By Alex C
Total Nigeria Plc, a downstream oil and gas company, showed a decline of 8.03 % in gross profits to N7.10 billion in first quarter of 2014 financials (Q1 2014) when compared to N7.74 billion in the same period in 2013.
The gross profit margin shows the relationship between turnover and cost of sales and is a proof of the ability of the company to control cost of inventories and pass along any price increase through sales to clients. There was a decrease in the gross profit margin, which was 11.71 percent in Q1 2014 as against 2.64 in the first quarter of 2013.
Profit After Tax (PAT) followed the same trend as it declined by 6.5 percent in the review period to
N1.07 billion as against N1.14 billion as at Q1’2013. Profit Before Tax (PBT) shrank by 8 percent to N1.71 billion compared with N1.85 billion as at Q1 2013.
The sector has been affected by delay in payment of subsidy claims as the Federal Government works to weed out corruption in the system. For the first quarter of 2014, Total’s revenue slid slightly by 1 percent Year-on-Year to N60.59 billion from N61.05 billion in the same period in the prior year. Also, profit margin decreased to 1.76 percent from 1.87 percent.
Further peep into the company’s Q1 financials showed that Earnings Per Share (EPS) fell to 315k in
Q1’2014 from 337 k as at Q1’2013. Cost of sales margin moved to 88 percent in Q1’14 from 87.01
percent as at Q1 2013.
A 7.55 percent decrease in operating expenses to N5.01 billion in the review period and a flat operating expenses margin at 8.27 could not stop operating profit from declining by 5.28 percent to N2.29 billion in 2014.
Fixed asset turnover in the review period decreased to 0.71 times as against 0.76 times as at Q1’2013. Total assets for the first three months through March 2013 rose by 6.97 percent to N84.94 billion in Q1’2014 compared with N79.94 billion as at Q1’2013.
Total Nigeria Plc, formerly known as Total Fina Elf Nigeria Plc, emerged following the successful merger between Total Nigeria Plc and Elf Oil Nigeria Ltd on 11th September, 2001.
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