During the year, the Engineering business unit also expanded its Batam operations yard capacity by more than double to 30 hectares due to the growing demand for its fabrication and EPC services. The new yard has a deep waterfront, capable of accommodating large ocean-going vessels. This strategic move is envisaged to strengthen its position in the market and will enable the fabrication of multiple large-scale projects simultaneously, setting a significant competitive advantage in the industry. The Engineering business unit also delivered few of its many first milestone projects in 2022. Its Dubai facility in the United Arab Emirates successfully delivered its largest EPC fabrication project of a Mobile Offshore Production Unit (MOPU) MaBoMo. During the year, the Engineering business unit also delivered its first onshore substation for a solar farm in Taiwan, marking the debut and expansion of its customer base in the renewable energy industry. WASCO Australia also recorded a significant milestone in 2022, with the execution of its hydrogen projects. During the year, work commenced for the South Australia Hydrogen and Bess Project. In addition, WASCO Australia also completed FEED for Lion Energy’s first hydrogen and refueling station in SE Queensland. These projects are aligned with Wasco’s vision to pivot towards sustainability related projects and become a solutions provider for this growing renewable and clean energy industry. Discussion on Key Financial and Operational Indicators for the segment In 2022, WASCO generated a revenue of RM1.70 billion and a profit before taxation of RM43.96 million. The result in the period was impacted by one-off adjustments. Excluding the one-off adjustments, the segment delivered a profit before tax of RM113.86 million for financial year ended 31 December 2022 from operations. This improvement in operational results arose from higher revenue contribution in the periods under review on the back of a strong order book. At present, the segment has an order book of approximately RM2.98 billion compared with RM2.36 billion which represents a 27% growth in the previous year. There has been a consistent growth in the order book for both the Pipeline and Engineering Business Units. This is expected to have a positive contribution to the segments results in 2023 and beyond. To date, WASCO has recorded 56,276,184 Manhours without Loss Time Injury (‘LTI’). WASCO’s Health, Safety, and Environment (HSE) performance was commendable, with a Total Recordable Incident Frequency of 0.58, far below the industry average of 0.77. The Management commitment and discipline to HSE was further demonstrated through the active tracking of 14 leading and 18 lagging Key Performance Indicators (KPIs) across all sites. WASCO is committed to promoting a strong safety culture through various programs and initiatives that prioritize the well-being of employees and partners, environmental protection, and sustainable growth. These programs are further discussed in the Sustainability Statement section of the Annual Report on page 10. MANAGEMENT DISCUSSION AND ANALYSIS Annual Report 2022 Wah Seong Corporation Berhad 39
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