FRI JULY 31 2026-theGBJournal| TotalEnergies Marketing Nigeria Plc returned to profitability in the first half of 2026, as higher domestic fuel prices, stronger margins and lower financing costs offset weakness in its aviation fuels business, bolstering earnings for shareholders.
The fuel marketer reported earnings per share of ₦11.13 for the second quarter, compared with a loss per share of ₦8.06 a year earlier, taking first-half EPS to ₦14.58 versus a loss per share of ₦8.41 in the corresponding period of 2025.
The turnaround was underpinned by a 22.0% year-on-year increase in second-quarter revenue, reflecting higher prices for premium motor spirit (PMS), automotive gas oil (AGO) and dual-purpose kerosene (DPK), alongside stronger sales through its Network and General Trade channels.
First-half revenue rose 4.7% from a year earlier.
Network sales, which accounted for nearly 60% of revenue, climbed 34.2%, while General Trade revenue advanced 34.6%, more than offsetting a 77.8% decline in aviation fuel sales.
Gross margin edged up 13 basis points to 12.0% in the second quarter as revenue growth outpaced the rise in cost of sales, despite higher inventory and transportation expenses.
Lower customs duties also supported profitability.
Operating leverage improved further, with the EBITDA margin expanding 389 basis points to 4.7%, helped by a 0.5% decline in operating expenses as administrative costs fell 2.4%.
Finance costs also eased, providing an additional boost to the bottom line.
Net finance costs fell 42.6% year-on-year to ₦3.54 billion in the second quarter, largely due to a sharp reduction in interest expenses on bank overdrafts.
The improved operating performance lifted profit before tax to ₦4.79 billion in the second quarter from a ₦2.81 billion loss a year earlier.
After a ₦1.02 billion tax charge, the company posted profit after tax of ₦3.78 billion.
For the first six months of 2026, profit before tax reached ₦6.71 billion, reversing a ₦1.69 billion loss recorded a year earlier, while net profit stood at ₦4.95 billion, marking a return to profitability after the prior-year loss.
The results reinforce the earnings recovery in Nigeria’s downstream petroleum sector, with improved pricing conditions and lower borrowing costs supporting cash generation and strengthening the company’s outlook for shareholders.
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