TotalEnergies Marketing Nigeria Plc is forecasting a net earnings figure of N543 million for the third quarter concluding on September 30, 2025, even as elevated borrowing expenses continue to limit its overall profitability.
The energy company anticipates a turnover of N177.1 billion within the timeframe. From this, the direct cost linked to product sales is projected at N150.6 billion, which would leave a gross margin of approximately N26.5 billion.
After factoring in operational outlays, the firm expects an operating income of N7.7 billion. This figure reflects deductions from selling and distribution charges totalling N3.6 billion, and general administrative expenditures amounting to N17.1 billion.
However, the burden of debt servicing is projected to impact profits substantially. The organization has estimated that interest liabilities will hit N7.2 billion, while expected finance gains stand at only N933 million. This results in a net finance loss of N6.3 billion.
With these figures, the company anticipates a pre-tax income of N1.4 billion. After applying an income tax charge of N886 million, the bottom-line figure aligns with its profit-after-tax projection.
On the liquidity side, TotalEnergies expects to generate N19.1 billion in positive cash flow from its core operations. This estimate includes expected customer payments of N159.4 billion and planned disbursements to suppliers and staff worth N135.5 billion.
Investment-wise, a net outflow of N1.6 billion is anticipated, primarily linked to expenditures on capital assets, offset slightly by proceeds from the sale of some property, plant, and equipment.
Cash movements from financing activities are projected to result in a negative flow of N27.1 billion. This is attributed to interest disbursements on overdrafts of N7.2 billion, debt repayments of N17.3 billion, and dividend payouts summing up to N2.6 billion.
Consequently, the company is preparing for a N9.7 billion reduction in its cash reserves over the quarter. This will bring its estimated cash and cash equivalents balance to a negative N155.5 billion by the close of September 2025.
