Qatar Fuel (Woqod) recorded a net profit of QR1.16bn (excluding minority interests) for the year 2018, reflecting a 20 percent increase compared to QR964m reported in the year 2017. The company’s earnings per share (EPS) rose to QR11.7 from QR9.7. Shareholders’ equity increased by about 12 percent to QR8.3bn from QR7.4bn posted in 2017.
Woqod Chief Executive Officer, Saad Rashid Al-Muhannadi announced that the Board of Directors, chaired by Ahmed Seif Al-Sulaiti, convened its meeting yesterday and reviewed and approved the financial results for the year. Announcing the results Al Muhannadi attributed the solid financial results to the measures taken for the enhancement of efficiency and capability in company business activities and operations, and to the efforts exerted towards cost reduction through a multi- initiative and integrated cost optimization policy started in the year 2017 through 2018 and still being implemented in a phased manner.
In line with the financial results, the Board of Directors recommended the Annual General Assembly Meeting to distribute dividends amounting to QR8 per share, resulting in total dividend payout of QR 795m equivalent to 80 percent of the nominal paid share capital.
The recommendation has taken into account the present liquidity status and future fund requirements for capital projects approved for the year 2019, and thereafter, the CEO said.
Al Muhannadi said the Board has reviewed the current and future projects intended for implementation by the company in support of the comprehensive infrastructure development policy currently under implementation in the State of Qatar. Fuel Service stations currently operated by Woqod amounted to 84 stations by the end of the year 2018, where another 32 stations were added throughout the State of Qatar. The company will build 30 additional fuel stations in the year 2019. Woqod will thus be doubling the stations built since its incorporation in 2002 only in 2 years.
WOQOD has not only limited its efforts in building new stations in the year 2018 but has gone further with the enhancement of the capability and efficiency of stations by increasing the number of dispensers in the stations currently under construction by 61 percent, thus availing an adequate service to its customers.
Regarding the Bitumen Facilities Expansion Project, he said the Bitumen tanks providing 15000 M.T. of storage capacity have already been completed. This expansion will allow Woqod to retain its market share and deliver the product to customers in a timely manner and for a competitive price, and will also contribute to the optimization of costs of the storage services on board ships. The remaining parts of the project will be finalised by the coming April 2019.
On the company operation during the year 2018, the CEO highlighted the increase realised in the volume of distributed petroleum products in comparison with the year 2017, where sales of various types of fuels have witnessed a 4.2 percent increase. Bunker fuel sales increased by 185.7 percent, whereas butane gas realized an increase of 12.7 percent. Quantities of fuel retail sales volume increased by 14 percent, whereas nonfuel retail sales have shown a 3.6 percent increase of revenues. This increase resulted from the opening of more new fuel stations operated by the company. Woqod stake of retail market has accordingly increased to 70 percent in comparison with 58 percent for 2017.
Woqod is endeavoring to increase its stake in retail market to reach 85 percent by the end of the year 2020 after the opening of more new stations. WOQOD Vehicle Inspection Company “FAHES” realised a 56 percent improvement in comparison with the year 2017. Sales of bitumen and bituminous product have seen a slight decline of 5.9% in comparison with the year 2017, the decline has been driven by supply and demand factors.
The company has an ambitious plan to ensure sustainable increase of its stake of the market for distribution and transportation of petroleum products, gas, bitumen and bunker fuel. 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 control systems, modern technology systems, as well as the introduction of the highest health, safety and security systems together with environmental maintenance/ preservation measures. In line with the foregoing, in 2018 WOQOD has renewed Petroleum Products including Jet Fuel Sale and Purchase Agreements with Qatar Petroleum for an additional period of 5 years, as well as renewal of Vehicle Technical Inspection contract with the Ministry of Interior for the same period. Bunker Fuel (HFO) Sale and Purchase Agreement has been signed for a validity period of two years.The steps for renewal of Woqod concession for 5 years has advanced further after the endorsement of the Council of Ministers to the same, Al Muhannadi added.
Source from: The Peninsula