ECOPETROL S.A. (ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory)

14.	Investments in associates and joint ventures

The details on the participations, economic activity, address, area of operations and financial information of the investments in joint ventures and associates can be found in Exhibit 1.

14.1	Composition and movements

The balance as of December 31, 2017 and 2016 of investments in associates and joint ventures, is as follows:

	2017		2016
Investment in joint ventures
Equion Energy Limited		1,057,466		1,156,430
Offshore International Group		845,325		937,938
Ecodiesel Colombia SA		38,383		39,525
		1,941,174		2,133,893
Less impairment:
Equion Energy Limited		(296,427)		(253,683)
Offshore International Group		(539,465)		(577,053)
		1,105,282		1,303,157
Investments in associates
Invercolsa SA		223,963		243,156
Serviport SA		9,905		5,255
Olefinas Port Society		1,214		1,126
		235,082		249,537
Less impairment: Serviport SA		(9,904)		-
		225,178		249,537
		1,330,460		1,552,694

The following is the movement of investments in companies:

For the year ended December 31, 2017:

	Associates		Joint ventures		Total
Opening balance		249,537		1,303,157		1,552,694
Effects of equity method through:
Profit or loss		46,669		46,869		93,538
Other comprehensive income		-		(14,752)		(14,752)
Dividends declared		(61,124)		(224,837)		(285,961)
Impairment (Note 18.1.2)		(9,904)		(5,155)		(15,059)
Closing balance		225,178		1,105,282		1,330,460

For the year ended December 31, 2016:

	Associates		Joint ventures		Total
Opening balance		69,516		1,862,418		1,931,934
Effects of equity method through:
Profit or loss		48,299		13,046		61,345
Other comprehensive income		173,772		(49,127)		124,645
Dividends declared		(42,050)		(384,787)		(426,837)
Impairment (Note 18.1.2)		-		(127,858)		(127,858)
Reclassifications		-		(10,535)		(10,535)
Closing balance		249,537		1,303,157		1,552,694

14.2	Restrictions on investments

The number of shares held by Ecopetrol in Invercolsa S.A. has been subject to a legal dispute with another shareholder of this company. The courts decided in favor of Ecopetrol through a ruling IN 2011, whereby it was determined that 324 million shares, equivalent to 11.58% of Invercolsa S.A.’s share capital should be returned to Ecopetrol. Ecopetrol’s equity share in said company is 43.35%. The dividends paid in relation to the shares returned to Ecopetrol are also subject to controversy. As of December 31, 2017, the settlement of these claims is still pending.

14.3	Additional information about associates and joint ventures

The breakdown of assets, liabilities and results of the two main investments in associates and joint ventures, Equion Energy Limited and the Offshore International Group, as of December 31, 2017 and 2016 is as follows:

	2017				2016
	Equion		Offshore		Equion		Offshore
	Energy		International		Energy		International
	Limited		Group		Limited		Group
Statement of financial position
Current assets		909,927		289,618		712,078		317,700
Non-current assets		955,849		1,568,395		1,406,510		1,693,947
Total assets		1,865,776		1,858,013		2,118,588		2,011,647
Current liabilities		430,130		192,513		417,203		147,090
Non-current liabilities		98,835		657,746		170,527		671,577
Total liabilities		528,965		850,259		587,730		818,667
Equity		1,336,811		1,007,754		1,530,858		1,192,980

Other complementary information
Cash and cash equivalents		170,618		32,490		300,689		22,224
Current financial liabilities		336,352		97,960		328,497		21,408
Non-current financial liabilities		2,921		214,259		309		356,353

	2017				2016				2015
	Equion		Offshore		Equion		Offshore		Equion		Offshore
	Energy		International		Energy		International		Energy		International
	Limited		Group		Limited		Group		Limited		Group
Statement of profit or loss
Sales revenue		1,213,692		393,210		1,204,301		379,811		1,218,796		463,660
Costs		(793,999)		(508,461)		(969,318)		(502,107)		(958,467)		(654,095)
Administrative expenses and others		12,188		(103,340)		(44,810)		(221,238)		(74,258)		(128,895)
Financial income (expenses)		2,373		(20,264)		59,143		(12,010)		37,970		(8,528)
Income tax		(180,546)		60,575		30,199		107,507		(209,221)		90,294
Financial year results		253,708		(178,280)		279,515		(248,037)		14,820		(237,564)
Other comprehensive results		913,728		-		935,847		-		1,024,423		-

Other complementary information
Dividends paid to the Ecopetrol Business Group		217,075		-		375,035		-		284,984		-
Depreciation and amortization		557,970		232,953		678,488		228,250		642,369		229,317

Included below, there is a reconciliation of equity between the most significant participations and the carrying amount of investments as of December 31, 2017 and 2016:

	2017						2016
	Equion			Offshore			Equion			Offshore
	Energy			International			Energy			International
	Limited			Group			Limited			Group
Equity of the associate		1,336,811			1,007,754			1,530,858			1,192,980
% of Ecopetrol’s ownership		51	%		50	%		51	%		50	%
Ecopetrol’s ownership		681,773			503,877			780,738			596,490
Additional value of the investment		375,693			341,448			375,693			341,448
Impairment		(296,427)			(539,465)			(253,684)			(577,053)
Carrying amount of the investment		761,039			305,860			902,747			360,885

ECOPETROL S.A. | CIK:0001444406 |

ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory