50 WASCO BERHAD SECTION 3 VALUE CREATION KEY MARKET TRENDS OUR RESPONSES ARE STRATEGIC, ACTIONABLE, AND IMPACT-DRIVEN 2025 demonstrated that Wasco’s strategic choices to position Engineering & Fabrication into the dominant segment, to position for the energy transition, to strengthen the balance sheet, and to create an independent platform for Bioenergy were not aspirational. They were executable, and they were executed. PATMI grew to a record RM160.5 million, core profit exceeded analyst consensus, the Group achieved a net cash position, and 51% of the order book is now represented by Energy Transition and Green projects. These results provide the foundation from which the Group enters 2026. The structural trends that shaped 2025 – EPC and modular fabrication demand, global pipeline infrastructure investment, biomass power adoption, energy transition capital flows, and geopolitically driven supply chain reconfiguration – are durable and multi-year in nature. Wasco is not only aligned with these structural forces; it has also demonstrated its ability to translate that alignment into results. As we look ahead, we see strong, evidence-based prospects in the following areas: • Engineering & Fabrication scale – with a record forward order book, including active projects across the Middle East, West Africa, Europe, and Southeast Asia, the 2026 execution pipeline is the strongest in the Group’s history. • Pipeline Services continuity – sustained GCC NOC capex, new project wins and growing CCS and energy transition coating scopes support a constructive outlook for the segment in 2026. • Wasco Greenergy growth – now independently listed since December 2025, the Bioenergy division enters 2026 with direct access to capital markets, a growing installed base of now approaching 1,800 turbine units, and a strengthening service revenue base. • Financial strength as a strategic asset – the Group’s net cash position entering 2026 is not merely a balance sheet metric; it is a competitive differentiator that enables disciplined investment, resilience through geopolitical volatility, and the credibility to undertake larger project commitments. • Geopolitical resilience through diversification – with active projects across multiple regions and a RM2.8 billion order book providing earnings visibility, Wasco is positioned to manage Middle East conflict-related risks from a position of strength rather than vulnerability. Wasco is not merely responding to change. We are a demonstrably transformed business, and the work now is to compound that transformation into sustained, long-term value creation for shareholders and all stakeholders. REFERENCES AND SOURCES ¹ International Energy Forum (IEF) & S&P Global Commodity Insights, Upstream Oil and Gas Investment Outlook, June 2024. Available at: www.ief.org ² Global Industry Analysts Inc./Research and Markets, Oil Gas Pipeline Fabrication and Construction – Global Strategic Business Report, September 2025. Available at: www.researchandmarkets.com ³ Global Growth Insights, Pipe Coatings Market Trends & Forecast 2026–2035, 2025. Available at: www.globalgrowthinsights.com 4 GlobalData via Offshore Technology, Global Top Five Upcoming Oil and Gas Pipelines, August 2024. Available at: www.offshore-technology.com 5 Grand View Research, Southeast Asia Biomass Market Size & Share Report, 2024. Available at: www.grandviewresearch.com 6 Global CCS Institute, Global Status of CCS 2025: Staying the Course, October 2025. Available at: www.globalccsinstitute.com International Energy Agency (IEA), CCUS Projects Database Update, Q1 2025. Available at: www.iea.org 7 DNV, Energy Transition Outlook: CCS to 2050, 2025. Available at: www.dnv.com 8 World Bank, Gulf Economic Update, June 2025. Available at: www.worldbank.org Oxford Economics / Arab News, GCC Economies Outlook for 2026, December 2025. Available at: www.arabnews.com
RkJQdWJsaXNoZXIy NDgzMzc=