TotalEnergies Marketing Nigeria Plc has reported a loss before tax of N11.92 billion for the nine months ended September 2025, a sharp reversal from a N41.85 billion profit in the same period last year, representing a 128% year-on-year decline.
For the third quarter (July to September 2025), the company posted a loss before tax of N10.23 billion, compared to a profit of N11.28 billion in Q3 2024 and a profit of N3.31 billion in Q2 2025, signaling sustained quarterly deterioration.
The result missed the company’s Q3 earnings forecast, which had projected a N1.43 billion profit before tax, further emphasizing the severity of the downturn.
Nairametrics earlier reported the company could report full-year losses following a trend of bad earnings forecasted by the company.
Key Highlights
- Revenue: N587.59 billion (Down 26% YoY from N793.90 billion)
- Gross Profit: N65.76 billion (Down 30% YoY from N93.70 billion)
- Operating Profit: N5.65 billion (Down 89% YoY from N52.89 billion)
- Pre-tax Profit: N(11.92) billion (Down 128% YoY from N41.85 billion)
- Earnings per Share: N(41.54) (Down 151% YoY from N80.77)
- Total External Debt (short and medium term): N90.97 billion (Down from N115.70 billion as at FY 2024)
- Total Assets: N400.84 billion (Down from N471.12 billion as at FY 2024)
- Cash Balance: N63.84 billion (Down from N91.31 billion as at FY 2024)
Driving the Numbers
The primary driver of the company’s underwhelming performance was a significant drop in revenue, falling 26% year-on-year, reflecting either reduced product demand, lower pricing, or supply chain issues.
- The revenue from Q3 alone was N163.69 billion, far short of the N263.96 billion recorded in Q3 2024 and below the forecast of N177.10 billion, indicating both volume and pricing pressures.
- While costs of sales were lower in absolute terms, gross profit still fell sharply, suggesting compression in margins.
- Operating profit collapsed 89% YoY, driven by continued high administrative expenses (N60.2 billion YTD) and selling and distribution costs (N6.7 billion YTD), both only slightly down from 2024 figures.
- The company also suffered net finance costs of N17.57 billion, 59% higher than in 2024, due to continued exposure to bank overdrafts and borrowing costs despite reducing external debt levels.
Inventory levels declined significantly from N152.02 billion in December 2024 to N107.96 billion, indicating possibly slower restocking or tighter inventory management.
On the balance sheet, TotalEnergies has pared back total assets by 15% while liabilities reduced by only 11%, weakening equity by 37%.
Cash flow from operations was positive at N23.61 billion, but this was outweighed by heavy financing outflows, especially interest payments (N20.4 billion) and dividends (N14.18 billion), resulting in a net cash decrease of N15.99 billion in the period.
Market Reaction
The market reaction was muted, with the share price closing flat at N640 per share, a level that has remained largely unchanged for most of the year.
- This reflects investor apathy or a “wait and see” approach despite the poor earnings report.
- The stock’s year-to-date return is essentially flat, and month-to-date performance also shows no significant movement.
- The company declared and paid a final dividend of N13.58 billion earlier in the year, but no interim dividend was declared alongside this Q3 result.
