Exhibit 12 HALLIBURTON COMPANY Computation of Ratio of Earnings to Fixed Charges (Millions of dollars, except for ratios) (Unaudited) Year Ended December 31, ----------------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings available for fixed charges: Income (loss) from continuing operations before income taxes, minority interests, and cumulative effects of accounting changes, net $ 612 $ (228) $ 954 $ 335 $ 307 $ 55 Add: Distributed earnings from equity in unconsolidated affiliates 97 19 25 27 57 93 Fixed charges 203 168 209 203 194 195 - ------------------------------------------------------------------------------------------------------------------------------------ Subtotal $ 912 $ (41) $ 1,188 $ 565 $ 558 $ 343 Less: Undistributed equity in earnings and losses of unconsolidated affiliates 25 74 107 88 99 154 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 887 $ (115) $ 1,081 $ 477 $ 459 $ 189 Fixed charges: Interest expense $ 139 $ 113 $ 147 $ 146 $ 141 $ 134 Rental expense representative of interest 64 55 62 57 53 61 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 203 $ 168 $ 209 $ 203 $ 194 $ 195 Ratio of earnings to fixed charges 4.4 (a) 5.2 2.3 2.4 (a) =================================================================================================================================== <FN> (a) For the years ended December 31, 2002 and 1998, earnings were inadequate to cover fixed charges by $283 million and $6 million, respectively. </FN>