Our honored Shareholders,
I am pleased to present to you major achievements of WOQOD Group for the financial year 2018, along with plans and projects for the coming period. The year 2018 was another distinguished year in WOQOD's continuous and persistent progress to make positive transformation where almost all the company performance indicators achieved excellent results as detailed in the Annual Report.
I would like to summarize the key achievement indicators for the aforesaid year;
As regards the financial performance and as highlighted by the Chairman, the company has achieved a significant development, where net income attributable to WOQOD shareholders amounted to QAR 1,160 Million as compared to QAR 964 Million for the year 2017, a 20% increase. This resulted in a corresponding increase of 20% in the earing per share (EPS) as compared to the year 2017.
These positive results are largely attributable to the policies adopted by the company during the last two years towards the enhancement of capability and efficiency and cost optimization in the operations of the company.
With respect to fuel stations, WOQOD opened 32 new stations in the year 2018. This is equivalent to 62% of the number of stations opened since the establishment of WOQOD in 2002. It is worth noting that in addition to the considerable expansion of fuel stations, WOQOD enhanced the capability and efficiency of the stations, through increasing the number of dispensers in the stations by 61%. This contributed to achieving considerable saving of time and effort for our honored customers.
In 2019, WOQOD will complete the construction and operation of 30 new fuel stations in different areas of the state of Qatar. The construction contracts for these stations have already been signed. WOQOD will thus be doubling the number of fuel stations, owned by the company until 2017, in only 2 years. this shows our commitment to our customers and will certainly have a positive impact in the provision of services.
Due to the expansion of fuel stations and dispensers as aforesaid, WOQOD's share of fuel retail market has increased to 70%. This has also been associated and supported by a simultaneous a development in Sidra stores sales and other related services in fuel stations.
With regards to the Bitumen Facilities Expansion Project, the Bitumen tanks providing 15,000 M.T. of storage capacity have already been completed. This expansion will allow WOQOD to retain its market share and deliver the products to customers in a timely manner and for a competitive prices, and will also contribute to the optimization of cost of storage services on board vessels. The remaining parts of the project will be finalized by the coming April 2019.
With regard to vehicle technical inspection services (FAHES), the company continued its endeavors and completed 3 new inspection centers in 2018, thereby increasing the total number of centers in operation to 12 including mobile stations. This will facilitate our services to our respected customers. It is to be noted that, there is a center currently under construction that will be opened in this year 2019, and another in the design phase.
The company has concluded a number of contracts and agreements to ensure the sustainability of its business activities. The details are as follows:-
- With regard to fuel supply agreements, Regulated Products Sale & Purchase Agreement and Jet Fuel (Jet A-1) Sale & Purchase Agreement with Qatar Petroleum have both been renewed for a further period of 5 years. HFO Sale & Purchase Agreement with Qatar Petroleum has also been renewed for 2 years. It is worth nothing that petroleum products contracts account for more than 80% of the company's revenues. Similarly, Arrangements are underway for renewing Butane Gas (LPG) Sale & Purchase Agreement.
- License granted to WOQOD Vehicle Inspection Company (FAHES) by Ministry of Interior has been renewed for a further period of 5 years.
- The steps for renewal of WOQOD concession for 5 years have advanced further after the endorsement of the Council of Ministers.
All indicators for Petroleum products sales have registered varying levels of increase in comparison with the year 2017, with the exception of bitumen and bituminous products which registered a slight decrease driven by supply and demand factors.
Similarly, WOQOD subsidiaries revealed positive indicators, WOQOD vehicle Inspection Company (FAHES) revenue amounted to QAR 107 Million with 37% increase as compared to QAR 78 Million in 2017. WOQOD Marine Service revenue amounted to QAR 75 Million as compared to QAR 80 Million Qatari Riyals for the year 2017, whereas QJet revenue amounted to QAR 9.9 Billion as compared to QAR 6.8 Billion in 2017.
And last but not the least, I would like to convey my profound thanks and appreciation to Mr. Ahmed Saif Al-Sulaiti, Chairman of the Board of Directors and the respected board members for their prudent guidance and continuous support to the company.
Our thanks are also due to all government authorities, public and private institutions and to our honored shareholders and to WOQOD employees for their significant efforts in serving and developing the company.
We promise to exert more efforts and deliver our best to achieve the company's objectives in future.
Saad Rashid Al-Muhannadi
Chief Executive Officer