Posted on October 26, 2018

Qatar Fuel (Woqod) on Thursday announced that the company's net profit had increased 28 percent, or QR182 million, to QR825 million in the first nine months of 2018 when compared with QR643 million in the same period last year.

Woqod Chief Executive Officer Saad Rashid al Muhannadi announced the results after the meeting of board of directors presided over by Woqod Chairman Ahmed Saif al Sulaiti approved the unaudited financial statements and operational activities of the company for the third quarter of 2018. Muhannadi attributed the good results achieved in terms of profit level to the efforts exerted toward enhancing efficiency and capability in the company's business operations and cost optimisation in line with the study duly conducted and implemented since the year 2017.

The resulting cost reduction has been achieved despite the expansion of Woqod fuel stations network, a release issued by the company said. Muhannadi further attributed the increase achieved in profit levels to the increase of the volume of quantities distributed through the various distribution networks which have been enhanced and optimised both quantitatively and qualitatively to meet the increasing demand for petroleum products and gas, along with accompanying services.

He also attributed the increase to the prudent management of cash and investment activities. The return on a share amounted to QR8.30 by the end of the third quarter 2018 compared to QR6.47 for the same period of the year 2017. About the company's projects, Muhannadi said the plan is to increase the number of operational petrol stations to 130 stations by the end of 2020, of which 72 stations are currently operational. The company is targeting the construction and operation of 32 stations by the end of this year including 13 mobile stations. Of these, the company has completed and operating 19 petrol stations including nine mobile stations.

Another 13 stations including four mobile stations will be opened, increasing the number of operational petrol stations to 90 by the end of 2018. As many as 47 locations are currently undergoing various stages of preparation, in order to qualify them for the construction of new petrol stations. About the company's operations, Muhannadi said the company has witnessed an increase in the sales of most products by the end of the third quarter 2018 compared to the corresponding period of the previous year.

The average increase in the total sales of petroleum products amounted to 4.7 percent compared to the same period of year 2017. Jet fuel sales increased by 11 percent in comparison with sales of the same period in 2017, while bitumen sales reached about 203,000 metric tonnes in the current year which is approximately equal to the sales of same period of the year 2017. LPG sales increased by 14 percent whereas Bunkering Fuel sales reached 458,000 tonnes, compared to 57,000 tonnes for the same period of 2017. Sales of natural gas and compressed natural gas realised a 5 percent increase, in comparison with the same period of 2017.

In retail sales of petroleum products within the local market, the company targets to increase its stake to 86 percent by the year 2022. Woqod increased its market share to 68 percent during the subject reporting period compared to 57 percent during the same period of 2017. Retail non-fuel sales (including Sidra C-Store sales) witnessed a 4.6 percent increase. The total operations value of Woqod subsidiary, Woqod vehicle inspection company 'Fahes' increased by about 40 percent.

Muhannadi said that the petroleum products sale and purchase agreement between Qatar Petroleum and Woqod has been executed for a further period of five years. A new agreement executed recently embodies the terms, conditions and arrangements reached by the parties in this regard. On the other hand, he stated that, the board had approved annual budget for 2019, pointing out that the budget comprised the anticipated key performance indicators for Woqod group in relation to the distribution and marketing of petroleum products and gas and other activities of Woqod and subsidiary companies during the year 2019, and the requisite operational and capital costs and expenses.

In this regard, the company has allocated about QR1.175 billion to be spent on new projects intended for implementation in the year 2019. The company will also spend on the requirements for maintenance, security and safety.

source: Qatar Tribune