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TotalEnergies Nigeria’s annual profit declines to N13bn

TotalEnergies Nigeria’s annual profit declines to N13bn

TotalEnergies Marketing Nigeria Plc has reported a 19.7 percent decline in its after-tax profit for 2023 despite an increase in revenue, according to its latest unaudited financial statement.

The subsidiary of the French energy giant TotalEnergies saw its after-tax profit drop to N12.93 billion from N16.11 billion in 2022. The firm’s operating profit also declined by 13.54 percent to N23.92 billion.

Its operating expenses rose to N62.59 billion from N36.04 billion on the back of increased administrative expenses. A net foreign exchange loss of N115 billion was reported as against a gain of N71.88 million in the previous year.

Read also: TotalEnergies’s H1 performance in 5 metrics

The firm recorded revenue of N636.0 billion, representing a 32 percent growth from N482.5 billion.

It recorded a 40 percent growth in petroleum products revenue to N509.3 billion, and lubricants and others increased by 5.76 percent to N126.64 billion.

However, there was a 31 percent growth in the cost of sales to N554.1 billion from N422.3 billion. Finance income grew by 68.75 percent to N3.81 billion from N2.26 billion.

Finance costs grew by 87.54 percent to N10.11 billion from N5.39 billion. Earnings per share saw a decline to N38.09 from N47.47.

Net cash (used in)/generated from operating activities recorded a negative of N45.23 billion from a positive of N1.66 billion.

Net cash used in investing activities recorded a negative of N5.15 billion from a negative of N8.65 billion.

Net cash generated from financing activities was N15.40 billion, down from N26.92 billion.

Last week, the company announced plans to sell its minority stake in a major Nigerian oil joint venture.

In a statement, it plans to divest its share of Shell Petroleum Development Company of Nigeria Limited (SPDC) and is looking to reshape its portfolio since producing oil in the Niger Delta is not in line with its health, security and environmental policies.

“We want to divest our share of SPDC, and we are looking to reshape the portfolio,” Patrick Pouyanne, chief executive officer at TotalEnergies, said.

“Fundamentally it’s because producing this oil in the Niger Delta is not in line with our (Health, Security and Environmental) policies, it’s a real difficulty,” he said.

Pouyanne noted that the company would keep its Nigerian gas resources, which he described as crucial for the company’s planned expansion of liquefied natural gas development in the coming years.

The company had in December 2023 said it would invest as much as $6 billion in Nigeria in coming years, particularly in gas production, as it plans to cut down investment in hydrocarbons and transition into cleaner energy.

TotalEnergies is a multinational energy company operating in more than 130 countries. For over 50 years, the company has remained a leader in the downstream sector of the Nigerian oil and gas industry.