Exhibit 12(a)
Murphy Oil Corporation and Consolidated Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Thousands of dollars except for ratios)
Three Months Ended
March 31, Years Ended December 31,
------------------- -------------------------------------------------
1999 1998 1998 1997 1996 1995 1994
---- ---- ---- ---- ---- ---- ----
EARNINGS
- --------
Income (loss) from continuing operations
before income taxes $(11,193) 24,810 (8,277) 211,650 216,355 (148,728) 127,710
Deduct income from equity companies (117) (223) (772) (1,136) (1,286) (1,348) (1,129)
Add dividends from equity companies 66 88 757 1,572 1,235 1,267 1,224
Add fixed charges - detailed below 6,587 4,658 21,383 15,647 15,650 16,968 15,252
Add amortization of capitalized interest 686 413 2,172 1,333 1,500 13,305 2,159
Deduct interest capitalized (1,145) (2,550) (7,606) (12,096) (10,202) (9,015) (9,842)
-------- ------ ------ ------- ------- ------ -------
Adjusted earnings (loss) $ (5,116) 27,196 7,657 216,970 223,252 (124,551) 135,374
======== ====== ====== ======= ======= ======= =======
FIXED CHARGES
- -------------
Interest expense (includes amortization of debt
expense and discount or premium related to
indebtedness) $ 5,616 3,876 18,090 12,717 13,120 14,428 12,398
Add estimated interest portion of rent expense 971 782 3,293 2,930 2,530 2,540 2,854
-------- ------ ------ ------- ------- ------ ------
Total fixed charges $ 6,587 4,658 21,383 15,647 15,650 16,968 15,252
======== ====== ====== ======= ======= ====== =======
RATIO OF EARNINGS TO FIXED CHARGES 0.0 5.8 0.4 13.9 14.3 0.0 8.9
- ---------------------------------- === === === ==== ==== === ===
DEFICIENCY (LESS THAN ONE-TO-ONE
COVERAGE) $(11,703) (13,726) (141,519)
======== ======= ========