EX-12 11 a08-27414_1ex12.htm EX-12

EXHIBIT 12

 

OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES

 

COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in millions, except ratios)

 

 

 

Nine Months Ended
September 30

 

Year Ended
December 31

 

 

 

2008

 

2007

 

2007

 

2006

 

2005

 

2004

 

2003

 

Income from continuing operations

 

$

6,391

 

$

3,630

 

$

5,078

 

$

4,202

 

$

4,838

 

$

2,197

 

$

1,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest(a)

 

104

 

44

 

75

 

111

 

74

 

76

 

62

 

Adjusted income from equity investments(b)

 

(103

)

(14

)

(28

)

(52

)

(53

)

(5

)

72

 

 

 

6,392

 

3,660

 

5,125

 

4,261

 

4,859

 

2,268

 

1,544

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for taxes on income (other than foreign oil and gas taxes)

 

1,982

 

1,098

 

1,577

 

1,545

 

632

 

891

 

593

 

Interest and debt expense(c)

 

97

 

297

 

344

 

297

 

305

 

270

 

337

 

Portion of lease rentals representative of the interest factor

 

31

 

25

 

60

 

52

 

47

 

40

 

8

 

 

 

2,110

 

1,420

 

1,981

 

1,894

 

984

 

1,201

 

938

 

Earnings before fixed charges

 

$

8,502

 

$

5,080

 

$

7,106

 

$

6,155

 

$

5,843

 

$

3,469

 

$

2,482

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense including capitalized  interest (c)

 

$

140

 

$

343

 

$

403

 

$

352

 

$

331

 

$

285

 

$

343

 

Portion of lease rentals representative of the interest factor

 

31

 

25

 

60

 

52

 

47

 

40

 

8

 

Total fixed charges

 

$

171

 

$

368

 

$

463

 

$

404

 

$

378

 

$

325

 

$

351

 

Ratio of earnings to fixed charges

 

49.72

 

13.80

 

15.35

 

15.24

 

15.46

 

10.67

 

7.07

 

 

(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 nine months ended September 30, 2007 amount includes a pre-tax interest charge of $167 million for the purchase of various debt issues in the open market.