Maccagno said Wah Seong is no longer seeking to divest of its entire 26.97% stake in Petra Energy. (Photo by Patrick Goh/The Edge)

KUALA LUMPUR (May 30): Integrated energy infrastructure group Wah Seong Corp Bhd is not seeking consolidation with other oil and gas (O&G) companies, according to incoming managing director (MD) Giancarlo Maccagno.

“No, we are not [looking for any consolidation]. We have been traditionally serving the O&G industry, but today, we operate in a larger segment, not confined to O&G, but in the energy industry. Our order book and concentration of projects mostly from gas and renewables,” Maccagno told reporters after the group’s annual general meeting (AGM) on Tuesday (May 30).

Maccagno will succeed Chan Cheu Leong as the group’s new MD effective July 1. Chan, who will retire at the end of June, will assume the role of non-executive, non-independent director.

According to Maccagno, higher demand for gas, renewables and new energy infrastructure has led to significant contract awards, with Wah Seong reporting a record order book of RM3.5 billion as at March.

The group is actively seizing opportunities related to the sustainability business, such as hydrogen and wind power plants and carbon capture and storage, he said.

Regarding Wah Seong's investment in Petra Energy, Maccagno said the group is no longer seeking to divest of its entire 26.97% stake in the integrated brownfield services provider.

“Two years ago, we were more interested in selling [the stake], due to the tough time caused by the Covid-19 pandemic. But today’s situation has changed. But should there be any proposal [from interested parties] we would consider,” said Maccagno.

In 2021, it was reported that Wah Seong was looking to sell its stake in Petra Energy. Wah Seong acquired the stake in Petra Energy from Perdana Petroleum in 2012 for close to RM97 million or RM1.68 per share.

To divest non-core assets

Meanwhile, Wah Seong plans to divest its non-core assets to streamline its operations and focus on its core competencies, which will ultimately lead to improved overall performance and profitability.

“The non-core assets include an office building in Mid Valley Boulevard, [a parcel of] land in Kampung Pandan and Klang, and an office building in Singapore.

“We want to concentrate on energy. If [the assets are not related] to the energy segment, then the chances for disposal are pretty high,” said Maccagno.

Wah Seong has been in the red in the past three years. For the financial year ended Dec 31, 2022 (FY2022), it narrowed its net loss to RM6.3 million in FY2022 from RM107.48 million a year earlier, as revenue jumped to RM2.69 billion from RM1.43 billion.

For the first quarter ended March 31, 2023 (1QFY2023), its net profit surged to RM21.76 million from RM4.94 million a year earlier — marking its strongest quarterly earnings since 4QFY2020 — as revenue rose to RM639.67 million from RM458.83 million.

Wah Seong received its shareholders’ approval at its AGM on Tuesday to change its name to Wasco Bhd, as part of the group’s transformation plan.

Wah Seong shares finished 1.5 sen or 1.73% higher at 88 sen on Tuesday, translating into a market capitalisation of RM681.9 million. The counter has risen over 37% year-to-date.