KUALA LUMPUR (May 19): Wasco Bhd (KL:WASCO) posted a 68.78% fall in first-quarter net profit, as the West Asia conflict disrupted supply chains and delayed execution of awarded projects within its energy services segment.

Net profit for the three months ended March 31, 2026 (1QFY2026) stood at RM11.01 million, from RM35.44 million a year ago, according to the group’s bourse filing on Tuesday.  

Revenue dropped 37.27% to RM451.24 million from RM719.29 million on lower contributions from the energy services and bioenergy services segments.

This is Wasco's worst quarterly earnings performance since 4QFY2021, when it reported a net loss of RM112.08 million. As for revenue, this is the lowest since 3QFY2021, when the company reported RM303.8 million.

No dividend was declared for the quarter.

The energy services segment — Wasco’s largest earnings contributor — was hit by deferred project execution arising from supply chain disruptions linked to the conflict in West Asia, the company said.

The segment's revenue fell 39.6% to RM396.8 million from RM657.3 million in 1QFY2025, while profit before tax more than halved to RM22.9 million from RM50.4 million.

The bionergy services segment’s revenue fell 11.4% to RM54.4 million from RM61.4 million, with profit before tax down 25.4% to RM5 million from RM6.7 million.

Wasco attributed the weaker performance for the bioenergy service segment to a lower number of steam turbine generating systems delivered and less after-sales activities.

As at March 31, Wasco’s secured order book stood at RM2.6 billion, of which 57% is related to energy transition and green energy projects.

Managing director and group chief executive officer Gian Carlo Maccagno said the company’s underlying fundamentals and long-term growth strategy remained intact.

“The need for reliable and well-executed infrastructure remains fundamental to both energy security and the transition towards lower-emission energy systems. These opportunities are underpinned by capabilities the group has built with discipline over time across engineering, fabrication, coating, and energy infrastructure delivery,” said Maccagno.

Wasco’s share price ended unchanged at RM1.09 on Tuesday, giving the company a market capitalisation of RM852 million.