Woqod to add 4 more fuel stations in 2nd half of 2021
Woqod targets to add four petrol stations in the second half of 2021 and seven more petrol stations in 2022
WOQOD’S ongoing expansion of retail fuel station network should support its fuel and non-fuel revenue growth gradually, QNB Financial Services (QNBFS) has said in its latest report.
Woqod targets to add four more petrol stations in the second half of 2021 that will raise its network to 111 stations, QNBFS said. In 2022, the company plans to add seven more stations to its network that should bring the number of stations to 118.
“New petrol stations should contribute to Woqod retail sales in the second half of 2021 and 2022,” it said.
WOQOD’S ongoing expansion of retail fuel station network should support its fuel and non-fuel revenue growth gradually, QNB Financial Services (QNBFS) has said in its latest company report.
Woqod targets to add four more petrol stations in the second half of 2021 that will raise its network to 111 stations, QNBFS said. In 2022, the company plans to add seven more stations to its network that should bring the number of stations to 11 .
“New petrol stations should contribute to Woqod retail sales in the second half of 2021 and 2022. Woqod announced that it has opened two petrol stations since the beginning of 2021, bringing the number of stations currently operated by the company to 107 from 105 at 2020 year-end,” QNBFS said in the report.
“Qatar Airways Group’s planned expansion is likely to be the foremost long-term driver for Woqod’s bottom-line growth. Removal of the blockade and the World Cup in 2022 should also be supportive for jet fuel volumes longer-term,” the report said.
Analysing the company’s financial results in the second quarter of 2021, the report said, “Woqod’s net profit rose 71.7 percent yearon-year (yoy) to QR207.9 million. The company allocated QR5 million of provisions for trade receivables in line with IFRS requirements during the first half of 2021. It is likely to be the major reason behind the deviation from our bottom-line forecast.”
“The net profit for the first half of 2021 excluding minority rights amounted to QR 1.1 million, compared to an amount of QR270.2 million achieved in the same period last year, representing an increase rate of 71 percent. The earnings per share (eps) amounted to QR0. in the first half of 2021 as compared to QR0.27 in the first half of 2020,” the report said. The company’s strong recovery on a yoy basis in gross profits was mainly due to low base, it said.
“The company posted QR2 7. million in gross profits in the second quarter of 2021 against QR9. million in the second quarter of 2020, during when Woqod’s sales volumes had declined sharply due to the broad-based lockdowns.
“Woqod recorded QR .5 billion in net sales in the second quarter of 2021, increasing 110.5 percent yoy, mainly thanks to higher product prices and higher volumes and 1 . percent qoq that may be attributable to the higher product prices as well,” the report said.
“We maintain our target price (TP) of QR19. and ‘market perform’ rating for now,” it said.