TotalEnergies Marketing Nigeria Plc Reports ₦1.17 Billion Profit as Revenue Declines in Q1 2026

TotalEnergies Marketing Nigeria Plc posted a profit after tax of ₦1.17 billion for the first quarter (Q1) ended March 31, 2026, reversing a loss of ₦120.03 million recorded in the corresponding period of 2025 despite a decline in topline performance.

Revenue declined to ₦197.18 billion in Q1 2026 from ₦221.62 billion in Q1 2025 on weaker sales volume and pricing pressures across key product segments.

However, cost of sales dropped significantly to ₦170.23 billion from ₦197.11 billion, supporting a 9.97 percent increase in gross profit to ₦26.95 billion from ₦24.51 billion.

The improved gross margin underscores the company’s cost efficiency measures during the period under review, even as market conditions remained relatively volatile.

Operating profit declined to ₦6.19 billion from ₦6.96 billion in the same period of 2025, impacted by higher operating expenses.

Administrative and distribution costs rose to ₦20.45 billion from ₦17.71 billion, while other operating expenses also contributed to margin pressure.

Finance costs, however, eased significantly. Net finance cost narrowed to ₦4.28 billion from ₦5.84 billion in Q1 2025, driven by lower interest expenses and improved financing structure. This supported profit before tax, which rose to ₦1.91 billion from ₦1.12 billion.

After accounting for income tax expense of ₦742.57 million, the company reported a net profit of ₦1.17 billion, translating to earnings per share of ₦3.45 compared to a loss per share of ₦0.35 recorded in the prior year.

On the balance sheet, total assets declined to ₦356.01 billion as of March 31, 2026, from ₦388.55 billion as of December 31, 2025.

The decline was largely driven by a significant reduction in inventories, which fell to ₦97.69 billion from ₦133.46 billion, indicating improved inventory management and reduced stockholding.

Trade and other receivables also declined to ₦125.60 billion from ₦129.58 billion, while cash and cash equivalents improved to ₦48.55 billion from ₦44.78 billion, reflecting stronger liquidity position.

Non-current assets increased slightly to ₦78.24 billion from ₦77.91 billion, supported by growth in right-of-use assets, which rose to ₦12.85 billion from ₦9.77 billion.

Total equity rose modestly to ₦48.71 billion from ₦47.54 billion, driven by retained earnings growth during the period.

On the liabilities side, total liabilities declined to ₦307.30 billion from ₦341.01 billion, largely due to a sharp reduction in trade and other payables, which fell to ₦185.54 billion from ₦236.53 billion.

However, loans and borrowings increased to ₦100.01 billion from ₦84.67 billion, indicating a shift in funding structure.

Lease liabilities also rose across both current and non-current portions, reflecting increased lease obligations tied to operational assets.

The company’s financial statements were approved by the Board of Directors on April 27, 2026, and signed by Managing Director Wilfried Konde and Executive Director Olubunmi Popoola-Mordi.

Overall, the Q1 2026 performance reflects a transition phase marked by improved cost discipline, stronger balance sheet efficiency, and a return to profitability, despite revenue pressure in Nigeria’s downstream oil and gas sector.