WOQOD Achieved QR825 Million Net Profits by End of September 2018

Doha, October 26 (QNA) - Qatar Fuel (WOQOD) achieved QR825 million net profits by end of September 2018 compared to QR643 million for the same period in 2017, with an increase of QR 182 million equivalent to 28%. WOQOD Chief Executive Officer Engineer Saad Rashid Al Muhannadi attributed the good results achieved in terms of profit level to the efforts exerted toward enhancing efficiency and capability in companys business operations, and cost optimization in line with the study duly conducted and implemented since the year 2017. It is to be noted that the resulting cost reduction has been achieved despite the expansion of WOQOD fuel stations network. Al Muhannadi further attributed the increase achieved in profit levels to the increase of the volume of quantities distributed through the various distribution networks which had been enhanced and optimized both quantitatively and qualitatively to meet the persistent increase of demand for petroleum products and gas, along with accompanying services. He also attributed the increase to the prudent management of cash and investment activities. He added that the return on a share amounted to QR 8.30 by the end of the Third Quarter 2018 compared to QR 6.47 for the same period of the year 2017. Concerning the company's projects, Al Muhannadi explained that the company's plan is to increase the number of operational petrol stations to 130 stations by the end of the year 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 is operating 19 petrol stations including 9 mobile stations. Another 13 stations (including 4 mobile stations) will be opened thus increasing the number of operational petrol stations to 90 stations by the end of 2018. 47 locations are currently undergoing various stages of preparation, in order to qualify them for the construction of new petrol stations. With regard to the company's operations, Al Muhannadi stated that the company has witnessed an increase on the sales of most products by the end of the Third Quarter 2018 compared to the corresponding period of 2017. The average increase in the total sales of petroleum products amounted to 4.7% compared to the same period of year 2017. Jet fuel sales increased by 11% in comparison with sales of the same period in 2017 while Bitumen sales reached to about 203 thousand metric tonnes in current year which is approximately equal to the sales of same period of the year 2017. LPG sales increased by 14% whereas Bunkering Fuel sales reached 458 thousand metric tonnes, compared to 57 thousand metric tonnes for the same period of 2017. Sales of natural gas and compressed natural gas realized a 5% increase, in comparison with the same period of the year 2017. As regards the retail sales of petroleum products within the local market, the company targets to increase its stake to 86% by the year 2022. WOQOD increased its market share to 68% during the subject reporting period compared to 57% during the same period of the year 2017. Retail non-fuel sales (including Sidra C-Store sales) have witnessed a 4.6% increase. The total operations value of WOQOD Subsidiary, WOQOD Vehicle Inspection Company "FAHES" increased by about 40%. Al Muhannadi stated that the Petroleum Products Sale & Purchase Agreement between Qatar Petroleum and WOQOD has been executed for a further period of five (5) years. A new agreement executed recently embodies the terms, conditions and arrangements reached by the parties in this regard. He also announced that Qatar Fuel Board of Directors approved annual budget for the year 2019. He added that the company has allocated about 1.175 Billion Riyals 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. (QNA)