EX-12.1 12 dex121.htm RATIO OF EARNINGS Ratio of Earnings

Exhibit 12.1

 

BJ Services Company

Ratio of Earnings to Fixed Charges

(In Thousands)

 

           Year Ended September 30,
           1999
     2000
    2001
    2002
    2003

COMPUTATION OF EARNINGS:

                                

Add:

                                

Income from continuing operations before income taxes and fixed charges

          (44,909 )   175,283    529,181    252,694    275,672

Fixed charges

          50,120     41,190    36,634    33,558    43,478

Amortization of capitalized interest

          738     844    979    1,197    1,765

Deduct:

                                

Interest capitalized

          2,317     1,557    1,942    2,739    629

Minority interest in pretax income of subsidiaries that have not incurred fixed charges

          2,585     3,263    6,803    4,916    5,080
          
 
  
  
  

Earnings, as defined

          10,851     222,137    575,539    295,104    326,624
          
 
  
  
  

COMPUTATION OF FIXED CHARGES:

                                

Interest expensed and capitalized

          33,682     21,525    15,224    11,718    16,577

Amortized premiums, discounts and capitalized interest related to indebtedness

          814     920    1,177    3,159    6,456

Estimate of interest within rental expense

          15,624     18,745    20,233    18,681    20,445
          
 
  
  
  

Fixed charges, as defined

          50,120     41,190    36,634    33,558    43,478
          
 
  
  
  

Fixed charge ratio

    (a )   0.22     5.39    15.71    8.79    7.51
          
 
  
  
  
(a) For the year ended September 30, 1999, the Company had an earnings-to-fixed-charges deficiency primarily as a result of a $39.7 million charge for severance, asset impairment, and other costs associated with the downturn in oilfield drilling activity.