Valero Energy (VLO) 10-K 2005 FY Annual report

Exhibit 12.01

VALERO ENERGY CORPORATION AND SUBSIDIARIES

STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED

CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED

STOCK DIVIDENDS

(Millions of Dollars)

	Year Ended December 31,
	2005			2004			2003			2002			2001
Ratio of Earnings to Fixed Charges:
Earnings:
Income from continuing operations before income tax expense, minority interest in net income of Valero L.P., distributions on preferred securities of subsidiary trusts and income from equity investees	$	5,206		$	2,726		$	981		$	191		$	913
Add:
Fixed charges		475			410			396			409			143
Amortization of capitalized interest		8			7			6			6			5
Distributions from equity investees		50			42			26			5			3
Less:
Interest capitalized		(68	)		(37	)		(26	)		(16	)		(11	)
Distributions on preferred securities of subsidiary trusts		—			—			(17	)		(30	)		(13	)
Minority interest in net income of Valero L.P.		—			—			(2	)		(14	)		—
Total earnings	$	5,671		$	3,148		$	1,364		$	551		$	1,040
Fixed charges:
Interest expense, net	$	266		$	260		$	261		$	286		$	88
Interest capitalized		68			37			26			16			11
Rental expense interest factor (1)		141			113			92			77			31
Distributions on preferred securities of subsidiary trusts		—			—			17			30			13
Total fixed charges	$	475		$	410		$	396		$	409		$	143
Ratio of earnings to fixed charges		11.9x			7.7x			3.4x			1.3x			7.3x
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:
Total earnings	$	5,671		$	3,148		$	1,364		$	551		$	1,040
Total fixed charges	$	475		$	410		$	396		$	409		$	143
Preferred stock dividends		20			19			7			—			—
Total fixed charges and preferred stock dividends	$	495		$	429		$	403		$	409		$	143
Ratio of earnings to fixed charges and preferred stock dividends		11.5x			7.3x			3.4x			1.3x			7.3x

(1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.