Doha, Qatar • 14 October 2020
WOQOD achieves QR 429 million at the end of the Third Quarter of the year 2020
Qatar Fuel Company, hereinafter referred to as (WOQOD) or "WOQOD Group" or "the Group", with the code name "QFLS" on Qatar Stock Exchange, a company with an exclusive concession in the State of Qatar to distribute, sell, transport and market refined petroleum products & gas within State of Qatar including to airports and seaports, either by itself or through subsidiary companies "QJET, FAHES and WOQOD Marine", announced that its Board of Directors had held a meeting at 1:30 pm. on Wednesday, October 14th 2020 under the chairmanship of Mr. Ahmed Saif Al-Sulaiti. In order to comply with governmental restrictions issued to combat the spread of Corona Virus (COVID-19), the meeting was held remotely through the utilization of a Video Call facility. The Board discussed the performance of the business operations and the financial results of WOQOD Group at the end of Third Quarter of the year 2020 ended on 30 September 2020, compared to the results achieved in the corresponding period of the year 2019.
Mr. Saad Rashid Al-Muhannadi WOQOD Managing Director & Chief Executive Officer explained that WOQOD Group's net profits and overall sales volumes have witnessed a considerable increase in the Third Quarter of the year 2020 compared to the Second Quarter of the same year.
He also explained that WOQOD Group's net profit for the period (excluding minority rights) amounted to QR. 429 million, compared to an amount of QR. 872 million achieved in the same period of the year 2019, with a decrease of QR. 443 million, representing a decrease rate of 51%. The earning per share for the period amounted to QR. 0.43 per share compared to QR. 0.88 for the same period of last year.
The decrease of the net profits and earning per share for the period were partly attributed to the market slow down prompted by COVID-19 spread.
With regard to the company's operations, Mr. Al-Muhannadi explained that the company overall sales of petroleum products decreased by 23% as compared to the same period of last year driven by the negative impact of COVID-19 pandemic. Diesel, Super Gasoline and Premium Gasoline sales decreased by 11%, 14%, and 9% respectively, and Jet fuel volumes decreased by 34% driven by the reduced operations of the airlines due to the suspension of air traffic in most countries globally. Bitumen sales have decreased by 64% driven by macro-economic factors, COVID-19 pandemic and the completion of the major projects. The LPG sales decreased by 3% compared to the same period of 2019. Refined Petroleum Products retail sales from petrol stations decreased by 3% compared to the same period of last year driven by micro-economic factors as well as the negative impact of COVID-19 pandemic.
On the other hand, he explained that Bunkering fuel "HFO" increased by 18%, natural gas sales increase by 9% compared to the same period in 2019, and retail non-fuel revenue, including Sidra sales, increased by 11% as compared to the same period of the last year driven by the opening of new stations.
In the field of the petrol stations project Mr. Al Muhannadi pointed out that the petrol stations operated by "WOQOD" as of October 15th 2020 totaled to 106 stations, whereas the company intends to add five (5) more stations by the end of the current year 2020.
For the purpose of improving the profitability of the company Mr. Al-Muhannadi indicated that the company will continue to increase the levels of implementation of its efficiency and cost optimization initiatives as this will further improve the returns for the company and its shareholders.
In conclusion, Al-Muhannadi indicated that WOQOD had and still being working closely with its partners to coordinate the implementation of all the governmental directives issued in furtherance of combating the spread and the negative effects of COVID-19. He added that despite the challenges of Corona virus impact WOQOD being the sole downstream oil and gas company responsible for securing a continuous and sustainable supply of petroleum products and gas to all sectors within the State of Qatar, was left with no choice but to implement a flexible and effective business plan to ensure the continuity of the supply activities throughout the country on regular basis and in line with the health safety security, and environmental sanitation procedures and standards for the time being in force in the petroleum products industry, where the Group is persistently communicating and coordinating with entities of competent jurisdiction in order to implement the best standards and measures issued in this regard.