EXHIBIT 12.1 HANOVER COMPRESSOR COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (AMOUNTS IN THOUSANDS OF DOLLARS, EXCEPT RATIO AMOUNTS) YEAR ENDED DECEMBER 31, --------------------------------------------------- 2003(1) 2002(2) 2001 2000 1999 --------- -------- -------- -------- -------- Earnings: Income (loss) from continuing operations before income taxes.............. $(107,766) $(92,419) $112,000 $ 74,948 $ 60,463 Add: Interest on indebtedness and amortization of capitalized interest, debt expense and discount ................................................... 85,524 40,453 31,760 15,110 9,115 Leasing expense and the estimated interest factor attributable to rents... 49,881 96,863 71,347 46,132 22,486 Equity in income of non-consolidated affiliates in excess of distributions of income................................................. (4,637) (2,223) (9,350) (3,518) (1,188) --------- -------- -------- -------- -------- Earnings (loss) as adjusted............................................ $ 23,002 $ 42,674 $205,757 $132,672 $ 90,876 ========= ======== ======== ======== ======== Fixed charges: Interest on indebtedness, amortization of debt expense and discount and $ 86,033 $ 42,577 $ 34,250 $ 16,871 $ 10,597 capitalized interest.................................................... Leasing expense and the estimated interest factor attributable to rents... 49,881 96,863 71,347 46,132 22,486 --------- -------- -------- -------- -------- Total fixed charges.................................................... $ 135,914 $139,440 $105,597 $ 63,003 $ 33,083 ========= ======== ======== ======== ======== Ratio of earnings to fixed charges........................................ -- -- 1.95 2.11 2.75 ========= ======== ======== ======== ======== - -------------- (1) Due to Hanover's loss for the year ended December 31, 2003, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $112.9 million to achieve coverage of 1:1. During the year, we recorded $250.6 million in pre-tax charges. For a description of these pre-tax charges, see footnote 21 in the notes to the consolidated financial statements included in Hanover's Annual Report on Form 10-K for the year ended December 31, 2003. (2) Due to Hanover's loss for the year ended December 31, 2002, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $96.8 million to achieve coverage of 1:1. During 2002, we recorded $182.7 million in pre-tax charges. For a description of these pre-tax charges, see footnote 27 in the notes to the consolidated financial statements included in Hanover's Annual Report on Form 10-K for the year ended December 31, 2002.