EX-12 2 nbr-20171231ex12200e098.htm EX-12

Exhibit 12

NABORS INDUSTRIES, LTD. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(In thousands, except ratio amounts)

|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (In thousands) |
Income (loss) from continuing operations before income taxes |  | $ | (580,084) |  |  | $ | (1,198,075) |  |  | $ | (427,535) |
Less earnings (add losses) from affiliates, net of dividends |  |  | (7) |  |  |  | 221,914 |  |  |  | 84,275 |
Add amortization of capitalized interest |  |  | 16,381 |  |  |  | 16,462 |  |  |  | 16,123 |
Add fixed charges as adjusted (from below) |  |  | 225,138 |  |  |  | 187,690 |  |  |  | 185,666 |
Earnings |  |  | (338,572) |  |  |  | (772,009) |  |  |  | (141,471) |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |
Interest on indebtedness |  | $ | 195,307 |  |  | $ | 179,030 |  |  | $ | 174,680 |
Capitalized |  |  | 2,479 |  |  |  | 6,650 |  |  |  | 20,359 |
Amortization of debt related costs (1) |  |  | 27,583 |  |  |  | 6,331 |  |  |  | 7,248 |
Interest portion of rental expense |  |  | 2,248 |  |  |  | 2,329 |  |  |  | 3,738 |
Fixed charges before adjustments |  |  | 227,617 |  |  |  | 194,340 |  |  |  | 206,025 |
Less capitalized interest |  |  | (2,479) |  |  |  | (6,650) |  |  |  | (20,359) |
Fixed charges as adjusted |  | $ | 225,138 |  |  | $ | 187,690 |  |  | $ | 185,666 |
Ratio (earnings divided by fixed charges before adjustments) |  |  | 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, 2017. Additional earnings of $566.2 million would be needed to have a one-to-one ratio of earnings to fixed charges.