While the guidance reveals a potential 17-28% gain from last year, WDS management expects the final result will be on the lower end of the range as the result depends on further contract negotiations.

WDS said the next financial year remains encouraging based on current discussions with clients in the coal seam gas sector and a reconfirmation of several contracts in the mining division.

“We are currently forecasting an improved performance in the first half of FY2010 following the lower than expected performance in the second half of FY2009, with further improvement expected in the second half of FY2010, as CSG activities pick up,” the company said.

For the mining sector, WDS said the effects of the downturn have generally been muted.

Back in December WDS’s subsidiary contracting firm Walter Mining expected to lose $1 million following Xstrata Coal’s decision to suspend production from its Oaky No. 1 longwall mine on the back of sinking coking coal demand.

WDS shares are up 2c this morning to $1.37.