Global Oil and Gas Production and Consumption Despite the industry’s transition towards renewable energy sources, global oil production remains robust, with major producers such as the United States, Saudi Arabia, and Russia maintaining significant output levels. This underscores the ongoing importance of traditional oil and gas operations alongside emerging energy trends. Furthermore, while there is a growing focus on renewable energy sources, such as wind, solar, and biofuels, oil and gas continue to play a vital role in meeting global energy demand, particularly in sectors such as transportation, petrochemicals, and power generation. As such, our businesses remains well-positioned to capitalise on opportunities arising from both conventional and renewable energy segments, ensuring a diversified portfolio and sustained growth trajectory. Investment and Financial Outlook of the Industry The industry’s investment landscape remains positive, with the upstream sector expected to sustain its USD 528.0 billion investment level from 2023. Additionally, total revenues for oil and gas drilling reached approximately USD 4.3 trillion in 2023, indicating a favorable financial outlook. Despite economic uncertainties and fluctuations in commodity prices, strategic investments in exploration and production activities, technology adoption, and sustainability initiatives are expected to drive long-term growth and resilience in the industry. Our energy services division is poised to benefit from these investment trends, with opportunities for project partnerships, capacity expansion, and market diversification on the horizon. Conclusion The outlook for our business is promising, driven by favorable market dynamics marked by a surging demand for pipeline coating solutions and engineering and fabrication services. Leveraging our extensive expertise, we are strategically positioned to capitalise on the industry’s ongoing evolution while actively contributing to its sustainable future. In line with these advancements, our coating facilities have undergone significant upgrades to further augment their capabilities and offerings. In Qatar, our coating facility has successfully commissioned an anti-corrosion plant, significantly enhancing our capacity to provide top-tier corrosion protection solutions to our esteemed clients. Similarly, our United Kingdom (“UK”) facility has embarked on an expansion journey, modernising its equipment to better cater to our clients’ diverse requirements. As part of this expansion initiative, we are excited to announce our additional offering of concrete coating services in the UK following the installation of a concrete wrap plant. Anticipated to be fully operational by the second quarter of 2024, this new addition will enable us to broaden our portfolio of coating solutions, allowing us to better address the evolving needs of our valued clients. Our Batam yard, acquired at the end of 2022, has undergone extensive refurbishment to bolster its infrastructure and operational capacities significantly. Key upgrades include the refurbishment of existing buildings within the yard and the expansion of workshop capacities for structural work, non-destructive testing (“NDT”), and painting services. Additionally, the yard upgrade features a newly constructed jetty boasting a 300-meter Jetty Quay Length and an impressive loadout capacity of 10,000 tons. This state-of-the-art jetty is poised to facilitate efficient module loadout and transportation via oceangoing vessels, ensuring seamless operations and optimising logistics management. Chairman and Managing Director/ Group CEO’s Statement 35 Wasco Berhad
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