TotalEnergies to earn N85 billion in Q2 2023 – Report

Bisola David
Bisola David
TotalEnergies to invest $6bn in Nigeria's Deepwater

For the second quarter of the year ending in June 2023, TotalEnergies Marketing Nigeria Plc hopes to generate N84.86 billion in revenue.

AmBusiness reported that this information was provided in the company’s Q2 2023 earnings forecast report provided to the Nigerian Exchange Limited.

The corporation expects to generate a profit of N14.69 billion. Additionally, it aims to generate earnings of N5.29 billion before taxes and N3.58 billion after taxes.

Furthermore, note that the expected cost of sales for the period is N70.69 billion, while the projected income tax expenses for the period are N1.7 billion.

The expected cost of sales for the period was N70.69 billion, while the projected income tax expenses for the period is N1.7 billion.However, TotaleEnergies’ unaudited profit before tax for the fourth quarter of 2022 increased by 17.4% year over year to N6.00 billion from N5.11 billion in the fourth quarter of 2021 while  Profit after tax increased from N3.48 billion in Q4-2021 to N3.93 billion following a tax expense of N2.07 billion.

With a 339.8% year to year increase in finance cost, net finance cost spiked to N1.36 billion in the quarter (Q4-21: N10.48 million). Importantly, the increased financing cost outturn is due to an increase in the interest rates on other loans and import loans (+67.8% y/y and +3208.7% y/y, respectively).

The three business segments — network (+17.2% y/y | 42.4% of revenue), general trade (+63.7% y/y | 41.3% of revenue), and aircraft (+139.3% y/y | 14.6% of revenue) — all had strong growth in Q4-22 (2022FY: +41.4% y/y revenue).

The increase in income was attributed by analysts at Cordros Research to increasing fuel prices. In the time frame, PMS increased by 21.0% y/y, AGO by 194.4% y/y, and DPK by 142.4% y/y. As a result, the majority of sales were of petroleum products (+57.6% y/y | 80.6% of revenue), with the remaining 19.4% of sales being made up of lubricants and other items (+14.4% y/y).

“Total’s performance showed resiliency despite the product supply limitations observed in the quarter, and its performance was in line with our expectations. Notwithstanding this, we are worried about the sharp increase in net finance charges that affected the performance for the entire year.”

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *