Exhibit 12.1 Hanover Compressor Company Computation of Ratio of Earnings to Fixed Charges (Amounts in thousands of dollars, except ratio amounts) Years Ended December 31, ---------------------------------------------- 2002(1) 2001 2000 1999 1998 -------- -------- -------- ------- ------- Earnings: Income (loss) from continuing operations before income taxes.................................................. $(92,419) $112,000 $ 74,948 $60,463 $49,636 Add: Interest on indebtedness and amortization of capitalized interest, debt expense and discount (2)................ 43,698 24,164 15,110 9,115 11,716 Leasing expense and the estimated interest factor attributable to rents.................................. 96,863 71,347 46,132 22,486 6,310 Equity in income of non-consolidated affiliates in excess of distributions of income............................. (2,223) (9,350) (3,518) (1,188) (1,369) -------- -------- -------- ------- ------- Earnings as adjusted.................................. $ 45,919 $198,161 $132,672 $90,876 $66,293 ======== ======== ======== ======= ======= Fixed charges: Interest on indebtedness, amortization of debt expense and discount and capitalized interest (2).............. $ 45,822 $ 26,654 $ 16,871 $10,597 $11,716 Leasing expense and the estimated interest factor attributable to rents.................................. 96,863 71,347 46,132 22,486 6,310 -------- -------- -------- ------- ------- Total fixed charges................................... $142,685 $ 98,001 $ 63,003 $33,083 $18,026 ======== ======== ======== ======= ======= Ratio of earnings to fixed charges....................... -- 2.02 2.11 2.75 3.68 ======== ======== ======== ======= ======= - -------- (1) Due to Hanover's loss for the year ended December 31, 2002, the ratio coverage was less than 1:1. Hanover must generate additional pre-tax earnings of $96.8 million to achieve a coverage of 1:1. During 2002, the Company recorded $182.7 million in pre-tax charges. See Note 27 of the Notes to Consolidated Financial Statements in Item 15 of this Form 10-K. (2) Includes distributions on mandatorily redeemable convertible preferred securities. 1