July 31, 2025/InvestmentOne Report

TotalEnergies Marketing Nigeria Plc released its unaudited financial statements for the half year ended 30 June 2025, showing a significant deterioration in performance compared to the same period in 2024. The results reflect the combined impact of weaker fuel sales volumes, intense market competition, rising operating costs, and higher finance expenses in a difficult macroeconomic environment. 

Our near-term outlook for TotalEnergies Marketing Nigeria Plc remains challenging, as the company continues to navigate elevated interest rates and heightened competition following the entry of new domestic refining capacity. These factors are expected to weigh on margins and limit any meaningful earnings rebound in the second half of 2025. However, we foresee potential catalysts for gradual recovery from late 2025 into 2026. A moderation in inflation and interest rates, combined with a more stable exchange rate, would ease cost pressures and reduce finance expenses. In addition, improved local fuel supply from the Dangote Refinery and other sources could help stabilise product availability and potentially lower import-related costs. However, we maintain a BUY recommendation on Total. 

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