Shares in Ausdrill Limited (ASX:ASL) dropped yesterday as investors responded to the company’s interim results and forward guidance.
The mining services provider says profit attributable to the company sank 70 per cent to $14.5 million in the last six months of 2013.
Ausdrill says all key divisions recorded a decrease in revenue as a result of the slowdown which has occurred in the mining sector.
Managing Director Ron Sayers says the company has experienced the toughest business conditions for some years and trading conditions are not expected to improve in the second half.
However, Ausdrill believes recent contract wins and increasing volumes on existing contracts will support an improved performance over the following year.
The company’s fully franked interim dividend has been slashed to 2.5 cents per share, down from 6.5 cents the prior year.
Shares in Ausdrill dropped 4.62 per cent on Monday to end the session at $0.93.
