Mainboard-listed infrastructure and civil engineering company OKP Holdings today announced a record net profit of $7.8 million for its first half year ended 30 June 2010 on the back of $73.7 million revenue.

This is up from $6.8 million and $61.5 million, respectively from the corresponding period in the previous year.

The board of directors is proposing an interim dividend of 1.0 cent per share, which works out to a dividend payout ratio of 34% based on 1H2010 profits.

OKP says its strong revenue derived largely from a considerable growth of 42% in its construction segment which saw a higher percentage of revenue being recognised from a few large construction projects that were well under way in the half-year ended 30 June 2010.

This segment continued to be the major revenue driver, contributing 84% to the total revenue (2009: 71%) for the half-year ended 30 June 2010. The rest was made up by the maintenance segment with 16% (2009: 29%).

On a quarterly basis, the second quarter ended 30 June 2010 was also the group’s strongest-ever quarter with a net profit of $4.3 million, up by 18% from the previous year’s quarter. Its revenue for the quarter, at $39.8 million, was also its highest ever, up 25% over the previous corresponding period.

OKP says it continues to make good progress in completing its various projects. Since the start of 2010, it has secured four contracts comprising a S$6.0 million contract from the Public Utilities Board for desilting works for the 2-km Bukit Timah Phase II Diversion Canal, a S$5.2 million contract from the Jurong Town Corporation involving construction and maintenance works at Tuas South Avenue 12 and Tuas South Avenue 14 and two contracts totalling $34.3 million from the Land Transport Authority (LTA) for upgrading and maintenance of roads and related facilities in the Central and North-West Sectors. Other ongoing works include a $119.3 million contract from LTA to widen the stretch of Central Expressway from Pan Island Expressway to Braddell Interchange due for completion in end-2011 and a $15.4 million contract from the Public Utilities Board for drainage works at Opera and East View Garden Estates to be completed in January 2011.

To date, the group’s order book stands at $312.0 million based on secured civil engineering and construction contracts, with some projects lasting up to 2013.