SINGAPORE - Lower revenue from its construction business pulled down construction firm OKP Holdings' results for the third quarter, as more of its projects reached completion.
Net profit for the three months to Sept 30 was $281,000, down 2.4 per cent from the corresponding period a year ago, the firm said on Monday.
Revenue came in slightly higher at $26.2 million, up 0.8 per cent from $26 million in the same period.
This was largely supported by income from its project maintenance operations, which raked in $8.9 million during the third quarter - up 9.7 per cent from a year ago.
Its construction business, on the other hand, contributed $17.3 million to the firm's revenue, down 3.2 per cent from the corresponding quarter a year ago.
OKP said the construction segment will continue to be a major revenue contributor, as it accounts for 63.7 per cent of its business. However, a year ago, contributions from construction revenue stood at 75.8 per cent.
"The construction industry landscape continues to prove challenging due to factors such as the rise in business and manpower costs in Singapore," said Mr Or Toh Wat, group managing director.
However, the firm has $186.8 million worth of projects in the pipeline, which is expected to extend to 2017, said Mr Or.
Earnings per share for the quarter ended Sept 30 was 0.09 cent, unchanged from the same period a year ago. Net asset value per share came in at 30.98 cents, up from 30.72 cents as at Dec 31.
OKP's shares were unchanged at $0.255 on Monday.