TotalEnergies Marketing Nigeria Plc faced a difficult operating environment in the first nine months of 2021 as cost increases generally overtook revenue growth. Margins shrank and profit went down by seven percent to N13.4 billion.
Last year’s performance was driven by strong recovery and growth in sales revenue combined with considerable cost savings. This year, the company is still going strong on revenue growth but costs have changed their moderating behaviour to a revenue-consuming surge.
Total Energies, One of Nigeria’s downstream firms recorded a 7 percent dip in nine months’ profit to N13.4 billion from N12.5 billion in the nine-month of 2021.
The dip in profit was despite a surge in revenue to N337.2 billion, up 39.2 percent from N242.2 billion in the comparable periods.
BusinessDay analysis showed that Total Energies’ cost of sales took out 86.7 percent which represents N292.5 billion out of the total revenue worth N337.2 billion in the nine months of this year.
The cost of sales jumped 45 percent to N292.5 billion in the nine months of this year from N201.6 billion in the corresponding period of 2021.
The revenue segment includes Petroleum products and Lubricants and others which contributed N245.5 billion(72.8%) and N91.6 billion(27.1%) to the total revenue of N337.2 billion.
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Selling & distribution costs rose to N3.05 billion in September 2022, up 25.5 percent from N2.43 billion in September 2021.
Total Energies spent the sum of N23.7 billion on administrative expenses, indicating a 12.6 percent increase from N21.04 billion in the comparable period.
Finance income increased to N1.44 billion in September 2022, up by a huge 316 percent from N346.2 million in September 2021.
Network income surged 50.6 percent to N2.56 billion in September 2022 from N1.7 billion in September 2021.
Net foreign exchange gain dropped 93.4 percent to N71.4 million in September 2022 from N1.87 billion in September 2021.
The total number of staff which include managerial, senior, and junior staff dropped to 432 in September 2022 from 434 in September 2021.
Total staff cost increased to N9.22 billion in September 2022, up 14.4 percent from N8.06 billion in September 2021.
Net cash generated from operating activities recorded a negative of N44.1 billion in September 2022 from N31 billion in September 2021.
Net cash used in investing activities recorded N6 billion from N1.64 billion negative cash flow year on year.
Net cash generated from financing activities increased to a positive of N84.8 billion in September 2022 from a negative of N1.82 billion in September 2021.
Cash and cash equivalents rose to N98.5 billion as of the period ended September 2022 from N60.6 billion in the same period of 2021.
