Wasco Expects Better Profits In Coming Quarters With Robust Order Book

KUALA LUMPUR, June 5 (Bernama) -- Wasco Bhd is optimistic in delivering better profits and revenue from its pipe coating, engineering and bioenergy segments in the next few quarters, supported by its robust order book at RM3.20 billion as well as a tender book of RM7.25 billion.

Managing director and group chief executive officer Gian Carlo Maccagno said orders that the group bagged in hand and the ballooning tender book have been the highest recorded so far.

Currently, he said the revenue contribution for the group’s pipe coating, engineering and bioenergy segments each stands at 40 per cent, 40 per cent and 20 per cent respectively.

He said Wasco’s strategic market position delivers unrivalled competitive advantage to capitalise on all market sectors and the long-term development of global hydrogen infrastructure also positions the group for a sustainable future within new energy markets. 

Commenting further on the positive outlook, Maccagno noted that the pipe coating market is projected to grow from US$8.3 billion in 2021 to US$10.6 billion by 2027, with a compound annual growth rate (CAGR)  of 6.8 per cent.

Meanwhile, he said the global oil and gas trunk line network, currently spanning 2.15 million kilometres (km), is expected to expand by over five per cent by 2027.

“Additionally, nearly 5,000 km of pipelines dedicated to carbon capture and storage projects are anticipated between 2024 and 2027, setting the stage for substantial industry growth,” he said during the media briefing at the inaugural Wasco’s Investor Day themed ‘Navigating the Future of Energy’ held today.  

Recognising the importance of green stocks, Wasco is committed to significantly contribute to the sustainable energy sector and aims to achieve net zero for scope one and two by 2026.

“Our renewable energy initiatives and environmentally responsible practices underscore our dedication to long-term value creation,” he said. 

Besides that, he said the strategic government initiatives are also poised to further bolster investment in the biomass sector, positioning it as a leading growth area in the energy market.

Wasco’s net profit for the first quarter ended March 31, 2024 rose to RM57 million from RM21.76 million in the same quarter a year ago, driven by higher revenue recognition as a result of a higher number of projects executed while its revenue improved to RM643.94 million, marking a 21.1 per cent year-on-year increase.

Meanwhile, the Retirement Fund Inc (KWAP) chief investment officer Hazman Hilmi said the newly launched ‘Dana Pemacu’ hoped to bring in more green investments or green stocks soon, including from the European market, in line with the sustainable investment goals.

“Nevertheless, when we talk about green stocks, there is a lack in supply of capital in this region and at the same time lack of opportunities as well,” he said during the panel discussion session - 'Unlocking the Value of Green Stocks’.

KWAP plans to create 12 funds under ‘Dana Pemacu’, with four funds each in the private equity, infrastructure and real estate asset classes, with the majority of the investments to be in Malaysia.

— BERNAMA