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TotalEnergies Marketing Nigeria Plc has reported a robust start to the 2026 fiscal year, with its pretax profit climbing 70.58% to reach N1.9 billion.

This bottom-line growth is particularly notable as it occurred despite an 11% contraction in revenue, which dipped to N197.1 billion from the N221.6 billion recorded in the same period last year. The company’s performance was anchored by the sale of white products, such as PMS and aviation fuel, which contributed N129.6 billion, while its lubricants and other product segments added N67.5 billion to the top line.

The primary catalyst for this increased profitability was a significant reduction in operational costs. The cost of sales dropped to N170.2 billion, down from N197.1 billion in Q1 2025, largely due to lower expenses in purchasing refined products and a reduction in customs duties.

Although administrative expenses saw a 15.5% uptick, the strengthened gross profit of N26.9 billion and a 30% reduction in net finance costs provided the necessary cushion to lift the company’s earnings per share from a loss of N0.35 to a positive N3.45.

On the balance sheet, TotalEnergies showed a leaner profile as total assets decreased to N356 billion from N388.5 billion. The company successfully managed its debt levels, with total liabilities falling to N307.3 billion.

Meanwhile, shareholder value saw a modest boost as retained earnings grew to N48.5 billion, bringing the total equity to N48.7 billion. A favorable tax environment also played a role, as the company benefited from zero minimum tax during the quarter, compared to the N1.1 billion minimum tax charge that weighed down the previous year’s results.

Despite the strong recovery in profitability, the Nigerian Exchange reacted with indifference. The company’s share price remained flat at N640, showing a 0.00% year-to-date change following the announcement.

This muted market reaction suggests that investors may be adopting a “wait-and-see” approach, weighing the impressive efficiency gains and cost-cutting measures against the overall decline in quarterly revenue.