SINGAPORE (May 7): Infrastructure and civil engineering firm OKP Holdings recorded a 43.7% decline in earnings to $2.8 million for the 1Q ended March, from $5.1 million a year ago.

This was mainly attributable to lower revenue as well as lower share of profit of associated companies and joint ventures.

1Q18 revenue fell 22.7% to $23.0 million, from $29.7 million a year ago.

The decrease was due mainly to a 36.3% decrease in revenue from the construction segment to $13.1 million.

This was as a result of a lower percentage of revenue recognised from a few construction projects which were reaching completion during 1Q18, as well as reduced revenue generated from the construction project at the Pan-Island Expressway exit to Tampines Expressway, which saw a fatal worksite collapse in July last year.

See: OKP calls for trading halt as share price retreats after PIE collapse

The lower revenue was partially offset by a 7.6% increase in revenue from the maintenance segment to $9.9 million.

This was due mainly to the higher percentage of revenue recognised from a number of both existing and newly awarded maintenance projects as they progressed to a more active phase during the quarter.

Share of profit of associated companies and joint ventures plunged 97.4% to $51,000 in 1Q18, from $2.0 million a year ago.

This was largely due to the decrease of $1.6 million in share of profit from Lakehomes, the developer for the LakeLife Executive Condominium, due to lower recognition of profits from the few remaining units of the development which were ready for handover during the quarter.

As at end March, cash and cash equivalents stood at $88.3 million.

OKP’s net order book amounted to $249.4 million as at Mar 31, 2018, with projects extending up to 2021.

“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,” says Or Toh Wat, OKP’s group managing director.

“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,” he adds.

Shares of OKP closed 1 cent lower, or down 2.9%, at 34 cents on Monday.