Wasco: Execution Delays Cloud Recovery

Repeated peace negotiations and renewed exchanges of fire have yet to restore shipping through the Strait of Hormuz, with traffic remaining below pre-war levels and the recovery taking longer than expected.

Against this backdrop, QatarEnergy has extended force majeure for selected LNG customers into November–December 2026 and highlighted that critical equipment remains unable to reach Qatar, potentially delaying the country’s offshore and pipeline projects.

Wasco

This raises execution risk for Wasco’s regional order book, with part of its Middle East work potentially be delayed to FY27F pending the materials deliveries.

“We therefore assume a more gradual resumption of Qatar operations and lower utilisation at the Qatar facility through at least in 1HFY27F. As such, we cut our core earnings forecasts by 59%/27%/25% for FY26F/FY27F/FY28F, respectively. We maintain our Neutral call with a lower TP of RM0.67 (from RM1.03), derived by pegging FY27F EPS to 5.4x PE, equivalent to 1SD below its 4-years historical mean,” says PIB.

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