Bernama

05 Jun 2024, 08:39 PM

The group is expected to deliver better profits and revenue from its pipe coating, engineering, and bioenergy segments.

Wasco Bhd’s net profit for Q1 2024 rose 162% to RM57 million, driven by higher revenue recognition from increased project executions.

Wasco Bhd announced its optimism about 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 RM3.2 billion as well as a tender book of RM7.25 billion.

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

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

Maccagno said Wasco’s strategic market position delivers unrivalled competitive advantage to capitalise on all market sectors.

“The long-term development of global hydrogen infrastructure also positions the group for a sustainable future within new energy markets,” he said.

On the positive outlook, Maccagno noted that the pipe coating market is projected to grow from US$8.3 billion (RM38.99 billion) in 2021 to US$10.6 billion (RM 49.79 billion) by 2027, with a compound annual growth rate (CAGR) of 6.8%.

Meanwhile, he said the global oil and gas trunk line network, currently spanning 2.15 million kilometres (km), is expected to expand by over 5% by 2027.

“Additionally, nearly 5,000km 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’.

Recognising the importance of green stocks, Wasco said it is committed to contributing to the sustainable energy sector and aims to achieve net zero for Scope 1 and 2 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 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 (Q1 2024) rose 162% to RM57 million from RM21.76 million in the same quarter a year ago, driven by higher revenue recognition due to a higher number of executed projects. Its revenue improved to RM643.94 million, marking a 21.1% year-on-year increase.

Meanwhile, Retirement Fund Inc (KWAP) chief investment officer Hazman Hilmi said the newly launched ‘Dana Pemacu’ aims 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 the supply of capital in this region as well as opportunities,” he said during the panel discussion session – ‘Unlocking the Value of Green Stocks’.

KWAP said it plans to create 12 funds under ‘Dana Pemacu’, with four funds each in the private equity, infrastructure, and real estate asset classes.

It said the majority of the investments are expected to be in Malaysia.