Thank you very much for the questions and the opportunities to clarify them. We hope you have a better understanding of our business through this online exchange.
Your questions will be reposted in blue followed by our replies in black.
The Management Team
OKP Holdings Ltd
Dear Josephine, you wrote:
We submitted a tender last year for the proposed development of Changi East to Effect 3 Runway at Singapore Changi Airport - Package One. However, the contract was awarded to other tenderers. We are currently preparing to tender for a contract relating to the proposed development of Changi East to Effect 3 Runway at Singapore Changi Airport - Package Two. The tender period is still open and we have not submitted it yet.
From our experience in airport projects, after a tender closes, the results are typically made known after a 2 to 3-month period. In this case, the current tender is expected to close by end of March 2016.
The tenders are part of the overall Changi Airport Terminal 5 project that is expected to cost multi-billions. Due to the intrinsic confidentiality of tenders, OKP is not able to provide further details on the tenders at this point.
While we have a high level of expertise in the works relating to the tenders, it will be a competitive selection process which involves qualified local and foreign companies. We will continue to actively take steps to improve our chances and will keep shareholders informed of significant developments.
Dear Timothy Loh, you wrote:
Are you bidding for any construction contracts in Indonesia at the moment via the joint venture, ACSET-OKP?
We are not doing so at the moment. We will keep shareholders informed and make the necessary announcements on SGX should there be any new development on our Joint Operation in Jakarta, Indonesia.
As we currently do not have projects in the oil and gas sector, we do not have direct exposure to the oil and gas industry and do not have receivables related to the industry.
However, we do use diesel to operate our plant and equipment. As such, with the fall in oil prices, our operating costs have reduced and translated to cost savings for our Group.
Dear Susan Tang, you wrote:
You seem to only bid for Singapore Government projects. Why don't you bid for private construction projects?
Being a specialist in the transport infrastructure and civil engineering space, most contracts naturally relate to public projects initiated by the government. Our core competencies lie in areas such as airport runways and taxiways, expressways, flyovers, urban and arterial roads. As such, the concentration of public sector projects is invariably higher.
However, we have also been engaged for projects by private sector clients such as Changi Airport Group. An example of the most recent private sector project which we have completed is the construction of East (North) Aircraft Parking Apron, associated taxiways and ancillary works at Seletar Airport for the Changi Airport Group.
Thank you for all your questions and the interest in OKP Holdings Ltd. We have come to the end of this Q&A session.
We have enjoyed and learnt much from your questions and we hope that you have a better insight of our Company and know more about our operations.
The Management Team
OKP Holdings Ltd.