OKP Holdings has been awarded $43.8 million following an arbitration it brought against CPG Consultants, over the roles the different parties played in the 2017 collapse of an expressway viaduct under construction.

 

Or Kim Peow Contractors, OKP' s subsidiary, was the contractor for the job, while CPG Consultants was the design consultant hired for the contract.

 

The arbitration tribunal has ordered CPG to pay up within 28 days from March 3.

 

The tribunal further ordered CPG to pay OKP, post-award interest on the sum above, calculated on a simple basis from March 31 until the date of payment, at a rate of 5.33% per annum.

 

According to OKP, the award is expected to have a positive impact on its financial performance for the current year ending Dec 31.

OKP Holdings has reported higher revenue for 2HFY2022 but because of higher admin and finance costs, it incurred a net loss of $2.2 million, versus earnings of $0.5 million reported for the year earlier 1HFY2021.

 

Revenue, for the six months to Dec 2022 was $64.1 million, up 42.4%. This brings full year revenue to $11.6 million, up 30.7% over FY2021.

 

The company, which is in construction and property development, reported a loss of $1 million, versus earnings of $1.5 million for FY2021.

Despite the net loss, the company plans to maintain a final dividend of 0.7 cents.

 

" We are pleased with the continued gradual improvement in our topline performance, in line with the reopening of the economy," says group managing director Or Toh Wat.

 

" With renewed optimism and the public sector leading the construction demand, we will look for opportunities to expand, tapping on our infrastructure and civil engineering expertise.

 

Just recently, the company won two contracts worth $196.2 million from the government for maintenance of roads and road-related and commuter-related facilities.

 

This brings the company' s total order book to $454.1 million, to be fulfilled till 2026.

 

OKP, which has been actively growing its recurring income by investing in property, is maintaining this strategy, even though rental revenue dipped by 11.3% in FY2022 because of unfavourable currency conversion from rent collected for its assets in Australia.

 

&ldquo For diversity, we will also stay focused to prudently grow our property investment business, to boost a steady flow of recurring income," says Or.

 

The company' s NTA, as at Dec 31 2022, was 39.75 cents.

 

OKP Holdings has won a $100.3 million contract from the Land Transport Authority for commuter infrastructure enhancement works at new MRT stations, at island-wide locations.

 

With this contract, OKP' s order book has reached $402.2 million, to be fulfilled by 2026.

 

Under this contract, OKP will design and build covered linkways and cycling paths at new MRT stations along the new Thomson-East Coast Line (TEL), Circle Line 6 extension, North East Line extension and Downtown Line.

 

&ldquo We are heartened to secure this contract from LTA, and for the trust and confidence in our infrastructure engineering expertise and specialisation," says managing director Or Toh Wat.

 

" We will focus on the smooth delivery of this commuter infrastructure project for the convenience of all users," he adds.