ORKIM BERHAD (ORKIM)

Orkim Berhad: Malaysia's Dominant CPP Tanker Operator

Orkim Berhad (5348) is Malaysia's leading Clean Petroleum Products (CPP) and LPG tanker operator, commanding a 56% share of the domestic CPP tanker market. Listed on Bursa Malaysia on 9 December 2025 at an IPO price of RM0.92, the company's public debut marked a significant transition from private equity (Ekuinas) ownership to a publicly traded institution, now anchored by PNB as its dominant 60% shareholder.

With a fleet of 19 vessels following the delivery of MT Orkim Garnet in May 2026, Orkim plays an indispensable role in Malaysia's downstream energy supply chain — transporting refined petroleum products including petrol, diesel, aviation fuel, and LPG across the country's coastlines and ports.

Business Model: Stability Through Long-Term Contracts

Orkim's core competitive advantage lies in its contract structure: 95.2% of revenue is derived from long-term contracts, including Time Charters, Contract of Carriage (CVC), and Contract of Affreightment (COA). This contrasts with spot-market operators who face significant freight rate volatility. The long-term nature of these contracts creates a predictable, recurring revenue base that underpins earnings visibility.

Key customers include Malaysia's largest energy companies: PETRONAS, NGL, Petron, and BHPetrol. The top two customers account for 84% of total revenue.

Business Segments and Revenue Breakdown

Fleet Expansion: A Growing Footprint

Orkim now operates a fleet of 19 vessels, comprising 16 CPP tankers, 2 LPG carriers, and 1 new Medium Range (MR) tanker. Two additional vessels are currently under construction:

• MT Orkim Jade — expected delivery end-2026 (USD23.57M each)
• MT Orkim Ruby — expected delivery early-2027

These additions will further cement Orkim's market leadership and expand its revenue-generating capacity.

Cabotage Policy: A Natural Economic Moat

Malaysia's Cabotage Policy restricts foreign-flagged vessels from operating domestic routes, effectively barring foreign competitors from entering Orkim's core market. This regulatory protection provides a durable competitive moat, supporting stable pricing power and limiting competitive pressure from lower-cost international operators.

Shariah Compliant Status

✅ Orkim Berhad is a Shariah-compliant stock, certified by the Shariah Advisory Council of the Securities Commission Malaysia. Muslim investors can participate in this investment without Shariah compliance concerns.

IPO Context: From PE-Owned to Public Company

Previously owned by Ekuinas (a government-linked private equity firm), which fully divested via the IPO, Orkim's ownership has now transitioned to PNB (Permodalan Nasional Berhad) as the 60% majority shareholder. PNB is one of Malaysia's largest institutional investors, bringing long-term stewardship orientation and strong governance credentials to the company's post-IPO phase.

ORKIM keeps growing as fleet capacity expands. Q2 FY2026 revenue was RM87.34m with net profit of RM22.91m (26.2% net margin). For 1H26, net profit was RM47m (up 6.8% YoY) and revenue RM175.4m (up 14.9% YoY), with fleet utilisation of 91%.

The clean petroleum products (CPP) segment contributes about 94.3% of revenue, with the rest from LPG shipping. Q2 revenue slipped 0.8% QoQ and net profit fell 5.0% QoQ, but both remain well above Q3 FY2025.

Note: 1H25 figures are not fully in our database because ORKIM only listed in December 2025. The YoY comparisons above come from company-reported figures as covered by the media.

ORKIM targets a payout ratio of 50% to 70% of profit after tax attributable to shareholders each financial year, subject to cash flow, capex and working capital needs. It is not a binding commitment.

Our database records no dividend in Q2 FY2026. Public market data suggests the latest annual dividend was around 2 sen per share with an ex-date of 8 July 2026; we could not confirm this from an official announcement, so treat it as indicative only. At 77 sen, 2 sen is a yield of about 2.6%.

RHB cites dividend visibility as part of its Buy thesis. Note this is policy-based, not a guarantee.