TotalEnergies Marketing Nigeria Plc has reported a pre-tax loss of N11.92 billion for the nine-month period ending September 30, 2025 — a stark reversal from the N41.85 billion profit recorded in the same period of 2024. This represents a 128% year-on-year decline, underscoring the growing financial pressure within Nigeria’s downstream oil and gas sector.
The company’s third-quarter (Q3) results painted an even bleaker picture, with a loss before tax of N10.23 billion, compared to a profit of N11.28 billion in Q3 2024 and N3.31 billion in Q2 2025. This marks the second consecutive quarterly loss, signaling a sustained decline in profitability and intensifying operational headwinds.
Notably, TotalEnergies’ Q3 results fell well short of expectations. The company had earlier projected a pre-tax profit of N1.43 billion for the quarter, but the actual performance was substantially weaker, deepening investor concerns over its near-term outlook.
Key Financial Highlights
Revenue: N587.59 billion (↓26% YoY from N793.90 billion)
Gross Profit: N65.76 billion (↓30% YoY from N93.70 billion)
Operating Profit: N5.65 billion (↓89% YoY from N52.89 billion)
Pre-Tax Profit: N(11.92) billion (↓128% YoY from N41.85 billion)
Earnings Per Share (EPS): N(41.54) (↓151% YoY from N80.77)
Total External Debt: N90.97 billion (↓21% from N115.70 billion at FY 2024)
Total Assets: N400.84 billion (↓15% from N471.12 billion at FY 2024)
Cash Balance: N63.84 billion (↓30% from N91.31 billion at FY 2024)
Performance Drivers and Sector Pressures
The company’s downturn was primarily driven by weaker revenue performance, which declined 26% year-on-year. This suggests that both sales volume and product pricing came under pressure — a trend reflective of broader challenges in Nigeria’s downstream petroleum industry.
Revenue for Q3 2025 came in at N163.69 billion, significantly below N263.96 billion recorded in Q3 2024 and also beneath the forecast of N177.10 billion. The drop signals ongoing pricing pressures, reduced market demand, and supply disruptions, likely influenced by the high cost of imported refined products and foreign exchange volatility.
Despite lower cost of sales, TotalEnergies’ gross profit contracted sharply, reflecting tighter margins and reduced profitability across its product lines. Operating profit plunged 89% year-on-year to N5.65 billion, dragged down by persistent administrative expenses (N60.2 billion year-to-date) and selling and distribution costs (N6.7 billion). These expenses, though slightly lower than 2024 levels, remain high relative to revenue, suggesting limited cost flexibility amid falling sales.
The company also suffered net finance costs of N17.57 billion, up 59% from 2024. This increase came despite a reduction in total external debt, highlighting the burden of high interest rates and rising bank overdraft costs.
Inventory levels dropped from N152.02 billion in December 2024 to N107.96 billion, possibly reflecting deliberate inventory optimization or constrained product supply. On the balance sheet, total assets fell 15%, while liabilities dropped by only 11%, resulting in a 37% erosion of shareholders’ equity.
Liquidity and Cash Flow
TotalEnergies managed to sustain positive cash flow from operations at N23.61 billion, suggesting that its core business remains operationally viable. However, heavy financing outflows — including N20.4 billion in interest payments and N14.18 billion in dividends — offset these gains, leading to a net cash decrease of N15.99 billion during the nine-month period.
The company’s cash reserves consequently declined to N63.84 billion, reflecting tighter liquidity conditions even as it continues to navigate a challenging cost environment.
Market Reaction and Outlook
Despite the poor results, investor reaction was muted. The company’s stock closed flat at N640 per share, maintaining the same level it has traded at for much of 2025. Market observers interpret this as a sign of investor caution or a “wait-and-see” approach, pending clearer signals on whether TotalEnergies can stabilize margins in the coming quarters.
Year-to-date, the company’s share performance remains largely flat, with little movement even after the earnings release. While TotalEnergies declared a final dividend of N13.58 billion earlier in the year, no interim dividend accompanied the Q3 results — a decision likely aimed at preserving cash amid tightening profit margins and rising financing costs.
As Nigeria’s downstream sector continues to grapple with exchange rate volatility, import challenges, and regulatory uncertainty, TotalEnergies faces the dual task of defending market share while improving operational efficiency. The next quarter’s results will be pivotal in determining whether the company can reverse this downward trend or if sustained losses will mark the rest of its 2025 financial year.
