Shares in Swick Mining Services have fallen after the drilling company tipped a fall in annual revenue.
Swick said it was expecting revenue of $125 million to $135 million for this financial year, compared with $147 million last year.
Margins were forecast at 18 to 20 per cent. That would put the contractor's earnings before interest, tax, depreciation and amortisation in a range of $22 million to $27 million. Last year EBITDA was $31 million.
Swick's shares were down 2 cents, or 6 per cent, to 32.5 cents at 8.40am.
"Swick's business model has ensured that the company is in a comparatively stronger position than its peers as it weathers the ongoing market decline and competitive pressures," managing director Kent Swick said.
"With the reduction of rigs in work, Swick has downsized its workforce accordingly and will remain focussed on ensuring that all operating rigs are as efficient as possible," he said.Unaudited revenue for the first quarter was $32 million, down 16 per cent from a year earlier. Sixty-one per cent of drill rigs were operating at September 30.