SAN FRANCISCO (Reuters) - Nabors Industries Ltd , the world's largest land-rig contractor, reported a sharp drop in profit, as Wall Street expected, with a tough quarter internationally offset partially by a recovery in North America.

Nabors said net income fell to $40.2 million, or 14 cents per share, from $184.4 million, or 65 cents per share, in the same quarter a year before.

But leaving out seven cents per share of one-time items related to Venezuela's currency devaluation and investment losses, the Bermuda-based company earned 21 cents per share, broadly in line with the average estimate on Thomson Reuters.

Revenue fell about 25 percent to $903.4 million. The average estimate from analysts was $877.5 million.

Shares of Nabors were trading around their closing price of $20.35 in after-hours trading. The stock is down seven percent so far in 2010, compared with a 13 percent gain in the Philadelphia Stock Exchange oil service index.

The company has set out a disposal plan that it hopes will put a value on some of its assets and raise about $2 billion.