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For the cumulative nine-month period, Orkim recorded RM57.34 million in net profit and RM225.6 million in revenue, with the clean petroleum product (CPP) segment remaining the primary contributor and accounting for 92 per cent of total revenue. Excluding one-off initial public offering (IPO)-related expenses, the normalised net profit would have been RM62.3 million.
Risk assessment: Is Orkim's "total debt to current assets" good? ✔ Yes, it is still very safe. Reason: Current ratio 3.35 means current assets are more than 3 times current liabilities. Although total debt is quite large (ship capex is indeed large), it is long-term debt, not current debt. Their assets (ships) are of large and stable value. High margins (25%+). Positive free cash flow. High Altman Z (2.86 → low bankruptcy risk). Debt-to-Equity is only 0.67, which is a moderate level. Conclusion:
Total debt vs current assets is still safe.➡️ The company has no problem paying short-term commitments.➡️ Debt level is in line with the business model (shipping/logistics is usually high capex).
