TotalEnergies Nigeria Plc releases Q3 forecast, projecting N543m profit after tax despite high finance costs and negative cash

[dropcap]T[/dropcap]otalEnergies Nigeria Plc is forecasting a profit after tax of N543 million for the third quarter ending September 30, 2025, according to its latest TotalEnergies Q3 forecast.

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This projection comes despite significant financing costs that continue to pressure the company’s bottom line, highlighting the challenging operational environment in Nigeria.

In its detailed financial outlook, the company expects to generate N177.1 billion in revenue during the period.

From this, it projects a cost of sales at N150.6 billion, resulting in a gross profit of N26.5 billion.

Operating profit is forecast at N7.7 billion after accounting for N3.6 billion in selling and distribution costs and N17.1 billion in administrative expenses.

The biggest drag on performance remains finance related costs. Interest expenses are forecast to hit N7.2 billion, significantly higher than the projected finance income of N933 million.

This substantial difference results in a net finance cost of N6.3 billion.

While modest, this figure reflects resilience in operations despite Nigeria’s tight credit conditions and rising debt-servicing costs.

The company anticipates a pre tax profit of N1.4 billion, with a tax charge of N886 million, ultimately leading to the projected after tax profit of N543 million.

While modest, this figure reflects resilience in operations despite Nigeria’s tight credit conditions and rising debt servicing costs.

On the cash flow front, TotalEnergies projects a net inflow of N19.1 billion from operating activities. Customer receipts are expected to reach N159.4 billion, with payments to suppliers and employees totalling N135.5 billion.

In contrast, investing activities are projected to lead to a net outflow of N1.6 billion, mainly from the acquisition of new assets.

The company also expects financing activities to result in a N27.1 billion cash outflow.

This includes N7.2 billion in interest payments on overdrafts, N17.3 billion in loan repayments, and N2.6 billion in dividend payouts.

Taken together, these cash movements will likely result in a net cash decrease of N9.7 billion for the quarter.

TotalEnergies projects that this will push its cash and cash equivalents to a negative balance of N155.5 billion by the end of September 2025, underscoring liquidity challenges.