TotalEnergies Marketing Nigeria Plc is targeting to achieve N84.86 billion in revenue during the second quarter of the year ending June 2023. 

The company disclosed this in its Q2 2023 earnings forecast released to the Nigerian Exchange Limited (NGX) and seen by Nairametrics. 

More on the projections: The company is projecting to rake in N14.69 billion in gross profit. It also targets profits before and after tax of N5.29 billion and N3.58 billion, respectively. 

Also, note that the projected income tax expenses for the period is N1.7 billion, even as the cost of sales was projected at N70.69 billion for the period. 

Latest earnings: TotaleEnergies’s unaudited profit before tax for Q4 2022 grew by 17.4% year-on-year to N6.00 billion as against N5.11 billion in Q4-2021. Following a tax expense of N2.07 billion, profit after tax stood at N3.93 billion from N3.48 billion in Q4-2021. 

Net finance cost rose sharply to N1.36 billion in the quarter (Q4-21: N10.48 million), following a 339.8% y/y rise in finance cost. Notably, the higher finance cost outturn reflects the surge in interest on import loans (+3208.7% y/y) and on other loans (+67.8% y/y). 

Revenue grew by 46.6% y/y in Q4-22 (2022FY: +41.4% y/y), primarily driven by solid growth across the business’ three segments – network (+17.2% y/y | 42.4% of revenue), general trade (+63.7% y/y | 41.3% of revenue) and aviation (+139.3% y/y | 14.6% of revenue).  

  • Analysts at Cordros Research attributed “the growth in revenue to the higher fuel prices PMS: +21.0% y/y; AGO: +194.4% y/y; and DPK: +142.4% y/y – in the period. Thus, the sales of petroleum products (+57.6% y/y | 80.6% of revenue) constituted the bulk of revenue, while lubricants and others (+14.4% y/y constituted the remaining 19.4% of revenue. 
  • “Total’s performance was in line with our expectations, with the marketer’s performance showing resilience, despite the product supply shortages experienced in the quarter. Notwithstanding, we are concerned about the significant growth in net finance costs, which undermined the full-year performance.”