TotalEnergies Marketing Nigeria Plc has projected a return to profitability in the second quarter of 2026, estimating a pre-tax profit of about N1.3 billion and earnings per share of N3.90.

The company’s forecast signals a potential recovery compared to the same period in 2025, when it recorded a loss after tax of N2.7 billion. If the projection materialises, it would mark an important step toward reversing the company’s financial downturn, which saw it post a full-year loss of N17.1 billion in 2025, compared to a profit of N27.4 billion in 2024.

According to the company’s projections, revenue for the second quarter of 2026 is expected to reach N169.9 billion, slightly lower than the N202.2 billion generated in the corresponding quarter of 2025. Cost of sales is forecast at N145.5 billion, leaving a projected gross profit of N24.3 billion, a marginal improvement over the N23.9 billion recorded a year earlier.

The company expects improved profitability mainly from lower operating costs. Administrative expenses are projected to fall significantly to N16.6 billion, down from N21.3 billion in Q2 2025.

As a result, operating profit is expected to rise sharply to N6.35 billion, representing an 89.4 percent increase compared to the N3.35 billion posted in the same quarter last year. Finance costs, largely linked to bank overdrafts, are also projected to decline to N4.7 billion, down from N7.1 billion in Q2 2025.

The combined reduction in expenses is expected to support a post-tax profit of N1.3 billion, reversing last year’s quarterly loss.

The company’s latest outlook comes after a challenging financial year in 2025. TotalEnergies Marketing Nigeria reported a post-tax loss of N17.18 billion, its first loss in six years, compared to a profit of about N27.5 billion in 2024.

The decline in performance was largely attributed to weaker revenue and higher operating costs. Revenue fell by 26 percent to N767.63 billion, down from N1.04 trillion in 2024, while cost of sales stood at N685.55 billion, pushing gross profit down by 29 percent to N82.07 billion.

Operating expenses also rose during the period, with administrative costs increasing by nearly 20 percent to N77.4 billion, leading to an 85 percent drop in operating profit to N9.49 billion. Net finance costs also climbed to N21.99 billion, driven mainly by bank overdrafts.

Despite the recent financial challenges, the company’s shares have maintained a long-term upward trend on the Nigerian Exchange. However, price movements have slowed since the second half of 2025, with the stock largely trading sideways since September amid cautious investor sentiment.

The shares are currently trading at around N640, and analysts say stronger earnings performance in 2026 could help revive bullish momentum in the stock.