Value Creation Case Studies
Orkim Sdn Bhd (Orkim)
- Orkim is one of Malaysia’s leading Clean Petroleum Product (CPP) tanker companies which was founded in 2004 initially as a ship broker business
- Strong track record of growth and with 17 vessels under ownership and management
- Transports CPP from refineries to various oil storage terminals throughout the country and currently has 40% leading market share.
- Investment type
- Buy out of non-core assets of GLC/PLC
- Acquisition Date
- December 2014
- A market leader with strong outlet presence in peninsular Malaysia
- Margin improvement opportunity via business process optimisation and investment in technology
Key Value Creation Metrics
- Ekuinas Portfolio Monitoring and Management team identified a gap in respect of the cost computation of the respective vessels.
- The discovery prompted a renegotiation of the relevant terms in the contract which resulted in a positive impact of RM2 million to Orkim’s bottomline.
- Ekuinas then initiated a merger between TKS and OMNI under Icon Offshore Bhd with the aim of creating a leading Malaysian OSV player.
- Increased market share in the Malaysian CPP market by growing vessel fleet via vessel acquisitions
- Invested in four additional CPP vessels between FY2015 to FY2018 which increased dead weight tonnage (DWT) capacity by 37% to boost growth in revenue and profits by increasing fleet size and yield
Diversification of Product
- Ventured into LPG market and invested in two LPG tankers in 2015 – 2016 to serve the regional LPG transportation market
- The delivery of the LPG tankers made Orkim the first local LPG tanker operator in Malaysia
Strong Revenue & EBITDA Growth
- Gross revenue growth* of 22.4%; net revenue growth of 19.7%
- EBITDA growth* of 15.4%