EXHIBIT 12
NABORS INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
Year Ended December 31,
----------------------------------------
2001 2000 1999
----------- ----------- -----------
Income before income taxes and extraordinary gain $ 542,282 $ 226,707 $ 45,629
(Subtract) Add (earnings) loss from unconsolidated
affiliates, net of dividends (26,386) (21,540) 343
Add amortization of capitalized interest 768 661 526
Add fixed charges as adjusted (from below) 63,774 37,655 31,165
----------- ----------- -----------
Earnings $ 580,438 $ 243,483 $ 77,663
----------- ----------- -----------
Fixed charges:
Interest expense:
Interest on indebtedness $ 22,921 $ 28,122 $ 30,088
Capitalized 1,609 2,021 154
Amortization of debt related costs (1) 37,801 7,248 307
Interest portion of rental expense 3,052 2,285 770
----------- ----------- -----------
Fixed charges before adjustments 65,383 39,676 31,319
Less capitalized interest (1,609) (2,021) (154)
----------- ----------- -----------
Fixed charges as adjusted $ 63,774 $ 37,655 $ 31,165
----------- ----------- -----------
Ratio (earnings divided by fixed charges
before adjustments) 8.88 6.14 2.48
----------- ----------- -----------
(1) Includes deferred financing, discount and premium amortization