OKP Holdings’ net profit rises 28% to $4.6m

OKP Holdings Ltd  announced that it has secured a S$28.5 million contract to undertake the widening of Old Choa Chu Kang Road from Sungei Tengah Road to Lim Chu Kang Road. Work is scheduled to commence on 14 February 2011 and is targeted to be completed by 13 February 2014.

 

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OKP Holdings Limited Announces S$83.5 Million Contract From A Related Company Of China Sonangol For Construction Of Luxury Angullia Park Condominium In Orchard Road

At the same time look up for koon major precast supplier for construction companies in singapore.

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http://www.stockmarketsreview.com/reports/singapore_stock_market_and_companies_daily_report_20101209_67683/

  OKP manage to get most gov project from LTA , JTC and HDB work also. Building the singapore bus stop shelter and overhead bridge for disable, express way, canal etc....

 Unlike most of the other construction plays listed on the local bourse, OKP Holdings Limited (OKP) wasn’t involved in any of the mega integrated resort projects. Instead, the leading home-grown infrastructure and civil engineering company has been actively growing its niche in the oil and gas field.

As highlighted by Daniel Or, Executive Director of OKP during a recent interview with Shares Investment (Singapore), the company’s oil and gas foray dated back to 2006. Since then, OKP has completed a project relating to the $750 million Universal Terminal, a massive petroleum storage facility on Jurong Island.

Not resting on its laurels, OKP has gone on to secure a number of other projects, including civil works relating to ExxonMobil’s multi-billion dollar project, otherwise known as the Singapore Parallel Train Project. “Oil and gas projects typically command better margins as their safety requirements are much more stringent as compared to public projects,” Daniel commented.

Market Leader
For the uninitiated, OKP specialises in the construction of airport runways and taxiways, expressways, flyovers, vehicular bridges, urban and arterial roads, airport infrastructure as well as oil and gas related infrastructure for petrochemical plants and oil storage terminals.

With a solid reputation and sound track record, OKP proudly occupies the leading position in public sector work, garnering some $148.6 million in government contracts in 2009. So far this year, the company has already secured three public sector projects totaling approximately $39.5 million.

These include construction and maintenance works in Tuas worth $5.2 million from the Jurong Town Corporation as well as ad hoc repairs and upgrading of roads, road-related facilities and road structures in central and north-west sectors worth $34.3 million from the Land Transport Authority.

According to Daniel, OKP is also interested to undertake MRT projects, now that the company has beefed up its resources by quite a fair bit and is ready to take the plunge. “We are in the midst of undergoing pre-qualification,” he added.

According to latest statistics released by the Building and Construction Authority, Singapore’s public sector construction demand is projected to be between $10 billion and $14 billion a year in 2011 and 2012. Major projects in the pipeline include MRT projects for Downtown Line Stage 3, LNG Terminal, Fusionopolis 2A, industrial facilities at Seletar Aerospace Park, campus expansion of Institutes of Higher Learning and new healthcare facilities.

Against this buoyant backdrop, OKP remains confident that public sector civil works will continue to drive its top-line growth.

Promising Partnership
In a strategic move to develop its global footprint, OKP placed out 15 million new shares or 9% of its enlarged share capital at $0.45 apiece to China Sonangol International (S) Pte Ltd in May last year. Notably, the latter is a subsidiary of China Sonangol International Holding Ltd, which is an overseas conglomerate engaged in oil, gas and minerals investments and explorations, crude oil supply and national infrastructure construction projects.

Further cementing their relationship, a 50:50 joint venture (JV) company was subsequently formed to undertake the design, construction and execution of urban development projects, including road infrastructure works, in countries outside of Singapore as well as provide project management services for these urban development jobs.

Contrary to earlier media reports, OKP is not putting on hold its overseas foray, particularly in the African continent, through the JV company. Rather, it is arduously seeking out business opportunities in countries such as the Republic of Guinea, Angola and Zimbabwe, Daniel clarified.

For the first quarter ended 31 March 2010, OKP chalked up net profit of $3.5 million, a 10.1% year-on-year increase. This was mainly attributed to a 14.5% revenue jump to $33.9 million. It recorded a net cash position of $83.1 million as at the end of the aforesaid period, with positive net working capital at $50.8 million.

Operations aside, OKP was recently recognised for its high standards of corporate disclosure by winning the Best Annual Report Award (Gold) in the “Companies with less than $300 million in market capitalisation” category for the second time at the Singapore Corporate Awards 2010.