Posted on October 26, 2017
Mr. Saad Rashid Al-Muhannadi, WOQOD Chief Executive Officer, announced that the Board of Directors of Qatar Fuel Company (WOQOD) chaired by Mr. Ahmed Saif Al-Sulaiti has, in its meeting No. 4 for the year 2017 duly held on 25.10.2017, approved the unaudited financial statements for the period ended 30 September 2017.
The Board also reviewed the implementation process of the company’s current and future projects and gave its recommendations thereto. Mr. Al-Muhannadi confirmed that the net income (excluding minority interest) for the third quarter 2017 alone amounted to QR. 270 million as compared to QR. 237 million for the same period 2016, representing an increase of 14%. Similarly, the net income for the third quarter 2017 alone went up by 37% as compared to the second quarter 2017.
Mr. Al-Muhannadi also confirmed that the net income for the WOQOD group (excluding minority interest) amounted to QR 643 million as compared to QR 777 million for the same period in 2016, with a decrease of QR 115 million representing (17.2%). The main reasons for the fall in earnings, as compared to the period ended 30 September 2016, is primarily attributed to the change in fuel margins and transportation tariff. Mr. Al-Muhannadi mentioned that WOQOD is making all efforts to improve the results in future. He explained that WOQOD group has embarked on a number of cost optimization initiatives and, in spite of additional operating costs related to new stations, managed to reduce the cash operating expenses by 6% for the period ended September 2017, as compared to the same period last year.
In respect of the company’s projects, Mr. Al-Muhannadi said that the number of petrol stations in operation under the company’s ownership or management, including mobile petrol stations, has reached to 58. This includes six (6) petrol stations, including two mobile petrol stations, opened during the year 2017. In addition, thirteen (13) stations are under construction and twelve (12) under tendering and designing stage. WOQOD is planning to increase the number of petrol stations to 83 by the end of 2018 and 120 by 2022. Mr. Al-Muhanadi also stated that WOQOD is currently coordinating with the Ministry of Municipality and Environment for the allocation of more locations for petrol stations.
With regards to FAHES centres, Mr. Al-Muhannadi confirmed that two (2) new centers started operation during the period to September 2017, and another station will be opened by the end of 2017. With respect to the Bitumen Terminal expansion, Mr. Al-Muhannadi said that it is expected to be fully operational by the third quarter 2018.
Retail Activities:
Retail activities include fuel sales from petrol station and non-fuel revenues, i.e. Sidra stores sales, car wash (manual and automatic), repair workshop, tyres, oil change and other services. Fuel & non-fuel sales grew by 25.5 % and 8.4% respectively compared to the same period last year. Electronic Payment System “WOQODe” and Introduction of Credit and Debit Cards for Fuel Sales at Petrol Stations. WOQOD introduced the electronic payment system WOQODe in January 2016. The system works through an electronic Radio Frequency Identification (RFID) chip tag fitted in the vehicle’s fuel tank. The number of tags installed during the period to 30 September 2017 reached 69,078 tags, representing an increase of 150% over the corresponding period 2016. Mr. Al-Muhannadi also pointed out that WOQOD is in the process of accepting debit and credit cards for fuel sales at petrol stations by the end of this year 2017.
Petroleum Products:
The total sales volume of petroleum products (Diesel and Gasoline) for the period exceeded 4,024 million litres, with an increase of 2.5% for the period ended 30 September 2017 as compared to the same period last year. Jet fuel sales increased by 11.5% to 3,315 million litres for the period ended 30 September 2017 as compared to the same period last year. In addition, Mr. Al-Muhannadi added that Bitumen sales increased by four times for the period ended September 2017, and that WOQOD Marine vessel occupancy rate increased by 12% for the period ended September 2017, driven by increased level of Bitumen and HFO Bunkering operations. On the other hand, LPG and Natural gas (CNG) sales for the period increased by 14% and 0.9% respectively.
In the end, Mr. Saad Rashid Al-Muhannadi thanked the Chairman and members of the Board of Directors, shareholders and partners for their continued support and guidance to the company, and assured commitment of the Executive Management and employees to achieve greater success and objectives of the company.