TotalEnergies Marketing Nigeria Plc reported a significant contraction in revenue for the year ended 31 December 2025.
Revenue for the period declined to ₦767.63 billion, representing a 26.3 percent drop from ₦1.04 trillion recorded in 2024. The revenue decline translated directly into lower gross profit and weaker operating performance.
Gross Profit Falls as Cost Pressures Persist
Cost of sales remained elevated at ₦685.56 billion, compared with ₦926.15 billion in the prior year. As a result, gross profit fell to ₦82.07 billion, down from ₦115.75 billion in 2024.
The weaker gross margin highlights limited pricing flexibility and rising distribution and operating costs within the downstream petroleum sector.
Operating Profit Collapses
Operating profit declined sharply to ₦9.49 billion, compared with ₦61.87 billion in the prior year, driven by lower gross profit and sustained operating expenses.
Selling and distribution costs rose to ₦77.47 billion, from ₦64.71 billion, while administrative expenses remained elevated at ₦9.05 billion, further eroding operating margins.
Finance Costs Deepen Losses
Net finance costs increased to ₦21.99 billion, up from ₦19.61 billion in 2024, exerting additional pressure on earnings.
As a result, the company posted a loss before tax of ₦12.50 billion, compared with a profit before tax of ₦42.26 billion in the prior year.
Company Slides Into Net Loss
After accounting for income tax expenses of ₦4.68 billion, TotalEnergies Marketing Nigeria Plc recorded a net loss of ₦17.18 billion for FY 2025, reversing the ₦27.50 billion profit reported in 2024.
Total comprehensive loss for the year stood at ₦17.29 billion, compared with a comprehensive income of ₦27.49 billion in the prior year.
Earnings Per Share Turn Negative
Basic and diluted earnings per share declined sharply to a loss of 50.59 kobo, compared with earnings of 80.99 kobo recorded in 2024.
Investors King Takeaway
TotalEnergies Marketing Nigeria Plc delivered a weak FY 2025 performance, marked by sharp revenue contraction, margin compression, and a swing into net loss.
Rising selling and distribution costs and higher finance expenses outweighed the impact of lower cost of sales, leading to significant earnings pressure.
The results underscore the structural challenges facing Nigeria’s downstream petroleum sector, including pricing constraints, cost inflation, and financing pressures, which continue to weigh on profitability.
