Input cost gulps 88% of Nigeria’s downstream firms’ Q1 revenue

Four of Nigeria’s downstream firms’ input costs claimed 88 percent of the cumulative revenue of N232.22 billion in the first quarter of 2023, BusinessDay analysis shows.

The firms’ input cost recorded 37.7 percent growth which amounted to N203.85 billion in the first quarter of 2023 from N147.99 billion in the first quarter of 2022 on the back of the soaring wings of inflation.

Further analysis revealed downstream firms which include Total Energies, Eterna, MRS Oil and Conoil recorded an aggregate revenue of N232.22 billion, 37.8 percent increase from N168.48 billion in the reviewed period.

Similarly, Nigeria’s downstream firms recorded N14.18 billion in operating expenses in the first quarter of 2023, indicating a 22.3 percent increase from N11.59 billion in the first quarter of 2023.

TotalEnergies

TotalEnergies revenue claimed 88.9 percent of total revenue in the first quarter of 2023, a 370 basis points increase from 85.2 percent recorded in the prior year.

The firm’s revenue stood at N135.28 billion in the first quarter of 2023, up 38.6 percent from N97.61 billion in the first quarter of 2022.

Input cost rose to N120.27 billion, 44.7 percent increase from N83.12 billion in the period reviewed.

Total Energies’ operating expenses increased to N8.72 billion in the first quarter of 2023, up 15.3 percent from N7.56 billion in the first quarter of 2022.

Total Nigeria Plc is a marketing and services subsidiary of TotalEnergies; a multinational energy company operating in more than 130 countries and committed to providing sustainable products and services for its customers.

Eterna

Eterna’s cost of sales claimed 88.6 percent of total revenue in the first quarter of 2023, 280 basis points decline from 91.4 percent in the same quarter of 2022.

The firm’s revenue rose to N31.18 billion in the first quarter of 2023, 16.3 percent increase from N26.82 billion in the same period of 2022.

Input cost increased to N27.64 billion, 12.7 percent increase from N24.52 billion in the period reviewed.

Eterna’s operating expenses grew to N1.8 billion in the first quarter of 2023, 57.9 percent increase from N1.14 billion in the first quarter of 2022.

Eterna plc manufactures, markets and distributes lubricants and chemicals, trades in crude, and operates a network of filling stations.

Read also: Palmpay boosts financial inclusion drive with 25m users of its platform

MRS Oil

MRS Oil cost of sales claimed 87.6 percent of total revenue in the first quarter of 2023, 760 basis points decline from N95.2 percent in the first quarter of 2022.

The firm’s revenue stood at N30.79 billion in the first quarter of 2023, a 72 percent increase from N17.9 billion in the first quarter of 2022.

Input cost rose to N26.98 billion, 58 percent increase from N17.04 billion in the period reviewed.

MRS Oil’s operating expenses stood at N1.66 billion in the first quarter of 2023 from N12.06 million in the first quarter of 2022.

MRS Oil is one of the largest and leading marketers of refined products, including quality gasoline, marine, and aviation fuels in the downstream industry in Nigeria.

Conoil

Conoil’s input cost claimed 82.8 percent of total revenue in the first quarter of 2023, a 630 percent decline from 89.1 percent in the first quarter of 2022.

The firm’s revenue amounted to N34.97 billion in the first quarter of 2023, 33.7 percent increase from N26.15 billion in the same period of 2022.

Input cost stood at N28.96 billion, up 24.2 percent from N23.31 billion in the period reviewed.

Conoil’s operating expenses grew to N2 billion in the first quarter of 2023, a 9.3 percent increase from N1.83 billion in the same period of 2022.

Conoil Plc is a Nigerian petroleum marketing company involved in the sale of regulated gasoline and kerosene, diesel, aviation fuel, and low-pour fuel.