Kayode Ogunwale 
TotalEnergies Marketing Nigeria Plc has projected a modest profit for the first quarter ended March 31, 2026, supported by strong operating cash generation but weighed down by high finance costs and thin margins, according to its earnings and cash flow forecasts submitted to the Nigerian Exchange.
The downstream oil marketer expects revenue of about ₦277.85 billion for the January–March period, with cost of sales estimated at ₦250.48 billion. This is projected to result in a gross profit of ₦27.37 billion, reflecting continued volume-driven performance in a highly competitive fuel marketing environment.
After factoring in other income of ₦1.89 billion, selling and distribution costs of ₦4.12 billion, and administrative expenses of ₦18.45 billion, operating profit is forecast to settle at ₦6.69 billion for the quarter.
Finance costs, however, are expected to significantly dampen profitability. While finance income is projected at ₦403.68 million, finance costs—largely interest on overdrafts—are estimated at ₦5.45 billion, resulting in a net finance cost of ₦5.05 billion. Consequently, profit before tax is expected to moderate to ₦1.64 billion.
After an estimated income tax expense of ₦1.39 billion, the company forecasts a profit after tax of ₦251.97 million for the quarter.
Despite the modest bottom line, the cash flow outlook points to robust operating performance. Cash receipts from customers are projected at ₦263.96 billion, while cash paid to suppliers and employees is estimated at ₦200.38 billion, generating net cash from operating activities of ₦63.58 billion during the period.
On the investing side, TotalEnergies Marketing Nigeria Plc plans to spend about ₦821.26 million on the purchase of fixed assets, partly offset by ₦403.68 million in interest income and ₦25 million from the sale of property, plant, and equipment. This is expected to result in a net investing cash outflow of ₦392.58 million.
Financing activities are forecast to consume ₦65.45 billion, driven mainly by the repayment of ₦60.00 billion in borrowings and ₦5.45 billion in interest paid on overdrafts. No dividend payments are projected for the quarter.
Consequently, the company expects a net decrease in cash and cash equivalents of ₦2.27 billion over the period. Cash balances are projected to move from ₦89.45 billion as at December 31, 2025, to ₦91.72 billion as at March 31, 2026.
The forecast underscores the company’s strong cash-generating capacity from core operations, even as elevated finance costs continue to constrain overall profitability.
