EXHIBIT 12
NABORS INDUSTRIES, LTD. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
| Year Ended December 31, | ||||||||||||||||
| 2008 | 2007 | 2006 | ||||||||||||||
| Income from continuing operations before income taxes | $ | 801,624 | $ | 1,135,331 | $ | 1,427,902 | ||||||||||
| Less earnings (add losses) from affiliates, net of dividends | 236,763 | (5,136 | ) | (18,111 | ) | |||||||||||
| Add amortization of capitalized interest | 3,350 | 2,501 | 1,855 | |||||||||||||
| Add fixed charges as adjusted | 96,030 | 57,585 | 49,731 | |||||||||||||
| Earnings | (1 | ) | $ | 1,137,767 | $ | 1,190,281 | $ | 1,461,377 | ||||||||
| Fixed charges: | ||||||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on indebtedness | $ | 82,136 | $ | 43,339 | $ | 36,543 | ||||||||||
| Capitalized | 12,951 | 9,853 | 9,495 | |||||||||||||
| Amortization of debt related costs (a) | 9,484 | 10,363 | 10,043 | |||||||||||||
| Interest portion of rental expense | 4,410 | 3,883 | 3,145 | |||||||||||||
| Fixed charges before adjustments | (2 | ) | 108,981 | 67,438 | 59,226 | |||||||||||
| Less capitalized interest | (12,951 | ) | (9,853 | ) | (9,495 | ) | ||||||||||
| Fixed charges as adjusted | $ | 96,030 | $ | 57,585 | $ | 49,731 | ||||||||||
| Ratio (earnings divided by fixed charges before adjustments) | (1)/ | (2) | 10.44 | 17.65 | 24.67 | |||||||||||
| (a) | Includes deferred financing, discount and premium amortization. |