TotalEnergies Marketing Nigeria Plc has projected a profit after tax of N543m for the third quarter ending September 30, 2025, despite significant finance costs impacting overall profitability.
The company expects revenue of N177.1 billion for the period, with a cost of sales estimated at N150.6 billion, resulting in a gross profit of N26.5 billion.
Operating profit is forecast at N7.7bn after accounting for selling and distribution costs of N3.6bn and administrative expenses of N17.1bn.
However, finance costs are expected to weigh heavily on the bottom line, with interest expenses forecast at N7.2bn, which surpasses the projected finance income of N933m. This results in a net finance cost of N6.3bn.
Before-tax, TotalEnergies anticipates a profit of N1.4bn, with an income tax expense of N886m.
On the cash flow front, the company projects net cash generated from operating activities of N19.1bn, supported by cash receipts from customers totalling N159.4bn and cash payments to suppliers and employees of N135.5bn.
Investing activities are expected to result in a net cash outflow of N1.6bn, primarily due to the purchase of fixed assets and proceeds from the sale of property, plant, and equipment.
Financing activities forecast a net cash outflow of N27.1bn, largely driven by interest paid on overdrafts amounting to N7.2bn, repayment of borrowings totalling N17.3bn, and dividend payments of N2.6bn.
As a result, TotalEnergies expects a net decrease in cash and cash equivalents of N9.7bn during the quarter, bringing the projected cash and cash equivalents balance to a negative N155.5bn by the end of September 2025.