1
EXHIBIT 12.1
CONOCO
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
NINE MONTHS
ENDED YEAR ENDED DECEMBER 31
SEPTEMBER 30, ------------------------------------------
1998 1997 1996 1995 1994 1993
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Net income............................ $ 713 $1,097 $ 863 $ 575 $ 422 $ 755
Provision for income taxes............ 373 1,010 1,038 774 551 424
Equity in earnings of investees....... (30) (40) 25 (22) (25) (45)
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Pre-tax income before adjustment for
minority interests in
consolidated subsidiaries or
income or loss from equity
investees........................ 1,056 2,067 1,926 1,327 948 1,134
Fixed charges (see below)............. 224 174 188 210 160 165
Amortization of capitalized
interest............................ 28 46 53 53 49 70
Distributed income of equity
investees........................... 63 58 85 42 75 25
Capitalized interest.................. (69) (94) (75) (95) (59) (49)
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Total adjusted earnings available
for payment of fixed
charges(a)(b).................... $1,302 $2,251 $2,177 $1,537 $1,173 $1,345
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Ratio of earnings to fixed charges.... 5.8x 12.9x 11.6x 7.3x 7.3x 8.2x
Fixed charges:
Interest and debt
expense -- borrowings............ $ 108 $ 36 $ 74 $ 74 $ 63 $ 67
Capitalized interest................ 69 94 75 95 59 49
Rental expense representative of
interest factor.................. 47 44 39 41 38 49
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Total fixed charges......... $ 224 $ 174 $ 188 $ 210 $ 160 $ 165
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(a) No pre-tax losses of equity investees for which charges arising from
guarantees are included in fixed charges.
(b) No fixed charges in subsidiaries with minority interests.