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OKP's Q2 net profit falls on lower revenue

ENGINEERING firm OKP Holdings' second quarter net profit sank to S$107,000 from S$4.95 million a year ago.

This came as revenue declined nearly 21 per cent to S$27.35 million, while earnings per share were 0.03 Singapore cent, down from 1.61 cents, previously.

For the six month period, net profit fell 70.5 per cent to S$2.95 million, owing to lower revenue and decreased contributions from associated companies and joint ventures. Revenue slumped 21.5 per cent to S$50.39 million due to lower revenue from the construction business.

Group managing director Or Toh Wat said: “On the construction front, the operating environment is expected to remain challenging in spite of the improving sector prospects in the near-to-medium term. However at OKP, notwithstanding the challenging operating conditions arising from the continued rising costs, competition and shortage of experienced and skilled manpower, as well as the termination by mutual agreement of the contract for the construction of the viaduct from Tampines Expressway to the westbound of Pan Island Expressway and Upper Changi Road East, the group will remain focused on our core civil engineering business."

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He added that the group will continue to seek opportunities to enlarge its foothold in property, both locally and abroad, through strategic partnerships. As at June 30, the group’s net order book stood at S$208.3 million, with projects extending till 2021.

The counter closed at 26 Singapore cents on Monday, up one cent.