EX-12 4 dex12.htm STATEMENT CONCERNING COMPUTATION OF RATIOS Statement Concerning Computation of Ratios

Exhibit 12

 

EQUISTAR CHEMICALS, LP

 

STATEMENT SETTING FORTH DETAIL FOR COMPUTATION OF

 

RATIO OF EARNINGS TO FIXED CHARGES

 

(Millions of dollars)

 

    Year Ended December 31,
     Nine Months
Ended
September 30,
  
    1998
    1999
    2000
    2001
     2002
     2002
     2003
  

Income (loss) from continuing operations before income taxes

   $ 143    $ 32    $ 153    $ (283 )   $ (246 )   $ (132 )   $ (235 )
   
  
  
  
 
 
 

Fixed charges:

                                                     

Interest expense, gross

     156      182      185      192       205       154       159  

Portion of rentals representative of interest

     37      37      38      37       42       28       32  
   
  
  
  
 
 
 

Total fixed charges before capitalized interest

     193      219      223      229       247       182       191  

Capitalized interest

     —      —        —        —         —         —         —    
   
  
  
  
 
 
 

Total fixed charges including capitalized interest

     193      219      223      229       247       182       191  
   
  
  
  
 
 
 

Earnings before fixed charges

   $ 336    $ 251    $ 376    $ (54 )   $ 1     $ 50     $ (44 )
   
  
  
  
 
 
 

Ratio of earnings to fixed charges (a)

     1.7      1.1      1.7      —         —         —         —    
   
  
  
  
 
 
 
(a)   Earnings were insufficient to cover fixed charges for the years ended 2002 and 2003 and for the nine months ended September 30, 2002 and 2003 by $283 million, $246 million, $132 million and $235 million, respectively.