EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
AND THE FIVE YEARS ENDED DECEMBER 31, 1996
(Amounts in millions, except ratios)
Nine Months Ended
September 30 Year Ended December 31
----------------------- ------------------------------------------------------------
1997 1996 1996 1995 1994 1993 1992
- -------------------------------------- --------- --------- --------- --------- --------- --------- ---------
Income(loss) from continuing
operations(a) $ 500 $ 525 $ 672 $ 478 $ (46) $ 80 $ 131
--------- --------- --------- --------- --------- --------- ---------
Add:
Provision for taxes on
income (other than foreign oil
and gas taxes) 205 169 212 244 50 204 114
Interest and debt expense(b) 335 384 494 592 594 601 666
Portion of lease rentals
representative of the interest
factor 34 32 43 48 55 53 56
Preferred dividends to minority
stockholders of subsidiaries(c) -- -- -- -- -- -- 7
--------- --------- --------- --------- --------- --------- ---------
574 585 749 884 699 858 843
--------- --------- --------- --------- --------- --------- ---------
Earnings(loss) before fixed charges $ 1,074 $ 1,110 $ 1,421 $ 1,362 $ 653 $ 938 $ 974
========= ========= ========= ========= ========= ========= =========
Fixed charges
Interest and debt expense
including capitalized interest(b) $ 347 $ 391 $ 506 $ 602 $ 599 $ 612 $ 685
Portion of lease rentals
representative of the interest
factor 34 32 43 48 55 53 56
Preferred dividends to minority
stockholders of subsidiaries(c) -- -- -- -- -- -- 7
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges $ 381 $ 423 $ 549 $ 650 $ 654 $ 665 $ 748
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to fixed charges 2.82 2.62 2.59 2.10 n/a(d) 1.41 1.30
- ------------------------------------- ========= ========= ========= ========= ========= ========= =========
(a) Includes (1) minority interest in net income of majority-owned subsidiaries having fixed charges and (2) income from less-than-
50-percent-owned equity investments adjusted to reflect only dividends received.
(b) Includes proportionate share of interest and debt expense of 50-percent-owned equity investments.
(c) Adjusted to a pretax basis.
(d) Not computed due to less than one-to-one coverage. Earnings were inadequate to cover fixed charges by $1 million.