FRI OCT 31 2025-theGBJournal| TotalEnergies Marketing Nigeria Plc (TOTAL) released its unaudited Q3-25 results Thursday, reporting a loss per share of N33.13 (vs. EPS of N20.19 in Q3-24), bringing the 9M-25 loss per share to N41.54 (9M-24: EPS of N80.77).
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: N2.82 billion).
For the 9M-25 period, net finance costs increased by 59.2% y/y to N17.57 billion.
Overall, the company recorded a loss before tax of N10.23 billion in Q3-25 (Q3-24: profit before tax of N11.28 billion) and a loss after tax of N11.25 billion (Q3-24: profit after tax of N6.85 billion), after accounting for a tax expense of N1.02 billion.
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