SINGAPORE (July 31): OKP Holdings, the infrastructure and civil engineering company, announced earnings for the 1H17 ended June doubled to $10 million from $4.3 million a year ago.
The group also revealed that it is working closely with authorities with regards to the on-going investigations of the July 14 incident at the Pan-Island Expressway (PIE) and is currently assessing the damages and additional costs from the incident.
See: OKP calls for trading halt as share price retreats after PIE collapse
The increase in 1H17 bottomline came on the back of a 31.9% increase in revenue to $64.1 million from $48.6 million a year ago as sales from the maintenance segment nearly tripled to $21.1 million.
This was attributable to the higher percentage of revenue recognised from a few major maintenance projects which were in full swing in 1H17. In comparison, the group had registered 1H16 earnings and revenue of $4.3 million and $48.6 million.
Additionally, the group’s construction segment also recorded a 4.6% increase to $43 million, with a higher percentage of revenue recognised from a number of existing construction projects as they progressed to a more active phase in 1H17.
Share of results of associated companies and joint ventures also increased by $2.1 million mainly due to a $1.8 million gain from the share of profit from a joint venture, Lakehomes, the developer of the LakeLife Executive Condominium, based on the recognition of profits from units of the development that were ready for handover during 1H17.
As at June 30, OKP has a net construction order book of $299 million, with projects extending till 2019.
The group’s finance expenses remained relatively constant at $38,000 for 1H17, as compared to $32,000 last year.
Looking ahead, Or Toh Wat, Group Managing Director, says, “The operating environment remains challenging as the sector continues to face keen competition.”
Shares in OKP closed 0.5 cent higher at 37 cents on Monday.
