EX-12 3 h22801exv12.txt COMPUTATION OF RATIOS EXHIBIT 12 NABORS INDUSTRIES, LTD. AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (In thousands, except ratio amounts)
Year Ended December 31, ------------------------------ 2004 2003 2002 -------- -------- -------- Income before income taxes $335,838 $174,623 $140,774 Less earnings from affiliates, net of dividends (2,057) (919) (4,900) Add amortization of capitalized interest expense 1,017 896 843 Add fixed charges as adjusted (from below) 51,389 74,107 70,341 -------- -------- -------- Earnings $386,187 $248,707 $207,058 -------- -------- -------- Fixed charges: Interest expense: Interest on indebtedness $ 23,055 $ 39,585 $ 31,156 Capitalized 1,887 903 1,125 Amortization of debt related costs (1) 25,452 31,155 35,912 Interest portion of rental expense 2,882 3,367 3,273 -------- -------- -------- Fixed charges before adjustments 53,276 75,010 71,466 Less capitalized interest (1,887) (903) (1,125) -------- -------- -------- Fixed charges as adjusted $ 51,389 $ 74,107 $ 70,341 -------- -------- -------- Ratio (earnings divided by fixed charges before adjustments) 7.25 3.32 2.90 -------- -------- --------
(1) Includes deferred financing, discount and premium amortization.