Engineering and services group WorleyParsons has flagged a fall in first half profit due to a quiet order book.
However contract awards had picked up in recent months, and the company still says it expects full year profit to be higher than last year, with earnings heavily biased to the second half of the year.
The company’s shares fell 66 cents, or 3.0 per cent, to $22.10.
The company also expects earnings in its minerals, metals and chemicals business to improve this fiscal year.
A mining sector slowdown, particularly in Western Australia, contributed to a nine per cent fall in profit last year to $322.1 million.
However, the company was now benefitting from those same market dynamics providing services to resources companies that wanted to improve efficiencies and reduce production costs, chief executive Andrew Wood told shareholders at Wednesday’s annual general meeting in Sydney.
“While recognising the uncertainties in world markets, we expect our geographic and sector diversification to provide a solid foundation to deliver increased earnings,” he said.
“We plan to achieve this through organic growth as well as by taking advantage of acquisition opportunities that provide value for shareholders.”