 of ₦2.4 billion for the first quarter of 2025, a significant decline from the ₦11.5 billion it recorded in the same period of 2024.){kind=link}
TotalEnergies Nigeria Plc has projected a profit after tax (PAT) of ₦2.4 billion for the first quarter of 2025, a significant decline from the ₦11.5 billion it recorded in the same period of 2024.
The company also forecasts revenue of ₦213.9 billion, with cost of sales pegged at ₦178.4 billion.
The principal activity of the company is the blending of lubricants, sales and marketing of refined petroleum products and solar products.
Its outlook follows a strong performance in the first quarter of 2024, when the company exceeded its initial PAT forecast of ₦2.96 billion by delivering ₦11.5 billion in profits.
TotalEnergies’ Q1 2024 revenue reached ₦269.8 billion, far surpassing its projected ₦190.9 billion, while cost of sales climbed to ₦234.7 billion, compared to the ₦164.5 billion originally anticipated.
Analysts note that the sharp variance between forecast and actual performance last year raises questions about the company’s forecasting model and market volatility.
The 2025 forecast suggests a narrowing profit margin, with PAT representing just 1.1% of projected revenue, compared to 4.3% in Q1 2024. This may point to expected cost pressures or weaker market conditions in the coming year.
Cost Management and Market Conditions
The substantial rise in cost of sales, from a forecasted ₦164.5 billion to an actual ₦234.7 billion in Q1 2024, highlights the challenges TotalEnergies faced in managing operating expenses despite robust revenue growth.
Industry watchers will be keen to see whether the company’s 2025 estimates reflect a more accurate assessment of future market conditions or another conservative outlook subject to significant revision.
Nigeria’s energy sector remains sensitive to shifting global oil prices, domestic inflationary pressures, and currency fluctuations.
TotalEnergies’ performance in 2025 will be closely monitored as a bellwether for broader market trends and the company’s ability to maintain profitability amid evolving economic conditions.
Investors are likely to remain cautious, balancing optimism from past earnings surprises with concerns about cost control and forecasting accuracy. TotalEnergies is scheduled to release its first-quarter results in April 2025.
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