21 INTEGRATED ANNUAL REPORT 2024 Overview of Wasco Berhad Key Messages Value Creation Commitment to Governance Sustainability Journey Financial Statements Other Information CHIEF FINANCIAL OFFICER’S REVIEW Over the five-year period, the Group’s profitability also underwent a significant turnaround. In FY2024, the Group recorded a Profit Before Taxation (“PBT”) and PATMI of RM221.1 million and RM153.0 million, respectively, a testament to our resilience and effective business strategies, as we increased our exposure into other areas within the energy sector. Energy Services Our Energy Services division achieved strong growth, with revenue increasing 12.6% to RM2.6 billion from RM2.3 billion in FY2023, driven by a surge in project activities. Key milestones for our Pipeline Services unit include the completion of 570 kilometres of pipeline coating for Qatar’s North Field Expansion Project and 139 kilometres of coated pipelines for Malaysia’s Kasawari CCS Project, supporting national decarbonisation efforts. Additionally, 220 kilometres of pipelines were coated for the Rosmari-Marjoram Project, enhancing regional gas production. Our Engineering & Fabrication Services unit reached a significant milestone with the 300th module loadout from Batam, successfully delivering ahead of schedule for the Angola FPSO project. Additionally, some notable projects secured by our Engineering & Fabrication Services unit include a substation project in the Middle East, Engineering, Procurement, Construction and Commissioning (“EPCC”) for power generation assets in Australia, and EPCC and maintenance of gas compression units in Indonesia. All of this further bolster the Group’s market expansion strategy and strengthens its position as a trusted industry leader. Bioenergy Services Our Bioenergy Services division recorded revenue of RM276.7 million, a slight decline from the previous year due to softer demand. This is in line with the natural plantation cycle, which had followed an exceptional year in 2023. Despite this, the division remains resilient, with contributions from after-sales services growing from 28% to 34% in 2024. To date, it has successfully sold a total of 1,764 turbine units, unlocking significant opportunities for growth through its expanding aftersales services. Additionally, it is worth noting that the division is also looking to strategically invest in the growing industrial boiler segment to support corporate decarbonisation efforts and capitalise on the industrial sector’s gradual transition toward cleaner energy solutions. Cost Management & Financial Efficiency As mentioned, the Group had recorded, excluding the trading business, an adjusted revenue of RM2.9 billion in FY2024, an increase of 11.9% from the prior year. Nonetheless, the increase in revenue did not directly align with the percentage increase in PBT, largely due to the net one-off charges totalling approximately RM29.1 million for the fiscal year. Excluding these, the Group would have reported a PBT of RM250.2 million for FY2024, reflecting robust growth of 14.6%, which was higher compared to the Group’s adjusted revenue. Finance costs saw a more modest decline of only 10.4%, despite total debt reduction by 25.2%. This disparity is primarily attributed to two key factors. Firstly, a significant portion of the Group’s loans are denominated in USD, which carries a higher interest rate. Secondly, loan repayments were made progressively throughout the year. Consequently, the reduction in the Group’s total debt did not translate into a proportional decrease in finance costs.
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