July 29. 2025/Cordros Report

TotalEnergies Marketing Nigeria Plc (TOTAL) published its Q2-25 unaudited results today, reporting a loss per share of NGN8.06 (vs EPS of NGN26.71 in Q2-24). Thus, H1-25 loss per share printed NGN8.41 (vs EPS of NGN60.58 in H1-24). The decline in earnings stemmed from a 22.2% y/y drop in revenue and higher net finance cost (+138.2% y/y) during the period.

Revenue declined by 22.2% y/y (H1-25: -20.0% y/y), driven by a broad-based decline across business segments – Network (-22.2% y/y | 54.0% of revenue), General Trade (-22.2% y/y | 35.0% of revenue) and Aviation (-22.2% y/y | 11.0% of revenue). We attribute the performance to the lower volumes in the period, despite product prices being higher compared to the prior period – PMS: +53.1% y/y, AGO: +21.9% y/y, and DPK: +48.3% y/y. We believe that the influx of relatively cheaper products from the Dangote Refinery through its trading partners limited the product offtake from TOTAL’s retail outlets and B2B channels. On a q/q basis, revenue declined by 8.7%.

Gross margin expanded by 58bps y/y to 11.8% in Q2-25 (H1-25: -72bps y/y to 11.4%), reflecting the faster pace of decline in cost of sales (-22.7% y/y) compared to revenue. Specifically, the numbers show declines in net changes in inventory of lubes, greases and refined products (-21.4% y/y), customs duties (-11.4% y/y) and transportation costs (-72.0% y/y). Consequently, EBITDA margin contracted by 343bps y/y to 2.8%, compounded by the 29.3% y/y increase in operating expenses.

Net finance costs increased by 138.2% y/y to NGN6.16 billion in Q2-25 (H1-25: +170.7% y/y to NGN12.01 billion), reflecting the 65.5% y/y increase in finance cost amid a 42.9% y/y decline in finance income. The higher finance cost was due to a 199.5% y/y increase in interest on bank overdrafts and a 19.6% y/y increase in interest on lease liability.
 
Overall, the company recorded a loss before tax of NGN2.81 billion in Q2-25 (vs profit before tax of NGN13.73 billion in Q2-24). Loss after tax settled at NGN2.74 billion after accounting for tax credit of NGN75.09 million.
 
Comment: TOTAL’s performance remained subdued, likely due to lower sales volumes, as increased competition from Dangote refinery and its partners continued to impact their market share. Additionally, elevated finance costs further dampened profitability during the period. Looking ahead, we expect the current headwinds– particularly competitive pricing pressures– to persist, keeping TOTAL’s performance subdued through the remainder of the year. Our estimates are under review.