Why Nabors Industries (NBR) Is Up Aftermarket

NEW YORK (TheStreet) -- Bermuda-based drilling contractor Nabors Industries (NBR) 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:

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