TotalEnergies Marketing Nigeria Plc has forecast a N1.20 billion profit after tax for the three months ending December 2026, according to the company’s latest financial forecast filed with the Nigerian Exchange Limited.
The oil and gas marketing company expects revenue of N196.73 billion during the October-to-December period, with profit before tax projected at N1.88 billion.
The forecast comes as the company works to consolidate its return to profitability following a difficult 2025 financial year.
For the quarter, TotalEnergies expects cost of sales to stand at N171.71 billion, leaving gross profit of N25.01 billion. Other income is projected at N1.50 billion.
However, selling and distribution costs are expected to reach N4.31 billion, while administrative expenses are projected at N16.57 billion.
These expenses are expected to leave the company with an operating profit of N5.62 billion.
Finance Costs Remain A Major Drag
Despite the projected operating profit, finance costs are expected to significantly reduce TotalEnergies Nigeria’s earnings in the final quarter.
The company forecast finance income of N326.36 million against finance costs of N4.07 billion, resulting in a net finance cost of N3.74 billion.
Consequently, profit before tax is projected at N1.88 billion, while income tax expense is expected to amount to N677.07 million.
This would leave profit after tax at N1.20 billion for the quarter.
The figures show that while the company’s core operations are expected to remain profitable, financing costs continue to absorb a sizeable portion of its operating earnings.
From 2025 Loss To Projected Profit
TotalEnergies Marketing Nigeria had faced pressure from weaker revenue and elevated costs, resulting in a loss after tax for the year.
The company’s return to profitability in 2026 has therefore become an important shift in its earnings trajectory.
The December forecast suggests management expects the improvement to continue into the final quarter, although the projected profit remains relatively modest compared with the company’s revenue.
The company is also projecting strong cash generation from its operations during the quarter.
TotalEnergies expects to receive N186.89 billion from customers while payments to suppliers and employees are projected at N116.77 billion.
This would generate N70.12 billion in cash from operations.
After payment of N3.98 billion in income taxes, net cash provided by operating activities is projected at N66.14 billion.
The projected operating cash flow is significantly higher than the N1.20 billion profit expected for the period, reflecting the difference between accounting earnings and cash generated from the company’s operations.
Company Plans N55bn Borrowing Repayment
TotalEnergies also plans to use a substantial portion of its cash resources to reduce borrowings.
The company has forecast N55 billion in repayment of borrowings during the quarter, alongside N4.07 billion in interest payments on overdrafts.
As a result, financing activities are expected to record a net cash outflow of N59.07 billion.
The company is also budgeting N6.27 billion for the purchase of fixed assets, while proceeds from the sale of property, plant and equipment are expected to contribute N952.77 million.
Overall, investing activities are projected to result in a net cash outflow of N4.99 billion.
Despite the strong projected operating cash generation, TotalEnergies expects its cash and cash equivalents to remain negative at the end of December.
The company projects a net increase of N2.08 billion in cash and cash equivalents during the quarter, taking the balance from negative N99.67 billion at September 30 to negative N97.59 billion by December 31.