TotalEnergies Marketing Nigeria returned to profitability in the first nine months of 2026
TotalEnergies Marketing Nigeria Plc returned to profitability in the nine months ended September 30, 2026, recording ₦8.02 billion in profit before tax against a loss of ₦11.92 billion in the corresponding period of 2025.
The oil and gas marketing company’s unaudited financial results showed revenue rising by 12.65% to ₦661.92 billion from ₦587.59 billion a year earlier. Profit after tax also recovered to ₦5.84 billion, reversing a loss of ₦14.10 billion recorded in the same period last year.
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However, the recovery remained uneven. TotalEnergies reported third-quarter profit before tax of ₦1.31 billion, approximately half its forecast of ₦2.62 billion, despite generating higher revenue than projected.
The results reflect stronger petroleum product sales, improved operating earnings and lower financing costs, although the company continues to face pressure from its financing obligations and working-capital requirements.
Fuel Sales Drive Revenue Growth
TotalEnergies recorded gross profit of ₦78.52 billion during the nine-month period, up 19.42% from ₦65.76 billion a year earlier. Operating profit rose sharply by 238.89% to ₦19.16 billion from ₦5.65 billion.
White petroleum products accounted for most of the revenue increase. Sales from the segment grew by 17.74% to ₦472.66 billion, contributing approximately 96% of the ₦74.33 billion increase in total revenue.
Revenue from lubricants and other products rose more modestly by 1.68% to ₦189.26 billion. Meanwhile, network revenue increased by 16.82% to ₦370.67 billion, while general trade revenue grew by 19.09% to ₦244.91 billion.
Cost of sales rose by 11.80% to ₦583.39 billion, slower than revenue growth. This helped improve the gross profit margin to 11.86% from 11.19% in the corresponding period of 2025.
Despite the stronger operating performance, the company’s net profit margin remained below 1%, showing how operating expenses and financing costs continued to absorb much of its earnings.
Lower Finance Costs Support Recovery
Finance costs declined by 40.13% to ₦12.30 billion from ₦20.55 billion in the corresponding period of 2025. Interest on bank overdrafts fell by 43.26% to ₦11.58 billion, accounting for most of the company’s finance costs.
The reduction helped strengthen the company’s bottom line after it recorded a full-year after-tax loss of approximately ₦17.18 billion in 2025.
For the third quarter alone, revenue rose by 33.13% to ₦217.92 billion. Operating profit reached ₦4.64 billion, compared with an operating loss of ₦4.66 billion a year earlier. Profit after tax stood at ₦894.19 million, reversing a loss of ₦11.25 billion in the third quarter of 2025.
Nevertheless, finance costs for the nine-month period remained substantial relative to operating profit. The company’s ₦12.30 billion finance bill exceeded its ₦8.02 billion profit before tax, highlighting the continued effect of financing expenses on its earnings.
Working-Capital Position Improves but Remains Under Pressure
TotalEnergies narrowed its negative net working-capital position to ₦11.06 billion at September 30, 2026, from a deficit of ₦20.15 billion at the end of December 2025. However, current liabilities still exceeded current assets.
Current assets increased by 12.36% to ₦349.04 billion, while current liabilities rose by 8.86% to ₦360.10 billion. Total loans and borrowings declined by 3.44% to ₦81.76 billion, while bank overdrafts fell by 30.02% to ₦59.26 billion.
The company also reported a new ₦22.50 billion short-term intercompany loan denominated in dollars and carrying a variable interest rate. This creates an additional financing exposure that investors will need to monitor alongside changes in exchange rates and borrowing costs.
Trade and other receivables increased by 27.52% to ₦165.23 billion, while trade and other payables rose by 14.32% to ₦270.40 billion. Operating cash flow improved by 66.72% to ₦38.27 billion, although the increase was partly supported by higher payables and lower tax payments.
These figures suggest that the recovery is not solely a question of generating more sales. The company's ability to collect receivables, manage supplier obligations and control short-term borrowing will also affect the quality and sustainability of its earnings.
What the Results Mean for Investors
TotalEnergies' return to profitability marks a significant improvement on its performance in 2025. Stronger sales, improved operating margins and lower finance costs have helped restore positive earnings.
However, missing the third-quarter profit forecast shows that stronger revenue does not automatically translate into earnings at the expected level. Investors will need to assess whether the company can maintain its margins, reduce financing expenses further and strengthen cash generation in the final quarter of 2026.
The company's working-capital deficit has narrowed, but rising receivables and payables remain important considerations. The performance of its petroleum products business, alongside its ability to manage financing and cash flow, will shape the durability of the recovery.
For now, the results point to a return to profitability, but not yet a complete resolution of the financial pressures that weighed on the business last year.
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