EX-12 2 d268487dex12.htm COMPUTATION OF RATIOS Computation of Ratios

EXHIBIT 12

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(In thousands, except ratio amounts)

 

           Years Ended December 31,  
           2011     2010     2009  

Income (loss) from continuing operations before income taxes

  

   $ 486,724      $ 293,485      $ 69,126   

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

  

     (140,477 )      (24,268 )      170,564   

Less subsidiary preferred stock dividends

        (3,000 )      (750 )      —     

Add amortization of capitalized interest

        7,626        6,089        5,312   

Add fixed charges as adjusted

        265,079        277,468        269,870   
    

 

 

    

 

 

    

 

 

  

Earnings

      (1 )    $ 615,982      $ 552,024      $ 514,872   
    

 

 

    

 

 

    

 

 

  

Fixed charges:

         

Interest expense:

         

Interest on indebtedness

      $ 224,438      $ 196,563      $ 173,111   

Capitalized

        23,350        12,448        28,813   

Amortization of debt related costs (a)

        32,195        76,149        92,936   

Subsidiary preferred stock dividends

        3,000        750        —     

Interest portion of rental expense

        5,446        4,006        3,823   
    

 

 

    

 

 

    

 

 

  

Fixed charges before adjustments

      (2 )      288,429        289,916        298,683   

Less capitalized interest

        (23,350 )      (12,448 )      (28,813 ) 
    

 

 

    

 

 

    

 

 

  

Fixed charges as adjusted

      $ 265,079      $ 27,468      $ 269,870   
    

 

 

    

 

 

    

 

 

  

Ratio (earnings divided by fixed charges before adjustments)

      (1 )/(2)      2.14        1.90        1.72   
    

 

 

    

 

 

    

 

 

  

 

(a) Includes deferred financing, discount and premium amortization.