Total Energies reported its 2023 third-quarter results showing pre-tax profits declined by 48.02% year on year, reaching N3.145 billion.
This moderated nine-month pre-tax profits to N16.621 billion versus N18.783 billion in the same period last year.
Key highlights Q3 2023 vs. Q3 2022:
- Revenue: N147.974 billion, +15.45% YoY
- Cost of sales: N126.889 billion, +11.98% YoY
- Gross Profit: N21.085 billion, +41.92% YoY
- Other income: N1.230 billion, +34.71%
- Net foreign exchange losses: N4.805 billion
- Selling and Distribution Cost: N1.781 billion, +146.78% YoY
- Administrative expenses N11.229 billion, +35.60% YoY
- Operating profit/(loss) N4.497 billion, -37.06% YoY
- Finance Income: N1.034 billion, +226.50% YoY
- Finance Cost: N2.386 billion, +69.15% YoY
- Net Finance cost: N1.352 billion, +23.58% YoY
- Profit for the period: N2.033 billion, -48.87% YoY
- Earnings per share: N5.99, -48.85% YoY
- Cash and cash equivalent N118.982 billion +43.83%.
- Total Assets: N426.583 billion, +38.58%
Insights: Total’s significant decline in pre-tax profit can be attributed to net foreign exchange losses, higher interest on loans, and OPEX.
- The company reported N4.805 billion in net foreign exchange losses for Q3, leading to a cumulative nine-month net foreign exchange loss of N6.308 billion. This is in contrast to the previous year when no such losses were reported during the corresponding period.
- On a positive note, Total managed to achieve a relatively strong 15.45% growth in revenue, outpacing the 11.98% growth in the cost of sales. This successful revenue growth played a significant role in the overall 41.92% increase in gross profit.
