TotalEnergies Ghana profit drops 26% as revenue slumps

TotalEnergies Marketing Ghana PLC has recorded a 26 per cent decline in profit after tax for the first quarter ended 31 March 2026, falling to GH¢60.4 million from GH¢81.7 million in the same period last year.

The petroleum marketing company saw revenue drop sharply to GH¢1.177 billion from GH¢1.885 billion, a reduction of nearly 38 per cent. Cost of sales also fell, but not enough to protect the bottom line, coming in at GH¢948.9 million compared with GH¢1.658 billion in the prior year quarter.

Gross profit, however, held up relatively well, edging up slightly to GH¢228 million from GH¢226.4 million, reflecting improved margins despite the steep drop in turnover.

Operating profit before financing cost fell to GH¢106.2 million from GH¢136.4 million, pressured by a rise in general, administrative and selling expenses, which increased to GH¢124.6 million from GH¢103.7 million. 

The company also recorded an impairment charge on trade receivables of GH¢9.6 million, a sharp reversal from a release of GH¢1.7 million in the prior year.

On a more positive note, finance costs dropped dramatically to GH¢3.7 million from GH¢15 million, a reduction of nearly 75 per cent, providing some relief to the income statement. Finance income remained flat at GH¢163,000.

The company's share of profit from an associate contributed GH¢515,000 this quarter, compared with nothing in the prior year period.

Tax expense rose to GH¢42.2 million from GH¢40.4 million, further squeezing after-tax profit. Total comprehensive income for the period fell to GH¢58.3 million from GH¢83 million, with foreign exchange differences on translation of foreign operations adding a negative GH¢2.1 million.

Earnings per share declined to GH¢0.5266 from GH¢0.7170.

On the cash flow front, the company generated GH¢27.9 million from operating activities, up from GH¢18.2 million in the prior year, helped by favourable movements in inventories and trade payables. However, cash and cash equivalents at the end of the period stood at GH¢46.9 million, down from GH¢88.7 million at the same point last year.

The company paid GH¢33.2 million in income taxes during the quarter and GH¢6.8 million in lease payments. It spent GH¢5 million on property, plant and equipment.

The financial statements were dated 30th April 2026 and signed off as not containing any untrue or misleading facts.