Engineering firm Weir Group (LON:WEIR) took a hit from lower oil prices and forecast a further profit fall in 2016, but it unveiled an extra £40mln of cuts this year.
Weir became the latest company focused on the energy industry to report an impact from lower investment by oil producers and explorers, saying pre-tax profits fell 47% to £220mln in the year to January 1.
Revenue dropped 22% to £1.9bn and order intake declined 24% to £1.88bn.
Chief executive Keith Cochrane said 2016 would be another tough year and it was planning for a further fall in constant currency group operating profits, driven mainly by lower activity levels in upstream oil and gas markets, but he said the group saved £110mln in 2015 and was planning another £40mln of cuts this year.
It is also intending to generate up to £100mln from selling off non-core assets during the year.
Although its oil and gas business declined, there was continued resilience in its mineral operation and its power and industrial division, now restructured as flow control, improved profits in tough markets.
Cochrane said: "Despite market challenges, which are unprecedented in recent years, Weir has delivered a resilient performance in minerals, maintained leadership and market share in oil & gas and created an additional platform for growth with the new flow control division."
He added: "Given ongoing market conditions, 2016 will be another challenging year.
"As a result, we are planning for a further reduction in constant currency group operating profits, driven primarily by lower activity levels in upstream oil and gas markets. We will continue to invest for the medium term."
Shares fell 1.5p to 900p in early trading.
Meanwhile, rival Petrofac (LON:PFC) said its 2015 results were adversely affected by the Laggan-Tormore project on Shetland. Profits in the year to December 31 fell to US$312mln from US$935mln a year ago.
Revenue rose 10% to US6.8bn and the group increased its order backlog by a similar amount to a record year-end level of US20.7bn.