EXHIBIT 12.1 HALLIBURTON COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of dollars, except for ratios) (Unaudited) <Table> <Caption> For the nine months ended Years Ended December 31 September 30, ------------------------------------------- 2004 2003 2002 2001 2000 1999 ------------- ------ ------ ------ ------ ------ Earnings available for fixed charges: Income (loss) from continuing operations before income taxes, minority interests, and cumulative effects of accounting changes, net $ 354 $ 612 $ (228) $ 954 $ 335 $ 307 Add: Distributed earnings from equity in unconsolidated affiliates 33 113 33 38 34 63 Fixed charges 208 203 168 209 203 194 ------ ------ ------ ------ ------ ------ Subtotal $ 595 $ 928 $ (27) $1,201 $ 572 $ 564 Less: Undistributed equity in earnings and losses of unconsolidated affiliates (20) 25 74 107 88 99 ------ ------ ------ ------ ------ ------ Total $ 615 $ 903 $ (101) $1,094 $ 484 $ 465 Fixed charges: Interest expense $ 160 $ 139 $ 113 $ 147 $ 146 $ 141 Rental expense representative of interest 48 64 55 62 57 53 ------ ------ ------ ------ ------ ------ Total $ 208 $ 203 $ 168 $ 209 $ 203 $ 194 Ratio of earnings to fixed charges 3.0 4.4 (a) 5.2 2.4 2.4 ====== ====== ====== ====== ====== ====== </Table> (a) For the year ended December 31, 2002 earnings were inadequate to cover fixed charges by $269 million.