TotalEnergies Marketing Nigeria Plc has reported a pre-tax loss of ₦11.92 billion for the nine months ended September 2025, marking a sharp reversal from the ₦41.85 billion profit recorded in the same period of 2024 — a year-on-year decline of 128%.
According to the company’s unaudited financial statement released to the Nigerian Exchange (NGX), the third quarter alone (July–September 2025) saw a ₦10.23 billion loss before tax, compared with a profit of ₦11.28 billion in Q3 2024 and ₦3.31 billion in Q2 2025, indicating a sustained deterioration in quarterly performance.
The results also fell short of management’s projection of a ₦1.43 billion pre-tax profit for Q3, underlining the extent of the company’s operational and market headwinds.
Financial Snapshot
Revenue: ₦587.59bn (↓ 26% YoY from ₦793.90bn)
Gross Profit: ₦65.76bn (↓ 30% YoY from ₦93.70bn)
Operating Profit: ₦5.65bn (↓ 89% YoY from ₦52.89bn)
Pre-tax Profit: ₦(11.92)bn (↓ 128% YoY from ₦41.85bn)
Earnings per Share: ₦(41.54) (↓ 151% YoY from ₦80.77)
Total External Debt: ₦90.97bn (↓ from ₦115.70bn FY 2024)
Total Assets: ₦400.84bn (↓ from ₦471.12bn FY 2024)
Cash Balance: ₦63.84bn (↓ from ₦91.31bn FY 2024)
Revenue and Margin Pressures
The company’s weak performance was primarily driven by a 26% drop in revenue, reflecting lower product demand, price weakness, and potential supply chain disruptions.
Revenue for Q3 stood at ₦163.69 billion, significantly below the ₦263.96 billion recorded in the corresponding quarter of 2024 and beneath the company’s forecast of ₦177.10 billion.
Although the cost of sales declined in absolute terms, gross profit contracted sharply, suggesting that margins remained under heavy pressure.
Operating profit tumbled 89% year-on-year due to elevated administrative expenses (₦60.2 billion YTD) and selling and distribution costs (₦6.7 billion YTD), both only marginally lower than 2024 levels.
In addition, net finance costs surged 59% to ₦17.57 billion, despite a reduction in external debt, as interest expenses from bank overdrafts and short-term borrowings remained substantial.
TotalEnergies pared down its total assets by 15%, while liabilities fell by only 11%, resulting in a 37% erosion in shareholders’ equity. Inventory levels dropped from ₦152.02 billion in December 2024 to ₦107.96 billion, reflecting tighter inventory control or slower restocking amid weaker demand.
While operating cash flow remained positive at ₦23.61 billion, it was offset by substantial financing outflows, particularly interest payments (₦20.4 billion) and dividends (₦14.18 billion), culminating in a net cash reduction of ₦15.99 billion during the period.
Despite the disappointing financial results, investor sentiment remained largely subdued. The company’s share price closed flat at ₦640 per share, a level it has maintained for most of 2025.
Analysts interpret the muted market reaction as a sign of investor caution or a “wait-and-see” approach amid persistent macroeconomic and sectoral challenges.
The stock’s year-to-date performance remains flat, with no interim dividend declared alongside the Q3 results, following a ₦13.58 billion final dividend paid earlier in the year.
Market observers say TotalEnergies’ performance reflects the broader strain in Nigeria’s downstream oil sector, where high operating costs, foreign exchange volatility, and regulatory uncertainties continue to squeeze profit margins.
Industry analysts warn that unless pricing dynamics and operational efficiencies improve, the company may face further profitability headwinds heading into the final quarter of the year.
