EXHIBIT 12.2
TRITON ENERGY LIMITED AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE
DIVIDENDS
(IN THOUSANDS, EXCEPT RATIOS)
(UNAUDITED)
SEVEN MONTHS
YEAR ENDED ENDED
DECEMBER 31, DEC. 31, YEAR ENDED MAY 31,
-------------------------
1996 1995 1994 1994
-------------- --------- -------------- --------------------
Fixed charges, as defined (1):
Interest charges $ 43,884 $ 41,305 $ 20,285 $ 26,951
Preference dividend requirements of the Company 985 802 449 ---
Preferred dividend requirements of subsidiaries
adjusted to pre-tax basis --- --- --- 364
-------------- --------- -------------- --------------------
Total fixed charges $ 44,869 $ 42,107 $ 20,734 $ 27,315
-------------- --------- -------------- --------------------
Earnings, as defined (1) (3):
Earnings (loss) from continuing operations
before income taxes, minority interest,
extraordinary item and cumulative effect of
accounting change $ 20,945 $ 16,600 $ (22,834) $ (23,104)
Fixed charges, above 44,869 42,107 20,734 27,315
Less interest capitalized (27,102) (16,211) (11,833) (16,863)
Plus undistributed (earnings) loss of affiliates (118) 2,249 4,102 (645)
Less preference dividend requirements of the
Company and its subsidiaries adjusted to pre-tax basis (985) (802) (449) (364)
-------------- --------- -------------- --------------------
$ 37,609 $ 43,943 $ (10,280) $ (13,661)
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RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERENCE DIVIDENDS (2) (3) 0.8 1.0 --- ---
-------------- --------- -------------- --------------------
YEAR ENDED MAY 31,
---------------------
1993 1992
---------- ---------
Fixed charges, as defined (1):
Interest charges $ 16,336 $ 11,066
Preference dividend requirements of the Company --- 1,386
Preferred dividend requirements of subsidiaries
adjusted to pre-tax basis 1,551 1,780
---------- ---------
Total fixed charges $ 17,887 $ 14,232
---------- ---------
Earnings, as defined (1) (3):
Earnings (loss) from continuing operations
before income taxes, minority interest,
extraordinary item and cumulative effect of
accounting change $(147,445) $(87,124)
Fixed charges, above 17,887 14,232
Less interest capitalized (6,407) (6,529)
Plus undistributed (earnings) loss of affiliates 3,012 2,558
Less preference dividend requirements of the
Company and its subsidiaries adjusted to pre-tax basis (1,551) (3,166)
---------- ---------
$(134,504) $(80,029)
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RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERENCE DIVIDENDS (2) (3) --- ---
---------- ---------
(1) Earnings include the Company's equity in the losses of an affiliate
whose debt was guaranteed by the Company. Related interest charges for the
year ended May 31, 1992 of $819,000 were excluded from fixed charges due to
the improbability that such guarantees would be honored.
(2) Earnings were inadequate to cover fixed charges and preference
dividends for the year ended December 31, 1996 by $7,260,000, for the seven
months ended December 31, 1994 by $31,014,000, and for the years ended May 31,
1994, 1993 and 1992 by $40,976,000, $152,391,000 and $94,261,000,
respectively.
(3) Earnings reflect nonrecurring writedowns and loss provisions of
$46,153,000 and $1,058,000 for the years ended December 31, 1996 and 1995,
$984,000 for the seven months ended December 31, 1994, and $45,754,000,
$99,883,000 and $48,805,000 for the years ended May 31, 1994, 1993 and 1992,
respectively. Nonrecurring gains from the sale of assets and other gains
aggregated $22,189,000, $13,617,000 and $56,193,000 for the years
ended December 31, 1996 and 1995 and May 31, 1994, respectively. The ratio of
combined earnings to fixed charges and preference dividends if adjusted to
remove nonrecurring items, would have been 1.4 and 0.7 for the years ended
December 31, 1996 and 1995, respectively. Without nonrecurring items, earnings
would have been inadequate to cover fixed charges and preference dividends for
the year ended December 31, 1995 by $10,723,000, for the seven months ended
December 31, 1994 by $30,030,000, and for the years ended May 31, 1994, 1993
and 1992 by $51,415,000, $45,183,000 and $33,687,000, respectively.