On August 28, OKP Holdings announced it was awarded $188.3 million contrant by the Land Transport Authority (LTA) for the construction of a new Cycling Path Network (CPN) in seven towns islandwide. This encompasses Geylang, Hougang, Kaki Bukit, Marine Parade, Potong Pasir, Sengkang and Serangoon, under the next phase of LTA’s islandwide Cycling Network programme.
OKP's subsidiary, Or Kim Peow Contractors (Private), will be involved in the construction, supervision and completion of cycling paths and shared paths, including associated works such as reconstruction/ reinstatement of infrastructure (such as footpaths, covered linkways, retaining walls, drains, ramps, staircases, signages and precinct markers), planting/ transplanting/ removal of trees and other landscaping, as well as all other ancillary works.
As at August 28, OKP's net construction order book amounts to $572 million, with contracts extending till 2026.
In 1HFY2023 for the six months to June 30, OKP recorded a net profit of $35.6 million, 29.6 times higher – or 2,899.7% - higher than the earnings of $1.2 million in the same period the year before.
Revenue rose by 30.6% y-o-y to $70.0 million mainly due to higher contribution from the construction and maintenance segments and partly offset by lower rental income. Gross profit, however, fell by 58.6% y-o-y to $2.1 million as cost of sales rose. Gross profit margins also fell by 6.4 percentage points y-o-y to 2.9%.
Other gains surged by 4,395.1% y-o-y to $45.1 million mainly due to higher interest income from higher interest rates from bank deposits, the arbitral award of $43.8 million in relation to the contract 449A worksite incident, as well as a decrease in the loss on foreign exchange (forex) of $0.6 million from the revaluation of assets and liabilities denominated in Australian dollars (AUD) to Singapore dollars (SGD). This was partly offset by lower government grants.
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OKP, which last traded at 22 cents, is up 37.5% year to date.
