Investor Relations (IR), 30 th Jan 2020 Qatar Fuel Co. Q.P.S.C “WOQOD” Overview of Operation and 4Q and FY2019 Financial Results
Investor Relations (IR), 30th Jan 2020
Qatar Fuel Co. Q.P.S.C “WOQOD”
Overview of Operation and 4Q and FY2019 Financial Results
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Disclaimer
This release/Announcement/Report contains forward-looking and future-based prospective statements and/or informationconcerning the financial condition, results of operations, activities and businesses of Qatar Fuel (WOQOD) Q.P.S.C. , hereinafterWOQOD. All statements/information other than statements/information of historical fact are deemed to be forward-lookingstatements/information, being statements of future expectations that are based on current expectations and assumptions and notguarantees of future performance. Such forward-looking statement/information, involve known and unknown risks and uncertaintiesthat could cause actual results, operations and business performance or events impacting the Group to differ materially from thoseexpressed or as may be inferred from these statements.
These and all subsequent written and oral forward-looking information incorporated in this release/announcement/report are basedon estimates and opinions on the dates they are made as shown in the cover page herein and are expressly qualified in their entirety bythis notice.
There are a number of factors that could affect the realisation of these forward-looking and/or future-based perspective statementssuch as, without limitation: (a) product margins fluctuations, (b) changes in demand or market conditions for the Group’s services, (c)loss of market share and industry competition in non-concession products and facilities, (d) environmental risks and natural disasters,(e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) politicalrisks (H) Regional instability, war, blockade, sabotage, civil commotion or any other element or circumstances outside Group’s control.As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements containedherein.
WOQOD, its affiliated and subsidiary companies, its Directors, officers, partners, employees, advisors, contractors and agents shall notbe liable in any way for any costs, special, direct, indirect, consequential or incidental damage, losses or other detrimental effectswhether in tort, contract or quasi contract etc., resulting or arising from the use of or reliance by any party on any forward-looking, andfuture-based perspective statement and / or other material contained herein. Further, WOQOD, its subsidiaries, joint ventures, affiliateand associated companies are in no way obliged to update or publish revisions to any forward-looking and/or future-basedprospective statement/information or any other material contained herein should circumstances or managements opinions change orwhich may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reasonwhatsoever. WOQOD does not guarantee the accuracy of the historical statements contained herein.
The company cannot disclose any Commercially Sensitive Information due to the confidentially agreements signed with Suppliers.
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Contents
11• Company Overview
22• Operations Overview
33• Financial Results Overview
44• Q & A
Vision
“To be the leading petroleum products and related services marketing company in the region”
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Overview of WOQOD Group
• WOQOD started operations in 2002 with exclusive rights
for storage and distribution of petroleum products in
State of Qatar
• Operations started with 2 Petrol Stations in 2003 and
grown to 96 stations as of end of 2019, and another 14
stations are completed and will be opened in early 2020
• Key Operations of WOQOD are:
o Diesel and Gasoline Fuel Distribution – Bulk and
Retail
o Jet Fuel Distribution
o Shore to Ship and Ship to Ship Bunkering
Operations
o LPG Operations – Bulk and Shafaf
o Natural Gas distribution
o CNG Distribution
o HFO Bunkering
o Bitumen Operations
o Marine Operations
o Vehicle Inspections
o Other Retail activities supporting Retail Fuel Ops
– C-Store, Auto care etc.
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Contents
11• Company Overview
22• Operations Overview
33• Financial Results Overview
44• Q & A
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New Petrol Stations Growth Trend – YTD Dec 2019
• Total of 30 petrol stations completed in 2019
o 16 Petrol Stations opened
o 14 Petrol Stations completed awaiting approvals to open
• Preparations for 33 additional stations are in various stages
Overall Fuel Volumes Trend Analysis
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2019 vs. 2018
• Fuel sales volume for 2019 is record high of 10.5 Billion Liters
o Overall growth in Fuel Sales is 1.4%, mainly driven by Jet Fuel sales growth of 6%
3.0 2.8 2.6
2.5 2.6 2.6
4.5 4.9 5.2
9.9 10.3 10.5
YTD Dec '17 YTD Dec '18 YTD Dec '19
Fuel Sales Volume Trend - Billion Liters
Diesel Gasoline Jet A1 Fuel - QJet
Diesel & Gasoline Fuel Volumes & Price – YTD Dec 2019
2019 vs. 2018
• Diesel sales lower by 8% in 2019 as compared to 2018 mainly due to lower demand from bulk customers
• Gasoline sales higher by 3% in 2019 as compared to 2018 driven by market demand 8
Overall Fuel Sales UnitYTD Dec
2019YTD Dec
2018Variance
F/(U) Variance
(%)
Diesel MM Litres 2,588 2,822 (234) -8%Super Gasoline MM Litres 1,275 1,215 60 5%Premium Gasoline MM Litres 1,362 1,339 23 2%
Total Fuel Sales MM Liters 5,225 5,376 (151) -3%
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Retail Fuel Sales Volume Comparison
2019 vs. 2018
• Retail Fuel sales increased by 24% during 2019 as compared to 2018 mainly
driven by opening of new petrol stations
o Diesel Sales increased by 12%
o Super Gasoline Sales increased by 37% and
o Premium Gasoline sales increased by 24%
• Retail Fuel Market Share increased by 16% in 2019 (82% in 2019 vs 66% in 2018)
Retail - Fuel Sales UnitYTD Dec
2019YTD Dec
2018Variance Variance
(%)F/(U)
Diesel MM Litres 791 704 87 12%
Super Gasoline MM Litres 1,014 742 272 37%
Premium Gasoline MM Litres 1,060 857 203 24%
Total MM Liters 2,865 2,303 562 24%
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Contents
11• Company Overview
22• Operations Overview
33• Financial Results Overview
44• Q & A
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Revenue - Trend Analysis
2019 vs 2018
• Revenue for the year is QR 22.4 billion; as compared to 2018, the revenue is lower
by 3.1% mainly driven by decrease in fuel prices mitigated by increase in fuel sales
volume
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Net Income - Trend Analysis
2019 vs 2018
• Net Income and EPS higher by 4.8% to QR 1,216 million and QR 1.22 respectively, compared
to 2018
• The increase in net income driven by higher operating income, operational efficiencies, cost
optimization and higher returns from better cash management
• For the fourth quarter 2019, Net Profit grew by 3% to QR 345 million compared to 4Q2018
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Key Variance Analysis of Net Income – 2019 vs 2018Net Income Attributable to WOQOD Shareholders
Net Income attributable to WOQOD Shareholders increased by QAR 56MM, 4.8% increase (QAR 1,216MM vs. QAR 1,160MM). Summary of variances are as follows:
• Operating Income (net) driven by fuel sales growth
• Interest and Dividends higher by QAR 25MM from better cash optimization and better performance on equity
• Others comprises mainly of lower G&A expenses
• Depreciation higher driven by growth in assets
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2019 - Key Achievements
Petrol Stations
Completed as of 31st
Dec 2019
110
30New Petrol
Stations completed
in 2019
Retail fuel market share
82%
Lost Time Incident
Frequency
SafetyImprovement
of 72%
10.5 Bn Liters
Achieved record
Fuel sales
Retail Fuel Sales
Growth24%
4.8%Growth
Net Income
QAR 1,216 MM
EPSQAR 1.22
4.8%Growth
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Contents
11• Company Overview
22• Operations Overview
33• Financial Results Overview
44• Q & A
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Thank You !