Shares in Imdex slid after the drilling fluids and instrumentation company posted a 27 per cent slump in first-half profit to $16.6 million.
The company attributed the fall to challenging market conditions in the minerals sector, set against the backdrop of record results in the minerals division in the previous corresponding period.
Revenue was off 8 per cent to $127.6 million.
The company's interim dividend fell from 3.25 cents a share last year to 2.5 cents fully franked.
Imdex said it was continuing work on its diversification strategy to offset cyclical slowdowns in the minerals industry.
The company noted that while revenue in its minerals division was down 18 per cent over the period, oil and gas division revenue was up 111 per cent.
Managing director Bernie Ridgeway said combined revenue was only marginally down from the company's record result achieved in the prior corresponding period, and was the third highest result to date.
He attributed the decline in EBITA (down 32 per cent to $26.2 million) to the cyclical slowdown of the higher margin minerals sector.
"We are pleased to note, however, gross margins were maintained throughout the first half and there are early signs that activity levels may be starting to increase again," he said.
Imdex said its minerals business was well positioned to benefit from an improvement in market conditions.
"While there is growing evidence that the current minerals cycle may have bottomed, the second half performance will be influenced by the pace of that recovery," the company said.
"The robust growth momentum in the oil and gas business during the first half has continued into the second half and this division is in a strong position for continued growth."Imdex shares were off 6.3 cents, or 3.47 per cent to $1.752 at 9.05am.
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