EXHIBIT 12
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
Year Ended December 31,
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2002 2001 2000
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Income before income taxes $ 140,774 $ 557,612 $ 229,743
Less earnings from affiliates, net of dividends (4,900) (15,833) (10,333)
Add amortization of capitalized interest 843 768 661
Add fixed charges as adjusted (from below) 70,341 63,774 37,655
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Earnings $ 207,058 $ 606,321 $ 257,726
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Fixed charges:
Interest expense:
Interest on indebtedness (net) $ 31,156 $ 22,921 $ 28,122
Capitalized 1,125 1,609 2,021
Amortization of debt related costs (1) 35,912 37,801 7,248
Interest portion of rental expense 3,273 3,052 2,285
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Fixed charges before adjustments 71,466 65,383 39,676
Less capitalized interest (1,125) (1,609) (2,021)
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Fixed charges as adjusted $ 70,341 $ 63,774 $ 37,655
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Ratio (earnings divided by fixed charges
before adjustments) 2.90 9.27 6.50
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(1) Includes deferred financing, discount and premium amortization