For years, TotalEnergies Marketing Nigeria Plc delivered stability and rewarded investor confidence.
However, 2025 marked a clear break from that steady performance.
First, the company reported a pre-tax loss of ₦12.5 billion for the year ended December 2025.
TotalEnergies Shift From Stability To Setback
In contrast, it recorded a strong pre-tax profit of ₦42.26 billion in 2024.
Next, falling revenue and rising costs drove the financial decline.
Revenue dropped by 26%, falling from ₦1.04 trillion to ₦767.63 billion.
Lower sales volumes and harsh market conditions reduced cash inflows during the year.
Meanwhile, the company incurred ₦685.56 billion in cost of sales.
As a result, gross profit fell by 29% to ₦82.07 billion.
At the same time, management struggled to contain operating expenses.
Administrative expenses rose by 41.9%, while selling and distribution costs jumped by 70.9%.
Consequently, operating profit collapsed by 85% to ₦9.49 billion.
Then, higher borrowing costs added further pressure.
Finance expenses increased by 12% to ₦21.99 billion.
By year end, the balance sheet reflected the strain.
Total assets declined by 8%, while retained earnings fell by 21%.
Together, these declines reduced shareholder equity and weakened financial resilience.
Read Also: NNPC, Dangote Collaborate On Gas Master Plan Deals
The loss exposed deeper structural pressure beyond a single poor year.
Dividend Pressure Builds
After that, investor focus shifted to dividends.
Between 2020 and 2024, the company raised dividends from ₦6 to ₦40 per share.
Now, sustaining that payout looks increasingly difficult.
Losses may force management to suspend or reduce future dividends.
Valuation Meets Uncertainty
Meanwhile, the stock market has responded cautiously.
The share price fell by 8.31% in 2024, closing at ₦640.
So far in 2026, the price has remained flat.
Currently, the stock trades at roughly five times book value.
On one hand, this valuation reflects hopes of recovery.
On the other hand, negative earnings raise overvaluation concerns.
Looking ahead, the company must prioritise recovery over expansion.
Management must tighten costs, revive revenue and restructure operations.
For shareholders, expectations must adjust accordingly.
Dividends may remain on hold until the company restores sustainable profitability.
