Doha, Qatar • 29 January 2020
WOQOD achieves QR 1,216 million at the end of the fiscal year 2019
Qatar Fuel Company,
hereinafter referred to as (WOQOD) or “WOQOD Group” or
“the Group”, with code name “QFLS” on Qatar Exchange, a company with an
exclusive concession in the State of Qatar to distribute, sell, transport and
market refined petroleum products & (including) , airports and seaports, either
by itself or through subsidiary companies “QJET, FAHES
& WOQOD Marine”, announced that its Board of Directors
had held its annual meeting at 1:30 pm. on Wednesday, January 29th 2020
at the company’s headquarters located in WOQOD Tower Dafna, Westbay, under the
chairmanship of Mr. Ahmed Saif Al-Sulaiti. The Board discussed the performance
of the business operations and the financial results of WOQOD Group for the
fiscal year ended on December 31, 2019 ,compared to the results achieved in the
year 2018.
WOQOD net profit for the
year 2019 (excluding minority rights) amounted to QR. 1,216 million, compared
to an amount of QR. 1,160 million achieved in the year 2018, with an increase
of QR. 56 million, representing an increase rate of 4.8%, The earning per share
for the period amounted to QR. 1.22 compared to QR. 1.17 for the last year,
while the Net worth increased by about 4.8% to reach QR. 8.7 billion compared
to QR. 8.3 billion for the year 2018.
The increase in net profit
and earning per share levels compared to last year are attributable to the
increase in sales, combined with the efforts exerted towards cost optimization,
enhancing the capability and efficiency of the Group’s
business activities, reduction of general and administrative
expenses and better investment and cash returns.
As a result of the good
profits achieved by the company in the year 2019, and after taking into
consideration the requirements of the current and future projects intended to
be constructed by the company, the Board has issued a recommendation to the
annual shareholders general assembly to be convened on March 18th 2020 to
approve distribution of dividends to shareholders at QR. 0.80 per share.
The Board reviewed and
approved the current and future projects that the company intends to establish which
are aimed at supporting the current comprehensive development process in the State
of Qatar. Mr. Saad Rashid Al Muhannadi, WOQOD CEO and Managing Director,
explained that the company managed to double the number of the stations in last
two years i.e. in 2018 and 2019 when compared to stations built during the
first fifteen years of its establishment i.e. from 2002 to 2017. The year 2019
witnessed the completion of 30 petrol stations, most of which are operational,
and the rest are in process of completing governmental procedures and approvals
which are expected to be in operation by the end of the first quarter 2020. The
company has an ambitious plan to raise the number of its stations to approximately
150 by 2022, which will have a positive impact in providing service to citizens
and residents and in enhancing shareholders’ rights.
The number of stations
that were built in 2019 contributed to raising the WOQOD share in the retail fuel
market to 82% by the end of 2019 compared to 66% in 2018.
The year 2019 has witnessed
the completion of the bitumen expansion project. The expansion provides an
adequate storage capacity and enhances the ability of WOQOD to increase its
share in the local market, as well to ensure the product availabilities in the
country at appropriate times for customers at competitive prices.
Regarding the company's
operations, the year 2019 witnessed a record high in total fuels sales aggregating
10.5 billion liters, representing a 1.4% growth compared to 2018, wherein super
gasoline sales increased by 4.9%, premium gasoline increased by 1.7%, jet fuel increased
by 6%, bunker fuel increased by 41.7%, LPG increased by 2.3%, and natural gas increased
by 48.5%. On the other hand, the diesel product decreased by 8.3% due to
decrease in the quantities demanded by projects.
Retail petroleum sales
recorded a total increase of 24.4%, diesel sales increased by 12.4%, super
gasoline increased by 36.7%, premium gasoline increased by 23.7%, while sales
of non-fuel retail business, including Sidra C-Store sales, achieved a 13.3%
growth. The increase in retail sales was due to the opening of several
additional petrol stations.
Al Muhannadi explained
that during the year 2019, the company obtained a renewal of its concession for
an additional five years. The Company also issued several policies and
procedures in substantiation of governance and compliance in terms of
transparency, disclosure and enterprise risk management. The company has also,
in order so as to sustain its basic services and enhance its role as an
exclusive downstream oil and gas company, concluded several agreements with
major suppliers, consumers and manufacturers. As an example of those agreements,
a specific reference is made to the agreement signed with Shell to produce lubricating
oils of various types, which are high quality and pure engine oils produced by
Shell utilizing Qatar's base oil and gas-to-liquids technology, where WOQOD
will market the referred oils through a joint brand with Shell.
On the other hand, Al
Muhannadi clarified that the board of directors
reviewed the steps that had been taken regarding the candidacy for membership
of the board of directors for the new session, and directed the management to
take the appropriate regulatory formalities before presenting the affair to the
company's annual general assembly scheduled for 18/03/2020.
In conclusion, Al Muhannadi
assured that the company’s management and its board of directors will exert all
efforts to maintain and enhance the service levels and profit status of the
company, to achieve its vision mission and strategic goals as a pioneer downstream
oil and gas company at the regional level and to build a modern, robust and state-of-the-art petroleum
products distribution sector within the country, in order to keep up with the
general policy of the State of Qatar in the modernization of infrastructure
facilities, and to provide the best services according to the best QHSSE standards,
and achieve the best results for its valued shareholders.
