Exhibit 12
NABORS INDUSTRIES, LTD. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
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| Year Ended December 31, |
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| 2017 |
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| 2016 |
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| 2015 |
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| (In thousands) |
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Income (loss) from continuing operations before income taxes |
| $ | (580,084) |
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| $ | (1,198,075) |
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| $ | (427,535) |
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Less earnings (add losses) from affiliates, net of dividends |
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| (7) |
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| 221,914 |
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| 84,275 |
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Add amortization of capitalized interest |
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| 16,381 |
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| 16,462 |
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| 16,123 |
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Add fixed charges as adjusted (from below) |
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| 225,138 |
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| 187,690 |
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| 185,666 |
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Earnings |
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| (338,572) |
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| (772,009) |
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| (141,471) |
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Fixed charges: |
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Interest expense: |
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Interest on indebtedness |
| $ | 195,307 |
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| $ | 179,030 |
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| $ | 174,680 |
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Capitalized |
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| 2,479 |
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| 6,650 |
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| 20,359 |
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Amortization of debt related costs (1) |
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| 27,583 |
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| 6,331 |
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| 7,248 |
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Interest portion of rental expense |
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| 2,248 |
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| 2,329 |
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| 3,738 |
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Fixed charges before adjustments |
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| 227,617 |
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| 194,340 |
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| 206,025 |
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Less capitalized interest |
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| (2,479) |
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| (6,650) |
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| (20,359) |
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Fixed charges as adjusted |
| $ | 225,138 |
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| $ | 187,690 |
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| $ | 185,666 |
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Ratio (earnings divided by fixed charges before adjustments) |
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| N/A | (2) |
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| N/A | (2) |
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| 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. |