TotalEnergies Plc reports N42.2bn 2024 pre-tax profit

TotalEnergies Marketing Nigeria Plc has announced a pre-tax profit of N415.5 million for the fourth quarter of 2024, marking a 56.71 per cent decline compared to the N959.8 million recorded in the same period of the previous year.

The company’s financial report, released on the Nigerian Exchange (NGX) on January 29, 2025, also revealed significant growth in full-year earnings, despite cost pressures affecting quarterly performance.

For the full year 2024, TotalEnergies reported a 140.41 per cent increase in pre-tax profit, reaching N42.2 billion, up from N17.5 billion in full year 2023.

The company’s total revenue also saw a substantial jump, climbing 63.83 per cent year-over-year to hit the N1 trillion milestone, compared to N635.9 billion in full year 2023.

A detailed analysis of the company’s earnings shows that the majority of its revenue came from petroleum product sales, which accounted for 79.7 per cent of the total, amounting to N830.4 billion.

The ‘Lubricants and others’ segment contributed N211.4 billion, representing 20.3 per cent of overall revenue.

Quarterly revenue increased 16.23 per cent year-over-year, totaling N247.9 billion, up from N213.3 billion in the fourth quarter of 2023.

However, analysts note that the substantial rise in costs continues to exert downward pressure on profitability.

Despite the surge in revenue, the company faced a 67.14 per cent increase in cost of sales, which rose to N926.1 billion from N554.1 billion in Full Year 2023.

Speaking on the company’s performance, financial analyst Tunde Adesina remarked: “TotalEnergies has achieved remarkable revenue growth, surpassing the N1 trillion mark, but the steep rise in operational costs remains a concern.

“The company’s ability to sustain profitability will depend on how effectively it manages these cost pressures while maintaining revenue growth.”

Similarly, energy sector expert Dr. Chika Okafor noted: “The Nigerian downstream oil and gas sector continues to face supply chain disruptions and currency volatility. Companies like TotalEnergies are navigating these challenges by optimizing product pricing and expanding lubricant sales, but higher financing costs could weigh on future margins.”