EXHIBIT 12
ULTRAMAR DIAMOND SHAMROCK CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGE
AND PREFERRED STOCK DIVIDENDS
(dollars in millions, except ratios)
Nine Months
Ended Sept. 30, Year Ended December 31,
--------------- ------------------------------------------
1997 1996 1996 1995 1994 1993 1992
---- ---- ---- ---- ---- ---- ----
Earnings:
Income before taxes 220.2 137.8 37.2 (1) 141.1 220.7 197.3 133.4
Add: Fixed Charges 112.1 115.3 157.1 158.74 115.3 125.1 124.3
Amortization of interest previously capitalized 0.3 0.2
Losses of investees 0.5 1.1
Less: Capitalized interest (2.3) (7.7) (10.6) (16.4) (7.8) (6.1) (6.1)
Undistributed earnings of investees (0.2)
Earnings as adjusted 330.0 245.4 184.0 284.1 328.2 316.1 252.7
Computation of Fixed Charges:
Interest expense 82.2 81.7 110.1 113.9 87.1 93.1 93.5
Capitalized interest 2.3 7.7 10.6 16.4 7.8 6.1 6.1
Dividend requirement on preferred stock (2) 5.3 5.3 7.1 7.1 6.7 7.1 4.2
Interest portion of lease commitments 22.3 20.6 29.3 21.3 13.7 18.8 20.5
Total Fixed Charges 112.1 115.3 157.1 158.7 115.3 125.1 124.3
Ratio of Earnings to Fixed Charges (3) 2.9 2.1 1.2 1.8 2.8 2.5 2.0
(1) Excludes merger and integration costs of $77.4 million.
(2) The preferred stock dividend requirement has been increased to an amount representing the pre-tax earnings which would be
required to cover such dividend requirements.
(3) For the purpose of calculating the ratio of earnings to fixed charges, "earnings as adjusted" consist of income before
income taxes after adding certain fixed charges as noted above. "Fixed charges" consist of interest expense, amortization
of debt discount and a portion of rent expense representative of the interest factor.