OKP Holdings Q1 profit falls 44% to S$2.8m on lower contribution from construction segment

INFRASTRUCTURE and civil engineering company OKP Holdings on Monday posted a 43.7 per cent fall in profit for the first quarter to S$2.8 million due to lower revenue earned from its construction operations.

Earnings per share sank to 0.92 Singapore cent from 1.64 Singapore cents in the previous year.

For the three months ended March 31, revenue dived 22.7 per cent from S$29.7 million in the year-ago period to S$23 million.

The decline in revenue was due mainly to a 36.3 per cent decrease in revenue from the construction segment to S$13.1 million, partially offset by a 7.6 per cent increase in revenue from the maintenance segment to S$9.9 million, it said.

Net asset value per share edged up to 40.08 Singapore cents as at March 31, from 39.16 Singapore cents three months ago.

Said Or Toh Wat, group managing director: "We will direct our team's efforts in the smooth execution of our pipeline projects and the strengthening of our order book, focusing on our core civil engineering business.

"At the same time, we will continue to look for opportunities to diversify our earnings by expanding our property segment, both locally and abroad, to build a recurrent income base."

OKP shares finished S$0.01 or 2.9 per cent down at S$0.34 on Monday before the announcement.