EX-12.1 4 h97990a2exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 TESORO PETROLEUM CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS (DOLLARS IN THOUSANDS)
Three Months Years Ended December 31, Ended ---------------------------------------------------- March 31, 1997 1998 1999 2000 2001 2002 ---------------------------------------------------- ------------ EARNINGS: Earnings (Loss) from continuing operations before income taxes and extraordinary loss ..................... $ 3,400 $ 12,100 $ 51,200 $123,500 $146,900 $(92,800) Interest expense, net of capitalized interest (a) ......... 8,100 24,790 36,710 31,720 51,630 29,865 Amortization of debt discount ............................. -- 100 215 235 260 70 Amortization of debt issuance costs ....................... -- 310 675 745 910 365 Estimated interest portion of rents (b) ................... 12,400 17,400 22,400 19,800 17,010 4,840 ---------------------------------------------------- -------- Total Earnings ...................................... $ 23,900 $ 54,700 $111,200 $176,000 $216,710 $(57,660) ---------------------------------------------------- -------- FIXED CHARGES: Interest expense whether expensed or capitalized (a) ....... $ 8,500 $ 24,890 $ 37,310 $ 32,420 $ 56,730 $ 30,840 Amortization of debt discount .............................. -- 100 215 235 260 70 Amortization of debt issuance costs ........................ -- 310 675 745 910 365 Estimated interest portion of rents (b) .................... 12,400 17,400 22,400 19,800 17,010 4,840 ---------------------------------------------------- -------- Total Fixed Charges .................................. $ 20,900 $ 42,700 $ 60,600 $ 53,200 $ 74,910 $ 36,115 ---------------------------------------------------- -------- PREFERRED DIVIDEND REQUIREMENTS (c) .......................... -- 9,554 19,078 20,202 10,000 -- RATIO OF EARNINGS TO FIXED CHARGES ........................... 1.14 1.28 1.83 3.31 2.89 * ==================================================== ======== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS ...................... 1.14 1.05 1.40 2.40 2.55 * ==================================================== ========
* For the three months ended March 31, 2002, fixed charges exceeded earnings by $93.8 million. (a) Includes interest expense and financing costs. (b) For a majority of the marine charter leases the interest portion of rents was estimated by using the Company's incremental borrowing rate in effect at the inception of the leases. For the remaining leases, interest expense was estimated by using one third of the rental payments. Total rental expense including marine charters was approximately $45 million, $54 million, $64 million, $60 million and $66 million for the years ended 1997, 1998, 1999, 2000 and 2001, respectively, and $20 million for the three months ended March 31, 2002. (c) Represents the amount of pretax earnings that was required to pay the dividends on preferred stock outstanding during the periods presented.