Embattled drilling company Boart Longyear Ltd's shares have plunged to four-year lows after it issued a second profit downgrade in two months.
The share price has more than halved in the last three months alone, wiping more than $300 million from the company's market value, highlighting the turmoil the mining services industry is in as the mining boom slows.
Boart's shares lost five cents on Monday, or 7.4%, to 62.5 cents.
The company's earnings are almost exclusively exposed to global resources companies, who have stopped exploring, slashed spending and reduced production levels as weaker demand has sent commodity prices falling.
Eureka Report has explored how further severe earnings reductions are likely for these mining services companies in the medium term.
Boart has flagged a further profit downgrade from its last downgrade in May, when it forecast earnings before interest, tax, depreciation and amortisation (EBITDA) of $US200 million ($A220.24 million) for calendar 2013, below the $US254 million it made in 2012.
Conditions had worsened since then and analysts should lower their current 2013 EBITDA forecast ranges, which are $US176 million to $US211 million, the Utah-based firm said.
The company is utilising just over 50% of its drill rig fleet, down from 60% in May, meaning nearly half of its equipment lays idle.
"Customers for drilling services also continue to announce reductions or delays in their drilling programs, capital expenditures and overhead costs, which have resulted in continuing uncertainty about the levels at which drilling activity will stabilise," Boart said in a statement.
Morningstar analyst Ross Macmillan said the whole sector was in turmoil, including contract miners, maintenance firms and drillers.
"Boart Longyear are probably the first to have to go to their bankers ... I don't think they will be the last," he told AAP.
The banks have given Boart room to increase its gross debt to earnings ratio, while a $US450 million debt due in August, 2014 has been changed to $US350 million, payable by August 2015.
However interest on that debt will now increase and Boart's banks demanded they be given security over a range of assets.
Mr Macmillan said the company's $US585 million net debt and 50% net debt-to-equity ratio was far too high, since nobody could predict when conditions would improve in mining.
Other mining services companies that have downgraded earnings for the same reasons this year, include UGL, Ausdrill, WorleyParsons and Transfield Services.