TotalEnergies Marketing Nigeria Plc has forecast a profit after tax of ₦543 million for the third quarter ending September 30, 2025, even as rising finance costs continue to strain its bottom line.
The company anticipates generating ₦177.1 billion in revenue for the period, with an estimated cost of sales of ₦150.6 billion. This would result in a gross profit of ₦26.5 billion.
Operating profit is projected at ₦7.7 billion after accounting for ₦3.6 billion in selling and distribution expenses and ₦17.1 billion in administrative costs.
However, finance costs are expected to significantly erode earnings. Interest expenses are forecast at ₦7.2 billion, far exceeding the expected finance income of ₦933 million, leading to a net finance cost of ₦6.3 billion.
TotalEnergies projects a pre-tax profit of ₦1.4 billion, with an income tax expense of ₦886 million, resulting in an after-tax profit forecast of ₦543 million.
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Cash Flow Outlook
On the cash flow front, the company expects to generate ₦19.1 billion in net cash from operating activities. This projection is based on anticipated customer receipts of ₦159.4 billion and payments to suppliers and employees totalling ₦135.5 billion.
Investment activities are expected to lead to a net cash outflow of ₦1.6 billion, largely from the acquisition of fixed assets and proceeds from asset sales.
Meanwhile, financing activities are projected to result in a net cash outflow of ₦27.1 billion. This includes ₦7.2 billion in interest payments on overdrafts, ₦17.3 billion in loan repayments, and ₦2.6 billion in dividend payments.
Overall, the company anticipates a net decrease in cash and cash equivalents of ₦9.7 billion, leaving its closing cash position at a negative ₦155.5 billion by the end of Q3 2025.
The financial forecast was signed by Seye Samba, Executive Director of TotalEnergies Marketing Nigeria Plc.
