Our honored shareholders,
I'm pleased to present to you WOQOD achievements during the year 2017 along with its future plans and projects for the following period.
Despite the difficulties and challenges the company has been able to achieve good results. Through persistence, determination and collective effort we were able to stop the income downward trend and reverse the trend pushing the indicator up again. This achievement was aided by the increase of sales in general, enhancement of the efficiency in company operations, and cost reduction pursuant to a multi initiative comprehensive optimization policy which is being currently implemented in a phased manner.
We are hopeful that, this policy will yield fruits in the very near future.
I would like to summarize these achievement as follows:
The sales of petroleum products for the year 2017 realised a 6% increase from the year 2016. It is worth noting that the sales of jet fuel alone has witnessed a 10% increase due to Qatar Airways flights increase.
Retail sales of petroleum products increased by 26% from the sales achieved in the year 2016. The increase is attributable to the opening of new fuel stations. WOQOD Stake of the retail market increased from 48% to 58%. We shall exert our utmost efforts to increase our stake to 85% by the beginning of the year 2020.
Bitumen and bituminous products sales increased by 275% from the sales achieved in the year 2016. This resulted in the increase of WOQOD stake of the local market from 60% to 90%.
To be capable of supplying these quantities, WOQOD doubled the number of the product transport vessels and developed the other means of logistic support, rendering them adequate to meet the requirements of increased distributed quantities.
Ship Bunker Fuel:
The sales of bunker fuel witnessed an increase equivalent to 10 times of the sales achieved in the year 2016. WOQOD commenced the "ship-to-ship" bunkering in June 2017, in collaboration with Qatar Petroleum, from RALF bunkering facility owned by Qatar Petroleum.
Sales increased by 27% and cylinder sales increased by 7%. The company is planning to stop the use of steel cylinders, launching promotional offers for SHAFAF cylinders.
WOQOD is supplying natural gas to the factories located in the new industrial area, and is also operating a station for Compressed Natural Gas (CNG) Station. CNG sales increased by 22% from the sales achieved in the year 2016.
Key Achievements & Major Initiatives:
- WOQOD operated fuel service stations amounted to 58 stations in the year 2017, where 6 new stations were added. WOQOD set out an ambitious plan aiming at doubling the number of company operated stations within 3 years to reach 120 stations by the year 2020, where about 30 stations will be completed and operated within the (12) months period, including 10 mobile stations.
- WOQOD continued with the expansion works for a number of existing stations, by introducing new activities or enhancing the efficiency of the fueling system and equipment.
Furthermore WOQOD introduced means of modern technology to the fueling operations, to provide the highest service standards to the customers. As part of such endeavors WOQOD has introduced electronic payment through Point of Sale (POS) using debit and credit cards. WOQOD also expanded by 134% compared to the year 2016, WOQOD automated system providing fueling services to individuals, companies, and government entities, with the highest standards of accuracy and reliability.
The system is capable of providing a comprehensive and final solution to the hazards posed by conventional fueling.
The sales of Sidra convenience store and other non-petroleum activities increased by 11%. New oils and lubricants brands were introduced as per the requirements and recommendations of the vehicle manufacturers. These included, Castrol, Shell and Total oils. Car dry clean services has also been introduced in some stations.
Vehicle Technical Inspection (FAHES):
The income of company subsidiary FAHES amounted to 77.9 Million Riyals with 5.8% increase above the income realized in the year 2016.
Technical inspection centers amounted to 9 centers by the end of the year 2017. As of now, the centers amounted to 10 including three mobile centers. As to future centers, tender has been issued for Al-Mazrouaa Center, and a study for building a new center at Madinat Mowater is currently under review.
The performance of the company witnessed a significant improvement where the company income increased to 80 Million Riyals earned from chartering company owned vessels. The rate of vessel operation increased by 14% reaching 92% in the year 2017 compared to 78% in the year 2016.
Qatar Jet Fuel (QJET)
Company subsidiary QJET realized a net income (inclusive of minority rights), of 329.9 Million Riyals in the year 2017, compared to 229.8 Million in the year 2016, with the increase of 43%. Increase of sales, cost optimization policy and the reduction of export allowance have the greatest impact on the income increase.
And last and 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 official, public and private institutions and to our honored shareholders, and to WOQOD employees, for their significant efforts in serving and developing the company.
We vow to exert more efforts and deliver our best to achieve company future objectives.