Engineering and construction giant WorleyParsons is continuing to cut costs as mining and oil and gas customers struggle with low commodity prices.
Chief executive Andrew Wood expects market conditions for the company's customers to remain uncertain for at least the remainder of the 2016 financial year, with conditions in the minerals and metals sector to remain depressed.
"We expect trading conditions to remain difficult in the resource infrastructure market as both the hydrocarbons and minerals and metals sectors re-evaluate new project viability in an era of low commodity prices," Mr Wood told the company's annual general meeting.
But he said the decline in market activity would be partially offset by opportunities in power generation, ports, passenger rail and water.
He said WorleyParsons would continue to reduce costs and improve service delivery as it adjusts for subdued market activity.
It has axed 6,000 jobs since 2013 in order to offset the effects of the downturn in the resources industry and slide in commodity prices.
The company expects to record redundancy and related costs of $20 million to $30 million in the first half of the financial year, with offsetting benefits flowing through in the second half.
WorleyParsons is also freezing executive fixed pay for 2015/16, with Mr Wood agreeing to take a 10 per cent pay cut from July this year.
The company made a $54.9 million loss in 2014/15, dragged down by $198.6 million worth of previously announced goodwill writedowns.
WorleyParsons shares dropped 44 cents, or 6.2 per cent, to $6.65.
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