Three oil firms project N290bn revenue in Q1 2024

Three oil and gas firms have projected a total of N290 billion in terms of revenue for the first quarter of 2024.

These projections were stated in their earnings forecast filed with the Nigerian Exchange Limited.

The firms, making the projections include Eterna Plc, TotalEnergies Marketing Nigeria Plc and MRS Oil.

In its projections, Eterna Plc set a target of N53.65bn as revenue, however, its projected cost of sale, N51.09bn, will gulp most of the revenue to bring its gross profit to about N2.56bn. A further deduction via marketing, distributions and admin expenses of N1.68bn, interest payment and forecast taxation of N184.25m will see its profit after tax amounting to N391.54m.

Three oil firms project N290bn revenue in Q1 2024
11th December 2023
oil exploration-drill-crude-oil
An oil platform

By
Oluwakemi Abimbola

Three oil and gas firms have projected a total of N290 billion in terms of revenue for the first quarter of 2024.

These projections were stated in their earnings forecast filed with the Nigerian Exchange Limited.

The firms, making the projections include Eterna Plc, TotalEnergies Marketing Nigeria Plc and MRS Oil.

In its projections, Eterna Plc set a target of N53.65bn as revenue, however, its projected cost of sale, N51.09bn, will gulp most of the revenue to bring its gross profit to about N2.56bn. A further deduction via marketing, distributions and admin expenses of N1.68bn, interest payment and forecast taxation of N184.25m will see its profit after tax amounting to N391.54m.

In terms of cash flow, Eterna is expecting to have cash and cash equivalent of N1.75bn at the beginning of the quarter and N3.10bn at the end of March 2024. The projection for cash used in operation activities was N3.95bn while the projections for cash used in investing activities and financing activities were in the negative of N216.45m and N2.38bn respectively.

TotalEnergies Marketing Nigeria Plc in its projections is targeting a revenue of N190.88bn; the highest of the three, which will be impacted by N164.54bn in projected cost of sales. It is targeting a finance income of N25.62m, however, a finance cost of N4.24bn will drag the profit before tax to N4.48bn. A projected income tax expense of N1.52bn is expected to return a profit of N2.96bn.

For its cash flow, TotalEnergies Marketing Nigeria Plc projected a receipt of N171.79bn from customers with N148.09bn expected to be paid to suppliers and employees, bringing the expected cash generated from operating activities to N23.71bn.