Woqod's net profit grows by 9.2% to QR964m

01/03/2018 06:05 AST

Woqod's net profits for the year 2017, excluding minority interests, rose by 9.2 percent to QR964m, compared to the previous year's QR883m. Return on share increased to QR9.7 from QR8.9 per share from a year ago. Ownership rights increased by about 1.1 percent to QR7.4bn, from QR7.3bn reported in 2016.

The financial results were announced after Woqod's Board of Directors' meeting, chaired Ahmed Seif Al Sulaiti.

Announcing the results, Woqod's Chief Executive Officer, Saad Rashid Al Muhannadi said the company delivered solid results despite substantial changes and huge reduction of its margins for distribution of fuel product during 2017. He attributed the strong results to the increase in fuel sales in general, in addition to the measure taken for costs reduction through a multi- initiative integrated cost optimization policy being implemented in phased manner, and is expected to yield results in the near future.

In response to the company's solid results, the board recommended to distribute dividends amounting to QR8 per share or 80 percent of the nominal paid capital The recommendation has taken into account the present liquidity status and future financing requirements for capital projects approved for the year 2018, and thereafter.

Al Muhannadi said the Board has reviewed and approved the current and future projects intended for implementation by the company in support of the comprehensive country development endeavors. According to him, Fuel Service stations currently operated by Woqod amounted to 58 stations, where 4 permanent station were added during the year 2017 in Al Mashaf, Bu Nakhla, Um Ghuailena and Al Khor, in addition to 2 mobile stations in Galyha and Al Gharafa.

The CEO said Woqod has ambitious plans for increasing the number of stations to 120, including 10 mobile stations, within a period of 3 years, where about 30 stations will be completed and operated within the coming 12 months. The company is also planning to increase the number of dispensers within the currently operational stations by 59 percent within the year 2018, and will continue with the same increase rate within the following years 2019 and 2018 in order to reduce the vehicle congestion within petrol stations resulting from the decommissioning of many private stations.

Woqod and its affiliated companies intend to implement various other vital projects in the forthcoming period. These include Bitumen Facilities Expansion Project aiming at supporting and supplying state roads and projects with their requirements of asphalt products that conforms to the highest international standards in the fields sustainability and durability of roads.

Al Muhannadi revealed that the Board has reviewed and endorsed the present and future plan and strategic priorities of the company for the period 2018-2022. The company has plans for increasing its stake in the market for distribution and transportation of petroleum products, gas, bitumen, bunker fuel, oils and lubricants. This could be achieved through the implementation and operation of various projects, and concluding the necessary contracts and agreements relevant to these activities with the support of quality control systems, modern technology systems as well as the introduction of the highest health, safety and security systems.

The Peninsula