For Total Nigeria, the only International Oil Company (IOC) in Nigeria’s downstream sector, cost-cutting policy is an inescapable approach in surviving the impact of the lockdown period, due to the spread of the pandemic.
Total Nigeria recorded mixed results in its operational business in terms of a dip in revenue by 32 percent to N151.71 billion and a non-corresponding increase in profit by 344 percent increase in Profit After Tax (PAT) of N500.12 million in its newly released nine months financial report.
This simply means that the firm was able to manage its costs very well despite recording lower revenue.
Total Nigeria reduce its cost of sales by 33 percent to about N130 billion from N196.74 billion why its finance cost (borrowing cost) reduced by 73 percent to N561 million.
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Total cost of sales, selling & distribution costs and administrative expenses reduces by 30 percent t0 N150.9 billion while the number of staff also reduced by 6percent.
Interest on bank loans and overdraft remarkably declined by approximately 64 percent to N1.8billion while Net cash outflows from financing activities stood at N3.4 billion compared to N2.9 billion in the corresponding period last year.
