Executive Summary
TotalEnergies Marketing Nigeria Plc reported a mixed performance for the nine months ended September 30, 2025. The company faced pressures on profitability, with a 9M 2025 net loss of ₦14.1 billion, compared to a profit of ₦27.4 billion in 9M 2024. This was largely due to higher operating and finance costs, despite stable gross profit margins. Revenue decreased from ₦793.9 billion in 9M 2024 to ₦587.6 billion in 9M 2025, reflecting market volume contraction and cost pressures. The company posted a basic loss per share of 41.54 kobo, compared with earnings of 80.77 kobo in the prior year, signaling a significant decline in shareholder returns. The balance sheet remains well-capitalized, with total assets of ₦400.8 billion, and equity representing ₦47.4 billion. However, high current liabilities (₦341.3 billion) indicate substantial short-term obligations, driven primarily by trade payables and loans.
Financial Highlights – Statement of Profit or Loss
₦’ million 9M 2025 9M 2024 % Δ
Revenue 587,587 793,904 -26%
Cost of Sales (521,832) (700,205) -25%
Gross Profit 65,755 93,699 -30%
Other Income 6,881 16,536 -58%
Selling & Distribution (6,694) (11,486) -42%
Administrative Expenses (60,212) (45,321) +33%
Operating Profit 5,655 52,891 -89%
Net Finance Costs (17,575) (11,041) +59%
Profit Before Tax (11,920) 41,850 -128%
Income Tax (2,183) (14,428) -85%
Net Profit (14,103) 27,422 -151%
Basic EPS (kobo) (41.54) 80.77 -151%
Revenue and Profitability Analysis
- Revenue decline (-26% YoY) reflects lower sales volumes and market dynamics.
- Gross margin remained stable (~11%), but operating expenses surged (+33% YoY), eroding profitability.
- Net finance costs increased 59% YoY, further contributing to the net loss.
- Overall, 9M PAT swung to a loss of ₦14.1 billion from a prior-year profit of ₦27.4 billion, highlighting margin pressure.
Balance Sheet Overview
₦’ million 30-Sep-25 31-Dec-24 % Δ
Total Assets 400,845 471,123 -15%
Non-current Assets 76,302 78,990 -3%
Current Assets 324,543 392,132 -17%
Total Equity 47,397 75,081 -37%
Non-current Liabilities 12,127 11,701 +4%
Current Liabilities 341,320 384,340 -11%
Interpretation
- The company remains asset-rich, but equity has declined substantially due to net losses.
- High current liabilities (₦341.3 billion) relative to equity (₦47.4 billion) indicate financial leverage risk and dependence on payables and short-term borrowings.
- Liquidity is moderate; cash and cash equivalents decreased from ₦91.3 billion to ₦63.8 billion.
Key Ratios & Metrics
Metric 9M 2025 9M 2024
Gross Margin 11% 12%
Operating Margin 1% 7%
Net Margin -2% 3%
Current Ratio 0.95x 1.02x
Debt-to-Equity 6.82x 5.27x
EPS Growth -151% 228%
Strategic Insights
- TotalEnergies Marketing Nigeria faces margin pressure from rising operating costs and finance costs.
- Revenue decline signals potential market share loss or fuel price pressures.
- High leverage and lower equity pose financial risk, limiting flexibility for investment or expansion.
Strengths
- Large asset base with substantial market presence.
- Stable gross margin indicates control over cost of sales.
Weaknesses
- Net loss and declining EPS erode shareholder value.
- High current liabilities and leverage raise liquidity concerns.
- Administrative and finance costs remain elevated.
Outlook
- The company must focus on cost containment and working capital management to restore profitability.
- Strategic initiatives to boost sales volumes, optimize logistics, and manage finance costs will be critical to reversing the downward trend.
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Disclaimer
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