EX-12 3 nbr-20161231ex12d34e88d.htm EX-12

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.