WED JAN 29 2025-theGBJournal| TotalEnergies Marketing Nigeria Plc (TOTAL) reported a forecast-beating 16.2% y/y (2024FY: +63.8% y/y) rise in revenue in Q4-24 on Wednesday, as Network (+16.2% y/y | 54.0% of revenue), General Trade (+16.2% y/y | 35.0% of revenue) and Aviation (+16.0% y/y | 11.0% of revenue) helped it raise its income outlook for the year.
The improved performance was driven by the higher fuel prices – PMS: +87.9% y/y; AGO: +43.4% y/y; and DPK: +54.8% y/y (as of October) – in the period.
While maintaining dominance, petroleum products (79.2% of revenue) sales grew tepidly by 7.4% y/y, while lubricants & others (20.8% of revenue) surged by 69.6% y/y. On a q/q basis, revenue declined by 6.0%.
Gross margin in the quarter declined by 315bps y/y to 8.9% due to the faster increase in the cost of sales (+20.4% y/y) in relation to revenue (+16.2% y/y).
Specifically, the growth in the cost of sales was primarily driven by the 23.3% y/y uptick in net changes in inventories, reflecting the impact of crude oil price volatility and currency depreciation on the ex-depot prices of refined petroleum products. For the full year, the gross margin declined by 180bps y/y to 11.1%.
EBITDA (+173bps y/y) and EBIT (+180bps y/y) margins expanded to 4.4% and 3.7%, respectively, largely due to the significant increase in other income (+11.6x y/y to N14.27 billion) following a N12.83 billion writeback on charges for no longer required technical services.
Further down, net finance cost surged by 185.4% y/y to N8.71 billion (Q4-23: N3.05 billion) due to a 117.7% y/y increase in finance cost.
The increased finance cost is attributed primarily to the higher interests on import loans (+513.9% y/y) and bank overdrafts (+255.2% y/y), reflecting the elevated interest environment. Meanwhile, finance income declined by 17.9% y/y.
Consequently, profit before tax declined by 56.7% y/y to N415.51 million in Q4-24 (2024FY: +139.2% y/y to N42.27 billion).
After accounting for a tax expense of N16.67 million, profit after tax declined by 80.9% y/y to N398.84 million in Q4-24 (2024FY: +114.2% y/y to N27.82 billion).
Meanwhile Total reported an 81.0% y/y decline in standalone EPS to N1.77 in Q4-24 (Q4-23: N6.16) undermined by an uptick in net finance cost (+185.4% y/y).
However, 2024FY EPS increased by 115.5% y/y to N81.94 (2023FY: N38.03), supported by the record revenue print (N1.04 trillion; +63.8% y/y) particularly in H1-24.
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