Total Energies Plc, a downstream firm, has demonstrated a robust dividend payout trend since 2006, with a consistent increase in the past seventeen years. This payout trend is a testament to the company’s improved earnings and robust cash flow generation.
Key Points:
- Dividend Growth and Payouts:
- Total Energies’ dividend payments have shown significant growth, reaching N7.13 billion in the first nine months of 2023, up from N1.36 billion in the same period of 2022.
- Shareholders’ Fund and Capital:
- The shareholders’ fund saw a 12 percent increase, rising to N53.98 billion in the nine months of 2023 compared to N48.04 billion in the same period of 2022. The share capital stood at 169.76 million year on year.
- Revenue Surge:
- The company experienced a robust revenue growth of 25 percent, reaching N422.58 billion in the first nine months of 2023, up from N337.19 billion in the similar period of 2022.
- Cost of Sales and Expenses:
- The cost of sales increased to N366.46 billion in 9M’2023 from N292.53 billion in the same period of 2022. Administrative expenses surged to N29.16 billion in 9M’2023 from N23.71 billion in the same period of 2022.
- Profit After Tax:
- Despite revenue growth, profit after tax slightly declined to N10.82 billion in 9M’2023 from N12.51 billion in the same period of 2022.
- Cash Flow and Equivalents:
- Net cash used in operating activities increased to N68.66 billion from a negative cash flow of N44.11 billion year on year. Cash and cash equivalents dipped to N61.36 billion in 9M’2023 from N98.48 billion in the same period of 2022.
Conclusion:
Total Energies’ robust financial performance, marked by substantial dividend payouts and strong revenue growth, showcases the company’s resilience and ability to generate positive shareholder value. The increase in shareholders’ fund and capital further bolsters the company’s financial stability. However, slight dips in profit after tax and cash and cash equivalents indicate areas for potential strategic focus. Overall, Total Energies continues to demonstrate its position as a key player in the downstream sector.
