TotalEnergies Marketing Nigeria Plc has projected a modest profit for the first quarter of 2026, reflecting persistent cost pressures and heavy financing outflows, even as the company expects strong cash generation from its core operations, news.ng reports.
According to the company’s forecast statement of profit or loss for the quarter ending March 2026 made available on the Nigerian Exchange Limited (NGX) website on Wednesday, TotalEnergies anticipates revenue of ₦277.85 billion, driven by sustained demand across its petroleum products portfolio.
However, this topline strength is expected to be significantly eroded by a high cost of sales estimated at ₦250.48 billion, leaving a gross profit of ₦27.37 billion.
Additional income of ₦1.89 billion is projected to provide some relief, but selling and distribution costs of ₦4.12 billion and administrative expenses of ₦18.45 billion are expected to weigh heavily on earnings. As a result, operating profit is forecast at ₦6.69 billion, underscoring the thin margins typical of the downstream oil and gas sector.
Finance costs are set to further squeeze profitability. While finance income is estimated at ₦403.68 million, finance costs are projected at a much higher ₦5.45 billion, resulting in a net finance cost of ₦5.05 billion. After accounting for these charges, profit before tax is expected to stand at ₦1.64 billion.
Following an estimated income tax expense of ₦1.39 billion, TotalEnergies Marketing Nigeria is forecasting a profit after tax of just ₦251.97 million for the three months.
Despite the slim bottom line, the company’s cash flow forecast paints a more resilient picture of its operational strength. Cash receipts from customers are projected at ₦263.96 billion, while cash payments to suppliers and employees are estimated at ₦200.38 billion. This is expected to translate into cash generated from operations of ₦63.58 billion, with no income taxes projected to be paid during the quarter, leaving net cash provided by operating activities at the same level.
On the investing side, the company plans to spend ₦821.26 million on the purchase of fixed assets, partially offset by ₦403.68 million in interest income and ₦25 million from the sale of property, plant and equipment. Overall, investing activities are expected to result in a net cash outflow of ₦392.58 million.
Financing activities are forecast to exert the heaviest drag on cash. Interest paid on overdrafts is projected at ₦5.45 billion, while loan repayments are expected to amount to ₦60 billion. With no dividends projected for the quarter, net cash used in financing activities is estimated at ₦65.45 billion.
As a result of these movements, TotalEnergies Marketing Nigeria expects a net decrease in cash and cash equivalents of ₦2.27 billion during the quarter. Cash and cash equivalents are projected to decline from ₦89.45 billion as at 31 December to a negative position of ₦91.72 billion by 31 March 2026.
The forecast highlights the company’s ability to generate strong operating cash flows in a challenging environment, while also underscoring the impact of financing obligations and cost pressures on profitability.
The figures reflect broader realities in Nigeria’s downstream oil and gas sector, where high operating costs, financing expenses, and thin margins continue to shape earnings outcomes.
