EX-12 3 nbr-20161231ex12d34e88d.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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

     

2016

    

2015

    

2014

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$
(1,198,075)

 

$
(427,535)

 

$
(604,615)

 

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

 

 
221,914 

 

 
84,275 

 

 
7,102 

 

Less subsidiary preferred stock dividends

 

 

— 

 

 

— 

 

 
(1,984)

 

Add earnings (less losses) from affiliates net, from discontinued operations

 

 

— 

 

 

— 

 

 

— 

 

Add amortization of capitalized interest

 

 
16,462 

 

 
16,123 

 

 
14,901 

 

Add fixed charges as adjusted (from below)

 

 
187,690 

 

 
185,666 

 

 
185,772 

 

Earnings (1)

 

$
(772,009)

 

$
(141,471)

 

$
(398,824)

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness

 

$
179,030 

 

$
174,680 

 

$
171,761 

 

Capitalized

 

 
6,650 

 

 
20,359 

 

 
24,441 

 

Amortization of debt related costs (1)

 

 
6,331 

 

 
7,248 

 

 
6,187 

 

Subsidiary preferred stock dividends

 

 

— 

 

 

— 

 

 
1,984 

 

Interest portion of rental expense

 

 
2,329 

 

 
3,738 

 

 
5,840 

 

Fixed charges before adjustments (2)

 

 
194,340 

 

 
206,025 

 

 
210,213 

 

Less capitalized interest

 

 
(6,650)

 

 
(20,359)

 

 
(24,441)

 

Fixed charges as adjusted

 

$
187,690 

 

$
185,666 

 

$
185,772 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio (earnings divided by fixed charges before adjustments) (1)/(2)

 

 

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, 2016.  Additional earnings of $966.3 million would be needed to have a one-to-one ratio of earnings to fixed charges.