Attached files
EXHIBIT 12
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
| Years Ended December 31, | ||||||||||||||||
| 2010 | 2009 | 2008 | ||||||||||||||
Income (loss) from continuing operations before income taxes |
$ | 82,046 | $ | (162,071 | ) | $ | 731,254 | |||||||||
Less earnings (add losses) from affiliates, net of dividends |
(13,630 | ) | 229,813 | 236,763 | ||||||||||||
Less subsidiary preferred stock dividends |
(750 | ) | — | — | ||||||||||||
Add earnings (less losses) from affiliates, net, from
discontinued operations |
(10,628 | ) | (59,248 | ) | (37,286 | ) | ||||||||||
Add amortization of capitalized interest |
6,089 | 5,312 | 7,100 | |||||||||||||
Add fixed charges as adjusted |
277,800 | 269,862 | 201,128 | |||||||||||||
Earnings |
(1 | ) | $ | 340,927 | $ | 283,668 | $ | 1,138,959 | ||||||||
Fixed charges: |
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Interest expense: |
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Interest on indebtedness |
$ | 196,895 | $ | 173,103 | $ | 187,234 | ||||||||||
Capitalized |
12,116 | 28,821 | 29,769 | |||||||||||||
Amortization of debt related costs (a) |
76,149 | 92,936 | 9,484 | |||||||||||||
Subsidiary preferred stock dividends |
750 | — | — | |||||||||||||
Interest portion of rental expense |
4,006 | 3,823 | 4,410 | |||||||||||||
Fixed charges before adjustments |
(2 | ) | 289,916 | 298,683 | 230,897 | |||||||||||
Less capitalized interest |
(12,116 | ) | (28,821 | ) | (29,769 | ) | ||||||||||
Fixed charges as adjusted |
$ | 277,800 | $ | 269,862 | $ | 201,128 | ||||||||||
Ratio (earnings divided by fixed charges before adjustments) |
(1)/ | (2) | 1.18 | .95 | (b) | 4.93 | ||||||||||
| (a) | Includes deferred financing, discount and premium amortization. | |
| (b) | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges by approximately $15.0 million. |