EXHIBIT 12
Overseas Shipholding Group, Inc.
Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
Presented in connection with Registration Statement No. 333-111890
Filed on January 13, 2004
Year ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
-------------------------------------------------------------------------
Earnings:
Income/(loss) before federal income
taxes $ 168,153 $ (20,864) $ 154,445 $ 132,989 $ 21,764
Less: equity in (earnings) of 50% -or-
less-owned companies (33,965) (11,407) (20,474) (11,449) (7,132)
Less: (gain) on planned vessel
dispositions -- -- -- -- (12,404)
-------------------------------------------------------------------------
Pretax income/(loss) from continuing 134,188 (32,271) 133,971 121,540 2,228
operations
Add: fixed charges 68,746 61,775 63,468 67,920 58,285
Less: interest capitalized during the
period (3,987) (4,949) (13,151) (15,411) (10,614)
Add: amortization of capitalized
interest 3,000 3,000 3,000 3,000 3,000
-------------------------------------------------------------------------
Total Earnings $ 201,947 $ 27,555 $ 187,288 $ 177,049 $ 52,899
=========================================================================
Fixed Charges:
Interest expense, including
amortization of deferred finance
costs $ 62,124 $ 52,693 $ 45,035 $ 46,667 $ 43,008
Add: interest capitalized during the
period 3,987 4,949 13,151 15,411 10,614
Add: interest portion of rental
expense 2,635 4,133 5,282 5,842 4,663
-------------------------------------------------------------------------
Total Fixed Charges $ 68,746 $ 61,775 $ 63,468 $ 67,920 $ 58,285
=========================================================================
Ratio of Earnings to Fixed Charges 2.9X -- 2.9X 2.6X --
=========================================================================
The deficiency of earnings
necessary to cover fixed charges $ 34,220 $ 5,386
=========================================================================