TotalEnergies Nigeria returns to profit but Q3 misses forecast by half
TotalEnergies Marketing Nigeria posted ₦8.02 billion pre-tax profit for nine months ended September 2026, reversing a ₦11.92 billion loss a year earlier. Revenue rose 12.65% to ₦661.92 billion, driven by white petroleum products. However, standalone Q3 pre-tax profit of ₦1.31 billion came in roughly half the ₦2.62 billion forecast, despite revenue exceeding projections.
Finance costs dropped 40.13% to ₦12.30 billion—mainly from lower bank overdraft interest—lifting earnings per share to ₦17.21 from a ₦41.54 loss. Operating cash flow jumped 66.7% to ₦38.27 billion. The company also narrowed its working capital deficit to ₦11.06 billion from ₦20.15 billion in December 2025.
But finance costs still consume 64% of operating profit and exceed pre-tax earnings. A new $22.50 billion dollar-denominated intercompany loan at variable rates adds currency risk. Other creditors surged from ₦5.47 billion to ₦63.47 billion without explanation. Shares closed flat at ₦518.40, down 19% year-to-date.
With fuel sales recovering but financing costs still eating most operating profit, will the market reward the turnaround or wait for proof that the dollar loan and creditor surge are under control?