Ausdrill has warned the market that tough conditions will hurt its bottom line this financial year.
The mining services provider put its shares in a trading halt this morning ahead of making a more detailed announcement about its outlook.
"Ausdrill advises that it is reviewing its current operating performance and ongoing challenging market conditions, which are weaker than expected," the company said.
The Australian and Africa-focused contractor's shares last traded at $1.38.
Last financial year its net profit fell 19 per cent to $90 million, after suffering the impact of the mining downturn.
In its annual report last month, Ausdrill said the industry was experiencing a period of uncertainty. That had led to miners deferring non-essential spending and reviewing operations.
"In this environment Ausdrill expects that volume of work undertaken at various mining projects will change over coming months," the report said."However, in the medium term these are expected to stabilise to the orignal contracted volumes."