Oil Refineries Ltd

Oil Refineries Ltd maintains a capital structure characterized by significant leverage relative to equity, with a debt-to-equity ratio of 0.81. The balance sheet shows total liabilities of $2.70 billion against total equity of $1.75 billion. Liquidity is assessed as medium, supported by a current ratio of 1.57 and cash and equivalents of $599 million. However, the company holds long-term debt of $1.41 billion, resulting in a negative net cash position after subtracting total debt from cash holdings.

Profitability metrics indicate extremely low returns on capital. Return on equity stands at 1.9%, and return on assets is 0.75%. The company generated net income of $47 million on revenue of $5.84 billion, resulting in a net margin of approximately 0.8%. Operating income was $146 million, while gross profit was $170 million, suggesting high operating costs relative to revenue. These returns are significantly below typical industry medians for integrated oil and gas companies, reflecting thin margins in the current operating environment.

Revenue concentration data is not provided in the available segments or geography sections. The company reports total revenue of $5.84 billion, but the breakdown by business segment or geographic region is absent from the input data. Without this information, specific exposure to regional market dynamics or product mix risks cannot be quantified.

Growth trajectory analysis is limited by the absence of historical period data. The financial snapshot provides only the latest normalized period figures. Without 5-year annual or 8-quarter quarterly data, trends in revenue and net income cannot be established. The current free cash flow is negative at -$56 million, driven by capital expenditures of $259 million exceeding operating cash flow of $297 million.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, indicating reliance on external financing or cash flow generation to service obligations. The high valuation multiples, including a P/E of 16,616 and EV/EBITDA of 4,411, suggest the market is pricing in significant future earnings recovery or that current earnings are anomalously low relative to asset value.

Recent observations include analyst price targets with a mean, median, high, and low all set at $1.10 USD. This uniformity suggests limited analyst coverage or a consensus view on fair value. Competitor context lists Chevron, Shell, and BP, but no specific comparative metrics are provided. No filing, news, or transcript observations are present in the input data.

Oil Refineries Ltd (ORL.TA) has added the Haifa Refinery power station to its operating assets, a notable development confirmed on June 30, 2026. The facility, located in Israel, is classified as a fossil gas and oil/gas power asset with a capacity of 118 MW. This addition marks a tangible expansion in the company's infrastructure portfolio, specifically within the power generation segment. The significance of this asset addition lies in its operational status and capacity. With the Haifa Refinery power station now operating, ORL.TA has integrated a 118 MW power generation capability into its business mix. This diversification into power assets, alongside its core Oil & Gas operations, represents a structural change in the company's asset base. Despite this infrastructure update, broader material changes remain absent. An analysis of 17 fields revealed no material changes versus prior analysis, indicating that the asset addition is the primary recent development. The company continues to be covered by two analysts, though it currently has no reported top holders or index memberships. Market attention remains low, with cross-source signals showing minimal daily dispatch counts throughout late June and early July 2026. The absence of significant sentiment shifts or high-volume news flow suggests that the market is digesting the asset addition quietly. Investors should monitor how this new power generation capacity impacts future financial estimates and operational efficiency.

Revenue grew 13.3% annually over four years, demonstrating consistent top-line expansion despite recent volatility.

Free cash flow surged 68.6% year-over-year in the latest period, indicating improved operational cash generation.

Net income compounded at 14.9% annually over four years, showing long-term profitability growth potential.

Capital expenditure relative to revenue is above the cohort median, suggesting efficient investment levels.

Debt-to-equity ratio of 0.81 is below the cohort median, indicating a relatively conservative leverage position.

Operating and net margins fall in the bottom quartile of the Integrated Oil & Gas cohort.

Return on equity of 1.9% significantly underperforms the cohort median of 8.49%.

The company faces a high credit risk flag, signaling potential solvency or repayment concerns.

Cash conversion ratio of 0.39 ranks in the bottom quartile, indicating poor cash generation efficiency.

Net income dropped sharply to $47 million in the latest period from $441 million previously.

Revenue $6.58B; Operating income $410.2M.

• ▍Revenue $6.58B
• ▍Operating income $410.2M
• ▍Net margin 3.8%