EX-12.1 2 esv-9x30x2018xexhibit121.htm EXHIBIT 12.1
ENSCO PLC AND SUBSIDIARIES
Statement of Calculation of Ratios of Earnings to Fixed Charges
(In millions, except ratios)
(Unaudited)

| Nine Months Ended September 30, 2018 |  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income tax | $ | (359.0 | ) |  | $ | (196.0 | ) |  | $ | 997.5 |  |  | $ | (1,471.2 | ) |  | $ | (2,548.8 | ) |  | $ | 1,633.2 |
Fixed charges deducted from income from continuing operations | 270.3 |  |  | 308.4 |  |  | 284.4 |  |  | 323.2 |  |  | 260.4 |  |  | 245.3 |
Amortization of capitalized interest | 13.2 |  |  | 17.6 |  |  | 16.4 |  |  | 18.2 |  |  | 17.0 |  |  | 13.3 |
Less: |  |  |  |  |  |  |  |  |  |  |
Loss (income) from continuing operations before income tax attributable to noncontrolling interests | (2.9 | ) |  | 0.6 |  |  | (7.7 | ) |  | (10.5 | ) |  | (15.5 | ) |  | (9.7 | )
Interest capitalized | (44.7 | ) |  | (72.5 | ) |  | (45.7 | ) |  | (87.4 | ) |  | (78.2 | ) |  | (67.7 | )
| (123.1 | ) |  | 58.1 |  |  | 1,244.9 |  |  | (1,227.7 | ) |  | (2,365.1 | ) |  | 1,814.4 |
Fixed Charges |  |  |  |  |  |  |  |  |  |  |
Interest on indebtedness, including amortization of deferred loan costs | 213.5 |  |  | 224.2 |  |  | 228.8 |  |  | 216.3 |  |  | 161.4 |  |  | 158.8 |
Estimated interest within rental expense | 12.1 |  |  | 11.7 |  |  | 9.9 |  |  | 19.5 |  |  | 20.8 |  |  | 18.8 |
Fixed charges deducted from income from continuing operations | 225.6 |  |  | 235.9 |  |  | 238.7 |  |  | 235.8 |  |  | 182.2 |  |  | 177.6 |
Interest capitalized | 44.7 |  |  | 72.5 |  |  | 45.7 |  |  | 87.4 |  |  | 78.2 |  |  | 67.7 |
Total | $ | 270.3 |  |  | $ | 308.4 |  |  | $ | 284.4 |  |  | $ | 323.2 |  |  | $ | 260.4 |  |  | $ | 245.3 |
Ratio of Earnings to Fixed Charges | (a) |  |  | (b) |  |  | 4.4 |  |  | (b) |  |  | (b) |  |  | 7.4 |

(a) | For the nine-month period ended September 30, 2018, our earnings were inadequate to cover our fixed charges by $393.4 million.

(b) | For the years ended December 31, 2017, December 31, 2015 and December 31, 2014, our earnings were inadequate to cover our fixed charges by $250.3 million, $1,550.9 and $2,625.5 million, respectively. Our net loss from continuing operations before income taxes of $196.0 million, $1,471.2 million and $2,548.8 million for the years ended December 31, 2017, December 31, 2015 and December 31, 2014 included non-cash impairment charges of $182.9 million, $2,746.4 million and $4,218.7 million, respectively.