EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

LYONDELL CHEMICAL COMPANY

STATEMENT SETTING FORTH DETAIL FOR COMPUTATION OF

RATIO OF EARNINGS TO FIXED CHARGES

(Millions of dollars)

 

     Year Ended December 31,  
     2005    2004    2003     2002     2001  

Income (loss) from continuing operations before income taxes

   $ 750    $ 77    $ (481 )   $ (214 )   $ (228 )

Fixed charges: (a)

            

Interest expense, gross

     673      628      588       508       495  

Portion of rentals representative of interest

     79      63      59       51       44  
                                      

Total fixed charges before capitalized interest

     752      691      647       559       539  

Capitalized interest

     —        —        19       10       3  
                                      

Total fixed charges including capitalized interest

     752      691      666       569       542  
                                      

Earnings before fixed charges

   $ 1,502    $ 768    $ 166     $ 345     $ 311  

Ratio of earnings to fixed charges (b)

     2.0      1.1      —         —         —    
                                      

(a) Includes Lyondell’s share of fixed charges for LCR and Equistar.
(b) In 2003, 2002 and 2001, earnings were insufficient to cover fixed charges by $481 million, $214 million and $228 million, respectively.