Total Energies Nigeria is the downstream unit of energy giant Total. Downstream means the distribution and sales of petroleum products.

Topline and bottomline

Revenue rose by 63.8% from N635 million in 2023 to N1.04 trillion. This is the highest revenue (in Naira) earned by the firm.

Profit after tax increased by 112.9% year on year. From N12.9 billion in 2023 to N27.4 billion in 2024.

Product split

79% of revenue came from the sale of white products and the rest from lubricant sales.

White products relates to revenue from sale of Premium Motor Spirit (PMS), Automotive Gasoline Oil (AGO) and Aviation Turbine Kerosene (ATK).

Margins are better but remain tiny

From a margins perspective, downstream petrol is a thin margin sector

Operating margins moved up year on year but are tiny. For every N100 in revenue, N6 was operating profit. In priro year, it was N4 for every N100 in revenue

Net profit margin was 2.6%. So for every N100 in revenue, N2.6 was profit after tax. It went up marginally from FY 2023 where it was N2.3 for every N100 in revenue.

Costs rose sharply

Finance costs went up sharply. They rose 153% from N10.2 billion in 2023 to N25.8 billion in 2024.

The bulk of those costs were interests on overdrafts. Those rose by over 650% year on year.

Dividend

The firm has proposed a N40 dividend. Up 60% from the N25 it paid last year. Qualification date is the 22nd of April 2025, and payment date is the 16th of May, 2025.

From a dividend yield perspective, it amounts to a yield of 5.8%. It came in within the range of my prediction

Year on year, there was a drop in its payout ratio. FY 24 proposed dividend amounts to a payout ratio of 49.3%. In the prior year, it was a payout ratio of 65.7% of the N38.03 in earnings it made.