…Revenue fell by 22.2% y/y (H1-25: -20.0% y/y)
…EBITDA margin contracted by 343bps y/y to 2.8%
WED JULY 30 2025-theGBJournal| TotalEnergies Marketing Nigeria Plc (TOTAL) reported 22.2% y/y slide in Revenue in Q2-25 on Tuesday, missing analysts estimates, as increased competition from Dangote refinery and its partners continued to impact their market share.
The marketing and services subsidiary of TotalEnergies posted a loss before tax of N2.81 billion in Q2-25 (vs profit before tax of N13.73 billion in Q2-24). Loss after tax settled at N2.74 billion after accounting for tax credit of N75.09 million.
TOTAL also reported a loss per share of N8.06 (vs EPS of N26.71 in Q2-24). Thus, H1-25 loss per share printed N8.41 (vs EPS of N60.58 in H1-24).
The decline in earnings stemmed from a 22.2% y/y drop in revenue and higher net finance cost (+138.2% y/y) during the period.
Revenue fell by 22.2% y/y (H1-25: -20.0% y/y), driven by a broad-based decline across business segments – Network (-22.2% y/y | 54.0% of revenue), General Trade (-22.2% y/y | 35.0% of revenue) and Aviation (-22.2% y/y | 11.0% of revenue).
Analysts at Cordros Research attribute the performance to the lower volumes in the period, despite product prices being higher compared to the prior period – PMS: +53.1% y/y, AGO: +21.9% y/y, and DPK: +48.3% y/y.
”We believe that the influx of relatively cheaper products from the Dangote Refinery through its trading partners limited the product offtake from TOTAL’s retail outlets and B2B channels,” Cordros said in a note seen by theG&BJournal,
On a q/q basis, revenue fell by 8.7%.
Gross margin expanded by 58bps y/y to 11.8% in Q2-25 (H1-25: -72bps y/y to 11.4%), reflecting the faster pace of decline in cost of sales (-22.7% y/y) compared to revenue.
Specifically, the numbers show declines in net changes in inventory of lubes, greases and refined products (-21.4% y/y), customs duties (-11.4% y/y) and transportation costs (-72.0% y/y).
Consequently, EBITDA margin contracted by 343bps y/y to 2.8%, compounded by the 29.3% y/y increase in operating expenses.
Net finance costs increased by 138.2% y/y to N6.16 billion in Q2-25 (H1-25: +170.7% y/y to N12.01 billion), reflecting the 65.5% y/y increase in finance cost amid a 42.9% y/y decline in finance income.
The higher finance cost was due to a 199.5% y/y increase in interest on bank overdrafts and a 19.6% y/y increase in interest on lease liability.
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