EX-12.1 19 h01870exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 NABORS INDUSTRIES LTD. AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (In thousands, except ratio amounts)
Nine Months Ended September 30, Year Ended December 31, ----------------- ---------------------------------------------------------- 2002 2001 2000 1999 1998 --------------- ------------- ------------- ------------ -------------- Income before income taxes $ 111,598 $ 557,612 $ 229,743 $ 45,629 $ 199,981 Less earnings from affiliates, net of dividends (19,604) (26,386) (21,540) 343 305 Add amortization of capitalized interest 623 768 661 526 516 Add fixed charges as adjusted (from below) 49,195 63,774 37,655 31,165 16,040 --------------- ------------- ------------- ------------ -------------- Earnings $ 141,812 $ 595,768 $ 246,519 $ 77,663 $ 216,842 --------------- ------------- ------------- ------------ -------------- Fixed charges: Interest expense: Interest on indebtedness $ 19,684 $ 22,921 $ 28,122 $ 30,088 $ 14,974 Capitalized 949 1,609 2,021 154 2,648 Amortization of debt related costs (1) 27,121 37,801 7,248 307 489 Interest portion of rental expense 2,390 3,052 2,285 770 577 --------------- ------------- ------------- ------------ -------------- Fixed charges before adjustments 50,144 65,383 39,676 31,319 18,688 Less capitalized interest (949) (1,609) (2,021) (154) (2,648) --------------- ------------- ------------- ------------ -------------- Fixed charges as adjusted $ 49,195 $ 63,774 $ 37,655 $ 31,165 $ 16,040 --------------- ------------- ------------- ------------ -------------- Ratio (earnings divided by fixed charges before adjustments) 2.83 9.11 6.21 2.48 11.60 --------------- ------------- ------------- ------------ --------------
Three Months Ended Year Ended December 31, September 30, ---------------- ----------------- 1997 1997 ---------------- ----------------- Income before income taxes $ 62,616 $ 182,410 Less earnings from affiliates, net of dividends 25 (450) Add amortization of capitalized interest 85 319 Add fixed charges as adjusted (from below) 4,107 16,980 ---------------- ----------------- Earnings $ 66,833 $ 199,259 ---------------- ----------------- Fixed charges: Interest expense: Interest on indebtedness $ 3,858 $ 15,993 Capitalized 297 1,191 Amortization of debt related costs (1) 121 527 Interest portion of rental expense 128 460 ---------------- ----------------- Fixed charges before adjustments 4,404 18,171 Less capitalized interest (297) (1,191) ---------------- ----------------- Fixed charges as adjusted $ 4,107 $ 16,980 ---------------- ----------------- Ratio (earnings divided by fixed charges before adjustments) 15.18 10.97 ---------------- -----------------
(1) Includes deferred financing, discount and premium amortization