TotalEnergies Nigeria Plc is forecasting a profit after tax of N543 million for the third quarter ending September 30, 2025. The projection comes despite significant financing costs that continue to pressure the company’s bottom line.

In its 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.

Read Also: In strategic U-turn, MultiChoice slashes DStv decoder price by 50%

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 results in a net finance cost of N6.3 billion.

The company anticipates a pre-tax profit of N1.4 billion, with a tax charge of N886 million, 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.

Watch Marketing Edge ONTV

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.

The financial projection was signed by Seye Samba, Executive Director of TotalEnergies Marketing Nigeria Plc.