The impact of Nigeria’s rising inflation is taking a toll on businesses in Africa’s biggest economy as four of Nigeria’s downstream firms’ input costs claimed 86.8 percent of the combined revenue of N490.74 billion in the first half of 2023.
This is 130 basis points decrease coming from 88.1 percent which input cost claimed of the total revenue of N365.14 billion in the first half of 2022.
BusinessDay analysis shows Eterna’s input cost gulped the most of 87.6 percent of the total revenue of N69.34 billion, followed by Total Energies with 87.2 percent of total revenue at N274.61 billion.
Conoil’s input cost gulped 86 percent of N87.14 billion total revenue in H1 2023 while MRS Oil’s input cost gulped 85.1 percent of N59.65 billion.
Four of Nigeria’s downstream firms’ input cost recorded 32.4 percent growth which amounted to N426.02 billion in the first half of 2023 from N321.81 billion in the same period of 2022 which was driven by double-digit inflation.
Further analysis revealed downstream firms which include Eterna, Total Energies, Conoil, and MRS Oil recorded an aggregate revenue of N490.74 billion, a 34.4 percent increase from N365.14 billion in the reviewed period.
Read also: Downstream firms post 47% revenue growth in aviation fuel despite hurdles
Firm analysis
Total Energies
Total Energies input cost rose to N239.57 billion in H1 2023 from N179.21 billion in the same period of 2022.
Revenue increased to N274.61 billion from N209.01 billion while profit after tax rose to N8.79 billion from N8.53 billion.
Earnings per share amounted to N25.88 per share in H1 2023 from N25.12 billion per share in the same period of 2022.
Total Nigeria 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.
Conoil
Conoil’s input cost increased to N74.94 billion in H1 2023 from N49.58 billion in the same period of 2022.
Revenue grew to N87.14 billion from N56.25 billion while profit for the period amounted to N6.25 billion from N1.81 billion.
Basic earnings per share increased to N9.01 per share in H1 2023 from N2.61 per share 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.
Eterna
Eterna’s cost of sales increased to N60.77 billion in H1 2023 from N53.08 billion in the same period of 2022.
Revenue amounted to N69.34 billion from N57.22 billion while the firm recorded loss after tax of N5.89 billion from a profit after tax of N1.25 billion.
Basic earnings per share stood at N4.51 per share in H1 2023 from N0.96 per share in the same period 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 input cost grew to N50.74 billion in H1 2023 from N39.94 billion in the same period of 2022.
Revenue increased to N59.65 billion from N42.66 billion while profit after tax increased to N2.31 billion from N351.81 million.
Basic and diluted earnings per share rose to N6.74 per share in H1 2023 from N1.15 per share in the same period 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.
