Rising Costs Slash TotalEnergies 2022 Profit Amidst 41% Revenue Growth
Rising operation costs of Total Energies Marketing Plc have eaten into the its bottomline for the full year ended December 31, 2022 despite impressive rise in its revenue in the year.
The 2022 financials of the company obtained by BUSINESS METRICS on Saturday indicated that while the energy company saw 41% increase in revenue in the year under review, this failed to reflect on the profit-after-tax (PAT) for the year which moderated by 4%.
Specifically, the company posted 41% increase in turnover from N341 Billion in 2021 to N482 billion in 2022.
However, due to rising costs, Profit after tax (PAT) decreased by 4% from N16.8 Billion to N16.1 Billion, due to multiple domestic and global macro-economic headwinds in the year.
This is as the pre-tax profit of the company also recorded marginal fall by 1% fromN24.836 billion in 2021 to N24.532 billion in 2022.
Amidst the lower annual return however, the company has decided to pay N8.49 billion at N25 per share as dividend for the year under review, which is higher than N7.537 billion representing N22.20 per share paid in 2021.
This include N7.13 billion dividend at N21 per share just proposed by the board of the company to be distributed as final dividend for the year 2022 subject to the deduction of appropriate withholding taxes at the time of payment.
According to the company, the money would be paid on June 3, 2023. Earlier, TotalEnergies had distributed the sum of N1.36 billion as interim dividends, representing N4.00 per share.
Looking ahead, Mr. Jean-Phillipe Torres appreciated, board chairman of TotalEnergies, the company will focus on building a robust portfolio of renewable energy assets by capitalizing on its presence in Nigeria.
According to him, this will enable the company “to develop and serve the market, supplying people with the energy they require while meeting the challenges of climate change, fostering sustainability, ensuring safety, and focusing on customer centricity.”
He anchored his growth projection for the company on forecast by International Monetary Fund (IMF) that the global economy is poised to slow in 2023 but eventually rebound.
“Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on economic activities.
“However, IMF has upgraded Nigeria’s economic growth projection to 3.2% in 2023 (0.2% higher than the 3.0% earlier projected in its October 2022 report) due to what it considers as measures put in place to address insecurity issues in the oil sector,” he said.