TotalEnergies Marketing Nigeria Plc’s Profit After Tax Dropped by 19.7%

TotalEnergies Marketing Nigeria Plc recently released its unaudited financial statement for 2023, and it states that the firm witnessed a 19.7% decline in its profit after tax despite a rise in revenue.

The company, a subsidiary of the French energy giant TotalEnergies, reported that its profit after tax dropped by 19.7% to settle at N12.93 billion from the corresponding year, which settled at N16.11 billion in 2022. TotalEnergies operating profit fell by 13.54% to settle at N23.92 billion.

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

TotalEnergies recorded revenue of N636.0 billion, representing a 32%  growth from N482.5 billion.

TotalEnergies petroleum products revenue increased by 40% to settle at N509.3 billion, while the firm's lubricants and others increased by 5.76% to N126.64 billion.

TotalEnergies' cost of sales increased by 31% to settle at N554.1 billion from the corresponding year, which settled at N422.3 billion. The firm's finance income increased by 66.75% to settle at N3.81 billion from the corresponding year, which settled at N2.26 billion.

TotalEnergies' finance cost increased by 87.54% to settle at N10.11 billion from the corresponding year, which settled at N5.39 billion. The firm's earnings per share declined to N38.09 from the corresponding year, which settled at N47.47.

TotalEnergies net cash (used in)/generated from operating activities recorded a negative of N45.23 billion from a positive of N1.66 billion in 2022.

TotalEnergies net cash used in investing activities recorded a negative of N5.15 billion from a negative of N8.65 billion in 2022.

TotalEnergies net cash generated from financing activities was N15.40 billion, down from N26.92 billion in 2022.

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

In the released statement, the firm says 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 stated that the company will keep its Nigerian gas resources, which he described as crucial for its planned expansion of liquefied natural gas development in the coming years.

In December 2023, it said it would invest as much as $6 billion in Nigeria in coming years, particularly in gas production, as it plans to cut down on hydrocarbons and transition to 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.