Exhibit 12.3
Hanover Compression Limited Partnership
Computation of Ratio of Earnings to Fixed Charges
(amounts in thousands of dollars) (unaudited)
March 31, March 31, Pro forma
2002 2001 2001 2001 2000 1999
---- ---- ---- ---- ---- ----
Earnings:
Income before taxes $ 12,496 $ 34,058 $ 133,426 $ 131,590 $ 87,840 $ 63,864
Add:
Interest on indebtedness and amortization of
capitalized interest, debt expense and discount 8,333 3,040 19,207 17,800 8,747 8,837
Leasing expense and the estimated interest factor
attributable to rents 23,342 15,524 94,511 71,637 46,132 22,486
Subtract:
Equity in income of non-consolidated affiliates
in excess of distributions of income (4,932) (750) (5,615) (9,350) (3,518) (1,188)
--------- --------- --------- --------- --------- ---------
Earnings 39,239 51,872 241,529 211,677 139,201 93,999
--------- --------- --------- --------- --------- ---------
Fixed charges:
Interest on indebtedness and amortization of debt
expense and discount 9,068 3,341 21,697 20,290 10,220 10,319
Leasing expense and the estimated interest factor
attributable to rents 23,342 15,524 94,511 71,637 46,132 22,486
--------- --------- --------- --------- --------- ---------
Fixed charges 32,410 18,865 116,208 91,927 $ 56,352 32,805
--------- --------- --------- --------- --------- ---------
Ratio of earnings to fixed charges 1.21 2.75 2.08 2.30 2.47 2.87
========= ========= ========= ========= ========= =========
1998 1997
---- ----
Earnings:
Income before taxes $ 49,636 $ 28,685
Add:
Interest on indebtedness and amortization of
capitalized interest, debt expense and discount 11,716 10,728
Leasing expense and the estimated interest factor
attributable to rents 6,310 113
Subtract:
Equity in income of non-consolidated affiliates
in excess of distributions of income (1,369)
--------- ---------
Earnings 66,293 39,526
--------- ---------
Fixed charges:
Interest on indebtedness and amortization of debt
expense and discount 11,716 10,728
Leasing expense and the estimated interest factor
attributable to rents 6,310 113
--------- ---------
Fixed charges 18,026 10,841
--------- ---------
Ratio of earnings to fixed charges 3.68 3.65
========= =========