Earnings call transcript: Qatar Fuel sees stable Q3 2025 with slight gains

Qatar Fuel reported stable earnings for Q3 2025, with a modest increase in net income despite a year-to-date revenue decline. The company’s stock saw a slight increase of 0.27% following the earnings announcement, maintaining its position as one of Qatar’s most stable dividend-paying stocks with a significant 9.5% yield. Revenue for the quarter was QAR 19.2 billion, marking a 10% decrease year-to-date, while net income rose by 1% compared to the previous year, reaching QAR 291 million. According to InvestingPro, the company has maintained dividend payments for 21 consecutive years, demonstrating remarkable financial stability.

Key Takeaways

• Qatar Fuel’s net income increased by 1% year-over-year despite a 10% decrease in total revenue.
• The company maintains an 85% market share in Qatar’s petroleum retail market.
• A decrease in diesel and jet fuel prices impacted revenue, yet sales volume showed slight improvements.
• Non-fuel retail sales decreased by 9%, highlighting challenges in diversifying revenue streams.

Company Performance

Qatar Fuel, a dominant player in Qatar’s petroleum market, reported a resilient performance in Q3 2025. Trading at a P/E ratio of 14.2, the company maintains strong market fundamentals despite a 10% decline in total revenue year-to-date. The company’s net income increased by 1% from the previous year, supported by a healthy current ratio of 1.14. The revenue composition remained heavily reliant on petroleum products, accounting for 97% of total revenue. Market share in the petroleum retail sector stands strong at 85%. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report.

Financial Highlights

• Total Revenue: QAR 19.2 billion (10% decrease year-to-date)
• Net Income: QAR 752 million (2.6% decrease year-to-date)
• Q3 Net Income: QAR 291 million (1% increase year-over-year)
• Diesel Sales Volume: 2% decrease year-to-date
• Gasoline Sales Volume: 3% increase year-to-date

Outlook & Guidance

Looking forward, Qatar Fuel expects slight improvements in sales volumes in the coming quarters. The company is focusing on optimizing its non-fuel retail business and remains committed to its strategic goals, prioritizing safety and shareholder value. With a strong Altman Z-Score of 7.24 indicating solid financial health, and minimal debt-to-equity ratio of 0.11, the company maintains a robust financial position. The company has projected future revenue growth, with forecasts of 7,159.14 USD for FY2025 and 7,540.38 USD for FY2026. For deeper insights into Qatar Fuel’s growth potential and comprehensive valuation analysis, consider exploring the detailed research available on InvestingPro.

Executive Commentary

Pradeep Kumar, CFO of Qatar Fuel, emphasized the company’s robust fundamentals and commitment to improving revenues. "We are working on improving revenues and optimizing income," Kumar stated, highlighting efforts to enhance non-fuel retail performance. He also reiterated the company’s focus on safety as a top priority.

Risks and Challenges

• Decrease in global crude oil prices, impacting revenue from petroleum products.
• Challenges in the non-fuel retail sector, with a 9% decrease in sales.
• Macroeconomic factors affecting diesel and jet fuel sales.
• Potential market saturation in Qatar’s petroleum retail sector.

Q&A

During the earnings call, analysts inquired about the outlook for the diesel and jet fuel business. The company noted signs of improvement in diesel B2B segments and stabilizing jet fuel demand. Questions also focused on strategies to enhance non-fuel retail revenue, with executives acknowledging the challenging market conditions but expressing optimism for future improvements.

Full transcript - Qatar Fuel (QFLS) Q3 2025:

Ellie, Conference Operator: Hello, everyone, and welcome to Afraud Conference Call. Please note that this call is being recorded. I’d now like to hand the call over to Fabian. You may now go ahead, please.

Fabian, Moderator/Host: Thank you, Ellie. Good afternoon to you all and thank you for joining us for the third quarter and nine months of twenty twenty five earnings conference call for Woolkud. On today’s call, we have three members of the management team. We have the CFO, Pradeep Kumar, and we have Abdurrahman Ohamadi, the finance manager, and Ahmed Syed Alman, Suri, the IR Officer. And as usual, they are first going to present the results to us, and we’ll open the line for the Q and A session.

Now let me turn over the call to Ahmed to begin the call. Over to you, sir.

Ahmed Syed Alman Suri, IR Officer, Woolkud: Thank you, Fabienne. Good day to all the participants, and we hope everyone is keeping safe and healthy. We welcome you all to third quarter end September twenty twenty five results conference call and appreciate your participation as Roquod 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 condition, 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 signed with Spares. Please refer to Slide number two for the full version of this disclaimer statement. All figures expressed in this call are on Qatar reals and the conversion for the same to U.

Dollar is Qatar reals 3.64 to $1 Now I would like to hand over the call to our Finance Manager, Mr. Abdulrahman, Ahmed Alhamadi, to provide a brief overview of Wahud and update on the key operation activities.

Abdurrahman Ohamadi, Finance Manager, Woolkud: Thank you, Ahmed. Good morning, everybody. The key vision of is to be leading the petroleum product distributions and related services marketing company in the region. I’m on Slide four now which shows the overview of Wahodu Group. Wahodu started operation in 2002 with exclusive rights for the storage and distributions of petroleum products in the state of Qatar.

Operations started within two petroleum with the two petroleum stations in 2003 and has grown to 127 stations at the September 2025. A chart of the right shows Wahud’s station network. Wahud also owns and operates 13 Faha Center for inspection of vehicles across the state of Qatar. On Slide five, now which shows the key operations of Group. The key operations of Wahoo the Group are diesel and gasoline fuel distributions and sales, jet fuel distributions and sales, shore to ship and ship to ship bankering, LPG distributions and sales, natural gas distributions and sales, fuel bunkering, bitumen operations, C store and auto care activities, vehicle inspection services and office leasing.

Turning to Slide seven now, which shows the diesel and gasoline fuel sales volume trend analysis. As mentioned before, the core activity of Wahud is the fuel distributions and sales in the state of Qatar. Total fuel sales remained stable during Y2D September twenty twenty five as compared to Y2D September twenty twenty four, driven by market demand. Diesel sales volume decreased by 2% during Y2D September twenty twenty five versus the same period last year, driven by macroeconomic factors. Combined gasoline sales volume increased by 3% during Y2D September twenty twenty five as compared to the same period last year.

On a quarter on quarter basis, sales volume for third quarter twenty twenty five diesel sales volume increased by 11%, and gasoline sales remained stable. Average fuel price for diesel and gasoline decreased by 21% during Y2D September twenty twenty five as compared to the same period last year. Turning to Slide eight, which shows the Jetta Fuel sales volume comparison. Jetta Fuel sales decreased by 1% Y2D September 2025 as compared to the same period last year, by market demand. On a quarter on a quarter basis, Jet fuel sales volume for third quarter twenty twenty five increased by 10%, driven by market demand.

Jet fuel price decreased by 14% during Y2D September 2025 as compared to the same period last year, driven by change in crude oil price. Combined sales volume of all petroleum products remained stable during Y2D September twenty twenty five as compared to the same period last year. Turning to Slide nine, which show the quarterly trend of retail fuel sales volume trend. Overall, retail fuel volume of Wakod Petrol Station increased by 2% during Y2D September twenty twenty five against the same period last year, driven by increased market demand. On a quarter on quarter basis, retail diesel sales volume increased by 7%, and gasoline sales remained stable until the quarter twenty twenty five.

The market share of Wahod in petroleum retail market in the state of Qatar reached about 85% during Y2D September. Nonfuel retail sales decreased by 9% during Y2D September twenty twenty five, mainly on account of decrease in CEDRA and ABC sales. Now I would like to hand over the call to our CFO, Mr. Pradeep Kumar, to discuss the key financial results.

Pradeep Kumar, CFO, Woolkud: Thanks, Abdulrahman, for all the volume updates. Good day, everyone. I would like to discuss the consolidated financial results of Vukus for the third quarter twenty five and nine month period ended thirtieth September twenty five. Slide 11 shows the revenue trend of Vocus. Revenue from petroleum products account for nearly 97 percentage of the total revenue.

Vucose achieved total revenue of Qatar Rial $19,200,000,000 for YTD September 2025 as compared to Qatar Rial’s $21,300,000,000 during the same period last year, showing a decrease of 10 percentage, mainly driven by decrease in prices. On a quarter on quarter comparison basis, the total revenue increased by 10 percentage during third quarter twenty twenty five, mainly driven by increase in sales volume by seven percentage and increase in average sales price by four percentage. Turning to Slide 12, which shows the net income trend analysis. Vukuz has made a net income of BRL $752,000,000 during YTD September 25, lower by 2.6 percentage as compared to the same period last year, mainly due to decrease in nonfuel income and other income. Vukund has made net income of Rs.

$291,000,000 for the third quarter twenty five compared to Rs. $289,000,000 during the same period in 2024, representing an increase of approximately 1%. On a quarter on quarter basis, the net income for the third quarter, 25,000,000, increased by category at 61,000,000, which represents 27% of increase, driven by increase in volume and trading price stock variances. The detailed analysis of net income variance for YTD September is given in next slide. I’m on Slide 13, which shows the key variance analysis of net income for nine months period ended September 2025 as compared to same period last year.

The decrease in net income of R319 million is due to following factors. Net operating margin remained almost flat with slight increase driven by net change in operating cost. Trading stock price variance is mainly driven by impact of price movements on jet fuel inventories. B2B segment margin increased mainly due to higher transportation income during YTD September 25 as compared to the same period last year. Nonfuel income decreased mainly driven by prevailing market conditions.

Other income lower, mainly driven by lower dividends and interest income driven by prevailing market condition and the interest rate reductions. WUCOO’s fundamentals continue to remain robust, and WUCOO is committed to meet all its strategic goals while placing safety as a top priority. WUCOO has a strong leadership committed towards delivering the results to its shareholders. With this, we are ready for the Q and A session. Thank

Ellie, Conference Operator: Your first question comes from the line of Vian Dorman of Ashmore. Line is open.

Vian Dorman, Analyst, Ashmore: Good morning, guys. Thank you. Can I just check whether you can hear me?

Ahmed Syed Alman Suri, IR Officer, Woolkud: Loud and clear.

Vian Dorman, Analyst, Ashmore: Can you hear me? Perfect. Thank you so much. Well, thank you so much for the presentation. I ’ve got a couple of questions here.

First of all, can you tell me whether you guys are seeing any signs of life or signs of improvement forward looking in terms of the diesel business? And for the jet fuel side of things, are you seeing any changes to the demand drivers for that? Thank you.

Pradeep Kumar, CFO, Woolkud: Well, on the diesel retail sales side, we start seeing some signs of improvement. On the B2B segments, we get to see the improvement, and we expect that’s going to improve in coming quarters. On the jet fuel, it’s driven by all the demand. And I think it is it is stabilizing. That’s what I feel.

Vian Dorman, Analyst, Ashmore: Okay. Thank you.

Fabian, Moderator/Host: Ellie, do we still have any questions on the line?

Ellie, Conference Operator: Mister Durham, your line is now open, sir.

Vian Dorman, Analyst, Ashmore: Perfect. Thank you. Sorry. I have another question. Would you guys give could you guys give us an update on the sort of the new strategy for the nonfuel in the retail business, please, if that’s okay?

Pradeep Kumar, CFO, Woolkud: Yes. This is one area we are keenly working on it to improve the revenues and optimize the income in wherever possible in all verticals. So we are working on it. The market is challenging, but we are working on that.

Vian Dorman, Analyst, Ashmore: Perfect. Thank you very much. And just finally, how could you just share a little bit about how sort of end market demand is moving volumes for you guys? Could you share a little bit

Fabian, Moderator/Host: of color on that, please?

Pradeep Kumar, CFO, Woolkud: Yes. You can see in the first nine months, you know, the volume is total volume, including everything is almost same as last year. So we expect it will improve slightly in coming quarters.

Vian Dorman, Analyst, Ashmore: Okay. Perfect. Thank you very much.

Ellie, Conference Operator: As of right now, we don’t have any pending questions. I’d now like to hand the call back over to Fabian for final remarks.

Fabian, Moderator/Host: Thank you, Ellie. If, if we don’t have more questions on the line, let’s bring the call to an end. Thank you all for joining us, for today’s call. And, should you feel like you want to ask other questions, you can reach out to QNBFS or to the management team of FUGO directly. Please do join us for the fourth quarter earnings call.

Enjoy the rest of your day.

Ellie, Conference Operator: For attending today’s call. You may now disconnect. Goodbye.

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