WASCO BERHAD 28 VALUE CREATION MODEL F FINANCIAL CAPITAL Trade-Offs Balancing profitability with strategic investments: While we continue investing in yard expansion and building additional capacity and services, these require significant upfront capital, which may temporarily impact net margins. Debt management vs. growth strategy: Maintaining a Debt/EBITDA ratio of less than 3 provides the necessary capital for expansion but requires effective risk mitigation and interest cost management. Achievements • Revenue Growth: Achieved a 11.9% year-on-year increase in adjusted revenue, reaching RM2.9 billion in FY2024, up from RM2.6 billion in FY2023. • Profitability: Recorded a PATMI of RM153.0 million, marking a 41.2% increase from RM108.4 million in the previous year. • Earnings Per Share (“EPS”): Improved EPS to 19.77 sen, compared to 14.00 sen in FY2023. • Dividend Declaration: Announced an interim dividend of 2 sen per share for the financial year ended 31 December 2024, paid on 3 April 2025, reflecting our commitment to delivering shareholder value. • STFF: Launched the first-ever framework in ASEAN, underscoring our commitment to sustainable financing and supporting projects aligned with environmental and ESG principles. • Debt/EBITDA ratio: Maintain a healthy ratio of less than 3, ensuring financial stability while supporting growth initiatives. 2024 Focus • Optimise capital allocation to prioritise high-growth areas. • Strengthen working capital management to support the successful execution of large-scale EPC projects. • Sustain shareholder value creation through disciplined capital management, including dividend declarations, while maintaining financial resilience. Our Approach Wasco’s financial strategy focuses on maintaining stability while actively pursuing long-term growth opportunities. Our RM2.5 billion order book reflects strong market demand, and we adopt a disciplined approach to capital allocation, investment prioritisation, and cost efficiency. We manage financial risk by ensuring our Debt/ EBITDA ratio remains less than 3, providing the needed flexibility for business expansion.
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