DOHA: Qatar Fuel Company’s (WOQOD) net profit (excluding minority rights) by the end of third quarter of this year (Q3 2019) reached at QR872m, witnessing a 5.6 percent increase compared to QR825m reported for the corresponding period in 2018.
The reported increase in net profit levels is attributed 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.
Earnings per share (EPS) for the period amounted to QR0.88 (88 dirhams) per share compared to QR0.83 per share for the same period of the year 2018. This represents an increase rate of 6 percent.
In respect of projects, WOQOD has constructed and opened seven 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 percent at the end of the third quarter of 2019, compared to 68 percent for the corresponding period of 2018. The newly built stations have increased the daily WOQOD retail network sales by 28 percent, in comparison with the corresponding period of the year 2018.
With regard to the Group’s operations, the 3rd quarter has witnessed a 2 percent overall growth in total fuel sales volumes compared to the same period last year. Jet A1 sales increased by seven percent, Bitumen by three percent, LPG by three percent, Natural Gas & Compressed Natural Gas by 50 percent and Heavy Fuel Oil by 36 percent. Diesel sales volumes declined by 9 percent. 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 percent. Retail diesel sales increased by 12 percent, super gasoline by 45 percent and premium gasoline by 27 percent, while other non-petroleum retail sales revenue, including Sidra stores, grew by 14 percent.
The increase of retail sales was attributable to the opening and operation of additional petrol stations, as well as the promotions availed to customers.
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 Al Meera for the management and operation of WOQOD current and prospective Sidra retail outlets, as well as the agreement signed with Shell.
Al Muhannadi emphasised 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.
