NEW YORK (TheStreet) -- Bermuda-based drilling contractor Nabors Industries (NBR - Get Report) is climbing in post-market trading after reporting a better-than-expected fourth quarter.

After the bell, shares had added 2.6% to $19.15 after gaining 3.2% in the regular trading session. Trading volume of 7.5 million was nearly double its three-month daily average.

In the three months to December, the company recorded net income of 42 cents a share, 22 cents higher than analysts surveyed by Thomson Reuters had predicted. Revenue of $1.61 billion came in higher than consensus of $1.54 billion.

"The strength of our fourth-quarter results reflects building momentum in our International operations and a more favorable outlook for our U.S. Drilling operations. Our Completion & Production Services operations posted an improvement in what would usually be a seasonally weaker quarter," said CEO Tony Petrello in a statement.

Management sees continuing improvement over 2014, commencing with the second quarter ending June.

"We foresee substantial year-over-year quarterly improvement, which should accelerate in the second half," added Petrello. "A major factor in our expectation is the outsized contribution of the 140 rig years of long-term rig contracts we have secured over the last 18 months, 90 of which should be realized through 2015 with only 6.7 reflected in our results to date.

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TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Hold with a ratings score of C+. The team has this to say about their recommendation:

"We rate NABORS INDUSTRIES LTD (NBR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."