Wasco Berhad Q1 2025 Latest Quarterly Report Analysis

Ever wondered how a company navigates global economic shifts while expanding its strategic footprint? Wasco Berhad, a leading integrated energy infrastructure solutions provider, recently unveiled its financial results for the first quarter ended 31 March 2025 (Q1 FY2025). The report paints a picture of steady operational performance complemented by ambitious strategic moves, particularly its expansion into the Middle East with a new fabrication yard in the UAE.

This report highlights Wasco’s resilience and forward-looking approach, demonstrating revenue growth and a commitment to sustainable practices. Let’s dive into the key figures and strategic insights that define Wasco’s start to FY2025.

Q1 FY2025: A Look at the Numbers

Wasco Berhad has kicked off FY2025 with a notable increase in revenue, signaling robust project execution activities. However, a closer look at profitability reveals the impact of a one-off gain in the previous year’s corresponding period, which makes direct comparisons tricky without normalization.

Overall Financial Performance

Q1 FY2025

Revenue: RM719.3 million

Profit Before Tax (PBT): RM46.4 million

Net Profit: RM35.7 million

Profit After Tax and Minority Interest (PATMI): RM35.4 million

Q1 FY2024 (for comparison)

Revenue: RM643.9 million

Profit Before Tax (PBT): RM83.3 million

Net Profit: (Not explicitly stated, but derived from PATMI/PBT)

Profit After Tax and Minority Interest (PATMI): (Not explicitly stated for PATMI, but PBT was RM83.3 million)

Revenue for Q1 FY2025 saw an impressive 11.7% increase to RM719.3 million, compared to RM643.9 million in the same period last year. While Profit Before Tax (PBT) and net profit stood at RM46.4 million and RM35.7 million respectively, it’s important to note that Q1 FY2024’s PBT of RM83.3 million included a significant one-off net gain of RM23.7 million from the sale of an asset. Excluding this one-off gain, Wasco’s normalised profitability for Q1 FY2025 remained relatively flat, reflecting the timing of project mobilization and ongoing strategic investments.

Segmental Performance: A Deeper Dive

Understanding the performance of Wasco’s individual business segments provides a clearer picture of its operational strengths and challenges.

Energy Services

Q1 FY2025

External Revenue: RM657.3 million

PBT: RM50.4 million

Q1 FY2024 (for comparison)

External Revenue: RM592.3 million

PBT: RM83.3 million

The Energy Services segment recorded a healthy external revenue of RM657.3 million, up from RM592.3 million in the same period last year, driven by increased project execution activities. However, its PBT declined to RM50.4 million from RM83.3 million. This was primarily due to lower-margin contracts and weaker performance from its associates and joint ventures, indicating a shift in project mix or competitive pricing pressures.

Bioenergy Services

Q1 FY2025

External Revenue: RM61.4 million

PBT: RM6.7 million

Q1 FY2024 (for comparison)

External Revenue: RM51.6 million

PBT: RM34.0 million

The Bioenergy Services segment also saw an increase in external revenue, reaching RM61.4 million compared to RM51.6 million in Q1 FY2024. Its PBT, however, decreased to RM6.7 million from RM34.0 million. This significant drop is largely attributable to a substantial one-off gain of RM30.5 million in the previous year from the disposal of assets. When this one-off factor is excluded, the segment’s operational profit for the current quarter actually shows improvement, driven by better margins on product sales.

Strategic Expansion and Future Prospects

Beyond the numbers, Wasco is actively shaping its future through strategic investments and a robust project pipeline. A key highlight this quarter was the launch of a new 25,000-square-metre fabrication yard in the Jebel Ali Free Zone (JAFZA) in the UAE. This facility is crucial for expanding the Group’s modular engineering and fabrication capabilities, bringing its solutions closer to major energy hubs in the Middle East.

“This expansion is a natural step in bringing our solutions closer to key energy hubs,” commented Gian Carlo Maccagno, Group Chief Executive Officer of Wasco Berhad. “It enhances our regional reach and strengthens our ability to meet rising demand for modular infrastructure across oil & gas, renewables, and industrial sectors.”

Despite global economic uncertainties, including geopolitical risks and policy shifts, Wasco has remained largely insulated. However, client sentiment has become more cautious, leading to longer decision cycles for project awards. In response, Wasco is doubling down on its transformation agenda, focusing on balance sheet strength, operational excellence, and long-term sustainable growth.

Order Book and Project Wins

Wasco’s secured order book stands strong at RM2.4 billion, comprising RM2.1 billion in Energy Services and RM284.2 million in Bioenergy Services. The Group also boasts an active tender pipeline exceeding RM10 billion, with additional contract awards anticipated in the second half of FY2025.

Recent project wins underscore Wasco’s diverse capabilities and global reach:

Division Key Project Wins in Q1 FY2025
Energy Services
  • Major Engineering, Procurement and Construction (EPC) contract for modular process units and equipment for a refinery upgrade in the United States.
  • Strategically significant award for a gas expansion development in Qatar, covering advanced anti-corrosion and insulation coatings for subsea pipelines.
  • Commissioning services for a Floating Production, Storage and Offloading (FPSO) development in Brazil.
  • Front End Engineering Design (FEED) contracts for hydrogen and ammonia infrastructure in North Africa.
  • FPSO redevelopment project in Malaysia.
  • Supply of pressure vessels for a petrochemical facility in Egypt.
Bioenergy Services
  • Engineering, Procurement, Construction and Commissioning (EPCC) contract for a 70-tonne-per-hour biomass steam utility plant in Johor. This project will utilize empty fruit bunch (EFB) biomass, aiming to displace conventional diesel and gas usage and reduce over 75,000 tonnes of CO₂e emissions annually. It incorporates Wasco’s proprietary WD-series steam boiler technology.

Sustainability and Shareholder Returns

Wasco’s commitment to sustainability continues to gain momentum. FY2024 was a record year with RM3.2 billion revenue and RM153.0 million PATMI. The Group also announced a 2 sen dividend per share, its first since FY2020, reflecting a positive return to shareholders.

The company made significant strides in its Environmental, Social, and Governance (ESG) commitments, launching ASEAN’s first Sustainable & Transition Finance Framework and securing a USD25 million sustainability-linked loan. Its efforts in FY2024 included investing in community initiatives benefiting nearly 12,000 individuals, increasing renewable energy reliance to 27%, and raising its FTSE ESG rating to 4.1, earning it two Silver awards at The Edge ESG Awards 2024.

Summary and Outlook

Wasco Berhad has demonstrated a steady start to FY2025, marked by healthy revenue growth and strategic expansion into key regions like the Middle East. While profitability comparisons require careful consideration due to one-off gains in the prior year, the underlying operational performance of its segments appears stable or improving when normalized. The

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