22 WASCO BERHAD SECTION 2 KEY MESSAGES DEAR VALUED SHAREHOLDERS, FY2025 was characterised by resilient earnings and disciplined capital management, driven by improved operational execution and enhancements to the Group’s capital structure both from operational excellence and the listing of Wasco Greenergy on the Main Market of Bursa Malaysia. Amid evolving geopolitical dynamics and selective global capital deployment across the energy sector, the Group delivered record profitability while materially strengthening its balance sheet and expanding regional execution capabilities. These outcomes reflect the Group’s continued focus on margin discipline, cost optimisation, and prudent capital allocation, thereby reinforcing the financial foundation that supports our long-term growth strategy. CHIEF FINANCIAL OFFICER’S REVIEW FINANCIAL PERFORMANCE Reflecting project phasing across key markets, the Group recorded revenue of RM2.6 billion in FY2025 compared with RM3.2 billion in FY2024. Despite the lower revenue base, earnings quality improved through disciplined project selection and margin management, with Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) margin expanding to 13% (FY2024: 11%). PATMI increased 5% year-on-year to RM160.5 million, marking the highest PATMI recorded by the Group, while Profit Before Tax (“PBT”) reached RM198.1 million. This performance reflects disciplined margin management, cost control, and improved project execution across the Group. OPERATIONAL EFFICIENCY Operational efficiency remained resilient during the year, as reflected in the following return metrics: Metric FY2025 FY2024 Return on Capital Employed (“ROCE”) 15% 21% Return on Equity (“ROE”) 15% 18% Return on Total Assets (“ROTA”) 9% 9% Return metrics moderated compared with FY2024, primarily due to the expansion of the Group’s capital base. Capital and reserves attributable to the owners of the Company increased from RM842.8 million in FY2024 to RM1.0 billion in FY2025, reflecting an increase of 23%. The Group continues to generate healthy returns, supported by disciplined capital deployment and operational execution. This demonstrates the Group’s ability to deliver sustained earnings from its expanded platform.
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