Wasco set to expand as 1Q25 revenue increases

The Star

29-05-2025

Wasco Bhd group chief executive officer and executive director Giancarlo Maccagno.
KUALA LUMPUR: Energy solutions provider Wasco Bhd will continue exploring opportunities within the bioenergy sector, underpinned by growing demand for renewable-energy solutions.
Group chief executive officer and executive director Giancarlo Maccagno reaffirmed the group's intentions to continue expanding and exploring vast opportunities presented in the bioenergy industry.
Wasco is currently involved in the development of biomass power plants and steam turbines for plantation companies.
'Bioenergy demand is extremely high at the moment because it is clean energy. In Malaysia and Indonesia, there is an abundance of empty fruit bunches from palm oil that can be turned into energy,' he told the media during a media briefing following Wasco's AGM here, yesterday.
He added that Malaysia offers an 'exciting future' as more companies are shifting their focus from solely solar energy to include biomass as part of their renewable strategies.
This shift, he said, aligns well with Wasco's expertise in delivering full engineering, procurement, construction and commissioning services for biomass facilities.
Maccagno said the group is assessing the potential to move into plant ownership to generate recurring income through long-term energy sales.
However, he emphasised that any such investment would be made only when the conditions are commercially viable.
'We need to lock in both the source and the buyer. If either are missing, the economics don't work. But if all the boxes are ticked, it becomes a very exciting business,' he said.
He added that the group is prepared to proceed when the opportunity is right.
'We are not going to jump straight into it. If the opportunity is not right, we won't do it. But when it is, we are ready,' he added.
Wasco currently operates with two core business divisions, energy and renewable energy, with the latter contributing approximately 15% to the total order book of RM2.4bil.
While energy continues to be the largest revenue contributor, Maccagno said both segments are expected to grow steadily over time.
For the first quarter for the financial year ending Dec 31, 2025, the group recorded a slightly lower net profit of RM35.44mil and a basic earnings per share of 4.58 sen. This was down from RM57mil or 7.36 sen in the same quarter of the previous year.
However, its revenue had increased from RM643.94mil to RM719.29mil.
The energy segment continued to contribute to the group's revenue at RM657.3mil, while its bioenergy segment contributed RM61.4mil. These were up from RM592.3mil and RM51.6mil previously.
Maccagno acknowledged that FY25 may not surpass FY24's record performance, citing some project delays and broader uncertainty in the oil and gas sector.
However, he expressed confidence in the group's outlook, supported by a robust order book and a tender book of RM10bil, adding that strong recovery is expected in FY26 onwards once deferred projects resume.