EXHIBIT (12)
NORTHWEST NATURAL GAS COMPANY
Computation of Ratio of Earnings to Fixed Charges
January 1, 1999 – March 31, 2004
(Thousands, except ratio of earnings to fixed charges)
(Unaudited)
Year Ended December 31 | 12 Months Ended 2004 | 3 Months Ended 2004* | |||||||||||||||||||
1999 | 2000 | 2001 | 2002 | 2003 | |||||||||||||||||
Fixed Charges, as Defined: | |||||||||||||||||||||
Interest on Long-Term Debt | $ | 27,728 | $ | 29,987 | $ | 30,224 | $ | 32,264 | $ | 33,258 | $ | 33,411 | $ | 8,450 | |||||||
Other Interest | 2,778 | 3,628 | 3,772 | 1,620 | 2,048 | 1,914 | 477 | ||||||||||||||
Preferred and Preference Stock Dividends | 2,515 | 2,456 | 2,401 | 2,280 | 294 | 147 | — | ||||||||||||||
Amortization of Debt Discount and Expense | 699 | 735 | 768 | 799 | 696 | 697 | 186 | ||||||||||||||
Interest Portion of Rentals | 1,707 | 1,628 | 1,572 | 1,578 | 1,622 | 1,568 | 367 | ||||||||||||||
Total Fixed Charges, as defined | $ | 35,427 | $ | 38,434 | $ | 38,737 | $ | 38,541 | $ | 37,918 | $ | 37,737 | $ | 9,480 | |||||||
Earnings, as Defined: | |||||||||||||||||||||
Net Income | $ | 45,296 | $ | 50,224 | $ | 50,187 | $ | 43,792 | $ | 45,983 | $ | 52,191 | $ | 32,612 | |||||||
Taxes on Income | 24,591 | 26,829 | 27,553 | 23,444 | 23,340 | 27,372 | 18,632 | ||||||||||||||
Fixed Charges, as above | 35,427 | 38,434 | 38,737 | 38,541 | 37,918 | 37,737 | 9,480 | ||||||||||||||
Total Earnings, as defined | $ | 105,314 | $ | 115,487 | $ | 116,477 | $ | 105,777 | $ | 107,241 | $ | 117,300 | $ | 60,724 | |||||||
Ratio of Earnings to Fixed Charges | 2.97 | 3.00 | 3.01 | 2.74 | 2.83 | 3.11 | 6.41 | ||||||||||||||
For consistency in reporting, total fixed charges in all years include dividends on redeemable preferred and preference stock, which were reclassified as interest expense beginning July 1, 2003, upon adoption of SFAS No. 150. All shares of redeemable preferred and preference stock were redeemed prior to Dec. 31, 2003.
* | A significant part of the business of the Company is of a seasonal nature; therefore, the ratio of earnings to fixed charges for the interim period is not necessarily indicative of the results for a full year. |