TotalEnergies sees 140% surge in FY 2024 pre-tax profit as revenue hits N1 trillion

TotalEnergies sees 140% surge in FY 2024 pre-tax profit as revenue hits N1 trillion

TotalEnergies Marketing Nigeria Plc announced a pre-tax profit of N415.5 million for the fourth quarter of 2024, as detailed in its latest financial report released on the Nigerian Exchange (NGX) on January 29, 2025.

This figure reflects a 56.71% decline from the N959.8 million reported in the same quarter the previous year.

However, full-year pre-tax profits increased significantly to N42.2 billion, marking a 140.41% rise from N17.5 billion in FY 2023.

In terms of revenue, the fourth quarter witnessed a 16.23% year-over-year rise, totaling N247.9 billion compared to N213.3 billion in the corresponding quarter of the previous year.

Consequently, the total revenue for FY 2024 reached N1 trillion, reflecting a significant year-over-year increase of 63.83% from the N635.9 billion reported in FY 2023, with a substantial portion of this revenue derived from petroleum product sales.

Key Highlights (2024 vs 2023 FY) 

• Revenue: N1.04 trillion, +63.83% YoY
• Cost of Sales: N926.1 billion, +67.14% YoY
• Gross profit: N115.7 billion, +41.47% YoY
• Other income: N30.8 billion, +610.87% YoY
• Selling and distribution expenses: N14.6 billion, 120.03% YoY
• Administrative expenses: N64.5 billion, +45.50% YoY
• Operating profit: N62 billion, +158.69% YoY
• Finance costs: N26 billion, +155.06% YoY
• Pre-tax profit: N42.2 billion, +140.41% YoY
• Total Assets: N536.7 billion, +43.10% YoY

Commentary 

A cursory view of TotalEnergies’ earnings report reveals that rising sales costs and expenses are eroding the benefits of revenue on pre-tax profit.

For the full-year 2024, total revenue reached N1 trillion, reflecting a significant year-over-year increase of 63.83% from the N635.9 billion reported in FY 2023.

• Sales of petroleum products constituted 79.7% of total revenue at N830.4 billion.
• The ‘Lubricants and others’ segment accounted for 20.3% of revenue, totaling N211.4 billion.

However, the cost of sales climbed by 67.14% year-over-year, reaching N926.1 billion, up from N554.1 billion in FY 2023.

• A substantial 96.8% of sales costs came from net changes in inventory of lubricants, greases, and refined products, amounting to N896.8 billion.
• Transportation costs contributed 1.87% at N17.3 billion, while customs duties made up 1.29% at N11.9 billion.

Despite the increase in costs, the company reported a gross profit of N115.7 billion, which is a 41.47% rise from N81.8 billion in FY 2023.

Additionally, ‘other income’ increased significantly, by 610.87% year-over-year to N30.8 billion, largely driven by write-backs of provisions, which comprised 81.2% of this figure.

• Selling and distribution expenses also rose sharply by 120.03% to N14.6 billion, entirely due to transportation costs.
• Administrative expenses increased by 45.50%, rising to N64.5 billion from N44.3 billion in FY 2023.

In terms of operating profit, the company recorded N62 billion, up 158.69% year-over-year from N23.9 billion in FY 2023.

• Finance costs spiked by 155.06% to N26 billion, with interest on bank overdrafts making up 68.4% of total finance costs, and 22.4% due to interest on import loans.

Ultimately, TotalEnergies’ pre-tax profit for FY 2024 soared by 140.41% to N42.2 billion compared to N17.5 billion in FY 2023.

Asset position 

Total assets reached N536.7 billion for FY 2024, reflecting a substantial increase from N375.1 billion in the previous fiscal year.

• Non-current assets contributed N80 billion to this growth, with property, plant, and equipment accounting for N61.7 billion.
• Current assets surged to N456.7 billion, largely fueled by a remarkable increase in Trade and other receivables, totaling N210.4 billion, alongside inventories that climbed to N152 billion.