EXHIBIT 12.1
TESORO PETROLEUM CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT
<Table>
<Caption>
TESORO
HISTORICAL PRO FORMA
TESORO HISTORICAL PRO FORMA ---------- ----------
-------------------------------------------------- --------- NINE MONTHS ENDED
YEAR ENDED DECEMBER 31, SEPTEMBER 30, 2001
-------------------------------------------------------------- ----------------------
1996 1997 1998 1999 2000 2000
-------- ------- ------- -------- -------- --------
(DOLLARS IN THOUSANDS)
EARNINGS:
Earnings (Loss) from
continuing operations
before income taxes and
extraordinary loss..... $(20,300) $ 3,400 $12,100 $ 51,200 $123,500 $154,200 $140,200 $210,000
Interest expense, net of
capitalized interest... 13,290 8,100 24,790 36,710 31,720 84,020 30,600 66,600
Amortization of debt
discount............... 255 -- 100 215 235 235 200 200
Amortization of debt
issuance costs......... 255 -- 310 675 745 9,245 600 2,300
Estimated interest
portion of rents(b).... 10,000 12,400 17,400 22,400 19,800 20,600 12,600 13,220
-------- ------- ------- -------- -------- -------- -------- --------
Total Earnings.... $ 3,500 $23,900 $54,700 $111,200 $176,000 $268,300 $184,200 $292,320
-------- ------- ------- -------- -------- -------- -------- --------
FIXED CHARGES:
Interest expense whether
expensed or
capitalized............ $ 13,290 $ 8,500 $24,890 $ 37,310 $ 32,420 $ 84,720 $ 34,900 $ 70,900
Amortization of debt
discount............... 255 -- 100 215 235 235 200 200
Amortization of debt
issuance costs......... 255 -- 310 675 745 9,245 600 2,300
Estimated interest
portion of rents(b).... 10,000 12,400 17,400 22,400 19,800 20,600 12,600 13,220
-------- ------- ------- -------- -------- -------- -------- --------
Total Fixed
Charges......... $ 23,800 $20,900 $42,700 $ 60,600 $ 53,200 $114,800 $ 48,300 $ 86,620
-------- ------- ------- -------- -------- -------- -------- --------
RATIO OF EARNINGS TO FIXED
CHARGES.................. (a) 1.14x 1.28x 1.83x 3.31x 2.34x 3.81x 3.37x
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(a) In 1996 earnings were insufficient to cover fixed charges by $20.3 million.
(b) For a majority of the marine charter leases the interest portion of rents
was estimated by using the Company's incremental borrowing rate in effect
at the inception of the leases. For the remaining leases, interest expense
was estimated by using one third of the rental payments. Total rental
expense including marine charters was approximately $42 million, $45
million, $54 million, $64 million and $60 million for the years ended 1996,
1997, 1998, 1999 and 2000, respectively, and approximately $45 million for
the nine months ended September 30, 2001.
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