OKP Holdings posts 15.6% drop in Q2 profit

CONSTRUCTION firm OKP Holdings has reported a 15.6 per cent fall in net profit to S$2.5 million for the second quarter.

Revenue for the three months to June 30 fell to S$24 million, down 11.6 per cent from the same period a year ago, mainboard-listed OKP said in a Singapore Exchange filing on Monday.

Both of its core businesses - construction and maintenance - registered dips, OKP said, with revenue from construction falling 1.4 per cent to S$20.40 million and revenue from maintenance down 44.1 per cent at S$3.64 million, from S$6.51 million previously.

The decrease in topline earnings from both segments was due mainly to the completion of existing projects, coupled with a lower percentage of revenue recognised from newly-awarded projects in the second quarter, OKP added.

Lower costs incurred for specialised works - such as bored piling and landscaping - that are usually contracted to external vendors, along with a decrease in the cost of raw materials, saw cost of works falling 13.3 per cent at S$19.9 million.

The firm has declared an interim dividend of 0.5 Singapore cent per share to commemorate its 50th anniversary.

The counter closed flat at S$0.27 on Monday.