Prime Business AfricaOn 10 September 2024, Total Energies Marketing Nigeria forecast that the company would record N237.9 billion revenue in the fourth quarter (Q4) of 2024, with profit after tax (PAT) reaching an ambitious N5.68 billion.
Total Energies had planned to achieve the projections with the hope that the cost of production would rise by only 11.23% (N21.08 billion) quarter-on-quarter, according to analysis by Prime Business Africa.
Join our WhatsApp ChannelHowever, at the end of the period in review, the company’s production expense almost doubled its expectation, rising by 20.39% (N38.27 billion), from N187.67 billion in Q4 2023 to N225.94 billion in the same quarter in 2024.
This outstripped the N208.75 billion cost of sales the company had projected for the said period.
As a result, Total Energies’ gross profit fell below expectation, settling at N22.05 billion, compared to the projected N29.15 billion, despite surpassing its revenue projection of N237.9 billion, as the oil firm closed Q4 2024 with N247.99 billion.
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The growth in revenue, which also surpassed the N213.37 billion recorded in the corresponding period of 2023, was, however, not enough to prevent the gross profit from falling by 14.18%, considering Total Energies reported N25.7 billion gross profit in the same period last year.
At the end of the quarter in review, Total Energies reported N415.50 million profit before tax (PBT), however, taxes gulped N16.6 million out of the PBT.
This left the company with N398.84 million net income, which is N5.29 billion below the N5.68 billion profit after tax Total Energies had forecasted for Q4 2024.
In other words, the oil company had projected that the profit after tax will rise by 172% (N3.59 billion) quarter-on-quarter, as it recorded N2.09 billion net income in the corresponding period of 2023 – but instead, the PAT declined by 80.9% (N1.69 billion).
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