Total Oil Plc has projected to achieve N66.028 billion revenue for the third quarter ending September 2021. In its Q3 earning forecast obtained from the Nigerian Exchange Limited (NGX), the oil firm also projected N54.656 billion as cost of sales for the period.
Total is also targeting to rake in N3.459 billion as profit before tax and N2.338 billion for profit after tax during the period.
Following the consistent easing of social distancing measures in Q3 and the jump in PMS prices after the government affected the full deregulation of the commodity in early September Total Oil posted a profit after tax of N500.12 million for the nine months ended September, 30 2020 as against a loss after tax of N204.84 million posted in 2019.
Profit before tax stood at N912.89 million from a loss of N116.95 million posted in 2019. Revenue dropped by 32 per cent from N221.84 billion in 2019 to N151.71 billion.
However, cost of sales stood at N130.68 billion in 2020 from N196.74 billion in 2019. The impact of the lockdown period, due to the spread of the pandemic, affected the revenue of the firm, which may have accounted for the 32 per cent dip in revenue for the period under view.
However, the company closed the 2020 financial year on the downside with a decline of 9 per cent in profit after tax to N2.063 billion from N2.278 billion in 2019, profit before tax stood at N2.909 billion from N3,070 billion, representing a 5 per cent increase.
Revenue dropped by 30 per cent to N204.721 billion from N292.177 billion in 2019 while cost of sales stood at N173.974 billion from N257.125 billion in 2019.
The chairman of the company, Mr. Stanislas Mittelman, in a statement to shareholder, noted that following COVID-19, the economy of the world was in a flux as it saw a total shutdown of business alongside borders.
According to him, “with the shutdown of the global stock markets, restrictions on trade and travel across several countries, oil supply glut and crash in global crude oil prices, the impact of the spread of the virus on business and global trade was staggering.
“Your company was not isolated from these events. Not only were our network sales impacted, our aviation sales were at a standstill. Nigeria saw inflation numbers gallop, with headline inflation accelerating from 12.13 per cent in January to 15.75 per cent in December. “Nigeria entered its second recession in four years.
At the official market the naira was devalued as the Central Bank of Nigeria adjusted the official exchange rate three times in 2020 with the last adjustment bringing the exchange rate to N379/ US$1 which represented a 24 per cent depreciation.
“Despite the ravages of the virus, security challenges were still very much on the forefront and a cause for concern in the country. Robberies, kidnappings, social unrest, ethnic and religious aggravations were on the rise. Insecurity was farreaching, no part of the country has been spared.
“In October, the country saw several uprisings during which several cities were shut down for business and social activities for days on end.
According to the Global Terrorism Index, Nigeria remains the third most impacted country in the world by terrorism.”