But its board says ongoing productivity initiatives are steadily improving the bottom line.

The company's underlying EBITDA improved over 33% to $8.4 million with revenue of $56.4 million, down from $79.4 million in the first half of 2015, with the result being a loss of $17.9 million.

In part the worsening loss was due to the cost of supporting the 46%-owned Cuadrilla Resources’ appeal of the Lancashire County Council's planning decision against drilling in the Bowland Basin at Preston New Road and Roseacre Wood.

"While revenue was again impacted by the subdued activity in the mining and construction sectors the increase in underlying EBITDA is a result of our focus on core capabilities, our cost down initiatives and our ability to secure and deliver high quality contracts of work," chairman Phil Arnall said.

The revenue decline was heavily driven by a lack of work in the Australian coal sector, which is struggling with low commodity prices, but despite that the company has been able to win significant work, particularly in highly technical projects gas drainage projects.

AJL’s joint venture with Spiecapag Australia secured a major contract with APA Group late last year, and tendering for small scale infrastructure works remains competitive, with AJL’s engineering and construction revenue decreasing by almost half to $18.3 million.

The outlook continues to improve with the announcement in December 2015 of the APA contract for the construction of further pipeline looping in Victoria and NSW as part of Northern Interconnect Expansion Project.

The project, which is part of APA’s planned upgrade and expansion of its east coast gas grid in response to the transitioning gas market in eastern Australia, will increase the flow of gas from Victoria and New South Wales.

The project will be undertaken by Spiecapag Lucas, which will provide trench excavation, pipe welding, pipe placement and lay-in, surface protection and remediation of the right of way.

Construction commenced earlier this month.

The underlying EBITDA was down 8% on the corresponding period, however, the underlying EBITDA margin at 29% reflected an improvement in the execution of a major JV pipeline construction project, the company said.

However, with the drilling division ending a four-year contract the company will be on the hunt for new work in what is a challenging environment.

The company is carrying debts of $88.9 million, up $10.1 million due to interest changes and foreign exchange charges, with the company making just $400,000 in repayments over the half year.

Major shareholder Kerogen has continued to support the company through agreeing to defer all interest payments worth $8.1 million due on the facility since April 2015 until March 2016.

The principal repayment is due at the expiry of the facility in early 2017, and while the company has around $17.1 million in cash around half of that is escrowed for JV purposes.

To address its fiscal position AJL is assessing new equity options to support working capital requirements in the short term, with longer-term plans needed to recapitalise the balance sheet and support Cuadrilla’s planned shale drilling in the UK.