EX-12.01 2 a05-14204_1ex12d01.htm EX-12.01

Exhibit 12.01

 

VALERO ENERGY CORPORATION AND SUBSIDIARIES

STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES

AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Millions of Dollars)

 

 

 

Six Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended
June 30,

 

Year Ended December 31,

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

2000

 

Ratio of Earnings to Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax expense, minority interest in net income of Valero L.P., distributions on preferred securities of subsidiary trusts and income from equity investees

 

$

2,028

 

$

2,726

 

$

981

 

$

191

 

$

913

 

$

530

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

207

 

410

 

396

 

409

 

143

 

115

 

Amortization of capitalized interest

 

4

 

7

 

6

 

6

 

5

 

5

 

Distributions from equity investees

 

20

 

42

 

26

 

5

 

3

 

9

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized

 

(21

)

(37

)

(26

)

(16

)

(11

)

(7

)

Distributions on preferred securities of subsidiary trusts

 

—

 

—

 

(17

)

(30

)

(13

)

(7

)

Minority interest in net income of Valero L.P.

 

—

 

—

 

(2

)

(14

)

—

 

—

 

Total earnings

 

$

2,238

 

$

3,148

 

$

1,364

 

$

551

 

$

1,040

 

$

645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

$

124

 

$

260

 

$

261

 

$

286

 

$

88

 

$

76

 

Interest capitalized

 

21

 

37

 

26

 

16

 

11

 

7

 

Rental expense interest factor (1)

 

62

 

113

 

92

 

77

 

31

 

25

 

Distributions on preferred securities of subsidiary trusts

 

—

 

—

 

17

 

30

 

13

 

7

 

Total fixed charges

 

$

207

 

$

410

 

$

396

 

$

409

 

$

143

 

$

115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

10.8

x

7.7

x

3.4

x

1.3

x

7.3

x

5.6

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

$

2,238

 

$

3,148

 

$

1,364

 

$

551

 

$

1,040

 

$

645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

207

 

$

410

 

$

396

 

$

409

 

$

143

 

$

115

 

Preferred stock dividends

 

12

 

19

 

7

 

—

 

—

 

—

 

Total fixed charges and preferred stock dividends

 

$

219

 

$

429

 

$

403

 

$

409

 

$

143

 

$

115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred stock dividends

 

10.2

x

7.3

x

3.4

x

1.3

x

7.3

x

5.6

x

 

(1)           The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.

 

1