Cyclone Marcia has been downgraded to a category two system.

The advice was issued by the weather bureau at 5pm on Friday.

It estimated the cyclone was 60 kilometres west of Gladstone and 65 kilometres north-northeast of Biloela, moving at 18km/h.

The bureau said the core of the system was expected to hit Biloela bringing wind gusts up to 155km/h.

“Gales are occurring or are expected to develop about the coast and adjacent inland between Yeppoon and Double Island Point tonight, including Biloela, Monto and Mundubbera.”

The system was expected to turn to the south-southeast on Friday evening and weaken below cyclone strength on Saturday morning.

It was downgraded to a category four at 11am local time on Friday.

In the Northern Territory, meanwhile, Cyclone Lam was downgraded to category one.

Earlier, Teneille Falt from Bartlett’s Tavern in Rockhampton in Queensland told The New Daily the pub was without power and most the windows had caved in.

“I think we’re about to lose our roller door,” Ms Falt said.

“Everyone’s been told to stay inside until further notice.

“The wind’s roaring and we’re struggling to keep the bar doors shut.”

Kedron Brook has burst its banks at Toombul. Part of shopping centre car park flooded #TCMarcia @abcnews pic.twitter.com/US1Yy2VLrS

— Sam Burgess (@sburgess_journo) February 20, 2015

Emergency services evacuated more than 800 homes in Yeppoon on Thursday night.