Trio Petroleum Corp. — financial distress indicators
Financial-health summary
Trio Petroleum Corp.'s reported numbers place it in the 'Weak' financial-health band (distress score 52/100). The main indicators are losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. Independently, the Ohlson accounting model puts its 1-year failure probability at 94%. In its favour: strong current ratio (22.48).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -91% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 2.83 → model probability 94%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +182% in a year.
Survival financing: repeated equity raises at depressed prices.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (22.48).
- Revenue still growing (+87% YoY).
📰 Recent news scan
- TRIO PETROLEUM ANNOUNCES LLOYDMINSTER ACQUISITION WITH CUMMINGS MULTILATERAL OIL WELL AND WORKOVER PRODUCTION GROWTH OPPORTUNITYYahoo Finance · 2026-09-30
- Trio Petroleum Announces Lloydminster Heavy-Oil Farm-In And Multilateral Development Program With Croverro EnergyYahoo Finance · 2026-09-21
- Trio Petroleum Corp Announces Proactive Reverse Stock Split and Provides Shareholder Update on Acquisition and Drilling StrategyYahoo Finance · 2026-08-18
- BATL, TPET, WTI, XOM, USO Stocks Climb Amid Escalating US-Iran Conflict: Oil Nears $80 A BarrelYahoo Finance · 2026-07-13
- Trio Petroleum Corp Issues Broker-Dealer Action Notice Ahead of May 21, 2026 Annual MeetingYahoo Finance · 2026-05-20
- TRIO PETROLEUM CORP ANNOUNCES STRATEGIC EXPANSION INITIATIVE FOLLOWING SUCCESSFUL CAPITAL RAISE AND ENCOURAGES STOCKHOLDER SUPPORT AT MAY 21ST ANNUAL MEETINGYahoo Finance · 2026-05-11
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Trio Petroleum Corp.'s financial-health indicators show?
As of 2026-10-08, Trio Petroleum Corp.'s public financial data places it in the 'Weak' band with a distress score of 52/100, driven by losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Trio Petroleum Corp.'s financial distress score?
52/100 ('Weak'). Ohlson O-score 2.83 (model 1-year failure probability 94%).
What works in Trio Petroleum Corp.'s favour?
Strong current ratio (22.48). Revenue still growing (+87% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Energy, Oil & Gas companies with distress indicators
- Sky Quarry Inc. (SKYQ)Very weak 100/100
- SolarMax Technology, Inc. (SMXT)Very weak 100/100
- Spruce Power Holding Corporation (SPRU)Very weak 100/100
- Vivakor, Inc. (VIVK)Very weak 100/100
- SUNation Energy Inc. (SUNE)Very weak 86/100
- Canadian Solar Inc. (CSIQ)Very weak 74/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.