Halliburton (HAL) 10-Q 2006 Q2 Quarterly report

 Exhibit 12

HALLIBURTON COMPANY

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(Millions of dollars, except ratios)

	For the Six
	Months Ended			Years Ended December 31
	June 30, 2006			2005			2004			2003		2002			2001
Earnings available for fixed charges:
Income (loss) from continuing
operations before income taxes,
minority interest, and cumulative
effects of accounting changes, net	$	1,446		$	2,448		$	634		$	596	$	(253	)	$	940
Add:
Distributed earnings from equity
in unconsolidated affiliates		33			98			61			113		33			38
Fixed charges		127			281			295			203		168			209
Subtotal		1,606			2,827			990			912		(52	)		1,187
Less:
Minority interest in pretax loss of
subsidiaries that have not
incurred fixed charges		(77	)		-			-			-		-			-
Undistributed equity in earnings
(losses) of unconsolidated
affiliates		12			(26	)		(6	)		18		74			107
Total earnings available for fixed charges	$	1,671		$	2,853		$	996		$	894	$	(126	)	$	1,080
Fixed charges:
Interest expense	$	90		$	207		$	229		$	139	$	113		$	147
Rental expense representative
of interest		37			74			66			64		55			62
Total fixed charges	$	127		$	281		$	295		$	203	$	168		$	209
Ratio of earnings to fixed charges		13.2			10.2			3.4			4.4		(a	)		5.2

(a)  For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $294 million.

All periods presented reflect the reclassification of KBR’s Production Services operations to discontinued operations.

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