By Bamidele Famoofo
WorldStage– Total Energies Nigeria Plc recorded a modest financial performance in Q1 2026, as gross earnings declined by 11.03 percent year-on-year to ₦197.18 billion from ₦222.00 billion in Q1 2025. The decline was largely driven by elevated operating costs and significant interest expenses, which offset gains in sales and placed pressure on overall performance despite topline resilience.
Despite the softer revenue outturn, gross profit increased by 9.97 percent to ₦26.95 billion from ₦24.51 billion. This was supported by improved margins, driven by
trading gains and relatively lower operating costs, even as cost of sales remained
pressured by elevated oil and LNG prices amid ongoing geopolitical tensions.
At the bottom line, profitability weakened, with earnings before tax declining by
11.11 percent to ₦6.19 billion. This was mainly due to a sharp drop in impairment write-backs on financial assets, which fell to ₦23.91 million. However, net income
surged significantly by 1,075.86.percent to ₦1.17 billion from ₦120.03 million in Q1
2025, reflecting improved earnings conversion despite weaker revenue growth.
Performance at the shareholder level was more positive, as earnings per share
rose to ₦3.45 from ₦0.35. Profitability ratios also improved, with Return on Equity increasing to 0.40 percent and Return on Assets rebounding to 0.33 percent from a negative 0.33 percent, indicating better efficiency in utilizing both equity and asset bases.
On the balance sheet, the company recorded a mixed performance. Total assets declined by 8.37 percent to ₦356.01 billion, while total liabilities reduced to ₦307.30 billion from ₦341.01 billion, reflecting some degree of deleveraging.
Meanwhile, shareholders’ equity strengthened by 2.46 percent to ₦48.71 billion from ₦47.54 billion, supported by retained earnings and an improved capital structure. This provides a buffer for the company to navigate near-term pressures while positioning for future growth.
