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Doha, Qatar • 15 July 2020

WOQOD achieves QR 270 million at the end of the First Half 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 its Third meeting for the year 2020 at 1:30 pm. on Wednesday, July 15^th 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 for the First Half of the year 2020 ended on 30 June 2020, compared to the results achieved in the corresponding period of the year 2019.

WOQOD Group’s net profit for the period (excluding minority rights) amounted to QR. 270 million, compared to an amount of QR. 548 million achieved in the same period of the year 2019, with a decrease of QR. 278 million, representing a decrease of 51%. The earning per share for the period amounted to QR. 0.27 per share compared to QR. 0.55 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 and partly to supply and demand factors on petroleum products. The decrease of petroleum product distribution margins is also one of the factors that have participated in net profits and earning per share decrease.

With regard to the company's operations, he explained that the company overall sales of petroleum products decreased by 22% as compared to the same period of last year driven by the COVID-19 impact. Diesel and Super Gasoline sales decreased by 12% and 22% respectively, Premium Gasoline sales decreased by 14%, and Jet fuel volumes decreased by 28% driven by the reduced operations of Qatar Airways and Private Airlines due to the suspension of air traffic in most countries globally. Bitumen sales have decreased by 66% driven by market situations, COVID-19 pandemic and the completion of the major projects. The LPG sales decreased by 3% compared to the parallel period of 2019, and the decrease is attributed to the factors of supply and demand. Refined Petroleum Products retail sales from petrol stations decreased by 8% compared to the same period of last year as a consequence of the low consumption prompted by COVID-19 pandemic.  

On the other hand, he explained that  Bunkering fuel increased by 12% compared to the same period in 2019, and retail non-fuel revenue, including Sidra Sales, increased by 8% as compared to the same period of the last year driven by the opening of new stations and higher footfall in C-stores.

In the field of the petrol stations project and the company newly acquired assets, he pointed out that the petrol stations operated by  “WOQOD” at the end of June 2020  totaled to 104 stations, whereas the company intends to add eight (8) more stations by the end of the current year 2020. He also explained that the Group during the Second Quarter of 2020 had acquired two new bunker fuel ships to support the ship bunkering activity that the Group is performing in cooperation, coordination and partnership with Qatar Petroleum.

For the purpose of improving the profitability of the company Mr. Saad Rashid Al-Muhannadi WOQOD Managing Director & Chief Executive Officer, indicated that the company will continue to increase the levels of implementation of its efficiency and cost optimization initiative as this will further improve the returns for the company and its shareholders.

In conclusion, Al-Muhannadi indicated that WOQOD has been 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. At the same time, WOQOD had, 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, issued and applied a suitable, 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.