Qatar Fuel Co. Q.P.S.C WOQOD Overview of Operation and First Half - - PowerPoint PPT Presentation

Investor Relations (IR), 22nd July 2019

Qatar Fuel Co. Q.P.S.C “WOQOD”

Overview of Operation and First Half 2019 Financial Results

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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

• ther 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

• n 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

• r 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.

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Contents

1

• Company Overview

2

• Operations Overview

3

• Financial Results Overview

5

• Appendix

6

• 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

• 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

• f 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
• perations

Shareholding Subsidiaries

Qatar Fuel (WOQOD) Qatar Petroleum (20%) Shafallah (1.5%) Public (58.5%) Retirement & Pension Authority (20%) Qatar Fuel (WOQOD) QJet (60%) (40% by QIMC) FAHES (100%) Ard Al Khaleej (100%) WOQOD Marine (100%) Woqod International (100%)

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Contents

1

• Company Overview

2

• Operations Overview

3

• Financial Results Overview

5

• Appendix

6

• Q & A

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Key Operations of WOQOD Group - by Segments

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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

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Fuel Sales Volume Trend Analysis

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

1.39 1.56 1.38 1.45 1.25 0.61 0.62 0.61 0.61 0.63 0.61 0.65 0.66 0.68 0.66 2.15 2.31 2.35 2.59 2.52 4.76 5.14 4.99 5.33 5.07

• 1.00

2.00 3.00 4.00 5.00 6.00 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Fuel Sales Volume (Billion Liters)

Fuel Sales Volume Trend

Diesel Super Gasoline Premium Gasoline Jet Fuel - QJet

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Retail Fuel Sales Volume Comparison

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%
• Super Gasoline Sales increased by 47% and
• Premium Gasoline sales increased by 29%
• Retail Fuel market share increased from 62% to 80% driven by opening of new

stations

Retail - Fuel Sales Unit 1H - 2019 1H - 2018 Variance F/(U) Variance (%) 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%

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Sales Trend – Other Segments

Operations Unit 1H - 2019 1H - 2018 Variance F/(U) Variance (%) 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

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2019 1st Half - Key Achievements

Petrol Stations in Operations

85 27

New Petrol Stations Opened in last 12 months Fuel retail market share

80%

Achieved record Fuel sales

5.1 Bn Liters

2%

Fuel volumes growth

Retail Fuel Sales Growth

29%

9%

Growth

Net Income QAR 548MM

EPS

QAR 0.55

9%

Growth

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Contents

1

• Company Overview

2

• Operations Overview

3

• Financial Results Overview

5

• Appendix

6

• Q & A

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Revenue - Trend Analysis

1H19 vs 1H18

• Revenue is higher by 1.4% to QR 10.96 billion mainly driven by the following

factors

• Increase in retail fuel sales volume partly offset by decrease in fuel prices
• Increase in non-fuel revenue

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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

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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

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Total Assets and Equity – Trend Analysis

• Strong asset base
• Shareholders Equity increased by QAR 1.04 billion (up 15%)

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Contents

1

• Company Overview

2

• Operations Overview

3

• Financial Results Overview

5

• Appendix

6

• Q & A

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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 Cost of sales (10,385,468) (10,250,256) Gross profit 578,186 566,895 Other income 199,312 192,408 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)

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QATAR FUEL COMPANY (WOQOD) Q.P.S.C.

Condensed consolidated statement of financial position as at 30 June 2019

(All amounts are expressed in thousands of Qatari Riyals unless otherwise stated)

30 June 2019 31 December 2018 ASSETS (Reviewed) (Audited) Non-current assets Property, plant and equipment 2,896,593 2,661,163 Investment properties 889,505 906,226 Investment securities 1,517,919 1,485,015 Goodwill 132,935 132,935 Total non-current assets 5,436,952 5,185,339 Current assets Inventories 362,349 422,450 Trade receivables 2,044,745 2,951,400 Prepayments and other receivables 178,228 220,404 Cash and bank balances 4,011,146 4,995,186 Total current assets 6,596,468 8,589,440 TOTAL ASSETS 12,033,420 13,774,779 EQUITY AND LIABILITIES EQUITY Share capital 994,256 994,256 Legal reserve 498,915 497,791 Fair value reserve 35,809 (7,485) Revaluation surplus 531,793 531,793 Retained earnings 5,750,071 6,014,885 Equity attributable to equity holders of the parent 7,810,844 8,031,240 Non – controlling interests 184,091 247,383 TOTAL EQUITY 7,994,935 8,278,623 LIABILITIES Non-current liabilities Trade and other payables 232,776 232,776 Finance lease liability 100,849 25,441 Employees’ end of service benefits 97,686 91,544 Total non-current liabilities 431,311 349,761 Current liabilities Finance lease liability 18,225 6,325 Trade and other payables 3,588,949 5,140,070 Total current liabilities 3,607,174 5,146,395 TOTAL LIABILITIES 4,038,485 5,496,156 TOTAL EQUITY AND LIABILITIES 12,033,420 13,774,779

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Contents

1

• Company Overview

2

• Operations Overview

3

• Financial Results Overview

5

• Appendix

6

• Q & A

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Thank You !