October 30, 2025/ Cordros Report
TotalEnergies Marketing Nigeria Plc (TOTAL) released its unaudited Q3-25 results today, reporting a loss per share of NGN33.13 (vs. EPS of NGN20.19 in Q3-24), bringing the 9M-25 loss per share to NGN41.54 (9M-24: EPS of NGN80.77). This underperformance was largely driven by a 38.0% y/y decline in revenue and a 14.0% increase in operating expenses.
Q3-25 revenue declined by 38.0% y/y (9M-25: -26.0% y/y), with broad-based declines across all business segments: Network (-38.0% y/y; 54.0% of revenue), General Trade (-38.0% y/y; 35.0% of revenue), and Aviation (-38.0% y/y; 11.0% of revenue). This revenue dip is attributed to lower sales volumes, which offset higher product prices for PMS (+33.0% y/y), AGO (+29.7% y/y), and DPK (+24.1% y/y). We believe the reduced volumes were primarily driven by increased competition from the Dangote Refinery, which, through its trading partners, introduced cheaper products, limiting offtake from TOTAL’s retail and B2B channels. On a quarter-on-quarter basis, revenue fell by 19.1%.
Although the cost of sales fell by 37.6% y/y in Q3-25 (9M-25: -25.5% y/y), gross margin contracted by 53bps y/y to 10.6% in Q3-25 (9M-25: -61bps y/y to 11.2%), as the decrease in costs was not enough to offset the sharp 38.0% y/y drop in revenue. The decline in COGS primarily resulted from lower expenditures on lubricants, greases,& refined products (-37.0% y/y), as well as transportation costs (-74.4% y/y).
Similarly, EBITDA and EBIT margin contracted by 880bps y/y and 962bps y/y to -1.2% and -2.8%, respectively (9M-25: -515bps y/y and -570bps y/y to 2.1% and 1.0%, respectively) further compounded by a 14.0% y/y rise in operating expenses.
On the finance side, net finance costs decreased by 15.7% y/y to NGN5.57 billion, primarily due to lower finance costs (-20.1% y/y), driven by a 77.4% y/y reduction in interest on lease liabilities and the elimination of interest on import loans (Q3-24: NGN2.82 billion). For the 9M-25 period, net finance costs increased by 59.2% y/y to NGN17.57 billion.
Overall, the company recorded a loss before tax of NGN10.23 billion in Q3-25 (Q3-24: profit before tax of NGN11.28 billion) and a loss after tax of NGN11.25 billion (Q3-24: profit after tax of NGN6.85 billion), after accounting for a tax expense of NGN1.02 billion.
Comment: As expected, TOTAL’s performance in Q3-25 remained subdued, driven by lower sales volumes and continued competitive pressures from Dangote Refinery and its partners. The company’s operating expenses also pressured margins, with EBITDA turning negative, further impacting profitability. Looking ahead, we anticipate that the competitive pricing environment and ongoing headwinds will persist throughout the remainder of the year, leaving little room for improvement in the near term. Our estimates are under review.
