EX-12 14 exhibit12-2008.htm EXHIBIT 12 Exhibit 12

EXHIBIT 12

 

 

OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES

COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in millions, except ratios)

 

 

For the years ended December 31,

 

2008

 

2007

 

2006

 

2005

 

2004

 

Income from continuing operations

 

$

6,839

 

$

5,078

 

$

4,202

 

$

4,838

 

$

2,197

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest (a)

 

 

116

 

 

75

 

 

111

 

 

74

 

 

76

 

Adjusted income from equity investments (b)

 

 

(84

)

 

(28

)

 

(52

)

 

(53

)

 

(5

)

 

 

 

6,871

 

 

5,125

 

 

4,261

 

 

4,859

 

 

2,268

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for taxes on income (other than

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

foreign oil and gas taxes)

 

 

2,213

 

 

1,577

 

 

1,545

 

 

632

 

 

891

 

Interest and debt expense (c)

 

 

133

 

 

344

 

 

297

 

 

305

 

 

270

 

Portion of lease rentals representative of the interest factor

 

 

58

 

 

60

 

 

52

 

 

47

 

 

40

 

 

 

 

2,404

 

 

1,981

 

 

1,894

 

 

984

 

 

1,201

 

Earnings before fixed charges

 

$

9,275

 

$

7,106

 

$

6,155

 

$

5,843

 

$

3,469

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense including capitalized interest (c)

 

$

201

 

$

403

 

$

352

 

$

331

 

$

285

 

Portion of lease rentals representative of the interest factor

 

 

58

 

 

60

 

 

52

 

 

47

 

 

40

 

Total fixed charges

 

$

259

 

$

463

 

$

404

 

$

378

 

$

325

 

Ratio of earnings to fixed charges

 

 

35.81

 

 

15.35

 

 

15.24

 

 

15.46

 

 

10.67

 

(a)

Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges.

 

(b)

Represents income from equity investments adjusted to reflect only dividends received.

 

(c)

Includes proportionate share of interest and debt expense of equity investments. The 2007 amount includes a pre-tax charge of $167 million for the redemption and partial repurchase of various debt issues.