TotalEnergies’ Nigeria Q1 lube profit up

TotalEnergies Marketing Nigeria (TMN) saw its lube profit rise in the first three months of the year as sales almost doubled from year-earlier levels.

The lube unit’s gross profit of 9.43bn Nigerian ($22.72mn) in the three months to end-March rose by 63pc from N5.79bn during the same period a year earlier.

But the rise in profit lagged the pace of the 91pc rise in sales to N30.62bn during the first three months of the year.

The sharp rise in sales mirrored a similar trend among other blenders in Nigeria in the first quarter amid firmer demand and higher selling prices.

The rise in profit from year-earlier levels differed from other blenders that saw their profit shrink during the same period.

Even so, all the blenders saw their margins fall sharply in response to surging costs. The pressure on costs looks set to continue amid an ongoing rise in European base oil prices and high freight costs.

TMN’s lube gross profit margin of 30.8pc in the first quarter of the year fell back from 36.2pc during the same period a year earlier. But it rose from 26.0pc during the fourth quarter of last year.

TMN operates a 40,000 t/yr lube blending plant in Lagos and a 24,000 t/yr plant in Koko. It changed its name from Total Nigeria Plc in August last year.