Nigeria’s biggest downstream firms incur N14bn operating cost

Nigeria’s biggest downstream firms recorded N14.18 billion in operating costs in the first quarter of 2023, BusinessDay analysis has shown.

This indicates a 22.3 percent rise in operating costs from N11.59 billion in the first quarter of 2023.

The downstream firms surveyed include Total Energies, Conoil, Eterna and MRS Oil which recorded N8.72 billion, N2 billion, N1.8 billion, and N1.66 billion respectively in the first quarter of 2023.

Firm-by-firm analysis

Total Energies

Total Energies’ operating cost stood at N8.72 billion in the first quarter of 2023, up 15.3 percent from N7.56 billion in the first quarter of 2022.

The firm’s selling & distribution costs dropped 21 percent to N916 million in the first quarter of 2023 from N1.16 billion in the first quarter of 2022.

Total Energies’ administrative expenses rose to N7.8 billion in the first quarter of 2023, a 3 percent increase from N7.57 billion in the same 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.

Read also: Firm moves to mitigate rising fuel prices with solar power solutions

Conoil

Conoil’s operating cost amounted to N2 billion in the first quarter of 2023, 9.3 percent increase from N1.83 billion in the first quarter of 2022.

The firm’s distribution expenses amounted to N713.48 million in the first quarter of 2023, up 37 percent from N519.5 million in the first quarter of 2022.

Conoil’s administrative expenses dipped 2.3 percent to N1.28 billion in the first quarter of 2023 from N1.31 billion in the first quarter 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.

Eterna

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

The firm’s selling and distribution expenses rose to N70.35 million in the first quarter of 2023, 110 percent increase from N33.49 million in the first quarter of 2022.

Eterna’s general and administrative expenses amounted to N1.73 billion in the first quarter of 2023, 57.3 percent increase from N1.1 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.

MRS Oil

MRS Oil’s operating cost amounted to N1.66 billion in the first quarter of 2023 from N12.06 million in the first quarter of 2022.

The firm’s administrative expenses amounted to N1.46 billion in the first quarter of 2023, a 49.7 percent increase from N975.2 million in the first quarter of 2o22.

The firm’s selling and distribution expenses rose to N202.26 million in the first quarter of 2023, up 126 percent from N89.54 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.