TotalEnergies Marketing Nigeria Plc’s pretax profit rose to N1.9 billion in Q1 2026, up 70.58 per cent year-on-year from N1.1 billion, according to its financial statement on the Nigerian Exchange.

This came despite a decline in revenue to N197.1 billion from N221.6 billion in the corresponding period of the prior year.

Nairametrics reported that the sale of white products, including PMS, automotive gas oil, and aviation turbine kerosene, contributed N129.6 billion, while lubricants and other products accounted for N67.5 billion.

Bottom-line profitability improved, supported by lower production and finance costs, and zero minimum tax, with earnings per share rising to N3.45 from a loss of N0.35.

Key highlights (Q1 2026 vs Q1 2025)
Revenue: N197.1 billion vs N221.6 billion
Cost of sales: N170.2 billion vs N197.1 billion
Gross profit: N26.9 billion, up 9.97 per cent year-on-year
Administrative expenses: N20.4 billion, up 15.50 per cent year-on-year
Operating profit: N6.1 billion vs N6.9 billion
Net finance costs: N4.2 billion vs N5.8 billion
Pretax profit: N1.9 billion vs N1.1 billion
Retained earnings: N48.5 billion, up 2.5 per cent year-on-year

A closer look at the income statement shows that the cost of sales declined to N170.2 billion in Q1 2026 from N197.1 billion in Q1 2025.

This was mainly driven by a reduction in the cost of purchasing and utilizing lubes, greases, and refined products, which fell from N193.08 billion to N166.9 billion.

Customs duties also eased to N1.3 billion from N2.3 billion, while transportation of supplies stood at N1.8 billion for the period.

As a result of the lower costs, gross profit strengthened to N26.9 billion, higher than N24.5 billion in Q1 2025, despite the revenue decline.

The company also recorded ‘other income’ of N1.9 billion, largely from Bonjour shop network income, rent, vendor management fees, solar lamps, miscellaneous income, and FX gains.

However, after selling and distribution expenses of N2.2 billion, administrative expenses of N20.4 billion, and net impairment losses of N23.9 million, operating profit eased to N6.1 billion from N6.9 billion in Q1 2025.

Finance costs provided some relief, easing 30.19 per cent year-on-year to N4.7 billion from N6.8 billion, after finance income of N490.9 million.

Consequently, pretax profit settled at N1.9 billion, while post-tax profit stood at N1.17 billion after zero minimum tax and an income tax charge of N742.5 million, compared to a prior-year loss of N120 million driven by N1.1 billion minimum tax.

On the balance sheet, total assets shrank to N356 billion, down from N388.5 billion in Q1 2025, with trade and other receivables of N125.5 billion as the largest asset class.

In terms of equity, retained earnings increased to N48.5 billion, up from N47.3 billion in the prior year, bringing total equity to N48.7 billion.

The company also recorded lower total liabilities at N307.3 billion, down from N341 billion, with trade and other payables of N185.5 billion and current loans and borrowings of N100 billion as the largest contributors.

Price action on the stock remained flat even after the results were published, holding at N640 per share.

On a year-to-date basis, the shares are unchanged at 0.00 per cent, reflecting muted market reaction to the earnings release.