WorldStage Newsonline– TotalEnergies Marketing Nigeria Plc has released its second quarter 2024 (Q2-24) unaudited results with profit before tax increasing by 94.7% y/y to N13.73 billion from N7.05 billion in Q2-23 while profit after tax surged by 96.1% y/y to N9.07 billion from N4.62 billion in Q2-23.
The oil marketer’s revenue grew by 86.7% y/y driven by substantial growth across all business segments: Network (+71.3% y/y | 54.0% of revenue), General Trade (+110.0% y/y | 35.0% of revenue) and Aviation (+104.8% y/y | 11.0% of revenue).
An increase in product prices underpinned the strong performance; we note that higher PMS (+114.0% y/y), diesel (+71.1% y/y) and kerosene (+20.5% y/y) prices supported the outturn. On a q/q basis, revenue declined by 3.6%.
Gross margin declined by 311bps y/y to 11.3% in Q2-24 (H1-24: -60bps y/y to 12.2%), reflecting increased cost pressures.
Precisely, the cost of sales grew by 93.5% y/y, with cost to sales ratio rising to 88.7% (Q1-24: 87.0% | Q2-23: 85.6%), reflecting the impact of FX devaluation and the highly inflationary environment.
Specifically, the numbers show increases in net changes in inventory of lubes, greases and refined products (+89.2% y/y), customs duties (+404.8% y/y) and transportation costs (+225.4% y/y).
Consequently, EBITDA (-73bps y/y) margin contracted to 6.5%, compounded by the 60.7% y/y expansion in operating expenses.
Net finance costs increased by 128.8% y/y to NGN2.59 billion in Q2-24 (H2-24: +122.9% y/y to N1.99 billion, attributable to a 164.2% y/y surge in finance cost.
Interest on other loans increased by 54.9% y/y to NGN2.22 billion, interest on lease liability increased by 93.0% to NGN90.97 million and interest on bank overdraft settled at N5.07 billion in H1-24. As of H1-24, TotalEnergies’ total debt stood at N82.73 billion (2023FY: N 84.54 billion).
Meanwhile, the company reported a 96.1% y/y growth in earning per share (EPS) at N26.71 from N13.62 in Q2-23.
Thus, H1-24 EPS stood at N60.58 (H1-23: NGN25.88). The EPS growth was driven mainly by substantial revenue growth (+86.7% y/y) during the period, supported mainly by higher product pricing.
