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EXHIBIT 12.1
TESORO PETROLEUM CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
Three Months
Ended
Years Ended December 31, March 31,
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1997 1996 1995 1994 1993 1997 1998
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EARNINGS:
Earnings before income taxes and extraordinary loss
on extinguishments of debt, net .................... $ 49,120 $115,147 $ 61,868 $ 26,056 $ 18,653 $ 9,575 $10,890
Interest expense, net of capitalized interest ......... 6,699 15,128 20,166 17,890 12,661 1,570 2,665
Amortization of debt discount ......................... -- 254 736 859 1,889 -- --
Amortization of debt issuance costs ................... -- 257 350 332 195 -- --
Estimated interest portion of rents (a) ............... 11,509 9,185 5,908 5,248 4,487 3,406 2,910
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Total Earnings ................................ $ 67,328 $139,971 $ 89,028 $ 50,385 $ 37,885 $14,551 $16,465
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FIXED CHARGES:
Interest expenses, whether expensed or capitalized .... $ 7,118 $ 15,128 $ 20,166 $ 18,805 $ 12,661 $ 1,570 $ 2,665
Amortization of debt discount ......................... -- 254 736 859 1,889 -- --
Amortization of debt issuance costs ................... -- 257 350 332 195 -- --
Estimated interest portion of rents (a) ............... 11,509 9,185 5,908 5,248 4,487 3,406 2,910
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Total Fixed Charges ........................... $ 18,627 $ 24,824 $ 27,160 $ 25,244 $ 19,232 $ 4,976 $ 5,575
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PREFERRED STOCK DIVIDEND REQUIREMENTS .................... $ -- $ -- $ -- $ 2,680 $ 9,207 -- --
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COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS ................................. $ 18,627 $ 24,824 $ 27,160 $ 27,924 $ 28,439 $ 4,976 $ 5,575
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RATIO OF EARNINGS TO FIXED CHARGES ....................... 3.61 5.64 3.28 2.00 1.97 2.92 2.95
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RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDEND REQUIREMENTS ................. 3.61 5.64 3.28 1.80 1.33 2.92 2.95
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(a) For a majority of 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 $44.9 million, $41.5 million, $35.6
million, $33.6 million and $32.5 million for the years ended December 31,
1997, 1996, 1995, 1994 and 1993, respectively, and $11.7 million and
$12.3 million for the three months ended March 31, 1997 and 1998,
respectively.