The company functions as a price-taker in the maritime fuel sector, evidenced by a structural 2.33% gross margin that leaves minimal room for operational error.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 688.61M | 633.08M | 702.1M |
| Revenue Growth % | 8.77% | -9.83% | - |
| Cost of Goods Sold | 672.56M | 620.99M | 688.83M |
| COGS % of Revenue | 97.67% | 98.09% | 98.11% |
| Gross Profit | 16.04M | 12.09M | 13.26M |
| Gross Margin % | 2.33% | 1.91% | 1.89% |
| Gross Profit Growth % | 32.71% | -8.84% | - |
| Operating Expenses | 10.05M | 9.49M | 8.78M |
| OpEx % of Revenue | 1.46% | 1.5% | 1.25% |
| Selling, General & Admin | 5.22M | 4.96M | 4.55M |
| SG&A % of Revenue | 0.76% | 0.78% | 0.65% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 4.83M | 4.53M | 4.23M |
| Operating Income | 6M | 2.6M | 4.49M |
| Operating Margin % | 0.87% | 0.41% | 0.64% |
| Operating Income Growth % | 130.32% | -41.96% | - |
| EBITDA | 10.78M | 6.88M | 7.51M |
| EBITDA Margin % | 1.57% | 1.09% | 1.07% |
| EBITDA Growth % | 56.59% | -8.31% | - |
| D&A (Non-Cash Add-back) | 4.78M | 4.28M | 3.02M |
| EBIT | 8.07M | 5.94M | 5.2M |
| Net Interest Income | -4.55M | -2.19M | -1.97M |
| Interest Income | 52.13K | 10.26K | 11.27K |
| Interest Expense | 4.6M | 2.2M | 1.98M |
| Other Income/Expense | -2.52M | 1.13M | -1.27M |
| Pretax Income | 3.47M | 3.73M | 3.22M |
| Pretax Margin % | 0.5% | 0.59% | 0.46% |
| Income Tax | 1.43M | 774.24K | -8.66K |
| Effective Tax Rate % | 41.12% | 20.74% | -0.27% |
| Net Income | 1.88M | 2M | 2.37M |
| Net Margin % | 0.27% | 0.32% | 0.34% |
| Net Income Growth % | -5.95% | -15.89% | - |
| Net Income (Continuing) | 2.05M | 2.96M | 3.23M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 1.25M | 4.77M | 3.93M |
| EPS (Diluted) | 0.08 | 0.09 | 0.10 |
| EPS Growth % | -5.9% | -13.6% | - |
| EPS (Basic) | 0.08 | 0.09 | 0.10 |
| Diluted Shares Outstanding | 23.1M | 23.1M | 23.1M |
| Basic Shares Outstanding | 23.1M | 23.1M | 23.1M |
| Dividend Payout Ratio | - | - | - |
Razor-thin margin volatility
As indicated by the reported 2.33% gross margin, TMDE operates within a high-volume, low-margin bunkering model that leaves virtually no room for operational error, suggesting that the company functions primarily as a price-taker within the competitive Southeast Asian maritime fuel supply corridor.
The narrow spread between procurement and delivery prices implies that any volatility in global oil markets could rapidly erode the company's already thin profitability. Investors should monitor whether management can successfully pivot toward higher-margin service offerings, such as vessel cleaning, to insulate the bottom line from commodity price swings.
Based on the reported 4.17% debt-to-equity ratio, TMDE maintains a highly leveraged capital structure that appears to prioritize aggressive asset accumulation over financial stability, potentially exposing the firm to significant interest rate sensitivity in the current macroeconomic environment.
The reliance on debt to fund a 15-vessel fleet suggests that financing costs may consume a disproportionate share of operating income. This leverage profile warrants further investigation into the company's debt maturity schedule and its ability to maintain liquidity if trade finance facilities tighten.
According to the company's operational profile, the cost structure is overwhelmingly dominated by fuel procurement, which likely accounts for over 95% of COGS, leaving the firm highly susceptible to fluctuations in regional supply chain costs and port congestion.
The lack of significant fixed-cost absorption capacity means that any decline in vessel utilization rates could lead to immediate net losses. Management's ability to maintain expense discipline in administrative and maintenance categories is critical, as the current 0.27% net margin provides almost no buffer against rising operational overhead.
While the company's physical fleet ownership provides a potential logistical moat, the 0.27% net margin suggests that the business model may be fundamentally unsustainable without significant scale or a shift toward higher-margin, non-commodity service revenue streams.
Short-sellers would likely focus on the risk that the current fleet requires substantial future capital expenditure for regulatory compliance, which the current cash flow generation appears unable to support. The market may be overestimating the strategic value of the fleet if the assets are aging and require costly upgrades to meet decarbonization mandates.
Quick answers to the most common questions about buying TMDE stock.
For fiscal year 2024, TMD Energy Limited (TMDE) reported total revenue of $688.6M. This represents a 1.9% decline compared to $702.1M in 2022.
TMD Energy Limited (TMDE) is profitable, generating $1.9M in net income for the fiscal year ending 2024 with a net profit margin of 0.3%.
TMD Energy Limited (TMDE) reported an operating income of $6.0M, resulting in an operating profit margin of 0.9%. This margin reflects the operational efficiency of the business before interest and taxes.
TMD Energy Limited (TMDE) generated $16.0M in gross profit for the year, representing a gross profit margin of 2.3%. This demonstrates the company's core pricing power and production efficiency.