Loss making mining services contractor Macmahon says it has adapted to cyclical downturns before and will do so again.
The company slumped to a $112 million loss in the half year to December, and earlier this week cut its revenue forecast after losing its largest mining project, a $260 million a year contract at Fortescue Metals' Christmas Creek project.
Macmahon now expects full year revenue between $600 million and $700 million, down from its previous range of $750 to $850 million.
It had already cut the forecast in November, from between $750 million and $1 billion, after a payment dispute with a state-owned Mongolian coal company.
Work has dried up for Australia's largest mining services sector, as the big miners take work in-house to cut costs.
Macmahon chairman and acting chief executive Jim Walker said it was "a difficult operating environment".
But the 50-year-old company has a long history of successfully adapting to different mining cycles and market conditions, he said.
"We have a healthy balance sheet that is underpinned by world class assets and a low gearing ratio of 11.3 per cent," Mr Walker said.
The company is focused on improving performance across its existing contracts and identifying new opportunities to enhance profitability, he said.
Mr Walker took up the role in January when chief executive Ross Carroll suddenly resigned after two years in the job.
Macmahon's half year loss included a one-off $124 million charge related to non-cash writedowns of various assets and goodwill.
Excluding the writedown, underlying profit was 42 per cent lower at $11.3 million.
Macmahon shares rose 1.1 cents, or 32.4 per cent, to 4.5 cents, which follows a fall of 2.1 cents on Monday.
MACMAHON FALLS TO A LOSS AS MINING WORK DIES UP
* Net loss of $112.5m, down from a $19.4m net profit
* Revenue of $384.3m, down 30pct from $550m
* No interim dividend, unchanged
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