Shares in Hallin Marine slump more than 28 percent after the provider of subsea services to the oil and gas industry reports a fall in margins year-on-year in its first-half trading update.
The company says the trading environment has become increasingly difficult and it expects margin pressures to continue into the second-half.
“The shares will clearly react negatively to this announcement,” finnCap says in a note.
The broker slashes its dollar forecasts as a result, with headline profit estimates moving to $18.6 million from $28.6 million, and it alters its dollar/sterling exchange rate to $1.65, from $1.46, resulting in EPS moving to 20.8 pence from 35.8 pence.
However, finnCap notes the shares trade at a 45 percent discount to the sector and sees significant improvement in 2010.
