TotalEnergies Projects N1.3bn Profit for Q2 as Operating Costs Decline
TotalEnergies Marketing Nigeria Plc has projected a return to profitability in the second quarter of 2026, forecasting a post-tax profit of about N1.3 billion as the company anticipates lower operating and finance costs to support its earnings recovery.
According to the company’s financial forecast submitted to the Nigerian Exchange, the oil marketing firm expects revenue of about N169.9 billion for the quarter ending June 2026. Although this figure is slightly below the N202.2 billion recorded in the same period of 2025, the company anticipates stronger profitability due to improved cost management and reduced expenses across key operational lines.
The forecast indicates that cost of sales is projected at approximately N145.5 billion, which would result in a gross profit of about N24.3 billion, marginally higher than the N23.9 billion reported in the corresponding quarter of 2025. This improvement in gross profit is expected to occur despite lower revenue, reflecting the company’s efforts to streamline operations and improve efficiency.
Operating performance is also expected to strengthen significantly. Administrative expenses are projected to decline to N16.6 billion, down from N21.3 billion recorded a year earlier, while operating profit is forecast to climb to N6.35 billion, representing a substantial increase compared with N3.35 billion in the second quarter of 2025. The reduction in overhead costs is a key factor driving the anticipated improvement in profitability.
Another major contributor to the improved outlook is a decline in finance costs. Interest expenses—largely associated with bank overdrafts—are expected to fall to N4.7 billion, compared with N7.1 billion recorded in the same quarter of the previous year. The reduction in financing costs is expected to ease pressure on the company’s bottom line and enhance net earnings.
If the projections are realized, the company would report a profit after tax of roughly N1.3 billion, a significant turnaround from the N2.7 billion loss posted in the second quarter of 2025. The forecast also represents a strong improvement compared to the company’s estimated N251.9 million profit projection for the first quarter of 2026, suggesting a gradual recovery trajectory for the energy marketer.
The expected rebound follows a challenging financial year for the company. In 2025, TotalEnergies Marketing Nigeria Plc reported a post-tax loss of about N17.18 billion, marking its first loss in six years. The decline in performance was driven by weaker revenues and rising operating and finance costs, which significantly eroded profitability during the period.
Despite the recent financial setbacks, the company’s shares have maintained a relatively stable long-term trend on the Nigerian Exchange. Market analysts note that improved earnings performance in 2026 could strengthen investor confidence and potentially drive renewed momentum in the company’s stock, especially if the projected cost reductions and operational efficiencies are sustained in subsequent quarters.
The outlook underscores the company’s focus on cost discipline and financial restructuring as it navigates a challenging operating environment within Nigeria’s downstream oil and gas sector, where fluctuating fuel demand, financing costs, and macroeconomic pressures continue to shape corporate performance.
Read Also: TotalEnergies records first loss in six years as dividend outlook weakens
Comments