Exhibit 12.3
Hanover Compression Limited Partnership
Computation of Ratio of Earnings to Fixed Charges
(amounts in thousands of dollars, except ratio amounts) (unaudited)
September 30, September 30, Pro forma
2002 2001 2001 2001 2000 1999 1998 1997
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Earnings:
Income (loss) before taxes... $(23,843 $107,751 $133,063 $131,227 $ 85,379 $60,741 $49,636 $28,685
Add:
Interest on indebtedness and
amortization of capitalized
interest, debt expense and
discount.................... 26,816 10,352 19,207 17,800 8,747 8,837 11,716 10,728
Leasing expense and the
estimated interest factor
attributable to rents....... 72,701 48,317 94,511 71,637 46,132 22,486 6,310 113
Subtract:
Equity in income on non-
consolidated affiliates in
excess of distributions of
income...................... (7,357) (3,751) (5,615) (9,350) (3,518) (1,188) (1,369)
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Earnings as adjusted...... 60,778 162,669 241,166 211,314 136,740 90,879 66,293 39,526
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Fixed charges:
Interest on indebtedness,
amortization of debt expense
and discount and capitalized
interest.................... 28,597 11,275 21,697 20,290 10,220 10,319 11,716 10,728
Leasing expense and the
estimated interest factor
attributable to rents....... 72,701 48,317 94,511 71,637 46,132 22,486 6,310 113
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Total fixed charges....... 101,298 59,592 116,208 91,927 $ 56,352 32,805 18,026 10,841
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Ratio of earnings to fixed
charges..................... (1) 2.73 2.08 2.30 2.43 2.77 3.68 3.65
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(1) Due to HCLP's loss for the nine months ended September 30, 2002, the ratio
coverage was less than 1:1. HCLP must generate additional pre-tax earnings
of $33.0 million to achieve a coverage of 1:1. Included in the loss before
tax for the nine months ended September 30, 2002 was a non-cash goodwill
impairment charge of $47.5 million. If such charge would not have occurred,
the ratio of earnings to fixed charges would have been 1.14 to 1.