swung to a profit Tuesday, citing a rise in oil-drilling dayrates.

The Houston-based contract-drilling spinoff of


(RIG) - Get Report

posted a fourth-quarter profit of $3.4 million, or 6 cents a share, reversing the year-ago continuing operations loss of $28.3 million, or $2.33 a share. Revenue surged to $104 million from $60 million a year earlier.

Shares in the company, which says it the has largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast, were flat early Tuesday at $23.