Over the past year, Wasco has gained 24.5% to close at RM1.27 on Jan 8. While analysts expected slower growth in the local oil and gas sector, they are still positive on the sector.

They have a changed shift to defensive midstream companies and companies with regional exposure and capabilities such as Wasco. The integrated energy group has secured its first sustainability-linked loan of US$25 million (RM112 million) in November 2024.

The loan, established within a Sustainable and Transition Finance Framework, will be utilised to support Wasco’s ongoing capital expenditure projects, particularly at its Batam, Indonesia yard. Additionally, the loan aligns with the company’s commitment to decarbonisation and sustainable growth,

The new framework, designed in accordance with the Asean Taxonomy for Sustainable Finance, outlines eligible transition projects, setting clear guidelines for Wasco’s sustainable initiatives.

These projects, which will be funded through the loan, are part of the company’s broader strategy to decarbonise its operations and support its energy clients in their transition to more sustainable practices.

One of Wasco’s sustainability goals is to achieve net-zero greenhouse gas emissions for Scope 1 and 2 by 2026. Additionally, the company is targeting a 30% reliance on renewable energy by 2024, with an ambition to reach 40% by 2035, based on a 2023 baseline.

This framework is said to future-proofing the company’s operations, giving investors confidence in its livelihood.