TotalEnergies returns to profit, posts N5.84bn earnings in nine months

TotalEnergies Marketing Nigeria Plc has returned to profitability, posting a profit after tax of N5.84 billion for the nine months ended September 30, 2026, against a loss of N14.10 billion recorded in the corresponding period of 2025, as higher revenue, improved operating performance and lower finance costs strengthened its financial position.

The company’s unaudited financial results showed that revenue increased by 12.65 per cent to N661.92 billion from N587.59 billion in the previous year, while profit before tax stood at N8.02 billion, reversing a loss before tax of N11.92 billion recorded in the corresponding period of 2025. The figures represent a significant recovery in earnings for the petroleum products marketer following last year’s losses.

Gross profit rose by 19.42 per cent to N78.52 billion from N65.76 billion, reflecting the increase in sales revenue despite higher costs associated with the company’s petroleum products and lubricant business.

The improvement in gross earnings was accompanied by a substantial reduction in finance costs, which fell to N12.30 billion from N20.55 billion in the corresponding period of 2025. This helped reduce net finance costs to N11.15 billion from N17.57 billion, providing additional support for the return to profitability.

Operating profit also increased sharply to N19.16 billion from N5.65 billion in the preceding-year period, indicating a stronger performance from the company’s core business activities.

The latest results underscore the company’s recovery in a challenging operating environment for businesses involved in the distribution and marketing of petroleum products, where product acquisition costs, financing expenses and working-capital requirements remain important determinants of profitability.

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A breakdown of revenue showed that white petroleum products remained the company’s largest income source, contributing N472.66 billion during the nine-month period, compared with N401.46 billion in the corresponding period of 2025.

White products, according to the company’s financial statements, comprise Premium Motor Spirit, Automotive Gas Oil and Aviation Turbine Kerosene.

Revenue from lubricants and other products, including solar products and special fluids, stood at N189.26 billion, compared with N186.13 billion in the previous year.

The figures indicate that the growth in overall turnover was driven primarily by the white products segment, whose revenue increased by approximately 17.73 per cent year-on-year, while revenue from lubricants and other products recorded more modest growth.

However, the increase in sales came with higher costs. Cost of sales rose by 11.80 per cent to N583.39 billion from N521.83 billion, reflecting the cost of products sold, customs duties and transportation of supplies.

Despite the higher cost of sales, the company’s gross profit margin improved to approximately 11.86 per cent from 11.19 per cent in the corresponding period of 2025, indicating that gross profit grew faster than revenue.

Other income also increased to N8.20 billion from N6.88 billion. The figure included a net foreign exchange gain of N2.65 billion, compared with N1.35 billion recorded in the previous year, as well as income generated from its retail network and related activities.

Administrative expenses declined slightly to N59.56 billion from N60.21 billion, providing some cost relief. However, selling and distribution expenses increased to N7.66 billion from N6.69 billion, while net impairment losses on financial assets rose to N346.89 million from N69.74 million.

The combination of higher revenue, improved gross profit and lower administrative and financing expenses helped strengthen operating performance during the period.

For the third quarter alone, TotalEnergies recorded revenue of N217.92 billion, up from N163.69 billion in the corresponding quarter of 2025. Gross profit increased to N22.02 billion from N17.29 billion, while operating profit stood at N4.64 billion, compared with an operating loss of N4.66 billion in the third quarter of the previous year.

Profit before tax for the quarter was N1.31 billion, against a loss before tax of N10.23 billion in the corresponding period of 2025. Profit after tax stood at N894.19 million, compared with a loss of N11.25 billion a year earlier.

The quarterly figures demonstrate that the company maintained its recovery into the third quarter, although its profit after tax was considerably lower than the cumulative earnings recorded over the nine-month period.

Earnings per share improved to N17.21 for the nine months, compared with a loss per share of N41.54 in the corresponding period of 2025. For the third quarter, earnings per share stood at N2.63, against a loss per share of N33.13 in the previous year.

The improved earnings position was also reflected in shareholders’ funds, which increased to N53.38 billion as of September 30, 2026, from N47.54 billion at the end of December 2025.

Total assets rose to N426.31 billion from N388.55 billion at the end of the previous financial year, supported by growth in current assets and cash balances. Cash and cash equivalents increased to N56.06 billion from N44.78 billion, while trade and other receivables rose to N165.23 billion from N129.58 billion.

Inventories, however, declined to N123.54 billion from N133.46 billion at the end of 2025.

On the liabilities side, total liabilities increased to N372.92 billion from N341.01 billion, while loans and borrowings declined to N81.76 billion from N84.67 billion.

The company generated N38.27 billion in net cash from operating activities during the nine months, compared with N22.96 billion in the corresponding period of 2025, reflecting stronger cash generation from its operations.

The financial statements, approved by the board on October 23, 2026, showed that the company’s shares were quoted at N640 on the Nigerian Exchange as of September 30, 2026.

For investors, the return to profitability represents a significant improvement from the losses recorded in the previous year. However, the sustainability of the recovery will depend on the company’s ability to preserve margins, manage financing expenses, maintain sales growth and convert earnings into cash as it closes the 2026 financial year.