EXHIBIT 12 VARCO INTERNATIONAL, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS, EXCEPT FOR RATIO) First Quarter Fiscal Year --------------------- -------------------------------------------------------------- 2001 2000 2000 1999 1998 1997 1996 --------------------- -------------------------------------------------------------- Earnings: Income before income taxes $ 31,879 $ 14,596 $ 72,417 $ 57,870 $160,668 $161,645 $ 79,701 Interest expense 3,789 4,816 15,282 18,926 19,945 18,139 17,821 Amortization of debt costs 100 104 454 390 257 265 814 Interest portion of rental charges 1,458 1,458 5,832 5,429 5,355 4,427 3,625 --------------------- ------------------------------------------------------------- Total earnings $ 37,226 $ 20,974 $ 93,985 $ 82,615 $186,225 $184,476 $101,961 ===================== ============================================================= Fixed charges: Interest expense $ 3,789 $ 4,816 $ 15,282 $ 18,926 $ 19,945 $ 18,139 $ 17,821 Amortization of debt costs 100 104 454 390 257 265 814 Interest portion of rental charges 1,458 1,458 5,832 5,429 5,355 4,427 3,625 --------------------- ------------------------------------------------------------- Total fixed charges $ 5,347 $ 6,378 $ 21,568 $ 24,745 $ 25,557 $ 22,831 $ 22,260 ===================== ============================================================= Ratio of earnings to fixed charges 7.0 3.3 4.4 3.3 7.3 8.1 4.6 ===================== =============================================================