Hello and welcome to WOQOD conference call. Please note that this call is being recorded. You will have the opportunity to ask questions for our speakers later on during the Q and A session. If you'd like to ask a question by that time, please press star one on your telephone keypad. Thank you. Now I would like to hand the call over to Angela. You may begin.
Thank you, Angela. Good morning to you all and thank you for joining us this morning for WOQOD's second quarter or first half of 2025 earnings conference call. On today's call from the WOQOD management team we've got three, the CFO Pradeep Kumar, the Finance Manager Abdul Rahman Al Hammadi, and the IR Officer Ahmed Saeed Al Mansoori. As usual, they will first present the numbers and they will have a Q&A session immediately afterwards. Let me turn over to Ahmed to begin. Over to you. Please go ahead.
Thank you, Angela. Good day to all the participants and we hope everyone is keeping safe and healthy. We welcome you all to WOQOD's second quarter and June 2025 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 characterization 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 agreement filed with the clarification.
Please refer to number two for the full version of the disclaimer statement. All figures expressed in this call are in Qatari Riyal and the conversion for the same to US dollars is QAR 3.64 to $1. Now I would like to hand over the call to our Finance Manager, Abdul Rahman Al Hammadi, to provide a brief overview of WOQOD and update on the key operation activities.
Thanks Ahmed. The key vision of WOQOD is to be the leading petroleum product distribution and related services marketing company in the region. On slide number four, which shows the overview of WOQOD Group. WOQOD started operation in 2002 with exclusive rights for the storage and distribution of petroleum products in the state of Qatar. Operations started with two petrol stations in 2003 and has grown to 125 stations at the end of June 2025. The chart on the right shows WOQOD stations network. WOQOD also owns and operates a FAHES center for inspection of vehicles across the state of Qatar.
Slide number five, which shows the key operations of WOQOD Group, the key operations of WOQOD Group: diesel and gasoline fuel distribution and sales, jet fuel distribution and sales, ship to ship and ship to shore bunkering, LPG distribution and sales, natural gas distribution and sales, fuel bunkering, bitumen operations, store and auto care activities, vehicle inspection services, and office leasing. Turning to slide number seven, which shows the diesel and gasoline fuel sales volume trend analysis. As mentioned before, the core activities of WOQOD is the fuel distribution and sales in the state of Qatar. The total fuel sales lowered by 1% during the first half 2025 versus first half 2024, driven by market demand. Diesel sales volume decreased by 2% during the first half 2025 versus the same period last year, driven by macroeconomic factors combined.
Gasoline sales volume increased by 2% in first half 2025 as compared to first half 2024. On a quarter on quarter basis, sales volumes for second quarter 2025 increased by 12% and 5% for diesel and gasoline respectively. Average fuel price for diesel and gasoline decreased by 2% and 1% in first half 2025 compared to the same period last year. Turning to slide number eight, which shows the jet fuel sales volume comparison. Diesel fuel sales were lower by 2% for the first half 2025 as compared to the same period last year, driven by market demand. On a quarter- on- quarter basis, jet fuel sales volume for second quarter 2025 increased by 6%, driven by market demand. Jet fuel price for the first half 2025 decreased by 15% as compared to the same period last year, driven by change in crude oil price trends.
Combined sales volume for all the products decreased by 1% for first half 2025 as compared to the same period last year. Turning to slide number nine, which shows the quarterly trend of retail fuel sales volume trend. Overall retail fuel volume of WOQOD petrol station increased by 2% for first half 2025 against the same period last year, driven by increased market demand. On a quarter-on-quarter basis, retail fuel volumes in the second quarter 2025 increased by 6% and 5% for diesel and gasoline, respectively. The market share of WOQOD in the petroleum retail market in the State of Qatar reached about 85% during the first half 2025. Non-fuel retail sales decreased by 9% during the first half 2025, mainly on account of decrease in LPG. Now I would like to hand over the call to our CFO, Pradeep Kumar, to discuss the key financial results.
Rahman Al Hammadi for all the volume updates. Good day everyone. I would like to discuss the consolidated financial results of WOQOD for the first half of 2025. 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 12.5 billion during the first half of 2025 as compared to QAR 13.9 billion during the same period last year, showing a decrease of 11% which is mainly driven by overall decrease in fuel sales volume by 1% and decrease in average sales price by 10% on a quarter. On quarter comparison basis, the total revenue decreased by 3% during the second quarter 2025 mainly driven by increase in sales volume by 6%, partially offset.
By decrease in average sales price by 8%. 10 in the flight coils.
WOQOD has made a net income of Qatari riyal
One second.
Turning to slide 12, which shows the net income trend analysis, WOQOD has made a net income of QAR 460 million for the first half of 2025, lower by 4.5% as compared to the same period last year, mainly due to decrease in overall fuel sales volume by 1% and decrease in other income. WOQOD has made a net income of QAR 230 million for the second quarter 2025 as compared to QAR 239 million during the same period in 2024, representing a decrease of 4% on a quarter. On quarter basis, the net income for second quarter 2025 remained stable at QAR 230 million. 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 half of 2025 as compared to the same period last year.
The decrease in net income of QAR 22 million is due to the following major factors. Net operating margin increased mainly driven by cost optimization initiatives, partly offset by the.
Lower volume.
B2B segment margin increased mainly due to higher transportation income during the first half of 2025 as compared to the same period last year. Trading stock price variance is mainly driven by impact of price movements mainly on scheduled inventories, dividend income, and others lower, mainly driven by timing of interim dividends and lower interest rates, mainly due to prevailing market conditions, which is partly offset b y lower G&A expenses.
Based on the earnings of first half of 2025, the board has approved an interim dividend of Qatari riyal per share. WOQOD's fundamentals continue to remain robust and WOQOD is committed to meet all its strategic goals while placing safety at the top priority. WOQOD has a strong leadership committed towards d elivering the results to the shareholders.
With this, we are ready for the Q and A session. Thank you.
Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press Star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press Star one again. Thank you. Your first question comes from the line of Robker. We have asked more. Your line is now open.
Hi everyone. Thanks for the time today on the call, much appreciated as always. A few questions for me if I may. I guess firstly just on the core business, maybe thinking about volumes a little bit. We saw some recovery in diesel and gasoline in the quarter. Obviously jet fuel volume still slightly below, but how are you kind of thinking on the volume side into the second half? Are there any kind of visible demand catalysts which could help firm things up at all, to your mind?
Thank you. It's being a sole distributor.
We distribute whatever the market demands, purely depending on the market demand.
Traditionally we've seen.
The demand for the second half is comparatively higher. We expect the same this year as well.
Okay. Just specifically on the jet fuel side of things, just thinking about kind of end customer mix there like Cathay Airways, foreign carriers, non commercial jet fuel volumes, what's happening? Can you give us some color on the end markets there specifically for the end customers?
Definitely.
WOQOD always dominate the market on fuel wells.
Okay. You're seeing weakness from them, essentially all those other weakness as well.
Other players also in the market.
It is very minor as compared to WOQOD.
Yeah. Okay. Just thinking about kind of the margins in this price environment. Like in the second quarter, when we look at underlying Brent prices, we saw massive volatility at the start of the quarter, huge collapse in oil price on tariff use out of the U.S., and then later in the quarter, huge geopolitical premium risk. Premium again in the oil price, all in the space of one quarter. How did this impact like the margins at all? Like I know obviously you give that piece on slide 13 with the income variance and this kind of trading stock price volatility. I just wondered, is there anything you do on procurement when prices are low to try and mitigate? Do you kind of ease off when prices are high? How did that impact the business at all?
For us, the supply prices are.
Regulated by the state of Qatar through Qatar Energy. On the other side, definitely the major impact is on our trading fuel stocks, which we kind of manage from quarter- to- quarter.
Okay. The last question I had was just on the non fuel and maybe some of the comments from the EV side of things. I think you're continuing to roll out EV chargers throughout the network and you've done a bit of optimization of non fuel retail. Looking at that non fuel business, it's declined, double digit declined last year and still seems a little bit weak. Is there anything on the non fuel side of things that you're looking at strategically or how should we think about profitability going forward?
On first part of your question.
On the EV segment, yeah, WOQOD is preparing for any future demands. We already have 25 EV chargers installed to meet the demand in future. On the other side, non-fuel segment definitely facing a lot of headwinds from the market, and we are strategizing to improve that area and we are focusing on that area also in future.
Okay. It's an ongoing process at the moment. Would you expect to communicate something around some of those initiatives on the next quarterly call or sometime later? Is there a timeline for that?
We are working on it.
Working on many verticals associated with the retail segment to improve it, which we are working on at this point.
Okay, brilliant. Great. Thanks very much. Thank you.
Your next question comes from the line of Zohai Pervet with Arayan Investment. The line is now open.
Thank you gentlemen for the presentation. The number of projects that have been announced by the government, legacy mismatch, etc. Are you seeing any improvement in your bulk diesel business because of the announcement of these projects, or are you seeing any inquiries, etc., due to project development improvement? My second question is on the price of jet fuel. Has the jet fuel price come down even more quarter over quarter in the second quarter? Thank you.
On the first part of the question.
Regarding the development, definitely we expect that such developments will contribute to increasing our bulk sales, and we are looking forward to that.
On the other side, yes, the fuel.
Was volatile during the first half and definitely has reduced in the first quarter as well as the second quarter.
Thank you. You still haven't seen any movement on the bulk. The bulk volumes, I assume, are still lower for diesel because of the slowdown in economic activity.
We can see some flow picking up in the second quarter, but definitely we can.
Looking forward to major projects to pick up considerably in that segment.
There are no further questions. I would now like to hand the call back over to Sifan Jossaman Maudid for any closing remarks.
Thank you, Angela. If there are no further questions, it brings us to the end of our call today. I would like to thank the management team for taking time to update and respond to investor questions. Please do join us for future calls and enjoy the rest of your day.
Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.