Greetings….
I am pleased to welcome you all to
this Annual General Meeting of Qatar Fuel (WOQOD) on behalf of myself and my
fellow Board members, and I have the pleasure to present to you the 15th
Annual Report of the Board of Director, comprising
a brief review of the major performance indicators of company activities, operations
and projects along with the financial results for the year 2017, and WOQOD
future phased and strategic plan.
As we all
know, the year 2017 witnessed an oppressive blockade being launched against
Qatar with the purpose of obstructing the extensive development which our State
is currently witnessing.
In spite of the blockade, Qatar’s economy has proved
its invincibility and resilience, and continues to out-perform the targeted
growth rates, thanks to the sensible policies of the state under the leadership
of His Highness the Emir.
The State
achieved good growth rates that was positively and favorably reflected in the
State rating (as per international rating agencies), remaining at high level,
ensuring continued positive outlook on the part of international institutions.
As for WOQOD,
the company has been able to steadily move ahead with the implementation of the
portion it shoulders within the overall scope of the sustainable nationwide
comprehensive development plan. We took the necessary measures to procure the
products we used to receive from some of the blockade countries, from alternate
sources. Necessary means of logistic support and alternate foreign contractual arrangements
with favorable terms were already in place, enabling smooth continuous flow of these
product and materials into the State.
During 2017
the company has pursued its efforts for consolidating its core activities of
the distribution and marketing of Gas & Petroleum Products along with
associated activities throughout the State.
All performance indicators witnessed
significant increases. To achieve this, WOQOD had availed all the requisite
means of logistic support and infrastructure projects, as detailed in the Board
of Directors Report.
The company has an ambitious plan for
increasing it’s market stake for distribution and transportation of petroleum products,
natural gas, bitumen, ship bunker fuel, and other products.
This would be achieved through the
implementation and operation of various projects, and concluding the necessary
contracts and agreements relevant to these activities, with the support of
quality systems, modern technology systems, as well as the introduction of an
industry standard health, safety, security and environmental
rectification/preservation system/measure.
As regards fuel stations, arrangements
for adding 30 new fixed and mobile stations were already in place in order to
achieve the target of 120 gas station by the year 2020.
With respect to company financial
performance for the year ended 31 December 2017, despite the blockade and the
new price margins, thanks to the efforts exerted towards the implementation of
efficiency and cost optimization plan which yielded very excellent results.
WOQOD group net profit (excluding minority rights) amounted to 964 Million
Riyals, compared to 883 Million Riyals for the year 2016. Return on a share
amounted to 9.7 Riyals compared to 8.9 Riyals for last year.
Considering
the above financial results and the need for major capital expenditures that
have been planned for 2018 and beyond, the Board of Directors is pleased to
recommend a distribution of cash dividends of QR 795.404.611 million, representing
80% of the nominal paid-up capital. This equals a distribution of QR 8 per
share.
In conclusion, I would
like to take this opportunity to express my profound gratitude, thanks,
appreciation to His Highnesses Sheikh Tamim Bin Hamad Al-Thani, the Emir, for his
unfailing continuous support, and wise guidance to WOQOD, which has had the
greatest impact on the company success and prosperity.
I would also
like to thank Qatar Petroleum, Ministry of Municipality & Environment, and
all the officials in the public institution for their sincere efforts in
supporting the company's projects and providing all possible assistance.
Thanks
also to our esteemed shareholders for the trust in us and loyalty to the
company, and we hereby renew our commitment to serving shareholders interests
and further developing their investments, and assure our commitment to
implement and abide by all Governance and legal principles in all WOQOD activities,
in conformity with our status as a sole distributor of oil and gas in the
country. In acknowledgement of this we hereby submit WOQOD 2017 Governance
Report Showing what we have done towards the implementation of the latest
Governance Code Duly issued by QFMA and published in the Official Gazette on
15.05.2017.
Last but
not least, we would like to express our appreciation to the employees of the company
for their dedication, loyalty and cooperation, which is reflected in the
outstanding financial results. I hope they will continue to deliver and render
efforts for facing all challenges in pursuit of achieving company goals for the
benefit of all.
