MARC Ratings has affirmed its AA-IS rating on Orkim Berhad’s Islamic Medium-Term Notes (IMTN) Programme of up to RM1.0 billion and revised the outlook to positive from stable. The outlook revision is premised on the company’s proposed initial public offering (IPO), which will result in Permodalan Nasional Berhad (PNB) and Unit Trust Funds under its management (collectively PNB Group) holding a majority stake in the company, hence the expected parental support. As of end-August 2025, the outstanding amount under the programme stood at RM300.0 million.

Orkim’s leading position in domestic clean petroleum product (CPP) transportation and ownership of the largest local CPP tanker fleet are key rating drivers. The rating also reflects strong earnings visibility from charters with reputable oil majors and high entry barriers. Nonetheless, this is tempered by high borrowings due to ongoing vessel acquisitions and contract renewal risk.

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