Qatar Fuel Company (Woqod) reported a net profit of QR429mn in the third quarter of 2020, it was announced in a board meeting held Wednesday under the chairmanship of Ahmed Saif al-Sulaiti.
Woqod is a company with an exclusive concession in the State of Qatar to distribute, sell, transport, and market refined petroleum products and gas within Qatar, including to airports and seaports, either by itself or through subsidiary companies ‘QJET, Fahes, and Woqod Marine’.
To comply with governmental restrictions issued to combat the spread of Covid-19, the meeting was held remotely via video conference. The board discussed the performance of the business operations and the financial results of Woqod Group in Q3 2020 comparing them to the results achieved in the corresponding period last year.
Woqod managing director & CEO Saad Rashid al-Muhannadi explained that Woqod Group’s net profits and overall sales volumes witnessed a considerable increase in Q3 2020 over the second quarter of this year.
Al-Muhannadi also explained that Woqod Group’s QR429mn net profit in Q3 2020 (excluding minority rights) witnessed a 51% decrease rate, or QR443mn over the QR872mn achieved in the same period last year.
The earnings per share in Q3 2020 amounted to QR0.43 per share compared to QR0.88 for the same period of last year. The decrease in net profits and earnings per share for the period were partly attributed to the market slowdown prompted by the Covid-19 outbreak.
Al-Muhannadi said the company’s overall sales of petroleum products decreased by 23% compared to the same period of last year driven by the negative impact of the Covid-19 pandemic.
Diesel, super gasoline, and premium gasoline sales decreased by 11%, 14%, and 9%, respectively, while jet fuel volumes decreased by 34% driven by the reduced operations of airlines due to the suspension of air traffic in most countries globally.
Bitumen sales have decreased by 64% driven by macro-economic factors, Covid-19 pandemic, and the completion of the major projects. LPG sales decreased by 3% compared to the same period of 2019.
Refined petroleum products retail sales from petrol stations decreased by 3% compared to the same period of last year driven by micro-economic factors, as well as the negative impact of Covid-19.
On the other hand, he explained that bunkering fuel ‘HFO’ increased by 18%, natural gas sales increased by 9% compared to the same period in 2019, and retail non-fuel revenue, including Sidra sales, increased by 11% as compared to the same period of the last year driven by the opening of new stations.
In the field of the petrol stations project, al-Muhannadi said petrol stations operated by Woqod as of October 15, 2020, reached a total of 106 stations. The company intends to add five more stations by the end of 2020, he said.
To improve Woqod’s profitability, al-Muhannadi indicated that the company will continue to increase the levels of implementation of its efficiency and cost optimisation initiatives, as this will further improve the returns for the company and its shareholders.
Al-Muhannadi indicated that Woqod had and will still be working closely with its partners to coordinate the implementation of all the governmental directives issued in furtherance of combating the spread and the negative effects of Covid-19.
“Despite the impact and challenges of the coronavirus, Woqod, being the sole downstream oil and gas company responsible for securing a continuous and sustainable supply of petroleum products and gas to all sectors within the State of Qatar, was left with no choice but to implement a flexible and effective business plan to ensure the continuity of the supply activities throughout the country on a regular basis and in line with the health safety, security, and environmental sanitation procedures and standards for the time being in force in the petroleum products industry, where the group is persistently communicating and co-ordinating with entities of competent jurisdiction to implement the best standards and measures issued in this regard,” he said.
To comply with governmental restrictions issued to combat the spread of Covid-19, the meeting was held remotely via video conference. The board discussed the performance of the business operations and the financial results of Woqod Group in Q3 2020 comparing them to the results achieved in the corresponding period last year.
Woqod managing director & CEO Saad Rashid al-Muhannadi explained that Woqod Group’s net profits and overall sales volumes witnessed a considerable increase in Q3 2020 over the second quarter of this year.
Al-Muhannadi also explained that Woqod Group’s QR429mn net profit in Q3 2020 (excluding minority rights) witnessed a 51% decrease rate, or QR443mn over the QR872mn achieved in the same period last year.
The earnings per share in Q3 2020 amounted to QR0.43 per share compared to QR0.88 for the same period of last year. The decrease in net profits and earnings per share for the period were partly attributed to the market slowdown prompted by the Covid-19 outbreak.
Al-Muhannadi said the company’s overall sales of petroleum products decreased by 23% compared to the same period of last year driven by the negative impact of the Covid-19 pandemic.
Diesel, super gasoline, and premium gasoline sales decreased by 11%, 14%, and 9%, respectively, while jet fuel volumes decreased by 34% driven by the reduced operations of airlines due to the suspension of air traffic in most countries globally.
Bitumen sales have decreased by 64% driven by macro-economic factors, Covid-19 pandemic, and the completion of the major projects. LPG sales decreased by 3% compared to the same period of 2019.
Refined petroleum products retail sales from petrol stations decreased by 3% compared to the same period of last year driven by micro-economic factors, as well as the negative impact of Covid-19.
On the other hand, he explained that bunkering fuel ‘HFO’ increased by 18%, natural gas sales increased by 9% compared to the same period in 2019, and retail non-fuel revenue, including Sidra sales, increased by 11% as compared to the same period of the last year driven by the opening of new stations.
In the field of the petrol stations project, al-Muhannadi said petrol stations operated by Woqod as of October 15, 2020, reached a total of 106 stations. The company intends to add five more stations by the end of 2020, he said.
To improve Woqod’s profitability, al-Muhannadi indicated that the company will continue to increase the levels of implementation of its efficiency and cost optimisation initiatives, as this will further improve the returns for the company and its shareholders.
Al-Muhannadi indicated that Woqod had and will still be working closely with its partners to coordinate the implementation of all the governmental directives issued in furtherance of combating the spread and the negative effects of Covid-19.
“Despite the impact and challenges of the coronavirus, Woqod, being the sole downstream oil and gas company responsible for securing a continuous and sustainable supply of petroleum products and gas to all sectors within the State of Qatar, was left with no choice but to implement a flexible and effective business plan to ensure the continuity of the supply activities throughout the country on a regular basis and in line with the health safety, security, and environmental sanitation procedures and standards for the time being in force in the petroleum products industry, where the group is persistently communicating and co-ordinating with entities of competent jurisdiction to implement the best standards and measures issued in this regard,” he said.
