EX-12 2 nbr-20171231ex12200e098.htm EX-12 nbr_Ex12

Exhibit 12

 

NABORS INDUSTRIES, LTD. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(In thousands, except ratio amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

    

2017

    

 

2016

    

 

2015

 

 

 

(In thousands)

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

(580,084)

 

 

$

(1,198,075)

 

 

$

(427,535)

 

Less earnings (add losses) from affiliates, net of dividends

 

 

(7)

 

 

 

221,914

 

 

 

84,275

 

Add amortization of capitalized interest

 

 

16,381

 

 

 

16,462

 

 

 

16,123

 

Add fixed charges as adjusted (from below)

 

 

225,138

 

 

 

187,690

 

 

 

185,666

 

       Earnings

 

 

(338,572)

 

 

 

(772,009)

 

 

 

(141,471)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

       Interest on indebtedness

 

$

195,307

 

 

$

179,030

 

 

$

174,680

 

       Capitalized

 

 

2,479

 

 

 

6,650

 

 

 

20,359

 

   Amortization of debt related costs (1)

 

 

27,583

 

 

 

6,331

 

 

 

7,248

 

   Interest portion of rental expense

 

 

2,248

 

 

 

2,329

 

 

 

3,738

 

   Fixed charges before adjustments

 

 

227,617

 

 

 

194,340

 

 

 

206,025

 

   Less capitalized interest

 

 

(2,479)

 

 

 

(6,650)

 

 

 

(20,359)

 

   Fixed charges as adjusted

 

$

225,138

 

 

$

187,690

 

 

$

185,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio (earnings divided by fixed charges before adjustments)

 

 

N/A
(2)

 

 

N/A
(2)

 

 

N/A
(2)

(1)

Includes deferred financing, discount and premium amortization.

(2)

The ratio of earnings to fixed charges was negative for the year ended December 31, 2017.  Additional earnings of $566.2 million would be needed to have a one-to-one ratio of earnings to fixed charges.