Total Nigeria – the petroleum marketing subsidiary of Total Group – reported today that its 2016 revenue rose by 40 per cent, driven mainly by higher sales of petroleum products across the country.
The company said revenue rose to N290.95 billion compared to N208.03 billion reported in 2015. The revenue growth was supported by an increase in sales of petroleum products given the hike in prices of premium motor spirit from N97 per litre to N145 per litre. Sales of lubricants and other related products rose by 53 per cent to N38.97 billion.
Given the steep rise in revenue, Total Nigeria reported that its after-tax profit rose by 266 per cent to N14.8 billion in 2016 as against N4.05 billion posted a year earlier. Nevertheless, the company’s profit and revenue slightly underperformed analysts’ estimates, according to Cardinal Stone Partners, a Lagos-based investment advisory firm.
An analysis of Total Nigeria’s financials suggests that the company benefitted from favourable access to foreign exchange given its relationship with the global oil giant, Total Group. This allowed the Nigerian company to import petroleum products at a relatively cheaper cost compared to other indigenous petroleum marketers.
Total Nigeria said basic earnings per share rose to N43.58 per share compared to N11.92 per share in 2015. The company has proposed a final dividend of N7 per share, potentially taking total dividend to N17 per share.
Established in 1956, Total Nigeria is one of the largest petroleum marketers in the country with over 500 service stations, five depots, five liquefied petroleum gas (cooking gas) bottling plants, three lubricants blending plants, and numerous industrial outlets. The company is also one of the two largest suppliers of aviation fuel with airport service centres in Lagos, Abuja, Kano and Port Harcourt.
On the Lagos Stock Exchange or Total Nigeria is listed, the value of its stock has experienced a somewhat erratic evolution over the last ten days, but clearly fell on Wednesday 22 March 2017. Henceforth its progression over a period of 12 months, Is more than 84%, compared to 94% on 16 March 2017.