Dear Shareholders,
On behalf of the Board of Directors, it gives us great pleasure to
present the annual review of Wah Seong Corporation Berhad (“WSC” or
“the Company”) and its subsidiaries’ (“the Group”) performance for the
financial year ended 31 December 2014.
chan cheu leong
Managing Director/Group
Chief Executive Officer
Dato’ Seri Robert
Tan Chung Meng
Non-Independent
Non-Executive Chairman
OVERALL LANDSCAPE
Financial year 2014 was a favourable year with WSC harnessing opportunities it came across. Anchored by a strong
order book at the beginning of the year, the Group managed to deliver commendable results for the financial year
2014. Our commitment to our core values and the measures taken over the last few years in three important areas;
strengthening our balance sheet, enhancing efficiency across our businesses and managing our costs prudently,
had also contributed positively to this performance.
As anticipated, we achieved strong growth in our core business segments. We are committed to improving these
segments further by proactively managing any temporary setbacks arising from market volatility. The Group’s
strong values, track record and order book enabled it to weather the slowdown that crept in during the final quarter
of the year, where the world saw oil prices falling to its lowest level in recent history. The on-going volatility of
oil prices has resulted in Oil & Gas (“O&G”) companies announcing budget cuts in their operating and capital
expenditure and this will have some impact on the Group for financial year 2015.
During the year, the Group successfully executed the North Malay Basin Project for Petronas Carigali Sdn Bhd
(“PCSB”) and substantial portion of the Polarled Project for Statoil, Norway.
FINANCIAL HIGHLIGHTS
For the financial year under review, the Group posted a revenue of RM2.4 billion, an increase of 37% as compared
with RM1.8 billion in financial year 2013, essentially driven by the higher number of projects secured and executed
in the financial year 2014. Propelled by this strong revenue growth, the Group’s net profit attributable to the owners
of the Company rose 289% to RM125.6 million from
RM32.3 million, driven by a robust performance from
the O&G and Renewable Energy (“RE”) Divisions. The
Group had an order book of RM1.2 billion, comprising
RM696.1 million for the O&G Division, RM280.5 million
for RE Division and RM209.2 million for Industrial
Trading & Services (“ITS”) Division.
OIL AND GAS DIVISION
The Group achieved numerous milestones during the
financial year 2014 in the O&G Divison. The Group’s
O&G Division under the brand name Wasco, recorded
revenue of RM1.4 billion and segment profit before
taxation of RM187.5 million, exceeding previous year’s
performance by 92% and 361% respectively. This
was a record-breaking year for Wasco in terms of net
profit attributable to owners of the Company where
for the first time it exceeded RM100 million with a
contribution of RM103.5 million. Wasco continues to
leverage on its strengths, riding on the momentum set
in the previous years.
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Wah Seong Corporation Berhad • Annual Report 2014
