KUALA LUMPUR (Nov 19): Oil & gas shipping company Orkim Bhd, which is wholly owned by Ekuiti Nasional Bhd (Ekuinas), will take delivery of two new shipping vessels, dubbed Orkim Jade and Orkim Ruby, by early 2027.
The two new vessels are already under construction and scheduled for delivery between the end of 2026 and early 2027, according to Orkim chief executive officer Captain Cheah Sin Bi at the company’s prospectus launch on Wednesday.
This is part of the fleet expansion of Orkim, which has 18 vessels currently. Petroliam Nasional Bhd (PETRONAS) and Shell Group are its major clients.
With its Main market IPO price set at 92 sen, RM80 million of the IPO proceeds has been earmarked for the new vessel acquisition, including chemical and petroleum product tankers, which Cheah noted that the funding will also be backed by the group’s internal funds and unutilised sukuk programme.
The group said the expansion is backed by RM615 million in time-charter contracts stretching to 2032, complemented by voyage-charter visibility up to 2035. Orkim chairman Datuk Abdul Hamid Sh Mohamed added that the group’s recurring revenue model, supported by long-term relationships with major oil companies and a 92% utilisation rate in the financial year ended Dec 31, 2024 (FY2024), provides confidence to grow and renew its fleet.
Net profit for FY2024 grew 14.6% to RM92.91 million from RM81.05 million in FY2023, with revenue expanding to RM316.59 million from RM302.58 million.
The group derives most of its revenue from long-term time charter, consecutive voyage charter and contract of affreightment for its clean petroleum product tankers and liquefied petroleum gas tankers, with recurring charter income accounting for between 86% and 95% of total revenue in recent years.
It has set a dividend payout ratio ranging from 50% to 70% of its net profit.