Doha, Qatar • 16 October 2019
WOQOD achieves QR 872 million by the end of 3rd Quarter 2019
Qatar Fuel Company, hereinafter referred to as (WOQOD) or "WOQOD Group" or "the Group", with code name "QFLS" on Qatar Exchange, is a company with an exclusive concession in the State of Qatar to distribute, sell, transport and market refined petroleum products & gas including airports and seaports. WOQOD announced its operations, business and financial results for the 3rd quarter of the year 2019 ending 30 September 2019, where the Group's net profits (excluding minority rights) amounted to QR. 872 million compared to QR. 825 million for the same period in 2018, showing an increase of QR. 47 million representing 5.6% increase rate.
The achieved increase in net profit levels is attributable to the increase in sales, particularly retail sales, combined with the efforts exerted towards enhancing the capability and efficiency of the Group activities, business operations, reduction of General and Administrative expenses and good investment returns.
Earning Per Share for the period, amounted to QR. 0.88 per share compared to QR. 0.83 per share for the same period of the year 2018. This represents an increase rate of 6%.
In respect of projects, WOQOD has constructed and opened seven (7) new petrol stations up to end of September 2019 and is intending to complete the construction and operation of another 22 stations by the end of 2019. Hence, the number of WOQOD operated fuel stations amounted to 90 stations by the end of the 3rd quarter 2019 and will aggregate 112 stations by the end of 2019. Consequently, WOQOD will be doubling the number of stations built in 15 years, representing the period between 2002 - 2017, within only two years i.e. 2018 and 2019.
The construction of new petrol stations contributed to the increase of WOQOD share of petroleum products retail distribution market to 84% at the end of the third quarter of 2019, compared to 68% for the corresponding period of 2018. The newly built stations have increased the daily WOQOD retail network sales by 28%, in comparison with the corresponding period of the year 2018.
With regard to the Group's operations, the 3rd quarter has witnessed a 2% overall growth in total fuel sales volumes compared to the same period last year. Jet A1 sales increased by 7%, Bitumen by 3%, LPG by 3%, Natural Gas & Compressed Natural Gas by 50% and Heavy Fuel Oil by 36%. Diesel sales volumes declined by 9%. The growth is attributable to macro-economic factors, whereas the decrease in diesel sales was attributable to the decrease of bulk quantities ordered by projects.
Retail sales volumes of petroleum products has achieved an overall increase of 28%. retail diesel sales increased by 12%, super gasoline by 45% and premium gasoline by 27%, while other non-petroleum retail sales revenue, including Sidra stores, grew by 14%.
The increase of retail sales was attributable to the opening and operation of additional petrol stations, as well as the promotions availed to customers.
Engineer Saad Rashid Al-Muhannadi Managing Director & CEO noted that the third quarter of the year 2019 has witnessed the renewal of WOQOD concession for an additional period of 5 years, as well as the issuance of a number of policies and procedures mandated by the corporate governance code for listed companies and listed legal Entities. He went on to say that WOQOD has, in furtherance of consolidating its role as an exclusive downstream oil & gas company and in order to secure sustainability of its services, concluded a number of agreements and arrangements with major suppliers, consumers manufactures and service provider, with strict emphasis on the MOU signed with Almeera for the management and operation of WOQOD current and prospective Sidra retail outlets, as well as the agreement signed with Shell for providing WOQOD with shell high quality and purity automotive lubricating oils produced by shell through the utilization of the base oil derived from the utilization of gas to liquid technology. WOQOD will market and distribute the reference lubricants under a joint WOQOD and Shell logos.
Finally Engineer Al Muhannadi emphasized that the Group management and Board of Directors will exert their best efforts to maintain and consolidate the company profitability and its position as a sole downstream oil & gas distribution company in the State of Qatar, in order to achieve company vision, mission and strategic objectives as a pioneer company in the region, as well as the development of a strong, modern and robust downstream oil & gas distribution sector of international caliber utilizing the best level of QHSSE measures in furtherance of the State of Qatar overall infrastructure modernization plan.
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This release/Announcement/Report contains forward-looking and future-based prospective statements and/or information concerning the financial condition, results of operations, activities and businesses of Qatar Fuel (WOQOD) Q.P.S.C. , hereinafter WOQOD. All statements/information other than statements/information of historical fact are deemed to be forward-looking statements/information, being statements of future expectations that are based on current expectations and assumptions and not guarantees of future performance. Such forward-looking statement/information, involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the Group to differ materially from those expressed or as may be inferred from these statements.
These and all subsequent written and oral forward-looking information incorporated in this release/announcement/report are based on estimates and opinions on the dates they are made as shown in the cover page herein and are expressly qualified in their entirety by this notice.
There are a number of factors that could affect the realisation of these forward-looking and/or future-based perspective statements such as, without limitation: (a) product margins fluctuations, (b) changes in demand or market conditions for the Group's services, (c) loss of market share and industry competition in non-concession products and facilities, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks (H) Regional instability, war, blockade, sabotage, civil commotion or any other element or circumstances outside Group's control. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein.
WOQOD, its affiliated and subsidiary companies, its Directors, officers, partners, employees, advisors, contractors and agents shall not be liable in any way for any costs, special, direct, indirect, consequential or incidental damage, losses or other detrimental effects whether in tort, contract or quasi contract etc., resulting or arising from the use of or reliance by any party on any forward-looking, and future-based perspective statement and / or other material contained herein. Further, WOQOD, its subsidiaries, joint ventures, affiliate and associated companies are in no way obliged to update or publish revisions to any forward-looking and/or future-based prospective statement/information or any other material contained herein should circumstances or managements opinions change or which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. WOQOD does not guarantee the accuracy of the historical statements contained herein.
WOQOD's accounting year follows the calendar year. No adjustment has been made for leap years. Values are expressed in millions of Qatari Riyals and percentages have been rounded to nearest whole number. All other values have been rounded to the nearest whole number. Values expressed in US $'s have been translated at the rate of US $1 = QR3.64, wherever applicable.
About Qatar Fuel Company (WOQOD) Q.P.S.C.
Qatar Fuel (WOQOD)Q.P.S.C. was incorporated as a Qatari joint stock company on 2nd July 2002 by an Amiri Decree law and was listed as a public shareholding company in Qatar Exchange effective from 2003. The authorised share capital is QR 1,000,000,000 divided into 1,000,000,000 shares with nominal par value of QR. 1 per share. The issued share capital is currently QR 994,255,760 shares.