Pre-tax earnings at Total Energies Nigeria fell by 48.02% in the third quarter as a result of foreign exchange delays.
According to The Times, Total Energies’ third-quarter 2023 results, pre-tax profits fell by 48.02% on an annual basis to N3.145 billion.
As a result, pre-tax profits for the first nine months of this year were down from N18.783 billion to N16.621 billion.
Higher loan interest rates, OPEX, and net foreign exchange losses are the reasons behind Total’s notable pre-tax profit reduction.
For the third quarter, the company reported net foreign exchange losses of N4.805 billion, for a total net foreign exchange loss of N6.308 billion for the nine months. This is in contrast to the year before, when there were no such losses recorded for the same time frame.
Positively, Total exceeded the 11.98% growth in the cost of sales by achieving a comparatively robust 15.45% growth in revenue. Contributing significantly to the overall 41.92% increase in gross profit was this impressive expansion in revenue.
Key highlights Q3 2023 vs. Q3 2022:
Revenue: N147.974 billion, +15.45% YoY
Cost of sales: N126.889 billion, +11.98% YoY
Gross Profit: N21.085 billion, +41.92% YoY
Other income: N1.230 billion, +34.71%
Net foreign exchange losses: N4.805 billion
Selling and Distribution Cost: N1.781 billion, +146.78% YoY
Administrative expenses N11.229 billion, +35.60% YoY
Operating profit/(loss) N4.497 billion, -37.06% YoY
Finance Income: N1.034 billion, +226.50% YoY
Finance Cost: N2.386 billion, +69.15% YoY
Net Finance cost: N1.352 billion, +23.58% YoY
Profit for the period: N2.033 billion, -48.87% YoY
Earnings per share: N5.99, -48.85% YoY
Cash and cash equivalent N118.982 billion +43.83%.
Total Assets: N426.583 billion, +38.58%
