The only International Oil Company (IOC) in Nigeria’s downstream sector, Total Energies Marketing Nigeria (TMN), has recorded the highest profit in 10 years, thanks to sales of petroleum products, network income and net foreign exchange gain.
The company’s profit grew 710 percent to N16.7 billion, in its full-year 2021, a new high compared to N2.06 billion recorded in the previous year, an analysis by BusinessDay has shown.
Revenue jumped to N341 billion in the year ended 2021, a 66.58 percent increase compared to N204.7 billion in the previous year.
The Company’s revenue is obtained primarily from the sale of refined petroleum products, lubricants, special fluids and solar products to its customers.
Sales of petroleum products contributed 74.8 per cent (N255 billion) to the total revenue of N341 billion while Lubricants and others contributed 25.2 per cent (N86.13 billion) in the year ended 2021.
Furthermore, the company’s network income grew to N2.3 billion in December 2021 from N968.5 million in December 2020.
The company recorded a gain of N2.16 billion on net foreign exchange in 2021 compared to 2020 when they made no gain.
However, Total Energies saw a 64.56 percent increase in cost of sales to N286.17 billion, from 173.9 billion in December 2020.
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The company’s gross profit surged to N54.9 billion in the year ended 2021 from N30.7 billion in the year ended 2020.
Profit before taxation jumped by a whopping 798.6 per cent to N24.9 billion from N2.9 billion in the comparable periods.
Other income increased by a whopping 328.8 percent to N4.46 billion from N1.04 billion in the comparable periods.
Finance income dropped to N831 million in December 2021 from N2.26 billion in the previous year.
Assets climbed to N207.2 billion, a 44.29 percent increase from N143.6 billion in the corresponding period .
Net cash generated from operating activities, the cash flow from operating activities that depicts the cash-generating abilities of a company’s core business activities gained to N60.6 billion in the year ended 2021 from N44.6 billion in the year ended 2020.
Net cash from investing activities, a section of the cash flow statement that shows the cash generated or spent relating to investment activities, recorded a year on year loss to N9.34 billion from N8.28 billion in the corresponding period last year.
Net cash from financing activities, a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company, recorded a loss of N17.95 billion from N8.92 billion gained in 2020.
Loans and borrowings dipped by 54.3 percent to N14.9 billion in December 2021 from N32.6 billion in the previous year.
Earnings per share rose to N49.26 in December 2021 from N6.08 in December 2020.
