As Geregu Power also recorded pre-tax profit of N41.2bn
By Yahaya Umar
TotalEnergies Marketing Nigeria Plc announced a pre-tax profit of N415.5 million for the fourth quarter of 2024, as detailed in its latest financial report released on the Nigerian Exchange ,NGX, on January 29, 2025.
This figure reflects a 56.71% decline from the N959.8 million reported in the same quarter the previous year.
However, full-year pre-tax profits increased significantly to N42.2 billion, marking a 140.41% rise from N17.5 billion in FY 2023.
In terms of revenue, the fourth quarter witnessed a 16.23% year-over-year rise, totaling N247.9 billion compared to N213.3 billion in the corresponding quarter of the previous year.
Consequently, the total revenue for FY 2024 reached N1 trillion, reflecting a significant year-over-year increase of 63.83% from the N635.9 billion reported in FY 2023, with a substantial portion of this revenue derived from petroleum product sales.
Key Highlights ,2024 vs 2023 FY,
Revenue: N1.04 trillion, +63.83% YoY
Cost of Sales: N926.1 billion, +67.14% YoY
Gross profit: N115.7 billion, +41.47% YoY
Other income: N30.8 billion, +610.87% YoY
Selling and distribution expenses: N14.6 billion, 120.03% YoY
Administrative expenses: N64.5 billion, +45.50% YoY
Operating profit: N62 billion, +158.69% YoY
Finance costs: N26 billion, +155.06% YoY
Pre-tax profit: N42.2 billion, +140.41% YoY
Total Assets: N536.7 billion, +43.10% YoY
A cursory view of TotalEnergies’ earnings report reveals that rising sales costs and expenses are eroding the benefits of revenue on pre-tax profit.
For the full-year 2024, total revenue reached N1 trillion, reflecting a significant year-over-year increase of 63.83% from the N635.9 billion reported in FY 2023.
Sales of petroleum products constituted 79.7% of total revenue at N830.4 billion.
The ‘Lubricants and others’ segment accounted for 20.3% of revenue, totaling N211.4 billion.
However, the cost of sales climbed by 67.14% year-over-year, reaching N926.1 billion, up from N554.1 billion in FY 2023.
A substantial 96.8% of sales costs came from net changes in inventory of lubricants, greases, and refined products, amounting to N896.8 billion.
Transportation costs contributed 1.87% at N17.3 billion, while customs duties made up 1.29% at N11.9 billion.
Despite the increase in costs, the company reported a gross profit of N115.7 billion, which is a 41.47% rise from N81.8 billion in FY 2023.
Additionally, ‘other income’ increased significantly, by 610.87% year-over-year to N30.8 billion, largely driven by write-backs of provisions, which comprised 81.2% of this figure.
Selling and distribution expenses also rose sharply by 120.03% to N14.6 billion, entirely due to transportation costs.
Administrative expenses increased by 45.50%, rising to N64.5 billion from N44.3 billion in FY 2023.
In terms of operating profit, the company recorded N62 billion, up 158.69% year-over-year from N23.9 billion in FY 2023.
Finance costs spiked by 155.06% to N26 billion, with interest on bank overdrafts making up 68.4% of total finance costs, and 22.4% due to interest on import loans.
Ultimately, TotalEnergies’ pre-tax profit for FY 2024 soared by 140.41% to N42.2 billion compared to N17.5 billion in FY 2023.
Total assets reached N536.7 billion for FY 2024, reflecting a substantial increase from N375.1 billion in the previous fiscal year.
Non-current assets contributed N80 billion to this growth, with property, plant, and equipment accounting for N61.7 billion.
Current assets surged to N456.7 billion, largely fueled by a remarkable increase in Trade and other receivables, totaling N210.4 billion, alongside inventories that climbed to N152 billion.
In the same vein, Geregu Power Plc also released its 2024 full-year audited accounts showing pre-tax profit for the period under review also rose 69.5% to N41.2 billion.
The company went on to generate a profit after tax of N27.4 billion, a whopping 71% to N27.4 billion.
The company’s The power generation company has now reported 5 consecutive years of profitability as total assets rose to N243.7 billion.
The company’s profit surge was on the back of a 65.3% surge in revenues in the year under review. This is also the highest profit the company has declared since it became listed and in the last 5 years.
Geregu Power is the first power company to list on the NGX.
Key Highlights 2024 FY vs 2023 FY
Revenue: N137.1 billion, +65.3% YoY
Gross profit: N62.7 billion, +47.1%
Operating Profit: N42.9 billion, +37.9%
Net Finance Cost: N1.6 billion, -76%
Profit After Tax: N27.4 billion, +71%
Earnings Per Share: N10.97, +70.8%
Cash generated from operations: N31.3 billion, -43.6%
Cash Balance: N39.9 billion, -43.1%
Retained Earnings: N51.3 billion, +16.8%
Total Assets: N243.7 billion, +33.7%
Geregu Power recorded revenue surges in Energy Sold and Capacity Charges printing N87.4 billion and N49.6 billion respectively. While energy sold rose 69%, capacity charge delivered a revenue jump of 59.4%.
However, operating profit margins dipped slightly to 42.6% from 51.3% reflecting the impact of inflation on the overall increase in the cost of goods sold.
The company was however able to cut down drastically on operating expenses, going from N13 billion incurred in 2023 to N9.5 billion incurred in the year under review.
We also observed a rise in impairment charges to N9 billion compared to a write back of N986 million a year earlier.
Sources in the company suggest the right back was due to impairment on receivables from NBET. They also opine that if the charges were to fall to a peer average of 6% the company may have posted a profit of N50 billion.
The company’s total assets grew by 33.74% year-over-year, reaching N243.4 billion compared to N182 billion reported the previous year.
Non-current assets increased to N72.6 billion, up from N36.3 billion in the previous year, primarily driven by property, plants, and equipment.
Current assets also rose to N170.8 billion, compared to N145.6 billion reported the previous year. Notably, trade and receivables accounted for a significant portion of this total, amounting to N121.8 billion.
Geregu Power also repaid bond and external borrowing of about N17.6 billion in the year under review while borrowing an additional N9.7 billion.
In terms of investment, the company spent around N42 billion in assets under construction as it continues to expand its plant capacity.
The company paid N20 billion in dividends last year and also recommended N21.25 billion in dividends this year representing its first dividend hike since it was listed in 2023.
Geregu Power has consistently paid a dividend of N20 billion annually.
The company’s share price closed at N1,150 as investors digested details of the results. The company is typically one of the first to file its audited financial statements and has consistently published results in January of every year since it became a publicly quoted company.
