
| ( | ( |
| — |
| ( | |
Net profit for the period |
| |
| |
| | |
| |
| | |
Net profit (loss) attributable to: |
|
|
|
|
| |||||||
Owners of the parent |
| |
| |
| | |
| |
| | |
Non–controlling interest |
| ( |
| |
| | |
| — |
| | |
| | | | | | |
44
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
| Nine-month period ended September 30, 2021 (Unaudited) | |||||||||||
Concessions, | ||||||||||||
| Exploration | electricity | ||||||||||
and |
| Refining and |
| Transportation |
| transport |
| |||||
| Production | Petrochemicals | and Logistics | and roads | Eliminations |
| Total | |||||
Third party sales |
| |
| |
| | |
| ( |
| | |
Inter–segment sales |
| |
| |
| | — |
| ( |
| — | |
Revenue from contracts with customers |
| |
| |
| | |
| ( |
| | |
Costs of sales |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Gross profit |
| |
| |
| | |
| ( |
| | |
Administration expenses |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Operation and projects expenses |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Impairment reversal (loss) of non–current assets |
| — |
| |
| ( | ( |
| — |
| | |
Other operating (expenses) income |
| ( |
| ( |
| | ( |
| ( |
| ( | |
Operating income |
| |
| |
| | |
| |
| | |
Financial results |
|
|
|
|
| |||||||
Financial income |
| |
| |
| | |
| ( |
| | |
Financial expenses |
| ( |
| ( |
| ( | ( |
| |
| ( | |
Foreign exchange (loss) gain |
| ( |
| ( |
| | |
| — |
| | |
| ( |
| ( |
| | |
| ( |
| ( | ||
Share of profit of associates and joint ventures |
| |
| |
| ( | |
| — |
| | |
Profit before income tax expense |
| | ( | | | ( | | |||||
Income tax expense |
| ( |
| |
| ( | ( |
| — |
| ( | |
Net profit (loss) for the period |
| | ( | | | ( | | |||||
Net profit (loss) attributable to: |
|
|
|
|
| |||||||
Owners of the parent |
| |
| ( |
| | |
| ( |
| | |
Non–controlling interest |
| ( |
| |
| | |
| — |
| | |
| | ( | | | ( | |
45
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
32.2.Sales by product
Sales by product - Segments | ||||||||||||
| Nine-month period ended September 30, 2022 (Unaudited) | |||||||||||
|
| Concessions, |
| |||||||||
Exploration | electricity | |||||||||||
and | Refining and | Transportation | transport | |||||||||
Production |
| Petrochemicals |
| and Logistics | and roads | Eliminations |
| Total | ||||
National sales |
|
|
|
|
|
|
|
|
|
|
| |
Mid-distillates |
| — |
| |
| — | — |
| ( |
| | |
Gasolines |
| — |
| |
| — | — |
| ( |
| | |
Gas natural |
| | — |
| — | — |
| ( |
| | ||
Services |
| |
| |
| | |
| ( |
| | |
Electric power transmission services |
| — |
| — |
| — | |
| — |
| | |
Roads and construction services |
| — |
| — |
| — | |
| — |
| | |
Fuel gas service |
| — |
| |
| — | — |
| ( |
| | |
Plastic and rubber |
| — |
| |
| — | — |
| — |
| | |
Asphalts |
| |
| |
| — | — |
| — |
| | |
L.P.G. and propane |
| |
| |
| — | — |
| ( |
| | |
Crude oil |
| |
| |
| — | — |
| ( |
| | |
Polyethylene |
| — |
| |
| — | — |
| — |
| | |
Aromatics | — | | — | — | — | | ||||||
Fuel oil | | | — | — | — | | ||||||
Other income – Gas contracts |
| |
| — |
| — | — |
| — |
| | |
Other products | | | — | — | ( | | ||||||
| |
| |
| | |
| ( |
| | ||
Foreign sales |
|
|
|
|
| |||||||
Crude oil |
| |
| | — | — | ( | | ||||
Diesel |
| — |
| | — | — | — | | ||||
Electric power transmission services |
| — |
| — | — | | — | | ||||
Roads and construction services |
| — |
| — | — | | — | | ||||
Plastic and rubber |
| — |
| | — | — | — | | ||||
Gasolines |
| — |
| | — | — | — | | ||||
Fuel oil |
| — |
| | — | — | — | | ||||
Natural gas |
| |
| — | — | — | — | | ||||
L.P.G. and propane | | — | — | — | — | | ||||||
Cash flow hedging | ( | ( | — | — | — | ( | ||||||
Other products |
| |
| | — | | — | | ||||
| |
| | — | | ( | | |||||
| |
| | | | ( | |
46
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Sales by product - Segments | ||||||||||||
Nine-month period ended September 30, 2021 (Unaudited) | ||||||||||||
| Concessions, |
| ||||||||||
| Exploration | electricity | ||||||||||
and | Refining and | Transportation | transport | |||||||||
| Production |
| Petrochemicals |
| and Logistics | and roads | Eliminations |
| Total | |||
National sales |
|
|
|
|
|
|
|
|
|
|
| |
Mid-distillates |
| — |
| |
| — | — |
| ( |
| | |
Gasolines |
| — |
| |
| — | — |
| ( |
| | |
Gas natural |
| | — |
| — | — |
| ( |
| | ||
Services |
| |
| |
| | |
| ( |
| | |
Electric power transmission services | — | — | — | | — | | ||||||
Roads and construction services | — | — | — | | — | | ||||||
Fuel gas service |
| — |
| |
| — | — |
| ( |
| | |
Plastic and rubber |
| — |
| |
| — | — |
| — |
| | |
Asphalts |
| |
| |
| — | — |
| — |
| | |
L.P.G. and propane |
| |
| |
| — | — |
| ( |
| | |
Crude oil |
| |
| — |
| — | — |
| ( |
| | |
Polyethylene |
| — |
| |
| — | — |
| — |
| | |
Aromatics |
| — |
| |
| — | — |
| — |
| | |
Fuel oil |
| |
| |
| — | — |
| — |
| | |
Other income – Gas contracts |
| |
| — |
| — | — |
| — |
| | |
Other products | | | — | — | ( | | ||||||
Cash flow hedging |
| — |
| ( |
| — | — |
| — |
| ( | |
|
| |
| |
| | |
| ( |
| | |
Foreign sales |
|
|
|
|
| |||||||
Crude oil |
| |
| — | — | — | — | | ||||
Diesel |
| — |
| | — | — | — | | ||||
Electric power transmission services | — | — | — | | — | | ||||||
Roads and construction services | — | — | — | | — | | ||||||
Plastic and rubber |
| — |
| | — | — | — | | ||||
Fuel oil |
| — |
| | — | — | — | | ||||
Natural gas |
| |
| — | — | — | — | | ||||
L.P.G. and propane |
| |
| — | — | — | — | | ||||
Cash flow hedging |
| ( |
| | — | — | — | ( | ||||
Other products |
| |
| | — | | — | | ||||
| |
| | — | | — | | |||||
| |
| | | | ( | |
47
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
33.Relevant events (unaudited)
Ecopetrol defined a new company that will be integrated into its Business Group to consolidate its position as a global marketer of refined, petrochemical, and industrial products, as well as crude oil and natural gas.
The company, called Ecopetrol US Trading LLC, will begin operations during the second half of 2023. Ecopetrol S.A. is the indirect owner of
Ecopetrol US Trading will be focused on viable business with new clients and suppliers of crude oil, refined products, petrochemicals, and natural gas, mainly from the Americas and Europe.
-Tax Reform
On August 8, 2022, the MHCP submitted a tax reform bill to Congress proposing several changes to the Colombian tax regime, including (i) a new permanent equity tax applicable to Colombian individuals and non-residents, (ii) an increase in the dividend tax rate for local and foreign shareholders, (iii) an increase in the long-term capital gains tax rate (increasing from
-Investment plan 2023 approval
On December 9, 2022, Ecopetrol S.A. informed that the Board of Directors had the general organic investment plan for the Ecopetrol Group with an estimated amount between COP $
● | The General Investment Plan 2023 approved by the Board of Directors, is aligned with the Ecopetrol Group's commitment to accelerate the transition path and energy sovereignty of the country, maintaining competitive returns for all its shareholders in line with its 2040 Strategy "Energy that Transforms". |
● | About |
● | The plan seeks to reduce about |
● | The commitment to self-sufficiency in gas includes investments between COP $ |
48
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
● | Nearly COP $ |
● | The hydrocarbons business foresees in 2023 a production between |
● | In accordance with the Sostecnibilidad (sustainability + technology) objectives of the strategy, the plan includes investments close to COP $ |
● | Social investment resources for regional development and community well-being amount to COP $ |
● | More than COP $ |
● | The plan generates competitive returns at brent levels of $ |
49
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited)
Ownership | Geographic | Profit (loss) |
| ||||||||||||||||
Functional | Interest | Country/ | area of | for the | Total | Total |
| ||||||||||||
Company |
| Currency | Ecopetrol | Activity | Domicile | operations | Net equity | period | assets | liabilities |
| ||||||||
Subsidiaries |
|
|
|
|
|
|
|
|
| ||||||||||
Refinería de Cartagena S.A.S. |
|
| % |
|
|
| |
| ( |
| |
| |
| |||||
Cenit transporte y logística de hidrocarburos S.A.S. | % | | | | | ||||||||||||||
Ecopetrol Global Energy S.L.U. | % | | | | | ||||||||||||||
Oleoducto Central S.A. - Ocensa | % | | | | | ||||||||||||||
Hocol Petroleum Limited. |
|
| % |
|
|
| |
| |
| |
| ( |
| |||||
Ecopetrol América LLC. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Hocol S.A. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Esenttia S.A. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Ecopetrol Capital AG |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Oleoducto Bicentenario de Colombia S.A.S. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Oleoducto de Colombia S. A. - ODC |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Black Gold Re Ltd. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Andean Chemicals Ltd. |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Oleoducto de los Llanos Orientales S. A. - ODL |
|
| % |
|
|
| |
| |
| |
| |
| |||||
Interconexión Eléctrica S.A. E.S.P. |
|
| % |
|
|
|
| |
| |
| |
| |
|
50
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Ownership | Geographic | Profit | ||||||||||||||||
Functional | Interest | Country/ | area of | (loss) for | Total | Total | ||||||||||||
Company |
| Currency |
| Ecopetrol |
| Activity |
| Domicile |
| operations |
| Net equity |
| the period |
| assets |
| liabilities |
Inversiones de Gases de Colombia S.A. Invercolsa S.A. | % | | | | | |||||||||||||
Alcanos de Colombia S.A. E.S.P. (1) |
|
| % |
|
|
| |
| |
| |
| | |||||
Metrogas de Colombia S.A E.S.P. (1) |
|
| % |
|
|
| |
| |
| |
| | |||||
Gases del Oriente S.A. E.S.P. (1) |
|
| % |
|
|
| |
| |
| |
| | |||||
Promotora de Gases del Sur S.A. E.S.P. (1) | % | | | | | |||||||||||||
Combustibles Líquidos de Colombia S.A E.S.P. (1) | % | | | | |
51
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Ownership | Geographic | Profit (loss) | ||||||||||||||||
Functional | Interest | Country/ | area of | for the | Total | Total | ||||||||||||
Company | Currency | Ecopetrol | Activity | Domicile | operations | Net equity | period | assets | liabilities | |||||||||
Ecopetrol USA Inc. |
|
| % |
|
|
| |
| |
| |
| | |||||
Ecopetrol Permian LLC. |
|
| % |
|
|
| |
| |
| |
| | |||||
Ecopetrol Oleo é Gas do Brasil Ltda. |
|
| % |
|
|
| |
| ( |
| |
| | |||||
Esenttia Masterbatch Ltda. | % | | | | | |||||||||||||
Ecopetrol del Perú S. A. | % | | ( | | | |||||||||||||
ECP Hidrocarburos de México S.A. de C.V. | % | | ( | | | |||||||||||||
Ecopetrol Costa Afuera S.A.S. | % | | ( | | | |||||||||||||
Esenttia Resinas del Perú SAC |
|
| % |
|
|
| |
| |
| |
| | |||||
Topili Servicios Administrativos S de RL De CV. |
|
| % |
|
|
| |
| ( |
| |
| | |||||
Kalixpan Servicios Técnicos S de RL De CV. |
|
| % |
|
|
| |
| ( |
| |
| | |||||
Ecopetrol Singapore PTE. LTD |
|
| % |
|
|
| |
| |
| |
| | |||||
Ecopetrol Trading Asia PTE. LTD |
|
| % |
|
|
| |
| |
| |
| |
52
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
|
| Ownership |
|
|
| Geographic |
|
| Profit (loss) |
|
| |||||||
Functional | Interest | Country/ | area of | for the | Total | Total | ||||||||||||
Company | currency | Ecopetrol | Activity | Domicile | operations | Net equity | period | assets | liabilities | |||||||||
Associates | ||||||||||||||||||
Serviport S.A. (2) |
|
| | % |
|
|
| |
| ( |
| |
| | ||||
Sociedad Portuaria Olefinas y Derivados S.A. (3) |
|
| | % |
|
|
| |
| |
| |
| | ||||
Joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equion Energía Limited |
|
| | % |
|
|
| |
| |
| |
| | ||||
Ecodiesel Colombia S.A. (3) |
|
| | % |
|
|
| |
| |
| |
| |
(1) | Indirect participation through Inversiones de Gases de Colombia S.A. - Invercolsa S.A. |
(2) | Information available as of August 31, 2022, the investment is totally impaired. |
(3) | Information available as of August 31, 2022. |
53
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Exhibit 2. Consolidated companies, associates, and joint ventures – Interconexión Eléctrica S.A. E.S.P.
Ownership |
|
|
| Geographic |
| Profit (loss) |
| |||||||||
Interest | Country/ | area of | for the | Total | ||||||||||||
Company |
| ISA |
| Activity |
| Domicile |
| operations |
| Net equity |
| period |
| Total assets |
| liabilities |
Subsidiaries | ||||||||||||||||
Consorcio Transmantaro |
| % |
|
| | | |
| | |||||||
Interligação Eléctrica Evrecy |
| % |
|
| | ( | |
| | |||||||
Fundo de Investimento Assis |
| % |
|
| | | |
| — | |||||||
Fundo de Investimento Barra Bonita Renda Fixa Referenciado |
| % |
|
| | | |
| — | |||||||
Fundo de Investimento Referenciado di Bandeirantes |
| % |
|
| | | |
| — | |||||||
Fundo de Investimento Xavantes Referenciado di |
| % |
|
| | | |
| — | |||||||
Interconexiones Viales |
| % |
|
| | ( | |
| | |||||||
Interligação Elétrica Aguapeí |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Biguaçu |
| % |
|
| | | |
| | |||||||
Interligação Elétrica De Minas Gerais |
| % |
|
| | ( | |
| | |||||||
Interligação Elétrica Itapura |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Itaquerê |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Itaúnes |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Norte E Nordeste |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Pinheiros |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Riacho Grande |
| % |
|
| | ( | |
| | |||||||
Interligação Elétrica Serra Do Japi |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Sul |
| % |
|
| | | |
| | |||||||
Interligação Elétrica Tibagi |
| % |
|
| | | |
| | |||||||
Internexa |
| % |
|
| | ( | |
| | |||||||
Transamerican Telecomunication S.A. |
| % |
|
| | ( | |
| | |||||||
Internexa Brasil Operadora de Telecomunicações |
| % |
|
| | ( | |
| | |||||||
Internexa Chile |
| % |
|
| | | |
| |
54
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
Ownership |
|
| Geographic | Profit (loss) |
|
| ||||||||||
Interest | Country/ | area of | for the | Total | Total | |||||||||||
Company |
| ISA |
| Activity |
| Domicile |
| operations | Net equity | period | assets | liabilities | ||||
Internexa Participações |
| % |
| | ( |
| |
| | |||||||
Internexa Peru |
| % |
| | |
| |
| | |||||||
ISA Bolivia |
| % |
| | |
| |
| | |||||||
ISA Capital Do Brasil |
| % |
| | |
| |
| | |||||||
ISA CTEEP |
| % |
| | |
| |
| | |||||||
ISA Interchile |
| % |
| | ( |
| |
| | |||||||
ISA Intercolombia |
| % |
| | |
| |
| | |||||||
ISA Intervial Chile |
| % |
| | |
| |
| | |||||||
ISA Intervial Colombia |
| % |
| | |
| |
| - | |||||||
ISA Inversiones Chile |
| % |
| | |
| |
| | |||||||
ISA Inversiones Costera Chile |
| % |
| ( | ( |
| |
| | |||||||
ISA Inversiones Tolten |
| % |
| | ( |
| |
| - | |||||||
ISA Investimentos E Participações |
| % |
| | |
| |
| | |||||||
ISA Perú |
| % |
| | |
| |
| | |||||||
ISA REP |
| % |
| | |
| |
| | |||||||
ISA Transelca |
| % |
| | |
| |
| | |||||||
Linear Systems RE |
| % |
| | |
| |
| | |||||||
Proyectos de Infraestructura del Perú |
| % |
| | |
| |
| | |||||||
Ruta Costera |
| % |
| | ( |
| |
| | |||||||
Ruta de La Araucanía |
| % |
| | |
| |
| | |||||||
Ruta de Los Ríos |
| % |
| | |
| |
| | |||||||
Ruta del Bosque |
| % |
| | ( |
| |
| | |||||||
Ruta del Loa |
| % |
| | |
| |
| | |||||||
Ruta del Maipo |
| % |
| | |
| |
| | |||||||
Ruta del Maule |
| % |
| | ( |
| |
| | |||||||
Sistemas Inteligentes en Red |
| % |
| | |
| |
| | |||||||
XM |
| % |
| | |
| |
| |
55
Ecopetrol S.A.
Notes to consolidated condensed interim financial statements
September 30, 2022
(Figures expressed in millions of Colombian pesos, unless otherwise stated)
| Ownership |
| Geographic |
| Profit (loss) | |||||||||||
Interest | Country/ | area of | for the | Total | ||||||||||||
Company | ISA |
| Activity |
| Domicile | operations | Net equity |
| period |
| Total assets |
| liabilities | |||
Joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interligação Elétrica do Madeira |
| | % |
|
| Brazil | |
| |
| |
| | |||
Interligação Elétrica Garanhuns |
| | % |
|
| Brazil | |
| |
| |
| | |||
Interligação Elétrica Paraguaçu |
| | % |
|
| Brazil | |
| |
| |
| | |||
Interligação Elétrica Aimorés |
| | % |
|
| Brazil | |
| |
| |
| | |||
Interligação Elétrica Ivaí |
| | % |
|
| Brazil | |
| |
| |
| | |||
Transmissora Aliança de Energia Elétrica |
| | % |
|
| Brazil | |
| |
| |
| | |||
Interconexión Eléctrica Colombia Panamá-Panamá |
| | % |
|
| Panama | |
| ( |
| |
| | |||
Interconexión Eléctrica Colombia Panamá Colombia |
| | % |
|
| Colombia | |
| ( |
| |
| | |||
Transnexa (1) |
| | % |
|
| Ecuador | — |
| — |
| — |
| — | |||
Derivex |
| | % |
|
| Colombia | |
| ( |
| |
| — | |||
Parques del Río |
| | % |
|
| Colombia | |
| ( |
| |
| — | |||
Conexión Kimal Lo Aguirre S.A. | | % | Chile | | — | | — | |||||||||
Associates | ||||||||||||||||
ATP Tower Holdings |
| | % |
|
| United States of America | |
| ( |
| |
| |
(1)Transnexa is in the process of liquidation and the investment is fully impaired.
56