Peace be upon you and God's mercy and blessings
On behalf of my fellow board members and myself, I am honored to welcome you at this year’s General Assembly Meeting and to present to you the Seventh Annual Report of the Board of Directors with a brief overview of the main achievements of Qatar Fuel for the fiscal year 2009.
At the global level, 2009 was an extension of the current global economic and financial crisis, whereby the beginning of the year witnessed a sharp and unprecedented fall in oil prices, which dropped to US$ 38 per barrel after peaking at US$ 148 last summer.
Despite indicators of an economic recovery during the second half of 2009, this recovery remains fragile and moving with slow and stumbling steps. This makes it difficult to draw definite conclusions about the upcoming period and the global economic and financial situation.
As far as Qatar is concerned, the impact and reverberations of the global crisis were less severe than other countries. We can confidently say that the impact of this crisis on the State of Qatar has been very limited; and our local economy continued to achieve the positive growth rates we were used to record over the past years. This is due to the adopted economic and financial policies, which were based mainly on the diversification of sources of national income, supporting the national economy, banking and financial sector, and amending and developing laws and legislations that regulate and attract investment. This reflected positively on the protection of the national economy and helped in shielding it from any potential imbalances during the worst period of our global economy.
We can also proudly say that what we have achieved on the domestic level over the past year was due primarily to the wise visions and directives of His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar, and the Heir Apparent Sheikh Tamim Bin Hamad Al-Thani. Based on these visions and directives, Qatar was able, within not more than a decade, to develop from a non-LNG producing state to the largest LNG exporter in the world today. Our exporting capacity at present is 60 million metric tons, and it will increase as of next year 2010 exceeding 77 million tons, which is more than one third of the world consumption of this source of clean energy.
As for the activities of our company and its financial performance for 2009, we have achieved excellent results. I am pleased to present a brief overview of the main achievements of the company and its financial results for the past year. These results are detailed in the annual report of WOQOD.
First: Main Projects
A) Petrol stations:
Three new petrol stations at Dukhan, Al-Rayyan and the Industrial Area were opened. Other 12 petrol stations including seven cities are under construction and expected to be opened by the end of 2010.
B) HFO Bunkering facilities at Ras Laffan:
All the work related to the first phase of the bunkering facilities project has been completed and a completion certificate has been issued in April. Some modifications have been made to the designs of other berths especially berths (2) and (3).
C) LPG bottling and distribution stations:
This plant was opened at the Industrial Area in Doha, with capacity of 7 million cylinders per year. This will satisfy local demand for until the year 2050.
Second: Projects Executed by Qatar Petroleum
A) LPG gas pipeline:
This pipeline connects between QP Refinery in Messaed and the LPG plant in the Industrial Area. It is almost 30 km.
B) The Petroleum Product Pipeline:
This pipeline will raise the capacity of Doha Depot to 120,000.
C) The Jet Fuel pipeline which is executed by QP to supply the New Doha International Airport with Aviation fuel from Messaeed Refinery.
Third: Marketing Activities
Woqod continued to supply local markets with Bitumen, modified and other derivatives.
Woqod aims at developing the LPG business according to best practices, and taking into consideration: Health, Safety and Environmental issues, and complying with company's slogan " Woqod in every home " . Thousand of horizontal valves were replaced by vertical ones and new regulators in conformity with Gulf and European specifications were introduced.
A new product " Shafaf " was introduce. Two types of composite cylinders ( 12 kg, 6 kg) with many technical features, such as safety, transparency and light. Big metal cylinders (48 kg) will be withdrawn from markets and replaced by fixed tanks.
Woqod lubricant products ( Ghaf and Qorm ) are well accepted by local customers. Next period will witness a rapid growth in this business.
Fourth: Acquired Assets and Investments
A) Woqod Tower:
The first phase of construction is completed and the 30 floors building will be completed by the end of 2010.
- Woqod is one of the founders of Qatar Gas Transportation Company (Nakilat) and Vodafone.
- Woqod continues to explore investment opportunities abroad and signed an (MOU) agreement with NAFTAL in Algeria. A feasibility study was conducted by international consultancy firm to establish modern petrol stations in Syria. Other opportunities.
Fifth: Woqod's Subsidiaries
A) Woqod Marine:
Woqod owns six ships under the name of "Sidra" and with a total transportation and storage capacity of about 5000 mt.
After the General Assembly Meeting which was held in May 2009, Woqod acquired Qatar Technical Inspection Company. All financial issues resulted from the acquisition were dealt with and in cooperation with Qatar Exchange.
The company was founded in 1992 by NODCO and come under the Management of Woqod in 2003, which acquired 60% of its capital.
During 2009, the company reinforced to transportation fleet by purchasing additional tanks and new transport vehicles and adopting comprehensive periodical maintenance programs.
Woqod continued to review and develop its organizational structure and to accelerate the process of Qatarization. Woqod is committed to serving the local community by participating in many social events and activities.
On the financial front, during 2009, the company has managed to maintain the high profit rates that have been achieved during the past years. The net profit for this year amounted to QR 870 million, less than 28,7% of last year figure.
If we take into account the increase in the paid-up capital of the company during the current year, which is 5%, the earning per share (EPS) for this year remains high and exceeded QR 28, 13.
Based on the achieved results for this period, and on our expectations for developments in the global economy and their impact on the local, regional and international level during the next period, the Board of Directors is pleased to include within the agenda of your esteemed Assembly a recommendation to distribute the cash dividend of QR 310 million according to a rate of 100% of the value of the nominal capital, i.e. 10 QR per share, in addition to 10% bonus share (i.e. 01 share per 10 outstanding shares). This recommendation takes into account the status of the current financial liquidity of the company, and the future funding needs for capital projects that were approved for the year 2010, which exceeded one billion Qatari Riyals.
Acknowledgment and Appreciation
In conclusion, I would like to take this opportunity to express our deepest thanks and appreciation to His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar, for his continued support and wise guidance of the comprehensive development that we are witnessing in the country today.
I also would like to extend my sincere thanks and appreciation to His Highness Sheikh Tamim Bin Hamad Al Thani, the Heir Apparent, for his continued support for WOQOD, which had the greatest impact on the company's success and prosperity.
Our thanks go as well to our esteemed shareholders for their trust in and their loyalty to the company. We also would like to lay emphasis on our commitment to hard work and our perseverance to achieve further success in the service of their interests, and the development of their investments.
Finally, we appreciate the efforts of all the employees in the company and commend their dedication, loyalty and cooperation, which culminated in excellent financial results. We hope they will exert further efforts to face all challenges and to achieve the objectives of the company for the benefit of all.
I wish you all success.
Peace be upon you and God's mercy and blessings.
Abdullah Bin Hamad Al-Attiyah
Chairman of the Board