MANAGEMENT DISCUSSION AND ANALYSIS Discussion on Key Financial Performance In 2022, the Group generated a revenue of RM2.69 billion, an increase of RM1.26 billion compared to previous year. The significant increase in revenue was mainly due to higher level of activity in 2022 at most of our locations worldwide. This has also contributed to an improvement in the Group’s EBITDA of RM216.53 million, an increase of RM144.18 million compared to previous year. The Group has a current order book of RM3.44 billion compared with RM2.71 billion in the previous year, an increase of 26.94%. This comprises of RM2.98 billion in the Energy Solutions Services segment, RM419.14 million in the Renewable Energy segment, and RM40.08 million in the Industrial Trading & Services segment. In 2023-2024, the Group is also looking at securing close to RM2b- RM3b in job wins, a testament to the Group’s robust business strategy and ability to secure projects in a competitive market. In-line with the disclosure of business segments in the financial statements and the discussion and analysis presented in the previous years, factors affecting the Group’s performance and risk will be deliberated by segments. ENERGY SOLUTIONS SERVICES (‘WASCO’) Discussion of strategies, operational capabilities to achieve the desired business objectives and results During the year, WASCO’s earnings were driven by projects successfully delivered by the pipeline and engineering business units. In 2022, our operations for pipe coating, pipe manufacturing, and engineering fabrication yard showed remarkable progress as they approached the level of activities during the pre-pandemic levels with the opening up of new markets. A notable highlight in 2022 for the Pipeline business unit, was the award of a contract by the East African Crude Oil Pipeline (EACOP) Limited for the provision of line pipe thermal insulation services for the East African crude oil pipeline project and feeder line, located between the town of Kabaale in Uganda and the port of Tanga in Tanzania. The project is progressing and is expected to be completed in 2024. In July 2022, the Pipeline business unit also saw the restart of its Bayou-Wasco Insulation pipe coating plant in New Iberia, Louisiana. The Bayou-Wasco plant provides customers with both Glass Syntactic Polyurethane (“GSPU”) and Glass Syntactic Polypropylene (“GSPP” or 5LPP) insulation services. The demand and changes in the competitive landscape for subsea flow assurance became a catalyst for the restarting of the plant that is expected to be ready to secure projects in FY2023. The Engineering business unit began 2022 with a strong order backlog and completed ten projects throughout the year. All these projects were delivered to the highest quality standards, within budget, and on time, showcasing the strong execution capabilities of the division even amidst global supply chain disruptions. In the face of global supply disruptions and China’s stringent pandemic restrictions, coupled with challenges, the Engineering business unit has positioned itself as a dependable and sizeable fabricator with complete EPC capabilities. As a result, the Engineering business unit received a growing number of inquiries for its services and has secured a strong order pipeline of new projects in 2022. Wah Seong Corporation Berhad Annual Report 2022 38
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