TotalEnergies Marketing Nigeria Forecasts ₦2.13bn Profit Amidst Rising Finance Costs

TotalEnergies Marketing Nigeria Plc anticipates a profit before tax of ₦2.13 billion for the quarter ending June 30, 2025, according to its recently released financial forecast. The company projects revenues of ₦191.61 billion, with cost of sales amounting to ₦165.94 billion, resulting in a gross profit of ₦25.67 billion.

Operating profit is forecasted at ₦7.76 billion, following deductions for selling and distribution expenses of ₦4.36 billion and administrative expenses totaling ₦15.62 billion. However, substantial finance costs, primarily interest expenses of ₦6.48 billion, are expected to significantly impact net profitability, reducing net finance income to a negative ₦5.62 billion.

After accounting for an income tax expense of ₦725.54 million, the company projects a net profit of ₦1.41 billion for the quarter.

In terms of cash flow, TotalEnergies forecasts net cash provided by operating activities to be ₦18.29 billion. However, after factoring in net cash used in investing activities of ₦1.26 billion and net cash used in financing activities amounting to ₦27.33 billion—primarily due to interest payments, loan repayments, and dividends—the company anticipates a net decrease in cash and cash equivalents of ₦10.29 billion for the quarter.

This forecast underscores the challenges faced by TotalEnergies Marketing Nigeria in balancing operational profitability with high finance costs and cash flow management.