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“We’re very aware of the impact of not paying dividends from a company that has had such a great track record of paying dividends over the years.”

The surprise axing of the dividend — Bloomberg data had analysts expecting a 34c per share return — appeared to exacerbate the fall in WorleyParsons shares yesterday. The stock fell by 13 per cent to $3.66 a share on what was a bloody day for resources and energy-exposed stocks.

While the pressure on WorleyParsons and its balance sheet has driven speculation it could be vulnerable to a takeover, Mr Wood said the company was focused on reducing costs.

“If the right (acquisition) opportunity was there and it made sense then we would consider it, but obviously with where we sit today it would have to be a very attractive proposition to take it on,” he said.