Okmin Resources Inc. (OKMN) delivered a challenging QQ2 2024 quarter characterized by a pronounced revenue shortfall and an embedded negative margin framework. Revenue registered at 5,312 with cost of revenue at 11,062, producing a gross loss of 5,750 and an annualized gross margin well below parity (-108.2%). EBITDA came in at -197,789, with operating income of -199,818 and a net income of -218,757, resulting in an EPS of -0.0019 (diluted -0.0013). The quarter underscored a fragile earnings quality: operating margins (-37.6%) and net margins (-41.2%) remain deeply negative, implying that baseline cost structure and interest burden overwhelm any topline recovery at current activity levels.
Liquidity and balance-sheet dynamics amplify investor concern. Cash and cash equivalents stand at 112,636, while total debt sits at 167,135 with a net debt of 54,499. Current liabilities (200,750) vastly exceed current assets (123,031), yielding a gargantuanly low current ratio of 0.0865 and suggesting limited near-term liquidity headroom. Retained earnings are deeply negative at -1,038,991, and total equity sits at 489,315 against a total asset base of 898,564, signaling an ongoing deficit-funded balance sheet. These fundamentals are set against a backdrop of volatile energy prices and ongoing cost pressures in the Oil & Gas Integrated space.
Management commentary or earnings-call quotes were not provided in the material available for analysis; as such, the qualitative tone and guidance from leadership are not verifiable here. The investment thesis today is therefore anchored in the quantitative signals (negative profitability, stressed liquidity, leveraged balance sheet) with a caveat that any meaningful improvement would likely require decisive cost reductions, potential monetization of assets, or favorable shifts in commodity pricing and capital structure.