EX-12.1 5 a2232341zex-12_1.htm EX-12.1

Exhibit 12.1

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(In thousands, except ratio amounts)

 

 

 

Three Months Ended
March 31,

 

Year Ended December 31,

 

 

 

2017

 

2016

 

2016

 

2015

 

2014

 

2013

 

2012

 

Income (loss) from continuing operations before income taxes

 

$

(173,237

)

$

(448,708

)

$

(1,198,075

)

$

(427,535

)

$

(604,615

)

$

106,160

 

$

276,960

 

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

 

(2

)

167,151

 

221,914

 

84,275

 

7,102

 

800

 

299,717

 

Less subsidiary preferred stock dividends

 

—

 

—

 

—

 

—

 

(1,984

)

(3,000

)

(3,000

)

Add amortization of capitalized interest

 

4,142

 

4,188

 

16,462

 

16,123

 

14,901

 

13,282

 

12,600

 

Add fixed charges as adjusted (from below)

 

57,089

 

46,359

 

187,690

 

185,666

 

185,772

 

232,497

 

260,222

 

Earnings (i)

 

$

(112,008

)

$

(231,010 

)

$

(772,009

)

$

(141,471

)

$

(398,824

)

$

349,739

 

$

846,499

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness

 

$

50,286

 

$

44,119

 

$

179,030

 

$

174,680

 

$

171,761

 

$

217,347

 

$

245,706

 

Capitalized

 

671

 

2,678

 

6,650

 

20,359

 

24,441

 

13,045

 

18,957

 

Amortization of debt related costs(a)

 

6,232

 

1,611

 

6,331

 

7,248

 

6,187

 

6,071

 

6,198

 

Subsidiary preferred stock dividends

 

—

 

—

 

—

 

—

 

1,984

 

3,000

 

3,000

 

Interest portion of rental expense

 

571

 

629

 

2,329

 

3,738

 

5,840

 

6,079

 

5,318

 

Fixed charges before adjustments (ii)

 

57,760

 

49,037

 

194,340

 

206,025

 

210,213

 

245,542

 

279,179

 

Less capitalized interest

 

(671

)

(2,678

)

(6,650

)

(20,359

)

(24,441

)

(13,045

)

(18,957

)

Fixed charges as adjusted

 

$

57,089

 

$

46,359

 

$

187,690

 

$

185,666

 

$

185,772

 

$

232,497

 

$

260,222

 

Ratio (earnings divided by fixed charges before adjustments) (i)/(ii)

 

N/A

(b)

N/A

(b)

N/A

(b)

N/A

(b)

N/A

(b)

1.42

 

3.03

 

 

(a)           Includes deferred financing, discount and premium amortization.

(b)          The ratio of earnings to fixed charges was negative for the years ended December 31, 2016, 2015 and 2014 and the three months ended March 31, 2017 and 2016. Additional earnings for these periods of $966.3 million, $347.5 million, $609.0 million, $169.8 million and $280.0 million, respectively, would be needed to have a one-to-one ratio of earnings to fixed charges.