Wasco Berhad’s (Wasco) registered 40.1% rise year-on-year (YoY) in profit after tax and minority interest (Patami) reaching RM27.4 million for the third quarter ended 30 September 2023 (Q3 FY2023).
The energy solutions provider also posted profit after tax (PAT) growth of 41.3%, totaling RM35.4 million and 75% surge in profit Before Tax (PBT) to RM48.6 million.
The strong performance was supported by robust revenue of RM784 million respectively, marking a 12.6% increase in revenue and a substantial surge in PBT compared to the corresponding quarter last year.
“This growth was primarily attributed to the successful execution of projects in the existing order book, it said in a statement today (Nov 28).
The additional project wins in Q3 FY2023 propelled the group’s order book, inclusive of RM3.3 billion in the Energy Services segment, RM277.1 million in the Bioenergy Services segment, and RM42.2 million in the Trading segment, to a significant 22% surge, reaching RM3.62 billion.
“This robust order book strategically positions Wasco for future quarters. Opportunities in Carbon Capture Pipeline Projects globally are estimated to be worth close to RM4.6 billion in the next three to five years.
“Recently, the group secured its first Carbon Capture Project in Europe, valued at RM63 million, which will be executed at their plants in Greece and the United Kingdom,” it said.
In addition, the group announced that its Engineering and Fabrication division, under its Energy Services segment, secured a contract to supply pre-fabricated buildings to Schneider Electric France, worth RM162 million, for a project in East Africa.
“The recent surge in orders showcases Wasco’s global reach and its expansion of solutions to include energy transitioning projects,” it added.
For the cumulative nine months (9M FY2023), the group said revenue and PBT stood at RM2.1 billion and RM137.5 million, respectively, reflecting a growth of 11.0% and 12.1% from the cumulative nine months in FY2022 (9M FY2022).
Net profit for 9M FY2023 stood at RM97.8 million, a significant increase from the previous year’s RM85.5 million.
Wasco’s balance sheet continues to improve with net assets per share at RM1.00 and a net gearing ratio of 0.85x. Return on equity improved to 11.3% as of 9M FY2023, highlighting the group’s financial strength.
Its managing director and group chief executive officer Giancarlo Maccagno said the group’s improved financial performance is a direct result of strong demand for its products and services, coupled with enhancements in our operational efficiencies.
“Our commitment to sustainability is fundamental in this journey, enabling us to effectively capitalize on emerging opportunities and advance our strategic objectives,” he said.
Wasco’s commitment to sustainability includes goals such as achieving netzero emissions for both Scope 1 and Scope 2 by 2026, increasing the energy mix from renewable sources, planting 160,000 trees across 100 hectares, and enhancing the percentage of recycled and harvested water in its operations.
In line with the accomplishment, Giancarlo said the group has strategically divested assets, including the recent sale of a non-core asset valued at RM40 million, with further divestments planned.
“These strategic moves are aimed at reorienting our focus on our core businesses, ensuring sustainable growth,” he added.
