Posted on February 28, 2018
Woqod Chief Executive Officer, Engineer Saad Rashid Al-Muhannadi announced that Qatar Fuel (Woqod) Board of Directors, chaired by Mr. Ahmed Seif Al-Sulaiti, convened its annual meeting at 01:30 pm. on 28 February 2018, In Woqod Tower, West Bay. The Board reviewed the Financial results achieved by the company during the fiscal year ended 31 December 2017 and approved the said results.
Engineer Al-Muhannadi revealed that Woqod net profits for the year 2017 (excluding minority interests) amounted to 964 Million Riyals, compared to 883 Million Riyals with an increase of Qr. 81 Million representing 9.2 % from the preceding year 2016. Return on share amounted to (9.7) Riyals, compared to 8.9 Riyals per share for the preceding year. Ownership rights increased by about %1.1 to 7.4 Billion Riyals for the said year, compared to 7.3 Billion Riyals for the year 2016.
Engineer Al-Muhannadi added that Woqod realised this good result in net profit increase despite substantial changes and huge reduction of its margins for distribution of fuel product during the said year, thanks to the efforts exerted towards the increase of fuel sales in general, in addition to the measure taken for costs reduction through a multi- initiative integrated cost optimization policy being implemented in phased manner, and is expected to yield results in the near future.
Engineer Al-Muhannadi further announced that, in line with the financial results achieved, the Board issued a recommendation included in the agenda for the Annual General Assembly Meeting to be convened in the evening of the 25th of March 2018 for distribution of dividends amounting to Qatari Riyal 8 per Share, resulting in total dividend payout of Qatari Riyal 795,404,611, equivalent to 80 % of the nominal paid capital. The recommendation has taken into account the present liquidity status and future financing requirements for capital projects approved for the year 2018, and thereafter.
Engineer Al-Muhannadi went on to say that, the Board has reviewed and approved the current and future projects intended for implementation by the company in support of the comprehensive country development endeavors. Fuel Service stations currently operated by Woqod amounted to 58 stations, where 4 permanent station were added during the year 2017 in Al-Mashaf, Bu Nakhla, Um Ghuailena and Al-Khor, in addition to 2 mobile stations in Galyha and Al – Gharafa.
Engineer Al-Muhannadi indicated that Woqod has an ambitious plan for increasing its stations to 120 stations (inclusive of 10 mobile stations) within a period of 3 years, where about 30 stations will be completed and operated within the forthcoming (12) months period. The company is also planning to increase the number of dispensers within the currently operational stations by 59% within the year 2018, and will continue with the same increase rate within the following years 2019 and 2018 in order to reduce the vehicle congestion within petrol stations resulting from the decommissioning of many private stations.
He further emphasized that Woqod in pursuit of its role for serving the country and the community, regardless of the cost value and profit and loss considerations, would not hesitate to build fuel stations on any location and at any time in case of availability of land and viability of the project, He further maintained that Woqod and its affiliated companies intend to implement various other vital projects in the forthcoming period. These include Bitumen Facilities Expansion Project aiming at supporting and supplying state roads and projects with their requirements of asphalt products that conforms to the highest international standards in the fields sustainability and durability of roads.
Phase (1) relating to PMB has already been completed and Phase (2) will be finalized during the 3rd quarter of this year 2018. As regards the precautionary measures undertaken by Woqod to face the negative repercussions of the blockade, and ensure continuity of company operations in relation to bitumen, oils and Lubricants imported from abroad, Engineer Al-Muhannadi pointed out that the company had carried out the necessary contractual arrangements with substitute sources, and provided appropriate means of logistic support, such as ships and other means. The company also co-ordinated with Qatar Petroleum in relation to the “Ship to Ship” bunkering operations from Ras Laffan Bunkering Facilities.
With regard to Lubricating Oils and Greases (whose sales were expanded significantly during the year 2017, through contracts concluded with the government and others, and by competing for winning government tender for their supply), the requisite quantities were provided through alternate supply sources.
Engineer Al-Muhannadi further announced that currently there are seven (7) operating Vehicle Technical Inspection Centers, where 2 new centers were added during the years 2017 at Al Khor and Al Wakair. A new mobile center has been added by the beginning of the year 2018 and Al-Shehaniya Center has also been added few days ago. At tender has been issued for Al Mazrouaa center during the first quarter of this year 2018, and a study is underway for construction of a new center at Madinat Al Mowater, thus the number of the technical inspection centers will rise to 8 centers.
As to company activities during the year 2017, Engineer Al-Muhannadi highlighted, the increase realised in terms of distributed products volume in comparison with that of the year 2016. Sales of the various types of fuel increased by 6%- Bitumen sales witnessed an increase percentage of about 275%, while ship bunker fuels sales increased by 10 times, whereas gas sales realized a 12.2% increase. Quantities of petroleum products retail sales increased by 26.1% while non-petroleum retail sales realized an 11% increase of revenue. FAHES revenue increased by 2.8%, and products transport distance (in kilometers) increased by 19.8% compared to the total travelled distance in 2016.
Engineer A-Muhannadi revealed that the Board has reviewed and endorsed the present and future plan and strategic priorities of the company for the period 2018-2022. The company has an ambitious plan for increasing its stake of the market for distribution and transportation of petroleum products, gas, bitumen, bunker fuel, oils and lubricants. This could 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 the environmental maintenance/preservation.
Speaking about customer satisfaction, Engineer Al-Muhannadi indicated that Woqod has introduced the point of Sale service (POS) in all Woqod Fuel stations to enable customer use different credit cards in addition to the use of Woqode car system which manages and operates vehicle fueling process in an automated, easy and hazard free manner. The company was able to increase the sales of Woqode system by 83.235 tags during the year 2017 with a 134% increase rate compared to the sales achieved during the year 2016. Woqod is also planning to increase its non-petroleum activities, authorized under its Articles of Association by a rate of 15% per annum until the year 2022.
The company will go ahead with its ambitious plan for realizing the highest revenues for its shareholders. This will be achieved by developing and expanding its core business as well as supporting activities, and through continuing with its implementation of its systematic plan for cost optimization through a set of well thought initiatives and mechanisms, for achieving capability and efficiency in company operations, and availing the necessary support for the plan by introducing other necessary accounting and technical policies and procedures.
Engineer Al-Muhannadi reviewed the steps taken by Woqod in the field of Qatarization, to which the company accorded paramount importance. He advised that the company has a strategic plan for recruiting and retaining capable and qualified Qatari employees and prepare them for joining the leadership team. A number of students are now pursuing their studies on a scholarships funded by the company, in specializations consonant with Woqod business requirements. There are other Qatari employees undergoing training with the objective of recruiting them in different target positions. Qatarization amounted to 35% within the senior staff category, and the vast majority of the higher management team are from Qatari competencies.
As to corporate social responsibility, Engineer Al-Muhannadi indicated that Woqod was able to reach out to all customers in the remote areas, thereby giving effect to its social responsibility in Qatar. The company also sponsored a number of national functions such as Qatar National Day. Emphasizing that, the company management and Board of Directors will exert all efforts to realize company strategic vision for provision the best services to the country, the citizens and the residents, Engineer Al-Muhannadi thanked all concerned parties for their unfailing support to Woqod in furtherance of the realization of its objectives and the implementation of its vital projects.