Hello everyone, and welcome to Qatar Fuel Conference Call. Please note that this call is being recorded. I'd now like to hand over to the moderator for today, Fabian. Fabian, please go ahead.
Thank you, Ellie. Good morning to you all, and thank you for joining us for the WOQOD or Qatar Fuel Company's first quarter 2024 earnings conference call. My name is Fabian Makuwerere from QNB Financial Services. On today's call, we have from WOQOD's management team, the CFO, Pradeep Kumar. We also have, Sultan Jassim Al-Maadeed, the Finance Manager, and Ahmed Saeed Al-Mansoori, the IR Officer. The order of the call is that, the management team will go over the performance, the Q1 performance first, and then the question- and- answer segment will follow. I'll now turn over the call to Ahmad to begin. Please go ahead, sir.
Thank you, Fabian. Good day to all the participants, and we hope everyone is keeping safe and healthy. We welcome you all to WOQOD's first quarter and March 2024 results conference call, and appreciate your participation, as WOQOD is committed to continuously enhance its investor relations initiatives. This is to strengthen our communication and improve transparency with all members of the global investment community. The presentation of this call will be available on the investor relations section of our website. Any statement that refers to expectations, projections, guidance, or any other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement based on the assumptions today. Actual results may differ materially from those expressed in these forward-looking statements. The company cannot disclose any commercially sensitive information due to the confidentiality agreements signed with suppliers.
Please refer to slide number 2 for the full version of disclaimer statements. All figures expressed in this call are in Qatari riyal, and the conversion for the same to US dollar is QAR 3.64 to one US dollar. Now, I would like to hand over the call to our finance manager, Mr. Sultan Jassim Al-Maadeed, to provide a brief overview of WOQOD and update on the key operational activities.
Thank you, Ahmad. The key vision of WOQOD is to be the leading petroleum product distribution and related service marketing company in the region. I am on slide 4 now, which shows the overview of WOQOD Group. WOQOD started operation in 2002 with exclusive rights for storage and distribution of petroleum products in the state of Qatar. Operations started with two petrol stations in 2003, and we have reached 126 stations at the end of March 2024. The chart on the right shows WOQOD's station network. WOQOD also owns and operates 13 FAHES Centers for inspection of vehicles across the state of Qatar. I am on slide 5 now, which shows the key operation of WOQOD Group.
Key operations of WOQOD Group are diesel and gasoline fuel distribution and sales, jet fuel distribution and sales, shore-to-ship and ship-to-ship bunkering, LPG distribution and sales, natural gas distribution and sales, bunkering, fuel bunkering, bitumen operation, convenience store and auto care activities, vehicle inspection services, and office leasing. Turning to slide 7 now, which shows the diesel and gasoline fuel sales volume trend analysis. As mentioned before, the core activity of WOQOD is fuel distribution and sale in the state of Qatar. Total fuel sales higher by 6% during year-to-date March 2024, as compared to the same period of last year, driven by market demand. Diesel sales volume were higher by 3% during year-to-date March 2024, versus the same period of last year, driven by macroeconomic factors.
Combined gasoline sales volume were up by 8% during year-to-date March 2024 versus March 2023, driven by market demand. On quarter-over-quarter basis, sales volume for first quarter 2024 decreased by 12% and 3% for diesel and gasoline, respectively. Average fuel sales were stable during, average fuel prices were stable during the reporting period. Turning to slide 8, which shows the jet fuel sales volume comparison. Jet fuel sales were higher by 19% during year-to-date March 2024, as compared to the same period of last year, driven by market demand. On quarter-over-quarter basis, jet fuel sales volume for first quarter 2024 increased by 1%, driven by market demand. Jet fuel prices for year-to-date March 2024 decreased by 9% as compared to the same period of last year.
Combined sales volume for all petroleum products increased by 13% for year-to-date March 2024, as compared to the same period of last year. Turning to slide nine, which shows the quarterly trend of retail fuel sales volume. Overall retail fuel volume increased by 5% year-to-date March, as compared to the same period of last year, driven by decreased market demand. Retail diesel sales increased by 3%, retail gasoline sales increased by 6% during year-to-date March 2024, as compared to the same period of last year, driven by market demand. On quarter-on-quarter basis, retail fuel volume in first quarter 2024 decreased by 8% and 3% for diesel and gasoline, respectively.
The market share of WOQOD in the retail market in the state of Qatar reached about 85% during year-to-date March 24, 2024. Non-fuel retail sales decreased by 8% during year-to-date March 24, 2024, mainly on account of decrease in APC. Now, I would like to hand over the call to our CFO, Mr. Pradeep Kumar, to discuss the key financial results.
Thanks, Sultan, for all the volume updates. Good day, everyone. Now I would like to discuss the consolidated financial results of WOQOD for the first quarter of 2024. Slide 11 shows the revenue trend of WOQOD. Revenue from fuel sales account for nearly 97% of the total revenue. WOQOD achieved total revenue of QAR 6.8 billion during the first quarter of 2024, as compared to QAR 6.6 billion during the same period last year, showing an increase of 3%. This increase is mainly driven by increase in overall fuel sales volume by 13%, partly offset by the decrease in fuel prices by 6%. As compared to the fourth quarter of 2023, the total revenue decreased by 8%, mainly due to the decrease in sales volume by 3% and sales price by 7%.
Turning to Slide 12, which shows the net income trend analysis. WOQOD has made a net income of QAR 243 million for first quarter 2024, as compared to QAR 223 million during the same period in 2023, representing an increase of 9%. On a quarter-on-quarter basis, the net income for first quarter 2024 decreased by 11% due to decrease in fuel sales volume and fuel prices. As compared to the first quarter of 2023, net income for first quarter of 2024 is higher by QAR 20 million, which is 9% increase, mainly driven by increase in fuel volume and other income. The detailed analysis of net income variance is given in the next slide. Slide 13 shows the key variance analysis of net income for the first quarter 2024 as compared to the same period last year.
The increase in net income of QAR 20 million is due to the following major factors: Fuel segment margins increase driven by increase in fuel sales volume. Trading stock price improvement is mainly driven by lower fuel price impact in first quarter 2024 as compared to the same period last year. B2B segment margin decreased mainly due to low uptake from B2B segments and impact of lower bitumen sales due to prevailing market conditions. Non-fuel and others lowered due to lower income from non-fuel segments due to current market conditions, high depreciation driven by asset additions, et cetera. Other income increases mainly due to higher interest income driven by optimization efforts on return on cash. WOQOD's fundamentals continue to remain robust, and WOQOD is committed to meet all its strategic goals while placing safety as a top priority.
WOQOD has a strong leadership committed towards delivering the results to its shareholders. With this, we are ready for the Q&A session. Thank you.
Opening the floor for question- and- answer. If you'd like to ask a question, please press star and number one on your telephone keypad. That's star and number one on your telephone keypad. Our first question comes from the [Deepak Kumar] from HSBC. Your line is now open.
Yes, thank you very much for the presentation. I have a few questions, please. So, any chance you could disclose the components of the other income? How much of that income was from dividends? That's my first question. And secondly, on the weaker B2B segment margins, can you give us a bit more detail about that? I mean, what's happening exactly? Because I think diesel volume was still high year-on-year. So, is that volume related to something else? Thanks very much.
On the other income increase, that is net of QAR 10 million, that comprises QAR 15 million increase in interest income and QAR 5 million decrease in the dividend. That's kind of the quick summary on that. On the B2B segment, it's mainly the contracting sector here in Qatar is impacted due to current economic situation, and once that segment is going to do better, we would expect to gain more margins from that segment.
Thank you.
Again, if you'd like to ask a question, please press star and number one on your telephone keypad. That's star and number one on your telephone keypad. Our next question comes from Zohaib Pervez from Al Rayan. Your line is now open.
Thank you, gentlemen, for the presentation. I've got-
T wo questions. Firstly, in you've mentioned that on a quarter-over-quarter basis, the prices, sales prices were lower by 7%, and on a year-over-year basis, they were lower by 6%. I mean, now that, I mean, the fuel prices locally were flat, as you've also mentioned in the presentation. So is this all this increase, all this decrease because of the jet fuel or the prices in your, for your bulk business have also gone down? That's my first question. The second question is, you mentioned about the growth rates for the other income. How much of the other income is... Could you tell us the distribution between dividend income and the interest income of this QAR 150 million? How much is other income and how much is dividend income? Thank you.
Yes. On the prices, you're correct. The gasoline and diesel prices remain constant. However, the jet fuel, which is more of market-driven, has impacted with the change in the market prices. On the second part of the question, you asked about the component of that. The dividend is QAR 67 million, and interest income is QAR 74 million. That's what the breakup of that income.
Thank you. Could you just repeat the distribution one more time, please?
67 million dividend income, QAR 74 million interest income.
Thank you.
Next question comes from Jigar Shah from HSBC. Your line is now open.
Thank you. Yes, just a couple of more questions for me, please. On gasoline demand growth, so it was 8% higher year-on-year, which is a pretty strong rate. What is driving this exactly? Is this because of the low base last year, you think, or this is generally the stronger demand, maybe population growth? That's my first question. And secondly, maybe just looking at the balance sheet, any chance you could maybe comment on that line which says investment QAR 3.6 billion, roughly? I think of that amount, about QAR 2 billion is deposits and the rest, some investments at fair value. What kind of investments are these? If you could say anything, that'd be good. Thank you.
Yeah. The gasoline, it's mainly driven by the microeconomic factors and, you know, we are, we are like 85% distributor in the country. Definitely, you know, that much volume comes to us. It's purely driven by the market requirements, and we expect the trend to continue. That's what our reading as of now. Regarding the investments, okay, it has equity investments as well as deposits. So, and that's what this QAR 3.6 billion represents.
The entire QAR 3.6 billion is deposits, roughly speaking?
No.
Or roughly both in circles.
No, no, no. It's a mix of, mix of equity investments as well as deposits.
Okay. Thank you.
As of right now, we don't have any raised hands. I'd now like to hand back over to the moderator for the final remarks.
Thank you, Ellie. It looks like we've come to the end of our call. Thank you for joining us. Please join us again in future. I also want to thank the management team for taking time to address investors' questions. Please have a good afternoon.
Thank you, all.