AND ANALYSIS MANAGEMENT DISCUSSION OVERVIEW OF THE GROUP’S BUSINESS AND OPERATIONS, ITS OBJECTIVES AND STRATEGIES The first quarter of 2022 was marked by a turbulent start in global markets due to the war in Ukraine and rampant inflation, as economies around the world emerged from the pandemic. While the COVID-19 pandemic eased, it remained a global concern, and supply-chain issues continued to impact industries worldwide. Amidst these challenges, Brent crude oil temporarily reached USD$140 in early March as markets began to reject Russia’s Urals oil, and several countries banned imports of Russian oil. Supply was already constrained before the war, as OPEC+ members eased supply curbs at a measured pace, and production in major non-OPEC+ countries increased slowly. Notably, Europe sought to reduce its dependence on Russian energy, and as a result, supply disruptions have been mitigated through globally coordinated releases of strategic petroleum reserves, while spare capacity has remained untapped. Despite these challenges, the industry continues to adapt and evolve in response to the dynamic global landscape. In spite of these obstacles in the industry, the Group managed to generate a significant increase of 88% in revenue in 2022. Excluding one-off adjustments, mainly due to Associate and Joint Venture Companies, the Group delivered strong earnings with a healthy operating cash flow. The resilience of the Group in navigating the challenging business environment is evidenced by its performance. As the year 2022 progressed, we observed positive signs of recovery with a number of projects finally being awarded. These developments are positive to driving sustainable growth and profitability to our shareholders. This, together with the increasing new bid activity, contributed to the significant rise in the Group’s order book of RM3.44 billion. We are pleased to report that the Group has ended the financial year of 2022 with one of its highest order book to date, which provides good visibility and outlook for the Group going forward. Annual Report 2022 Wah Seong Corporation Berhad 37
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