OKP's net cash at $42 m, LINC ENERGY explains directors' share sales

OKP's design-and-build project --- the interchange at TPE/Sengkang West Road/Seletar Aerospace Way. Photo: annual report

ortohwat4.14

Or Toh Wat, MD of OKP Holdings. Photo: Company.

OKP HOLDINGS reported an erosion in gross margin and a lower net profit for 1Q2014, despite an increase in revenue.

The bright spot continued to be its balance sheet which has net cash of S$42.4 million versus a market cap of S$97.2 million.

It's higher than the net cash of S$34.8 million recorded end-Dec 2013.

Its net tangible assets amounted to S$95.8 million, a 1.1% increase from end-2013. On a per share basis, this is equivalent to 31.06 cents as compared to 30.72 cents as at end-2013.

OKP, an infrastructure and civil engineering company, said its 1Q2014 revenue rose 13.7% to S$30.2 million with gross margin falling to 8.7% (from 16.9% a year earlier).

The latter was due to competitive pricing within the industry and rising variable costs such as manpower cost and costs of construction materials. All told, the net profit fell 55% y-o-y to S$1.1 million.

Group MD Or Toh Wat pointed to a strong pipeline of projects after having secured two new contracts from the Land Transport Authority and Public Utilities Board totaling S$56.6 million since the start of 2014.

The Group’s net order book stands at S$189.6 million, lasting till 2017.

For more information, see the press release.

Linc Energy reveals personal reasons behind 2 directors' share sale

RARELY DOES a company comment on the reasons for the sale of its shares by its management or directors.

But Singapore-listed oil & gas company Linc Energy has divulged the reasons behind the recent sale by two Non-Executive Directors, Mr Ken Dark and Mr Craig Ricato, of a portion of their shareholdings.

The company's press release this morning said Mr Dark and Mr Ricato have each, with the Board’s prior knowledge, sold shares to meet "unavoidable personal financial obligations".

Mr Dark, the company chairman, sold 747,000 million shares in two transactions in April 2014, leaving him with 1.29 million shares.

"Mr Dark had a business crisis within his private company caused by an unexpected event requiring the immediate injection of several hundred thousand dollars. This unforeseen event resulted in Mr Dark selling a portion of his Linc Energy stock to ensure that he could address this requirement."

Mr Dark's businesses are described on Linc Energy's website thus: "His current business includes the ownership and operation of a small chain of independent fuel and grocery outlets both at a retail and wholesale level. Over the years Ken has managed to find time to own and operate a sheep/beef enterprise in New South Wales, with time spent in freelance management consulting to round out his experience."

linc_chart4.14

Linc Energy's share price ($1.13) is trading near its 52-week low of $1.10. The company has a market cap of S$636 m and reported a 1HFY14 loss of AUD114.9 million. Chart: Bloomberg

Mr Ricato, previously Linc Energy's Director - Legal & Corporate Affairs, sold a total of 1.5 million shares in three transactions in April 2014, leaving him with 1,001,561 shares.

"Mr Ricato sold down a portion of his Linc Energy stock over a short period of time to address taxation obligations."

Both directors have expressed strong continuing confidence in, and commitment to, the long term goals of the Company.

Mr Dark said, "There are always questions when a company director sells shares and I wish to reassure the market that it was not my preferred choice to dispose of any of my shares as I personally believe the Company is on the cusp of great things."

Linc Energy MD Peter Bond.
Photo: CompanyMr Peter Bond, Managing Director, said, "I understand that the market views negatively any director share sale, but the reality is that directors have personal lives and obligations that sometimes need addressing through the sale of a portion of their Company stock.

"When you consider that Ken Dark has been involved with Linc Energy for nearly 10 years and Mr Ricato has been involved for nearly 7 years, the long term dedication, ethics and overall confidence in the Company and its assets by both directors over this term has been outstanding.

"Both directors have told me they have a strong faith in the Company’s future and were very disappointed that circumstances beyond their control had caused them the need to sell some of their Linc Energy stock holdings at this time."

Recent story: Initiation reports: Buy BREADTALK, Buy LINC ENERGY

Counter Name	Last	Change
AEM Holdings	2.380	0.030
Best World	2.470	0.010
Boustead Singapore	0.960	-
Broadway Ind	0.128	-
China Aviation Oil (S)	0.920	0.015
China Sunsine	0.410	-
ComfortDelGro	1.490	-
Delfi Limited	0.895	-0.005
Food Empire	1.280	0.030
Fortress Minerals	0.310	-
Geo Energy Res	0.310	-
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.100	0.070
InnoTek	0.525	-
ISDN Holdings	0.310	0.005
ISOTeam	0.042	-0.001
IX Biopharma	0.043	-
KSH Holdings	0.245	-0.005
Leader Env	0.051	0.001
Ley Choon	0.046	0.003
Marco Polo Marine	0.067	0.002
Mermaid Maritime	0.141	0.003
Nordic Group	0.340	-
Oxley Holdings	0.088	-0.001
REX International	0.138	0.002
Riverstone	0.820	0.020
Southern Alliance Mining	0.445	0.015
Straco Corp.	0.490	-
Sunpower Group	0.210	0.010
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.830	-0.005
Wilmar Intl	3.490	0.040
Yangzijiang Shipbldg	1.770	0.050

OKP's net cash at $42 m, LINC ENERGY explains directors' share sales

You may also be interested in: