Programmed Maintenance Services Ltd (ASX:PRG), a provider of staffing, maintenance and project services, says it forecasts offshore oil and gas opportunities to improve its second half, after earlier predicting a moderate increase in annual profit.

Chairman Geoff Tomlinson told shareholders on Friday that the company foresees conditions within the property and infrastructure sectors to stay subdued as retail and commercial customers continue to be cautious.

The company, however, expects growth to come from opportunities in the energy industry.

"An expansion of offshore oil and gas opportunities is expected to improve the second half results of resources and industrial segment," Mr Tomlinson told the company's annual general meeting.

"A general but slow recovery is occurring within the workforce segment, however small- and medium-size businesses have yet to increase demand."

In June, Programmed posted profit after tax of $26.2 million for fiscal year 2010. This reflects a 7 per cent decline on the previous year.

Earnings before interest, taxes and amortisation (EBITA) slumped by 14 per cent to $58.9 million, because of lower painting revenue especially in the UK and New Zealand.

Shares in Programmed Maintenance Services dived last Friday after the issuance of guidance for fiscal 2011.

In its first quarter update, the company said the government's stimulus package in education and public housing accounted for $25 million in work and was unlikely to be completely replaced.

Programmed expects EBITA to remain steady, and net profit to increase about 10 per cent compared with fiscal 2010.

According to Mr Tomlinson, the company had endured the past year of significant economic uncertainty in sound shape.

"We have responded to falls in demand in some of our market sectors by reducing costs and commencing the exit from our small presence in the United Kingdom.

"We have strengthened the balance sheet, renewed our existing debt facility, continued to invest in the business and completed the acquisition of KLM Group Ltd, an electrical services company."