42 WASCO BERHAD SECTION 3 VALUE CREATION KEY MARKET TRENDS KEY MARKET TRENDS, IMPACTS, AND OUR RESPONSE In 2025, the global energy market did not simply create opportunity – it tested the credibility of strategic choices made in prior years. For Wasco, that test produced meaningful validation. Engineering & Fabrication crossed a critical threshold to become the largest revenue contributor within the Energy Division, the Group closed the year with a net cash position for the first time, PATMI of RM160.5 million exceeded the previous year’s record, and Wasco Greenergy was listed on 11 December 2025 – completing the transformation of Bioenergy from a supporting business into an independently capitalised growth platform. Energy Transition and Green projects now represent 51% of our order book, up from just 22% at the start of the year. These outcomes did not occur despite market conditions, but because of how Wasco strategically positioned itself within them. Below are the six key trends that shaped our markets in 2025, the impacts they created, and how Wasco responded to them. ¹ Source: IEF & S&P Global Commodity Insights, Upstream Oil and Gas Investment Outlook, June 2024. Available at: www.ief.org SUSTAINED GLOBAL OIL & GAS CAPITAL EXPENDITURE UPCYCLE The upstream oil and gas investment cycle remained on a structurally upward trajectory in 2025. According to the International Energy Forum (“IEF”) and S&P Global Commodity Insights, a cumulative USD4.3 trillion in upstream investment will be required between 2025 and 2030, with annual capex needing to rise to USD738.0 billion by 2030 – a 22% increase from current levels – to meet growing demand and prevent production shortfalls.¹ Years of prior underinvestment, sustained energy demand, and continued commitment by international oil companies (“IOC”) and national oil companies (“NOC”) to long-cycle project sanctioning drove accelerating Final Investment Decision (“FID”) activity, particularly across deepwater, LNG, and unconventional plays in West Africa, the Middle East, and Southeast Asia. This upcycle did not translate uniformly into revenue timing across the industry. Project mix and phasing effects meant that some activity sanctioned in 2024 and 2025 will flow into execution in 2026 and beyond, a dynamic that is reflected in Wasco’s RM2.8 billion closing order book as at 31 December 2025. This represents the strongest year-end order book position with which the Group has closed a financial year. • Opening the financial year with an order book of RM2.5 billion, the Group secured approximately RM2.9 billion in new projects and variation orders across FY2025. • Following RM2.6 billion of project execution during the financial year, the order book closed at RM2.8 billion, underscoring sustained market demand and the Group’s consistent execution capability. • Active in key project corridors across the Middle East, Europe, Southeast Asia, and West Africa, with projects spanning FPSO, modular fabrication, LNG infrastructure, and pipeline coating in simultaneous execution. These developments position the Group to participate in the sustained global upstream investment cycle while maintaining strong order book visibility into 2026. Market Impact: Wasco’s Responses: 1
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