EXHIBIT 12
"REVISED"
ULTRAMAR DIAMOND SHAMROCK CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGE
AND PREFERRED STOCK DIVIDENDS
(dollars in millions, except ratios)
Year Ended December 31,
-----------------------
1997 1996 1995 1994 1993 1992
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Earnings:
Income before taxes 275.2 37.2 (1) 141.1 220.7 197.3 133.4
Add: Fixed Charges 162.3 157.1 158.74 115.3 125.1 124.3
Amortization of interest previously capitalized 0.3 0.2
Losses of investees 0.5 1.1
Less: Capitalized interest (2.8) (10.6) (16.4) (7.8) (6.1) (6.1)
Undistributed earnings of investees (0.2)
Earnings as adjusted 434.7 184.0 284.1 328.2 316.1 252.7
Computation of Fixed Charges:
Interest expense 120.2 110.1 113.9 87.1 93.1 93.5
Capitalized interest 2.8 10.6 16.4 7.8 6.1 6.1
Dividend requirement on preferred stock (2) 7.1 7.1 7.1 6.7 7.1 4.2
Interest portion of lease commitments 32.2 29.3 21.3 13.7 18.8 20.5
Total Fixed Charges 162.3 157.1 158.7 115.3 125.1 124.3
Ratio of Earnings to Fixed Charges (3) 2.7 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.