Qatar Fuel Co. Q.P.S.C “WOQOD” Overview of Operation and First Half 2019 Financial Results Investor Relations (IR), 22 nd July 2019
Disclaimer This release/announcement/report contains forward-looking and future-based prospective statements and/or information concerning the financial condition, results of operations, activities and businesses of Qatar Fuel (WOQOD). All statements/information other than statements/information of historical fact are deemed to be forward-looking statements/information, being statements of future expectations that are based on current expectations and assumptions and not guarantees of future performance. Such forward- looking statement/information, involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed 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 based on estimates and opinions on the dates they are made as shown in the cover page herein and are expressly qualified in their entirety by this notice. There are a number of factors that could affect the realization of these forward-looking and/or future-based perspective statements such 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) political risks (H) Regional instability, war, blockade, sabotage, civil commotion or any other element or circumstances outside WOQOD control. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. Qatar Fuel (WOQOD), its affiliated and subsidiary companies, its Directors, officers, partners, employees, advisors, contractors and agents shall not be liable in any way for any costs, special, direct, indirect, consequential or incidental damage, losses or other detrimental effects whether in tort, contract or quasi contract etc., resulting or arising from the use of or reliance by any party on any forward-looking, and future-based perspective statement and / or other material contained herein. Qatar Fuel (WOQOD), its subsidiaries, joint ventures, affiliate and associated companies are further in no way obliged to update or publish revisions to any forward-looking and/or future-based prospective statement/information or any other material contained herein should circumstances or managements opinions change or which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Qatar Fuel (WOQOD) does not guarantee the accuracy of the historical statements contained herein. 2
Contents • Company Overview 1 • Operations Overview 2 • Financial Results Overview 3 • Appendix 5 • Q & A 6 Vision “To be the leading petroleum products and related services marketing company in the region” 3
Overview of WOQOD Group • Qatar Fuel Q.P.S.C ("WOQOD") was formed in 2002 by an Emiri Decree with an aim to provide refined fuel storage and distribution services in the State of Qatar. WOQOD is exclusively responsible for the distribution of fuel needs within Qatar • The regulated products mainly includes Diesel, Gasoline and Jet A1. The company also trades in bunker fuels, ship-to-ship bunkering within Qatari waters, bitumen importation and distribution, LPG and branded lubricants • Operations started with 2 Petrol Stations in 2003 and has grown to 85 petrol stations and 13 Vehicle Inspection Stations (Fahes) as of 30th June 2019 • The WOQOD Group comprises of Qatar Fuel (WOQOD) and five subsidiaries with complementary operations Shareholding Subsidiaries QJet Qatar (60%) (40% by QIMC) Petroleum (20%) FAHES Qatar Fuel (WOQOD) (100%) Ard Al Khaleej Retirement (100%) & Pension Qatar Fuel Shafallah Authority (WOQOD) (1.5%) (20%) WOQOD Marine (100%) Woqod International (100%) Public (58.5%) 4
Contents • Company Overview 1 • Operations Overview 2 • Financial Results Overview 3 • Appendix 5 • Q & A 6 5
Key Operations of WOQOD Group - by Segments 6
Petrol Stations Statistics • Total of 32 petrol stations opened in 2018 • As of end of June 2019, WOQOD operates 85 petrol stations (66 fixed and 19 mobile) • Expected to add another 29 petrol station during rest of 2019 which makes the total stations to 114 by end of 2019 7
Fuel Sales Volume Trend Analysis Fuel Sales Volume Trend 6.00 5.33 5.14 5.07 4.99 4.76 Fuel Sales Volume (Billion Liters) 5.00 2.59 4.00 2.31 2.35 2.52 2.15 3.00 0.65 0.68 0.61 0.66 0.66 2.00 0.62 0.61 0.61 0.61 0.63 1.00 1.56 1.45 1.39 1.38 1.25 - Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Diesel Super Gasoline Premium Gasoline Jet Fuel - QJet 1H19 vs. 1H18 • Overall growth in Fuel Sales is 2% • Jet A1 Fuel sales increased by 7% driven by higher offtake by the Airlines • Diesel sales lower by 9% due to lower offtake by the bulk customers • Super gasoline sales increased by 5% and Premium Gasoline sales remained flat driven by market demand 8
Retail Fuel Sales Volume Comparison 1H - 2019 1H - 2018 Variance Variance Retail - Fuel Sales Unit F/(U) (%) Diesel MM Litres 374.5 338.0 36.5 11% Super Gasoline MM Litres 496.9 339.0 157.9 47% Premium Gasoline MM Litres 507.6 394.0 113.6 29% Total MM Liters 1,379.0 1,071.0 308.0 29% 1H19 vs. 1H18 • Retail Fuel sales increased by 29% during 1H19 as compared to 1H18 mainly driven by opening of 27 new petrol stations Diesel Sales increased by 11% o Super Gasoline Sales increased by 47% and o Premium Gasoline sales increased by 29% o • Retail Fuel market share increased from 62% to 80% driven by opening of new stations 9
Sales Trend – Other Segments Variance Operations Unit 1H - 2019 1H - 2018 Variance (%) F/(U) Bitumen KMT 150.0 147.0 3.0 2% LPG KMT 92.0 89.0 3.0 3% Natural Gas & CNG KMMBTU 642.0 407.0 235.0 58% Retail - Other Sales Sidra QAR 'MM 101.0 90.0 11.0 12% APC QAR 'MM 103.0 90.0 13.0 14% Total QAR 'MM 204.0 180.0 24.0 13% Heavy Fuel Oil KMT 427.0 263.0 164.0 62% 1H19 vs 1H18 • Bitumen and LPG sales increased by 2% and 3% respectively driven by the increased demand from commercial customers • Natural Gas sales increased by 58% mainly driven by increase in demand from industrial customers • Total Retail non-fuel revenue increased by 13% in 2019 driven by addition of new petrol stations • HFO bunkering sales increased by 62% due to market demand 10
2019 1 st Half - Key Achievements 5.1 Bn Achieved Petrol 85 record Stations in Liters Fuel sales Operations New Petrol Fuel Stations 27 2% volumes Opened in growth last 12 months Retail Fuel Fuel retail 29% 80% Sales market Growth share Net 9% Income QAR Growth 548MM 9% EPS Growth QAR 0.55 11
Contents • Company Overview 1 • Operations Overview 2 • Financial Results Overview 3 • Appendix 5 • Q & A 6 12
Revenue - Trend Analysis 1H19 vs 1H18 • Revenue is higher by 1.4% to QR 10.96 billion mainly driven by the following factors o Increase in retail fuel sales volume partly offset by decrease in fuel prices o Increase in non-fuel revenue 13
Net Income - Trend Analysis 1H19 vs 1H18 • Net Income and EPS higher by 9% to QR 548 million and QR 0.55 respectively, compared to 1H2018 • The increase in net income is attributable to the increase in revenue, cost optimization, efficiency improvements and better return on cash and investments 14
Net Income Analysis – YTD June 2019 Net Income Attributable to WOQOD Shareholders Net Income attributable to WOQOD shareholders for the same period increased by QAR 45MM (9% better) • Net Operating Margin increased driven by increase in fuel sales and increase and other retail revenues • G&A expenses lower as driven by the cost optimization initiatives • Interest and Dividend higher driven by optimization of cash and investments • Depreciation higher by opening of new Petrol Stations 15
Total Assets and Equity – Trend Analysis • Strong asset base • Shareholders Equity increased by QAR 1.04 billion (up 15%) 16
Contents • Company Overview 1 • Operations Overview 2 • Financial Results Overview 3 • Appendix 5 • Q & A 6 17
QATAR FUEL COMPANY (WOQOD) Q.P.S.C. Condensed consolidated statement of profit or loss for the six month period ended 30 June 2019 (All amounts are expressed in thousands of Qatari Riyals unless otherwise stated) For the six months period ended 30 June 2019 2018 ( Reviewed) (Reviewed) Revenues 10,963,654 10,817,151 (10,385,468) (10,250,256) Cost of sales Gross profit 578,186 566,895 199,312 192,408 Other income General and administrative expenses (209,641) (221,607) Net profit for the period 567,857 537,696 Attributable to: Owners of the Company 548,275 503,217 Non-controlling interest 19,582 34,479 Net profit for the period 567,857 537,696 Basic earnings per share 0.55 0.51 (expressed in QR per share) 18
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