July 31, 2026/Cordros Report
TotalEnergies Marketing Nigeria Plc (TOTAL) published its Q2-26 unaudited results after the close of business yesterday (30 July), reporting an EPS of NGN11.13 (vs loss per share of NGN8.06 in Q2-25). Thus, H1-25 EPS printed NGN14.58 (vs loss per share of NGN8.41 in H1-25). The performance was driven by revenue growth (+22.0% y/y), EBITDA margin expansion (+389bps to 4.7%) and a 42.6% y/y decline in net finance cost during the period.
Revenue grew by 22.0% y/y (H1-26: +4.7% y/y), driven by strong growth in the Network (+34.2% y/y | 59.4% of revenue) and General Trade (+34.6% y/y | 38.6% of revenue) segments, which more than offset the decline in Aviation (-77.8% y/y | 2.0% of revenue). We attribute the performance to the impact of higher product prices — PMS: +38.0% y/y, AGO: +65.3% y/y, and DPK: +35.4% y/y. On a quarter-on-quarter basis, revenue increased by 25.2%, reflecting the higher product pricing.
Gross margin expanded marginally by 13bps y/y to 12.0% in Q2-26 (H1-26: +129bps y/y to 12.7%), reflecting the slower pace of cost of sales growth (+21.8% y/y) compared to revenue. Specifically, the results show increases in net changes in inventory of lubes, greases and refined products (+23.4% y/y) and transportation costs (+15.7% y/y) amid a decline in customs duties (-47.2% y/y).
Consequently, EBITDA margin expanded by 389bps y/y to 4.7% (H1-26: +126bps y/y to 4.7%), further supported by the 0.5% y/y decline in operating expenses. The decline in OPEX was mainly driven by a 2.4% decline in administrative expenses.
Further down, net finance costs declined by 42.6% y/y to NGN3.54 billion in Q2-26 (H1-26: -34.9% y/y to NGN7.81 billion), reflecting the 44.6% y/y decline in finance cost as well as a 56.8% y/y decline in finance income. The lower finance cost was due to a 46.9% y/y decrease in interest on bank overdrafts. For H1-26, the decline in net finance cost was driven primarily by the 37.5% y/y decline in finance cost and 53.5% y/y decline in finance income.
Overall, the company recorded a profit before tax of NGN4.79 billion in Q2-26 (vs loss before tax of NGN2.81 billion in Q2-25). Meanwhile, profit after tax settled at NGN3.78 billion after accounting for tax expense of NGN1.02 billion. For H1-26, PBT settled at NGN6.71 billion (vs loss before tax of NGN1.69 billion in H1-25), while PAT printed NGN4.95 billion (vs loss before tax of NGN2.86 billion in H1-25).
Comment: TOTAL’s Q2-26 performance is its best quarterly showing since Q4-24, driven mainly by the stronger pricing environment amid still-elevated crude prices. The decline in net finance cost also provided additional support to profitability. Looking ahead, we expect the current tailwinds, particularly higher product pricing, to persist, keeping TOTAL’s performance strong through the remainder of the year. Our estimates are under review.
