Babcock International Group Plc (LON:BAB) said it expects lower demand levels across its short-cycle activities, which account for 20% of group revenue, hitting margins.
Long-term contracts, representing the remaining 80%, are continuing as normal.
READ: Babcock International loses appeal against Italian anti-trust fine
The engineer deferred the decision on whether to pay a final dividend to when there is greater clarity.
It also said the financial year to next March will be weighted to the second half, although it did not provide guidance due to uncertainty.
In the year to March 31 revenue was flat at £4.4bn, while last year’s profit before tax of £235mln swung to a loss of £178mln, because of £503mln of exceptional items including a £395mln goodwill impairment, oil and gas writedowns and the anti-trust fine in Italy.
Net debt at year-end was £922mln.
Shares dropped 5% to 386.81p on Thursday morning.
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