Exhibit 12.1
Sabine Pass Liquefaction, LLC
Computation of Ratio of Earnings to Fixed Charges
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| | | Nine months
Ended
September 30, | | | Nine months
Ended
September 30, | | | Year Ended December 31, | | | Period from
June 24, 2010
(Date of
Inception)
Through
December 31, | |
| | | 2015 | | | 2014 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | (in thousands, except ratio) | | | | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax income (loss) from continuing operations | | $ | (230,485 | ) | | $ | (316,876 | ) | | $ | (376,853 | ) | | $ | (194,490 | ) | | $ | (85,157 | ) | | $ | (36,511 | ) | | $ | (9,869 | ) |
Fixed charges | | | 388,242 | | | | 288,539 | | | | 398,263 | | | | 238,992 | | | | 35,474 | | | | 14 | | | | — | |
Amortization of capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Interest capitalized | | | (356,702 | ) | | | (271,528 | ) | | | (374,041 | ) | | | (227,900 | ) | | | (35,114 | ) | | | — | | | | — | |
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Total earnings (loss) available for fixed charges | | $ | (198,945 | ) | | $ | (299,865 | ) | | $ | (352,631 | ) | | $ | (183,398 | ) | | $ | (84,797 | ) | | $ | (36,497 | ) | | $ | (9,869 | ) |
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Fixed Charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense on indebtedness | | $ | 31,261 | | | $ | 16,773 | | | $ | 23,909 | | | $ | 10,796 | | | $ | 139 | | | $ | — | | | $ | — | |
Interest capitalized | | | 356,702 | | | | 271,528 | | | | 374,041 | | | | 227,900 | | | | 35,114 | | | | — | | | | — | |
Interest expense on portion of rent | | | 279 | | | | 238 | | | | 313 | | | | 296 | | | | 221 | | | | 14 | | | | — | |
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Total fixed charges | | $ | 388,242 | | | $ | 288,539 | | | $ | 398,263 | | | $ | 238,992 | | | $ | 35,474 | | | $ | 14 | | | $ | — | |
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Ratio of earnings to fixed charges (1) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
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| (1) | For the purposes of computing these ratios: (i) earnings means pre-tax income from continuing operations before fixed charges and amortization of capitalized interest less capitalized interest and (ii) fixed charges means the sum of interest expensed and capitalized plus the portion of rental expense which we believe represents an interest factor. For the years ended December 31, 2014, 2013, 2012 and 2011, and for the period from June 24, 2010 (date of inception) through December 31, 2010, earnings were not adequate to cover fixed charges by $750.9 million, $422.4 million, $120.3 million, $36.5 million and $9.9 million, respectively. For the nine months ended September 30, 2015 and 2014, earnings were not adequate to cover fixed charges by $587.2 million and $588.4 million, respectively. |
