SINGAPORE (May 6): OKP Holdings posted earnings of $1.1 million for the 1Q ended March, falling 62.4% from earnings of $2.8 million in 1Q18 on lower revenue and gross profit, together with a share of loss of associated companies and joint ventures.
Total revenue slumped 16.8% y-o-y to $19.2 million from $23 million previously due to lower contributions from the maintenance and construction segments, as fewer completed projects and lower percentages of newly-awarded projects were recognised compared to in the previous year.
The decline in contributions from these segments was partially offset by higher rental income from the group’s newly-purchased office property at 6-8 Bennet Street, East Perth, Western Australia.
A share of loss of associated companies and JVs of $0.5 million was also recorded due to losses incurred by OKP’s 22.5%-held companies Chong Kuo Development and USB Holdings for the development of The Essence and redevelopment of Phoenix Heights, respectively.
Correspondingly, basic earnings per share (EPS) fell by 62% to 0.35 cent from 0.92 cent in 1Q18.
Cash and cash equivalent stood at $66.5 million as at end-March, down from $88.3 million in the same period a year ago.
“The group will continue to focus on the smooth execution and delivery of our existing and pipeline projects. At the same time, we will direct our team’s efforts to sharpen our competitive edge in our core civil engineering business whilst improving productivity and efficiency,” says OKP’s managing director, Or Toh Wat.
“The group will also keep an active lookout for appropriate opportunities to diversify our earnings, by expanding our foothold in the property segment through strategic tie-ups with experienced partners, both locally and abroad,” he adds.
Shares in OKP closed flat at 23 cents on Monday.
