Satyendra Pathak
Doha
Qatar Airways (QA) Group’s planned expansion is likely to be the foremost long-term driver for Woqod’s bottom-line growth in the medium to long term, QNB Financial Services (QNBFS) has said in its latest company report.
Nevertheless, the report said, the company’s ongoing expansion of its retail fuel station network should support its fuel and non-fuel revenue growth gradually. Removal of the blockade should also be supportive for jet fuel volumes longer-term, it said.
‘’We maintain our market perform rating with a target price of QR19.8 on Woqod,’’ the report said.
Commenting on the company’s financial results for 2020, QNBFS said, ‘’Woqod posted 19.1 percent year-on-year (YoY) decrease but 75.8 percent quarter-on-quarter (QoQ) increase in net profit in the fourth quarter of 2020, above our estimate.’’
Cash DPS of QR0.46 is in-line with our expectation of QR0.44, it said.
‘’Gross profit was above our estimate, which is attributable to higher margins. During the fourth quarter of 2020, diesel and gasoline volumes continued their recovery on a QoQ basis even recording slight positive growth against the fourth quarter of 2019. The company posted QR291 million in gross profits in the fourth quarter of 2020 against QR193.6 million in the third quarter of 2020 and QR337.8 million in the fourth quarter of 2019,’’the report said.
‘’Due to relatively higher economies of scale benefits, gross margin rose to 9.5 percent in the fourth quarter of 2020 up from 6.3 percent in the third quarter of 2020. As of 2020, jet fuel sales volume fell by 33 percent YoY. Continuation of air traffic restrictions due to coronavirus-related counter-measures led Woqod to experience lower demand in 2020 for its jet fuel. Diesel, super gasoline and premium gasoline sales volumes decreased by 9 percent, 10 percent and 9 percent YoY respectively,’’ the report said.
Furthermore, Woqod’s retail non-fuel revenue, including Sidra sales, increased by 11 percent YoY in 2020 as new stations opened in 2019 and 2020. In
2020, Woqod’s retail gas stations increased by 12 reaching 108.
Doha
Qatar Airways (QA) Group’s planned expansion is likely to be the foremost long-term driver for Woqod’s bottom-line growth in the medium to long term, QNB Financial Services (QNBFS) has said in its latest company report.
Nevertheless, the report said, the company’s ongoing expansion of its retail fuel station network should support its fuel and non-fuel revenue growth gradually. Removal of the blockade should also be supportive for jet fuel volumes longer-term, it said.
‘’We maintain our market perform rating with a target price of QR19.8 on Woqod,’’ the report said.
Commenting on the company’s financial results for 2020, QNBFS said, ‘’Woqod posted 19.1 percent year-on-year (YoY) decrease but 75.8 percent quarter-on-quarter (QoQ) increase in net profit in the fourth quarter of 2020, above our estimate.’’
Cash DPS of QR0.46 is in-line with our expectation of QR0.44, it said.
‘’Gross profit was above our estimate, which is attributable to higher margins. During the fourth quarter of 2020, diesel and gasoline volumes continued their recovery on a QoQ basis even recording slight positive growth against the fourth quarter of 2019. The company posted QR291 million in gross profits in the fourth quarter of 2020 against QR193.6 million in the third quarter of 2020 and QR337.8 million in the fourth quarter of 2019,’’the report said.
‘’Due to relatively higher economies of scale benefits, gross margin rose to 9.5 percent in the fourth quarter of 2020 up from 6.3 percent in the third quarter of 2020. As of 2020, jet fuel sales volume fell by 33 percent YoY. Continuation of air traffic restrictions due to coronavirus-related counter-measures led Woqod to experience lower demand in 2020 for its jet fuel. Diesel, super gasoline and premium gasoline sales volumes decreased by 9 percent, 10 percent and 9 percent YoY respectively,’’ the report said.
Furthermore, Woqod’s retail non-fuel revenue, including Sidra sales, increased by 11 percent YoY in 2020 as new stations opened in 2019 and 2020. In
2020, Woqod’s retail gas stations increased by 12 reaching 108.