TotalEnergies Marketing Nigeria Plc recorded its first major financial setback in six years in 2025, posting a pre-tax loss of N12.5 billion for the year ended December 31. This marked a sharp reversal from the N42.26 billion pre-tax profit achieved in 2024 and underscores the mounting pressure on the company’s operations amid weakening revenue, rising costs, and higher finance expenses.
The company’s struggles were largely driven by a steep decline in revenue, which fell by 26 per cent to N767.63 billion from N1.04 trillion a year earlier. Lower sales volumes and tough market conditions left TotalEnergies grappling with high cost of sales of N685.56 billion, resulting in a gross profit of N82.07 billion—down 29 per cent year-on-year. Despite attempts to rein in spending, operating conditions worsened significantly.
Rising expenses further squeezed profitability, with administrative costs climbing by 41.9 per cent and selling expenses surging by 70.9 per cent. As a result, operating profit plunged by 85 per cent to N9.49 billion, highlighting the difficulty of sustaining margins in Nigeria’s challenging economic environment. Higher borrowing costs also weighed on results, as finance expenses increased by 12 per cent to N21.99 billion, deepening the company’s losses and weakening its balance sheet.
The financial strain has put TotalEnergies’ once-strong dividend track record under threat. Over the past five years, the company steadily increased dividends from N6 per share in 2020 to N40 per share in 2024, representing a compound annual growth rate of over 60 per cent. However, with losses now on the books and retained earnings down by 21 per cent, investors face the real possibility of dividend payments being reduced or suspended as management focuses on stabilisation.
On the market front, TotalEnergies’ shares have reflected growing investor caution. The stock fell 8.31 per cent in 2024 to close at N640 and has remained flat so far in 2026. Trading at around five times book value, the stock appears expensive relative to its current financial health, especially with negative earnings per share. Looking ahead, the company’s recovery will hinge on tighter cost control, improved revenue generation, and strategic adjustments, as shareholders brace for a period focused more on repair than growth.
source: nairametrics