Exhibit 12
EQUISTAR CHEMICALS, LP
STATEMENT SETTING FORTH DETAIL FOR COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
| Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 1998 | 1999 | 2000 | 2001 | 2002 | 2002 | 2003 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 143 | $ | 32 | $ | 153 | $ | (283 | ) | $ | (246 | ) | $ | (132 | ) | $ | (235 | ) | |||||||
Fixed charges: | |||||||||||||||||||||||||
Interest expense, gross | 156 | 182 | 185 | 192 | 205 | 154 | 159 | ||||||||||||||||||
Portion of rentals representative of interest | 37 | 37 | 38 | 37 | 42 | 28 | 32 | ||||||||||||||||||
Total fixed charges before capitalized interest | 193 | 219 | 223 | 229 | 247 | 182 | 191 | ||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | — | ||||||||||||||||||
Total fixed charges including capitalized interest | 193 | 219 | 223 | 229 | 247 | 182 | 191 | ||||||||||||||||||
Earnings before fixed charges | $ | 336 | $ | 251 | $ | 376 | $ | (54 | ) | $ | 1 | $ | 50 | $ | (44 | ) | |||||||||
Ratio of earnings to fixed charges (a) | 1.7 | 1.1 | 1.7 | — | — | — | — | ||||||||||||||||||
| (a) | Earnings were insufficient to cover fixed charges for the years ended 2002 and 2003 and for the nine months ended September 30, 2002 and 2003 by $283 million, $246 million, $132 million and $235 million, respectively. |