Despite Stable Products Prices, Totalenergies, Others Record 3.1% Profit Drop

Kayode Tokede

Despite the increase in prices of crude oil and products, Totalenergies Marketing Nigeria Plc and five others listed Oil & gas companies on the Nigerian Exchange Limited (NGX) declared a total of N250.84 billion profit in half year ended June 30, 2025, about 3.1 per cent drop from a total of N258.9 billion declared in the same period in 2024.

Others are:  Oando Plc, Eterna Plc, Conoil Plc, Aradel Holdings Plc, and Seplat Energy Plc.

Petroleum marketing companies are facing significant struggles due to a combination of macro-economic, policy, operational challenges, and the instability in global oil prices, largely caused by the ongoing tension in the Middle East.

THISDAY analysis of the unaudited results & accounts of these six oil & gas companies showed mixed outcome with Totalenergies Marketing Nigeria declaring N2.86 billion loss in H1 2025 from N20.57 billion profit in H1 2024, while Eterna migrated from a loss of N4.84 billion in H1 2024 to N573.8 million profit in H1 2025.

On its, Conoil’s profit stood at N900.42 million, a decline of nearly 89 per cent from N8.02 billion declared in H1 2024 while Seplat Energy declared N42.52 billion profit, a drop of 37.5 per cent from N68.06 billion reported in H1 2024.

Conoil, known for its sale of regulated gasoline, diesel, kerosene, aviation fuel, and its lubricant brand “Quatro,” had cited lower product demand and surging finance costs as key contributors to the profit decline.

Aradel Holdings is the only company with a significant increase in profit, reaching N146.39 billion in H1 2025, about a 40.2 per cent increase over N104.43 billion reported in H1 2024.

On the other hand, Oando declared a modest increase in profit to N63.3 billion in H1 2025, representing an increase of 1.06 per cent from N62.64 billion declared in H1 2024.

THISDAY learnt that these companies are faced with challenges of slow revenue generation, a hike in the cost of sales. and finance cost.

In the period under review, the six companies declared N4.98 trillion revenue, about a 33.45 per cent increase from N3.73 trillion reported in H1 2024.

The likes of Oando, TotalEnergies and Conoil declared a significant drop in revenue, while Seplat Energy, Aradel Holdings and Eterna posted 276.8 per cent, 37.2 per cent and 6.9 per cent increases in revenue, respectively. 

As Oando posted N1.72 trillion revenue in H1 2025, about a 15.27 per cent decline from N2.03 trillion in H1 2024, Conoil announced N143.65 billion revenue in H1 2025, representing a decline of 20.4 per cent from N180.57 billion declared in H1 2024.

TotalEnergies closed H1 2025 with N423.9 billion, a drop of 20 per cent from N529.9 billion reported in H1 2024.

Cordros Research in a report attributed the performance in TotalEnergies revenue to the lower volumes in the period, despite product prices being higher compared to the prior period – PMS: +53.1per cent y/y, AGO: +21.9per cent y/y, and DPK: +48.3per cent y/y.

“We believe that the influx of relatively cheaper products from the Dangote Refinery through its trading partners limited the product offtake from TotalEnergies’s retail outlets and B2B channels,” the firm added.

Oando, in a statement, said the 15 per cent drop in revenue is on the backdrop of a slowdown in trading activity, despite stronger performance in the Exploration & Production (E&P) segment.

The Group Chief Executive, Oando, Mr. Wale Tinubu in a statement said, “Our trading segment faced headwinds which exerted pressure on the entity’s revenue and the Group’s topline as a result of declining PMS imports into the country due to rising local refining capacity from the Dangote Refinery, a positive development that enhances Nigeria’s energy security and self sufficiency.”