{"id":11045,"date":"2026-10-26T11:49:25","date_gmt":"2026-10-26T11:49:25","guid":{"rendered":"https:\/\/ograsset.com\/?p=11045"},"modified":"2026-10-26T11:49:26","modified_gmt":"2026-10-26T11:49:26","slug":"totalenergies-nigeria-returns-to-n8-02-billion-pre-tax-profit-misses-q3-profit-forecast","status":"publish","type":"post","link":"https:\/\/ograsset.com\/index.php\/2026\/10\/26\/totalenergies-nigeria-returns-to-n8-02-billion-pre-tax-profit-misses-q3-profit-forecast\/","title":{"rendered":"TotalEnergies Nigeria returns to N8.02 billion pre-tax profit, misses Q3 profit forecast"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"975\" height=\"519\" src=\"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/10\/image-56.png\" alt=\"\" class=\"wp-image-11046\" srcset=\"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/10\/image-56.png 975w, https:\/\/ograsset.com\/wp-content\/uploads\/2026\/10\/image-56-300x160.png 300w, https:\/\/ograsset.com\/wp-content\/uploads\/2026\/10\/image-56-768x409.png 768w\" sizes=\"auto, (max-width: 975px) 100vw, 975px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">TotalEnergies Marketing Nigeria Plc returned to profitability in the nine months ended September 30, 2026, reporting a pre-tax profit of N8.02 billion against a loss of N11.92 billion in the corresponding period of 2025, as finance costs declined by 40.13%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, its standalone third-quarter pre-tax profit of N1.31 billion was approximately half the N2.62 billion forecast, despite revenue exceeding management\u2019s projection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company\u2019s unaudited third-quarter financial statements filed with the Nigerian Exchange (NGX) on Friday, October 23, showed revenue rising by 12.65% to N661.92 billion from N587.59 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Profit after tax also improved to N5.84 billion from a loss of N14.10 billion, supported by higher petroleum product sales, stronger operating earnings and reduced financing expenses.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><\/strong><strong>Fuel sales drive earnings recovery:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">TotalEnergies recorded gross profit of N78.52 billion in the nine-month period, representing a 19.42% increase from N65.76 billion a year earlier.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating profit also rose by 238.89% to N19.16 billion from N5.65 billion.<\/li>\n\n\n\n<li>White petroleum products accounted for almost all the revenue growth, contributing approximately N71.20 billion, or 96%, of the N74.33 billion increase in total sales.<\/li>\n\n\n\n<li>Revenue from white petroleum products rose by 17.74% to N472.66 billion.<\/li>\n\n\n\n<li>Lubricants and other products recorded a 1.68% increase to N189.26 billion.<\/li>\n\n\n\n<li>Network revenue increased by 16.82% to N370.67 billion, while General Trade revenue rose by 19.09% to N244.91 billion.<\/li>\n\n\n\n<li>Cost of sales increased by 11.80% to N583.39 billion, below the 12.65% growth in revenue.<\/li>\n\n\n\n<li>The slower increase in cost of sales helped lift gross margin to 11.86% from 11.19% in the corresponding period.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Administrative expenses also declined by 1.09% to N59.56 billion, providing additional support for operating profitability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the improvement, the company\u2019s net profit margin remained below 1%, reflecting the continued pressure of operating and financing costs on earnings.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Lower Finance Costs boost profit:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A significant contributor to TotalEnergies\u2019 earnings recovery was the reduction in finance costs, which fell by 40.13% to N12.30 billion from N20.55 billion in the corresponding period of 2025.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest on bank overdrafts declined by 43.26% to N11.58 billion, accounting for approximately 94% of the company\u2019s total finance costs.<\/li>\n\n\n\n<li>Earnings per share improved to N17.21 from a loss of N41.54 per share.<\/li>\n\n\n\n<li>Third-quarter revenue increased by 33.13% to N217.92 billion.<\/li>\n\n\n\n<li>Third-quarter operating profit reached N4.64 billion, compared with an operating loss of N4.66 billion a year earlier.<\/li>\n\n\n\n<li>Profit after tax for the third quarter was N894.19 million, against a loss of N11.25 billion in the corresponding quarter of 2025.<\/li>\n\n\n\n<li>Third-quarter pre-tax profit stood at N1.31 billion, reversing the N10.23 billion loss recorded a year earlier.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Nairametrics previously reported that <a href=\"https:\/\/nairametrics.com\/2026\/09\/25\/totalenergies-falls-10-as-ngx-oil-and-gas-index-retreats-from-record-high\/\"><strong>TotalEnergies recorded a full-year after-tax loss of approximately N17.18 billion in 2025,<\/strong><\/a> compared with a profit of N27.40 billion in 2024 before returning to <a href=\"https:\/\/nairametrics.com\/2026\/09\/28\/totalenergies-plans-5-annual-dividend-growth-through-2030\/\"><strong>profitability in the first half of 2026<\/strong><\/a> with N4.95 billion in after-tax earnings on revenue of N443.99 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nevertheless, its N12.30 billion finance bill still represented approximately 64% of operating profit and exceeded the N8.02 billion recorded as pre-tax profit.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>TotalEnergies working capital deficit narrows:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">TotalEnergies reduced its negative net working capital position to N11.06 billion as of September 30, 2026, compared with a deficit of N20.15 billion at the end of December 2025. However, current liabilities continued to exceed current assets despite the improvement.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total current assets increased by 12.36% to N349.04 billion from N310.64 billion, while current liabilities rose by 8.86% to N360.10 billion from N330.79 billion.<\/li>\n\n\n\n<li>Bank overdrafts declined by 30.02% to N59.26 billion, while total borrowings fell by 3.44% to N81.76 billion.<\/li>\n\n\n\n<li>The company disclosed a new N22.50 billion short-term intercompany loan denominated in dollars and carrying a variable interest rate.<\/li>\n\n\n\n<li>Current trade and other receivables increased by 27.52% to N165.23 billion, while trade and other payables rose by 14.32% to N270.40 billion.<\/li>\n\n\n\n<li>Operating cash flow increased by 66.72% to N38.27 billion, supported partly by higher payables and lower tax payments.<\/li>\n\n\n\n<li>Other creditors increased from N5.47 billion to N63.47 billion, although the statements did not provide a detailed breakdown of the increase.<\/li>\n\n\n\n<li>Shareholders\u2019 equity also increased by 12.29% to N53.38 billion.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Cash balances rose by 25.18% to N56.06 billion, including N34 billion held with TotalEnergies Treasury, but remained approximately N3.20 billion below outstanding bank overdrafts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Market reaction:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The market is yet to react to the results announcement as the share price closed flat at N518.40 per share on Friday, October 23.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total began the year with a share price of N640.00 but has since lost 19% off that price valuation, ranking it 112th on the Nigerian Exchange (NGX) in terms of year-to-date performance.<\/li>\n\n\n\n<li>Shareholders\u2019 worries are compounded by the fact that TOTAL has lost 10% of the stock\u2019s value from September 24th to date.<\/li>\n\n\n\n<li>However, the market may reprice the stock on the strength of the earnings recovery.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Although higher fuel sales and lower finance costs supported the earnings recovery, collecting outstanding receivables, managing the dollar-denominated loan and addressing the increase in other creditors remain important financial considerations.<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/nairametrics.com\/2026\/10\/26\/totalenergies-nigeria-returns-to-n8-02-billion-pre-tax-profit-misses-q3-profit-forecast\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>TotalEnergies Marketing Nigeria Plc returned to profitability in the nine months ended September 30, 2026, reporting a pre-tax profit of N8.02 billion against a loss of N11.92 billion in the corresponding period of 2025, as finance costs declined by 40.13%. However, its standalone third-quarter pre-tax profit of N1.31 billion was approximately half the N2.62 billion&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/ograsset.com\/index.php\/2026\/10\/26\/totalenergies-nigeria-returns-to-n8-02-billion-pre-tax-profit-misses-q3-profit-forecast\/\" class=\"excerpt-read-more\">Read More \u2192<\/a><\/p>\n","protected":false},"author":2,"featured_media":11046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-11045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fit-row"],"jetpack_featured_media_url":"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/10\/image-56.png","_links":{"self":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/comments?post=11045"}],"version-history":[{"count":2,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11045\/revisions"}],"predecessor-version":[{"id":11048,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11045\/revisions\/11048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/media\/11046"}],"wp:attachment":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/media?parent=11045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/categories?post=11045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/tags?post=11045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}