Total Nigeria Plc December 2016 Financial Summary

The Company Legal form: 

The Company was incorporated as a private limited liability company in 1956 and was converted to a public company in 1978. The merger of the Company with Elf Oil Nigeria Limited which commenced globally in November 1999 was completed in Nigeria in 2002. With this development, the authorised, issued and fully paid share capital was ₦148,541,000 made up of 297,082,000 ordinary shares of 50k each. In 2003, to mark the completion of its corporate mergers, Total Group worldwide reverted to its former name Total and adopted a new logo with a unifying design to express its corporate ambition.

Accordingly, the Company changed its name from TotalFinaElf Nigeria Plc to Total Nigeria Plc in the same year. With the capitalisation of the bonus issue of 42,440,228 ordinary shares of 50k each in March 2004, the authorised share capital became ₦169,760,918 made up of 339,521,837 ordinary shares of 50k each. 61.72% of the Company's ordinary shares were held by Total Societe Anonyme up until 2013 when a restructuring was concluded and Total Raffinage Marketing became the shareholders of 61.72% of Total Nigeria Plc while the remaining 38.28% are held by some members of the general public.

Total Raffinage Marketing holds 61.72% of the full paid-up ordinary share capital. 

Principal activities

The principal activity of the Company is the blending of lubricants as well as the sales and marketing of refined petroleum products.

Description of business 

Total Nigeria Plc. ("the Company") is a subsidiary of Total Raffinage Marketing ("the Parent Company") in France and operates in the petroleum marketing and distribution business in Nigeria.

12 Months Report TOTAL NIGERIA PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	290,952,520	208,027,688	40%	December
Profit before taxation	20,353,076	6,495,390	213%
Profit for the period	14,797,095	4,047,051	266%
Issued Shares (Units)	339,522,000	339,522,000
Basic Earnings Per Shares (Kobo)	4,358.00	1,192.00	266%
Last total dividend paid (Kobo)	1,700.00	1,400.00	21%

Quarter on Quarter Performance

Revenue N'000 

Q1:N59,704,845

Q2:N85,776,934

Q3:N74,734,957

Q4:N70,735,784

PAT N'000

Q1:N2,824,622

Q2:N6,109,842

Q3:N2,697,870

Q4:N3,164,761

The company maintained an average revenue of N72,738,130,000 in 2016 and also maintained an average of N3,699,274,000 in terms Profit after Tax. The half year result however was  distinct from all other Quarters, this coincided with the increment in price  of fuel from N87.50 to N145 by the Federal Government. The company was generous enough to its major shareholder by paying a whopping N10 interim dividend within the year. It should be noted that the company was able to translate the increase in price to earnings because it was not carrying  significant debt obligation.

A closer look at the result shows that the company would have actually done better than this but for the other expenses that increased from nothing in 2015 to N 9,056,460,000 in 2016, this was as a result of Net foreign exchange loss and Net foreign exchange loss on forex forward contracts.

It was also observed that the company tied down resources in its current asset that would have been put to productive use. this is evident in the inventories that jumped up by 100.69% to N34,902,844,000 , Trade and other receivables also jumped up by 96.90% to N48,497,566,000.

Worthy of note is also the Finance income that declined by 86.53% to N273,551,000 and the Tax expense that jumped up by 126.93% to N5,555,981,000.

The stock quickly accelerated to N345 within the period that it paid the market those generous interims of N3.00 and N7.00. The stock opened the year on a strong note by racing to N304 in January before declining to N262 in February and later rose to N280 on March 15  2017 before their result came public with a dividend yield of 2.5% on the N7.00 left to be paid out of the N17.00 declared since N10.00 had earlier being paid.

The Company had shown that they are inclined to pay dividend as long a the environment support such, this is an hallmark of a blue chip company and a toast of High Net-worth Investors.

The Market would weigh its options as regards the benefit and price it accordingly. 

Corporate Action:

Proposed Dividend: N7.00

Qualification Date: 14th April, 2017

Closure Date : 17th -21st April, 2017

AGM Date : 9th June., 2017

Payment Date 12th June, 2017

AGM Venue : The Grand Banquet Hall, The Civic Centre, Ozumba Mbadiwe Street , Victoria Island, Lagos