Good morning to you all. I would like to welcome you all to the WOQOD 3Q and 9M of 2026 Earnings Conference Call. On the call today from WOQOD's management team, we have Pradeep Kumar, the CFO. We have also Abdulrahman Al-Hammadi, the Finance Manager, and also we have Ahmed Saeed Al-Mansouri, the IR Officer. As usual, they will first go over the presentation, and then we will have a Q&A session immediately afterwards. Let me now turn over the call to Ahmed to begin. Over to you, sir.
Thank you, Phibion. Good day to all the participants, and we hope everyone is keeping safe and healthy. We welcome you all to WOQOD's third quarter and September 2026 results conference call and appreciate your participation, as WOQOD is committed to continuously enhance its investor relation 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 to date. Actual results may differ materially from those expressed in these forward-looking statements. The company cannot discuss any commercially sensitive information due to the confidentiality agreement signed with suppliers.
Please refer to slide number 2 for the full version of disclaimer statements. All figures expressed in this call are in Qatar Riyals, and the conversion for the same to US dollar is QAR 3.64 to $1 . Now, I would like to hand over the call to our Finance Manager, Mr. Abdulrahman Mohammed Al-Hammadi, to provide a brief overview of WOQOD and update on the key operation activities.
Good morning. Thanks, Ahmed. The key vision of WOQOD is to be leading the petroleum product distributions and related services marketing company in the region. I am on slide four now, which shows the overview of WOQOD Group. WOQOD started operations in 2002 with exclusive rights for storage and distribution petroleum products in the State of Qatar. Operations started with two petrol stations in 2003 and has grown to 129 stations at the end of September 2026. The chart on the right shows WOQOD station network. WOQOD also owns and operates 13 Fahes Center for inspection of vehicles across the State of Qatar. On slide five, which shows the key operations of WOQOD Group.
Key operations of WOQOD Group are diesel and gasoline fuel distributions and sales, jet fuel distributions and sales, shore-to-ship and ship-to-ship bunkering, LPG distributions and sales, natural gas distributions and sales, fuel bunkering, bitumen operations, C-store and auto care activity, vehicle inspection services, and office leasing. Turning to slide seven, which shows the diesel and gasoline fuel sales volume trend analysis. As mentioned before, the core activity of WOQOD is fuel distribution and sales in the State of Qatar. Total fuel sales lowered by 2% during YTD September 2026 as compared to YTD September 2025, driven by current circumstances. Diesel sales volume decreased by 6% during YTD September 2026 versus the same period last year, mainly due to lower sales in B2B, bunkering, and retail, driven by prevailing circumstances. Combined gasoline sales volume increased by 1% during YTD September 2026 as compared to YTD September 2025, driven by market demand.
On a quarter-on-quarter basis, third quarter 2026 diesel sales volume increased by 13%, and gasoline sales volume decreased by 2%. Average fuel price for diesel increased by 1%. However, the average fuel price for gasoline decreased by 1% during the reporting period. Turning to slide eight, which shows the jet fuel sales volume comparison. Jet fuel sales decreased by 25% YTD September of 2026 as compared to the same period last year, driven by current circumstances. On a quarter-on-quarter basis, jet fuel sales volume for third quarter 2026 increased by 40%, driven by market demand. Jet fuel price for YTD September of 2026 increased by 26% as compared to the same period last year, driven by change in crude oil price. Combined sales volume of all petroleum products decreased by 14% during YTD September 2026 as compared to the same period last year.
Turning to slide nine, which shows the quarterly trend of retail fuel sales volume trend. Overall, retail fuel volume of WOQOD petrol station decreased by 1% during YTD September 2026 as compared to the same period last year, driven by current circumstances. Retail diesel decreased by 4%, and gasoline sales remained stable during YTD September 2026 as compared to the same period last year, driven by market demand. On a quarter-on-quarter basis, third quarter 2026 retail diesel sales volume increased by 4%, and gasoline sales volume decreased by 2%, driven by market demand. The market share of WOQOD in petrol station retail market in the State of Qatar reached to about 84% during YTD September 2026. Non-fuel retail sales decreased by 7% during YTD September, mainly on account of decreased in Sidra and ABC sales due to market conditions.
Now, I would like to hand over the call to our CFO, Mr. Pradeep Kumar, to discuss the key financial results.
Thank you everyone for all the volume updates. Good day, everyone. Now, I would like to discuss the consolidated financial results of WOQOD for the third quarter 2026 and the nine-month period ended September 30th, 2026. Slide 11 shows the revenue trend of WOQOD. Revenue from petroleum products account for nearly 97% of the total revenue. WOQOD achieved total revenue of QAR 17.8 billion for YTD September 2026, as compared to QAR 19.2 billion during the same period last year, resulting in a decrease of 7%. This decrease is mainly driven by decrease in overall fuel sales volume by 14% during YTD September 2026, as compared to the same period last year, partially offset by increase in prices by approximately 10% during the same period.
On a quarter-on-quarter comparison basis, the total revenue for third quarter 2026 increased by 45%, mainly due to increase in sales volume by 20% and increase in average sales by approximately 25%. Turning to slide 12, which shows the net income trend analysis. WOQOD has made a net income of QAR 852 million for the period ended YTD September 2026, higher by 13% as compared to same period last year, mainly due to favorable trading stock price variance during third quarter 2026. For the third quarter 2026, WOQOD has made a net income of QAR 454 million, as compared to QAR 291 million during third quarter of 2025. Increase of QAR 163 million, which represents 56% increase, mainly driven by the trading stock price variance as mentioned above.
On a quarter-on-quarter basis, the net income for third quarter increased by QAR 219 million, driven by the same reason, which is trading stock price variance. The detailed analysis of net income is given in the next slide. Slide 13 shows the key variance analysis of net income for YTD September 2026 as compared to the same period last year. The increase in net income of QAR 100 million, which represents 13% increase as compared to same period last year. However, after excluding the fuel stock price variance of QAR 209 million, which we earned mainly during the third quarter, the net income on a normalized basis has decreased by QAR 109 million, mainly due to the following three reasons. Fuel operating margin decreased by QAR 69 million. That's mainly due to sales volume decrease by 14%. B2B segment income lower due to prevailing circumstances.
Non-fuel segment income also decreased mainly due to prevailing market conditions. On the other side, the favorable trading stock price variance of QAR 209 million is driven by higher jet fuel prices, which we believe is temporary in nature due to the prevailing market conditions. This is expected to reverse once the oil price gets back to its normal levels. With this, we have completed the financial review of results for the nine months period ended September 30th, 2026. Regarding the current geopolitical situation, adequate measures have been taken by WOQOD to ensure safety of employees and continuity of business operation across all segments in accordance with the directives from the authorities concerned. WOQOD's results reflect the resilience of our business, the financial strength, and our continued focus on safety, reliability, and operational efficiency.
WOQOD's fundamentals continue to remain robust, and WOQOD is committed to meet all its strategy 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.
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 followed by the number one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star and number one again. If you are called upon to ask your question and are listening via loudspeaker on your devices, please pick up your headset and ensure that your phone is not on mute. Your first question comes from the line of Rob Skepper from Ashmore. Please go ahead.
Hi, everyone. Thanks for your time today, much appreciated. Just a quick one on the fuel stock variance gains. Just to understand, have these gains been realized, i.e., through selling lower priced jet fuel inventory? Or are they accounting gains as inventory is revalued with prevailing prices?
I would say most of it is realized in cash.
Yeah. Okay, got it. You expect, obviously, if the market were to change for any reason, that you would effectively have high price inventory that you end up selling low should the market normalize?
Yes, that's the risk that we carry on our inventory. Yeah, if it changes later or comes down, definitely that will have an impact on us.
Yeah. Got it. Okay. As we approach the end of the year, thoughts turn a little bit to dividends. What can you say at the moment? Obviously, the earnings are tracking better. Obviously, yeah, a whole chunk of that is the inventory gains, which are temporary, as you're saying. Balance sheet's in great shape, et cetera. How are you guys thinking on the dividends as we look towards the end of the year?
Well, we have one more quarter to go. As you know our history, we always pay healthy dividends to our shareholders. So definitely, that's our target. But we need to wait for the year to close so that board can make the right decision at the appropriate time.
Yeah. Okay. Great. Thanks very much.
Your next question comes from the line of Ahmad Nayzar from Doha Bank. Please go ahead.
Thank you, and thank you all for taking my question. Again, I am asking about the dividends and the dividend per share. For 2026, there was a payment of QAR 0.50 that was made out in February, and that is considerably less than what usually the company pays every year. Do we expect another payment this year? If not, are we expecting the QAR 0.90 for the full year of next year? Or are we going to stick with what was paid out, which was QAR 0.50 this year?
Yes. Regarding dividend, yes, that is the final dividend that we paid during the first quarter relating to last year. That was the point that you are talking about. Regarding interim dividend for this year, we are not planning any interim dividend during this year. However, for the final dividend, as I mentioned before, please wait until our year-end is over and the board meeting is over, and definitely we will communicate in due course. Thank you.
Thank you.
Your next question comes from the line of Mohammed Altunyan from Jadwa Investment. Please go ahead.
Hello, thank you so much for taking the time. I have a question on the jet fuel agreement with QatarEnergy. Just to make sure I understand it correctly, is the price set one month ahead of time? For example, in end of October, would they set the price for the month of November, and then you would buy it at that price throughout that month and sell at spot to the airline operators? Or is that not how the dynamic works? The second question is, roughly how much inventory do you try to keep on hand between retail and jet fuel in terms of liters?
Your first part of the question regarding pricing, it is regulated by our upstream supplier, and we are a distributor, and whatever price determined by them, we just follow their pricing rules. We cannot disclose that due to commercial sensitive information. Regarding the inventory we carry, on average, we carry 10 days of inventory across the product.
Sorry, I just want to understand, when is the price set? If you can disclose that at least, or is it set as a fixed price, or can you not disclose that as well?
Well, price is regulated, and whenever our upstream supplier changes the price, we change accordingly.
Can you let us know how frequently they reprice? Is it monthly, quarterly, annually, or is that also something you can disclose?
It is purely their prerogative, and they can change the pricing anytime they want.
Okay, understood. Thank you.
Your next question comes from the line of Ejan Ahbabi from Al Rayan Investment. Please go ahead.
Salam Alaikum. Congratulations for the good set of results. This is Ejan Ahbabi from Al Rayan Investment. I know you said that the jet fuel prices will eventually normalize, but I wanted to ask on your outlook regarding this normalization. Can we expect Q4 and Q1 2027 to remain the same if the prices are the same?
Well, it is a very good question. It all depends on the market dynamics on this oil pricing, which once the price comes down, which we all know very well, we all watch the news, then definitely that will have an impact on the jet fuel. If it is going to happen the last quarter of this year or first quarter of next year, we do not know. We are also watching on that. We have no control on that. Thank you.
So if the oil prices remain intact, is it safe to assume that the margins will stay the same?
Well, I didn't say the margin will remain the same. I'm talking about the price impact on the inventory we carry. So when the oil price come down, definitely it will have an impact on that trading stock price variance.
Excellent. Thank you very much.
Your next questions comes from the line of Varuna Kumaraghe from SICO. Please go ahead.
Hello. Good morning. Am I audible?
Yes.
Hi. First of all, thank you very much for the call. I have two questions. The first one regarding the diesel volumes. Although there is a sequential recovery, still compared to the levels last year, there is still, I think, levels are lower. I guess this will represent the industrial activity in Qatar. Do you think that you will see sequential improvement? What is your expectation regarding volume growth in this segment going forward?
Your second question?
Yeah. Second question is on the, again, going back to the pricing, sorry, the inventory valuation. I am not very sure what benchmark look at. Even earlier in the year, maybe in the 1Q, there was an increase in the market price of jet fuel. You guys did not record the inventory in that time. Now again, in the 3Q, you can clearly see from the benchmark prices that there is a spike in jet fuel prices, which is reflected. I want to understand why, was not there, going back to 1Q, actually, not related to this quarter. What was the reason that there was no inventory adjustments in 1Q? Maybe I am looking at the wrong benchmark, but just want to get a clarification on that.
Well, first of all, regarding the diesel volume, it's purely relating the macroeconomic situation coupled with the current geopolitical situation. Yes, there is a general slowness in the diesel sales, which we expect once the situation is kind of settled down, we expect it might improve, but we don't know. We need to wait and see on that situation. Regarding the trading stock price variance, we clearly explained during the first quarter call about the first quarter variance. Now we are talking about the current variance, which is mainly attributable from the jet fuel trading price, and we account for every quarter the stock variance, and we explain in quarterly also. Thank you.
Okay, thank you.
Your next questions comes from the line of Alove Alimira from Morgan Stanley. Please go ahead.
Hi, thank you for the call. I have two questions. The first, just to confirm my understanding. So in terms of the fuel prices, it's determined by the supplier and then the risk positive or the exposure positive or negative is through the 10-day roughly inventory. Correct? And then related to that, the margins you don't disclose due to commercial reasons. Is my understanding correct?
Yes, when we purchase the inventory, definitely we purchase at the current price. When the price goes up and when we dispose the inventory, definitely that get translated to a gain and can happen vice versa also. That is why I mentioned that the current gain that we got, QAR 200 million, is subject to fluctuations in future. The price is decided by the regulators.
Yeah. The margins, you do not disclose it due to commercial sensitivity?
Yes. Thank you.
Okay. Just in terms of a good portion of your income comes from investment. Is there anything, update you can share there in terms of how should we think about your large investment book?
Yes, that's an area where we continue to optimize our income, to support the overall income. Definitely that's an important area that we have continued to focus to make sure that we optimize wherever possible. We are continuing efforts on that area as well.
Okay. Thank you.
Hi, Phibion. We'll have one last question. Thank you.
Your final question comes from the line of Ashish Agarwal from The First Investor. Please go ahead.
Hello, gentlemen. Thank you for taking my question. Most of my questions are answered. I just need to ask, these three new stations and four additional stations that you have opened and plan to open, respectively, are these purely a commercial decision or there is an element of government authorities asking you to open these branches? If it's because of the government authorities asking you to open these branches, what are the KPIs like? Can you share, if the new pumps are not generating enough profits, will you be compensated by the government in that case? That's my question. Hello? Hello?
Just give us a second. Yeah. Just give us a second. Yeah, we'll take your question. Thank you.
Thank you.
Abdulrahman, please. Yeah.
Yeah. Sure, take your time.
As we are a monopoly company, so we explore the business, and based on that, we decided to serve the community also. For that, we have to find the opportunity.
All right. Thank you.
That concludes our Q&A session, and I will now turn the conference back over to Phibion Makuwerere for closing remarks. Please go ahead.
Thank you, Mark. Sorry, just before I close, Pradeep, I've got two questions. One, it's my own question, and the other one I got it from an investor who was not able to connect. The first one relates to your three-tier profit. Basically, what I want to understand is this QAR 219 fuel stock variance profit boost. How much of it is related to Q3 only because this QAR 219 is for YTD, right. The second question relates to on the balance sheet. There was a spike in leases at the beginning of the year, I think of at least QAR 1 billion. So the investor just wants to understand what is that related to.
Yeah. Regarding the first part of your question relating to the trading stock price variance, majority of it relates to third quarter because the first two quarters, the pricing were pretty much constant, as you can see from that. The major price changes happened during the third quarter. Regarding the lease asset, it is completely in line with the IFRS requirement where our land lease got onto the balance sheet in accordance with the IFRS requirements based on the contract signed for the petrol station lands. That's all. Thank you.
All right. Thank you, Pradeep, and I want to thank the rest of the management team for taking the time to engage with the investors. If there are no further questions, it brings us to the end of our call today. I would like to thank you all for joining us, and please do join us in future.
Thank you. Thank you all.
Thank you, Ahmed. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.