Qatar Fuel Company (Woqod) has recorded a net profit (excluding minority rights) of QR270m for the first half of 2020, compared to QR548m during the same period in 2019 reflecting a decrease of QR278m or 51 percent. The earning per share reached QR0.27 per share compared to QR0.55 for the same period last year.
The decrease of the net profits and earning per share were partly attributed to the market slow down prompted by COVID-19 pandemic and partly to supply and demand factors on petroleum products. The decrease of petroleum product distribution margins is also one of the factors that have participated in net profits and earning per share decrease.
Speaking at the company’s BOD meeting yesterday, Woqod Chairman Ahmed Saif Al Sulaiti explained that the company’s overall sales of petroleum products decreased by 22 percent compared to the same period last year due to the impact of COVID-19 pandemic. Diesel and Super Gasoline sales decreased by 12 percent and 22 percent respectively, Premium Gasoline sales decreased by 14 percent, and Jet fuel volumes decreased by 28 percent driven by the reduced operations of Qatar Airways and private airlines due to the suspension of air traffic in most countries globally.
Bitumen sales have decreased by 66 percent driven by market situations, COVID-19 pandemic and the completion of the major projects. The LPG sales decreased by 3 percent compared to the same period in 2019 due to supply and demand factors. Refined Petroleum Products retail sales from petrol stations decreased by 8 percent as a consequence of the low consumption prompted by the pandemic.
On the other hand, Bunkering fuel increased by 12 percent compared to the same period in 2019, and retail non-fuel revenue, including Sidra Sales, increased by 8 percent due to the opening of new stations and higher footfall in C-stores.
Al Sulaiti also pointed out that the petrol stations operated by Woqod at the end of June 2020 totalled to 104 stations, and the company intends to add eight more stations by the end of 2020. He added that the group during the second quarter of 2020 had also acquired two new bunker fuel ships to support the ship bunkering activity that Woqod is performing in cooperation, coordination and partnership with Qatar Petroleum.
Woqod Managing Director & Chief Executive Officer Saad Rashid Al Muhannadi, added 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 also reiterated that Woqod has been 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.
Woqod is the sole downstream oil and gas company responsible for securing sustainable supply of petroleum products and gas to all sectors in Qatar. Hence, it has issued and applied a suitable, flexible and effective business plan to ensure the continuity of the supply activities throughout the country on regular basis and in line with the health safety security, and environmental sanitation procedures, he added.
