KUALA LUMPUR: Wasco Bhd has reported a significant rise in its order book, which has grown from RM3.2 billion to RM3.7 billion in the second quarter of financial year 2024 (2Q FY2024) due to its acquisition of substantial contracts, said Public Investment Bank Bhd.

In a note, the investment bank said the management of the energy infrastructure group expects its order book to expand further in the second half (2H FY2024) as key projects such as the North Field Expansion (NFXP) project and Yinson Agogo are slated for completion.

This will free up resources, allowing Wasco to take on new contracts and sustain its growth momentum.

"We believe its order book will remain above RM3.0 billion, backed by a RM7.2 billion tender book, amid various projects in the pipeline from the countries where it is operating, driven by energy security due to increasing geopolitical risks.

"We also foresee the emergence of Petroleum Sarawak Bhd in the local industry landscape posing minimal risk to Wasco, given its global operations and the fact that less than 10 per cent of its revenue is contributed by local clients," it said.

Meanwhile, Hong Leong Investment Bank (HLIB) said Wasco managed to replenish its order book by a commendable RM1.1 billion in 2Q FY2024, mainly comprising a RM700 million sub-station project in the Middle East.

As a result, its outstanding order book was higher at RM3.7 billion as of June 2024, up from RM3.2 billion as of March 2024, paving the way for sequential earnings growth in the coming quarters.