Exhibit 12.1
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio)
| Years Ended December 31, |
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| 2003 |
2002 |
2001 |
2000 |
1999 |
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| (in thousands) | |||||||||||||||||||
| Earnings: |
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| Income from continuing operations |
$ | 67,177 | $ | 52,350 | $ | 42,694 | $ | 35,968 | $ | 65,445 | |||||||||
| Add: |
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| Fixed charges |
16,443 | 5,492 | 4,203 | 5,266 | 997 | ||||||||||||||
| Amortization of capitalized interest |
55 | 48 | 39 | 34 | 32 | ||||||||||||||
| Distributions from Skelly-Belvieu |
2,803 | 3,590 | 2,874 | 4,658 | 4,238 | ||||||||||||||
| Less: Interest capitalized |
(123 | ) | (255 | ) | (298 | ) | — | (115 | ) | ||||||||||
| Total earnings |
$ | 86,355 | $ | 61,225 | $ | 49,512 | $ | 45,926 | $ | 70,597 | |||||||||
| Fixed charges: |
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| Interest expense (1) |
$ | 15,291 | $ | 4,968 | $ | 3,721 | $ | 5,181 | $ | 777 | |||||||||
| Amortization of debt issuance costs |
740 | 160 | 90 | — | — | ||||||||||||||
| Interest capitalized |
123 | 255 | 298 | — | 115 | ||||||||||||||
| Rental expense interest factor (2) |
289 | 109 | 94 | 85 | 105 | ||||||||||||||
| Total fixed charges |
$ | 16,443 | $ | 5,492 | $ | 4,203 | $ | 5,266 | $ | 997 | |||||||||
| Ratio of earnings to fixed charges |
5.3x | 11.1x | 11.8x | 8.7x | 70.8x | ||||||||||||||
| (1) | The interest expense, net reported in Valero L.P.’s consolidated statements of income for the years ended December 31, 2003 and 2002 includes interest income of $171,000 and $248,000, respectively. |
| (2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |