The Nation Newspaper

Tag: Total Nigeria

  • Total Nigeria, others push for malaria elimination

    Total Nigeria on Thursday joined forces with the Nigerian National Petroleum Corporation (NNPC) to push for prevention and eradication of malaria in the country.

    The group said malaria was responsible for 92 percent of death rate in Sub-Saharan Africa.

    The organisation said that there was an increase in malaria cases, especially in the Sub-Saharan Africa, describing the situation as “worrisome.”

    Its Executive General Manager, Mrs. Bunmi Popoola-Mordi, said these during a sensitisation exercise in Kutunku community, a suburb of the Federal Capital Territory, Abuja, on Thursday.

    The organisation in collaboration with its partners carried out series of intervention activities in the community to ensure prevention and elimination of malaria.

    The programme, which held at the Primary Health Center, Kutunku was part of activities to mark this year’s World Malaria Day observed every April 25.

    High point of the event included environmental sanitation exercise, house –to- house net hanging exercise, diagnosis testing and treatment of malaria and distribution of thousands of Long-Lasting Insecticide-treated Nets (LLIN) to residents.

    She said: “The Sub-Saharan Africa continues to carry a disproportionately high share of the global malaria burden, making the region home to 90 per cent of malaria cases and 92 per cent of malaria deaths.

    Read also: Edo-HIP programme’ll sustain campaign against malaria, says Obaseki

    “That is why Total group in Nigeria is determined to join forces with all stakeholders and other corporate organisations in the push to prevent and eradicate malaria.”

    According to her, the selection of the community in the FCT was due to the high prevalence of malaria in the area, adding that its ultimate goal is to ensure a malaria-free environment.

    She noted that since the firm launched its malaria elimination programme, it has supported the efforts of the federal government through the donation of 2000 treated mosquito nets, environmental fumigation, clearing of drainages and refuse collection and disposal.

    She advised residents of the community to take personal hygiene seriously by ensuring that their surrounding are kept clean so they would not have any breeding ground for mosquitoes carrying malaria.

    High Chief of the community, Mallam Muhammadu Sani commended Total for choosing the community for the intervention programme.

    Sani assured the firm that he would work with his cabinet members to ensure that environmental sanitation is carried out in the community on a regular basis.

  • Court restrains Total from evicting firm from lube bay

    A Lagos High Court has restrained Total Nigeria Plc from evicting Automatic Fits and Energy Nigeria Ltd and Segmat Springs Ltd from Total’s Lube Bays assigned to them.

    Justice Lateefat Folami said the order would subsist pending hearing and determination of the substantive suit filed against Total by Automatic Fits and Segmat.

    The two firms had sought an injunction restraining Total from evicting them.

    Automatic Fit with over 400 staff, named Global Most Trusted Quality Automobile Care Services Company last year, claimed that Total threatened to evict it from the Lube Bays assigned to it over 10 years ago.

    It alleged the multinational company was out to exploit local content and throw its workers into labour market.

    Along with Segmat, the firm approached the court to enforce their rights to the bays.

    Read Also: Court stops FUTA VC from spending earned allowances

    Lawyers to Automatic Fits and Segmat Springs, Oludare Falana of Nu Stream Solicitors, in a January 25 letter to Total’s Managing Director Imran Barry warned against “clandestine and deliberate activities by your agents to forcefully eject our client, its agents and workers from the lube bays assigned to it across Nigeria pursuant to the Lube Bay Management Agreement dated 1st November, 2016.”

    The lawyers added: “Please note that the issue forms the basis of the above mentioned suit. Once a matter is sub-judice as in the instant case, all parties are meant to steer clear of any action that may foist a fait accompli on the Honourable Court without treading the path of due process of the law.

    “Take notice that our client and its agents will vehemently resist any attempt by any of your staff, agents, servants and privies to forcefully eject or take over any of the Lube Bays assigned to it.

    “In furtherance, it shall not hesitate to arrest and ensure the prosecution of any of your staff, agents, servants and privies that violate the order of the court made on January 25, 2019 or take laws into its hands during the pendency of this matter before the honourable court.”

  • Total Nigeria’s shareholders get N5.77b dividend

    Shareholders of Total Nigeria Plc will today receive N4.75 billion in final cash dividend for the 2017 business year, after they voted unanimously yesterday at the annual general meeting in Lagos to approve the dividend recommendation by the board of the downstream oil company.

    Chairman, Total Nigeria Plc, Mr Stanislas Mittelman, said the final dividend of N4.75 billion will be paid to shareholders today in line with the corporate reputation of the petroleum-marketing company for early disbursement of shareholders’ dividends.

    Shareholders that had completed the electronic dividend (e-dividend) payment mandate will be automatically credited with the final dividend per share of N14, bringing the total dividend per share for the 2017 business year to N17. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Mittelman said Total Nigeria is poised to deliver better returns to shareholders by taking advantage of the expected growth in the Nigerian economy and improvement in macroeconomic environment to grow its business.

    According to him, a stable and conducive business environment in 2018 will provide Total Nigeria with opportunities for growth, investment and consolidation.

    “We intend to take advantage of the projected growth the Nigerian economy will offer and deliver value to you our shareholders and other stakeholders,” Mittelman said.

    He noted that while Total Nigeria recorded many milestones in 2017, the company’s overall performance was adversely affected by the economic recession and its consequent contraction of the downstream market as well as scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template.

    He added that the performance in 2017 was also affected by foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates.

    He pointed out that the company’s lubricants business delivered strong performance in 2017 while the company continued to improve on its credit control management and fixed costs evolution.

    He noted that Total Nigeria reinforced its leadership in health, safety, environmental protection and quality (HSEQ) in 2017 by becoming the first petroleum-marketing company to  receive the ISO 9001: 2015 and ISO 14001:2015 certifications, adding that the company also recorded no accident during the period.

    Shareholders commended the steady performance of the company in spite of the challenges in the oil and gas sector.

    National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, said the performance of Total Nigeria when compared against other operators in the sector showed the resilience of the company.

    Former General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, urged the company to improve on its performance.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed that turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017. Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

     

  • Total Nigeria empowers Delta youths

    Total Nigeria empowers Delta youths

    Total Nigeria Plc has presented starter packs to those it trained on welding and fabrication, furniture making, hair dressing, fashion and designing, fish farming, computer studies, and others.

    Its Managing Director Mr. Jean- Philippe Torres said the Skills Acquisition Program (SAP) was part of its corporate philosophy aimed at building strong partnerships for sustainable development.

    The starter packs were presented to the 2016 and 2017 beneficiaries at the Total Lubricant Blending Plant in Koko, Delta State.

    Torres said since inception 2006, the program has empowered 54 beneficiaries in the community.

    The graduands undergo a screening and pre-selection process prior to their placements in certified training centers.

    Training materials and allowances are provided for them and their trainers to ensure they are well equipped with the necessary learning tools.

    On completion of the one-year training, Total Nigeria fully establishes the youths in their various vocational fields by providing them with tools and resources by way of Starter packs.

    “This is one of the many ways in which we positively affect our host communities, ensuring we have a sustainable impact on their lives,” Torres said.

    According to him, capacity building provides more sustainable contribution to economic and social development of people and communities.

    “The program is a sustainable youth development scheme were less privileged youths of our host communities are trained in vocations of their choice,” he said.

    Torres urged the beneficiaries to work hard and to believe in their abilities to become achievers in their different vocations.

    “Despite tough economic conditions, we had to ensure that these starter packs are procured as we cannot compromise the development of our communities and that of our youths.

    “We, therefore, implore you to make the most of the work tools.  All you require to run a viable Small and Medium Scale Business has been provided including two years prepaid shop in waiting.

    “Going forward, you then need to contribute to the community development of Koko so the positive spiral effect of your enterprise is felt here,” Torres added.

  • Total Nigeria, Nigerian Breweries to pay N8.9b interim dividend

    The boards of directors of Total Nigeria Plc and Nigerian Breweries Plc have recommended payment of N8.92 billion as interim cash dividends to shareholders. The two sectoral leaders have just have just  released their third-quarter results.

    Total Nigeria will share about N1.02 billion to shareholders, representing interim dividend per share of N3. Nigerian Breweries will distribute N7.9 billion, representing interim dividend per share of N1.

    The nine-month report of Nigerian Breweries for the period ended September 30, 2017 showed that the company recorded a turnover of N254.7 billion. Profit before tax rose from N27.8 billion to N34.4 billion while profit after tax improved to N23.9 billion from the N20.1 billion.

    Company Secretary and Legal Adviser, Nigerian Breweries Plc, Mr. Uaboi Agbebaku said despite the continued challenging business environment, revenue in the first nine months of the year grew compared to the corresponding period in 2016.

    He added that as a result of the company’s continued focus on internal efficiencies under its cost leadership programme, results from operating activities improved, which combined with lower Net finance charges resulted in increased profitability in the period.

    It added that the interim dividend is payable subject to deduction of withholding tax at the appropriate rates, on Thursday, November 23, 2017 to all shareholders registered in the books of the company at the close of business on Wednesday, November 15.

    The board maintained that whilst the operating environment for the remainder of the year is expected to remain challenging, it is confident that, barring unforeseen circumstances, the company is well placed to deliver a good return on investment to shareholders.

    Meanwhile, Total Nigeria suffered a contraction in the third quarter. Turnover was almost flat at N221.2 billion in third quarter 2017 as against N220.2 billion recorded in third quarter 2016. Profit before tax dropped by 43 per cent from N17 billion to N9.68 billion while profit after tax declined by 49 per cent from N11.63 billion in third quarter 2016 to N5.96 billion in third quarter 2017.

  • Total Nigeria declares N5.8b dividend as profit rises by 266%

    The Board of Directors of Total Nigeria Plc has recommended the distribution of N5.77 billion to shareholders as cash dividend for the 2016 business year, increasing cash payouts after the company posted a 266 per cent growth in net profit.

    The board, in a regulatory filing for the 2016 business year, indicated that N5.77 billion would be paid to shareholders for the year ended December 31, 2016 compared with N4.75 billion paid for the 2015 business year, representing an increase of 21.5 per cent. Shareholders will receive a total dividend per share of N17 for the 2016 business year as against N14 received for the 2015 business year. The company had earlier paid interim dividend of N10 for the 2016 business year and now will be paying a final dividend per share of N7.

    The dividend recommendation underlined the impressive performance of the downstream oil company during the year. Key extracts of the audited report and accounts for the year ended December 31, 2016 showed that sales rose by 40 per cent while pre and post tax profits grew by 213 per cent and 266 per cent respectively.

    Turnover rose from N208.03 billion in 2015 to N290.95 billion in 2016. Profit before tax also tripled from N6.5 billion to N20.35 billion. After taxes, net profit jumped to N14.80 billion in 2016 compared with N4.05 billion in 2015. Earnings per share thus improved from N11.92 in 2015 to N43.58 in 2016. Shareholders’ funds rose by 45 per cent from N16.24 billion to N23.57 billion.

    Total Nigeria was incorporated in 1956 and was listed on the Nigerian Stock Exchange in 1979. From its first petrol station at Herbert Macaulay Street, Yaba, Lagos in 1956, the company now has more than 500 service stations, five LPG bottling plants and three Lubricants blending plants. Total Nigeria operates five aviation storage facilities amid other facilities spread across the country.

    Total S.A, the French company that holds 61.72 per cent of Total Nigeria Plc is a publicly-traded oil company with businesses in exploration and production, refining, marketing and trading. It is also a major player in the chemicals sector.

    As Europe’s leading refiner and marketer, the Total Group directly operates nine refineries while its retail network comprises of more than 16,000 service stations mainly in Europe and Africa which distribute motor fuels, lubricants and LPG under the internationally recognized TOTAL brand.

  • Total Nigeria vs Mobil Oil Nigeria: Same turf, different results

    Total Nigeria vs Mobil Oil Nigeria: Same turf, different results

    PETROLEUM stocks are popular with Nigerians. One of the earliest organised sectors with long-established brand names, the centrality of premium motor spirit (PMS), popularly known as petrol, to the daily living of Nigerians, who depend mostly on petrol as substitute for epileptic public power supply, has continuously reinforced the brand awareness of petroleum stocks. But even with hundreds of brand names now parading the downstream, the sector is still dominated by few companies. These are usually referred to as oil majors.

    , foreign ownership, listing history and fundamental assets. A subsidiary of French multinational and Europe-leading oil company-Total S. A, Total Nigeria has considerable influence and size in Nigeria and globally. With five Liquefied Petroleum Gas (LPG) bottling plants, three lubricant blending plants, four aviation depots and hundreds of retail outlets spread across Nigeria, Total Nigeria prides itself as the leader in the industry. Mobil Oil, the earliest petroleum-marketing company to be incorporated in Nigeria, is a subsidiary of Mobil Oil Corporation of the United States of America.2

    With between 64 and 59 years of operations in Nigeria and 36 years as quoted stocks, both companies are the earliest examples of blue chips that several investors know. Interestingly, both companies were listed in the same year, in the same month and within the same week. While Total Nigeria’s assets base substantially outweighs Mobil Oil Nigeria’s, stripped down to the barest, both companies have similar net assets base. They also operate in an industry with little product differentiation and deregulation.

    Audited reports and accounts of both companies however appear to be showing marked differences.  Year-on-year and on the average, Mobil Oil Nigeria appears to know the oil field better than its competitor. While the reports seem to illustrate the tight top-line in the largely regulated sector, the mid-line and bottom-line differ according to the logistics, management and internal structure and control of the companies. Audited reports and accounts for the year ended December 31, 2014 showed that the two companies barely grew their top-line by one per cent. That is the only similarity. While Total Nigeria appears to be losing steam, Mobil Oil Nigeria shows considerable improvement in profitability and returns.

     

    Sales Generation

     

    Turnover growth, expectedly, remains generally muted. Both Total Nigeria and Mobil Oil Nigeria grew the top-lines by one per cent in 2014. Total Nigeria had grown turnover by nine per cent in 2013. Mobil recovered from a decline of three per cent in 2013 with one per cent growth in 2014. On the average, Total Nigeria has grown its top-line by an average of five per cent over the past two years as against a two-year average decline of one per cent recorded by Mobil.

     

    Profitability

     

    Mobil has shown stronger fundamental performance than its competitor over the years. Besides the average growth, Mobil ran a more profitable business in the immediate past year while Total Nigeria showed a worrisome decline in intrinsic performance. Mobil’s gross profit grew by 8.0 per cent in 2014 as against 21.1 per cent growth in 2013. However, gross profit margin underlined improved top-line management at 13.5 per cent in 2014 as against 12.6 per cent in 2013. Profit before tax built on this with 65 per cent growth in 2014 as against 26 per cent in 2013. Average pre-tax profit margin, which indicates average pre-tax profit on each unit of sale, also improved from 6.5 per cent in 2013 to 10.6 per cent in 2014. After taxes, net profit grew by 84 per cent in 2014, an impressive consolidation on 21 per cent recorded in 2013.

    On the other hand, Total Nigeria’s gross profit dropped by 2.75 per cent in 2014 as against modest growth of 9.5 per cent in 2013. Gross profit margin followed the downtrend, dropping from 12.1 per cent in  2013 to 11.6 per cent in 2014. Profit before tax dropped by 32 per cent in 2014 compared with an increase of 14 per cent in 2013. This underlined the relapse in the intrinsic profitability with pre-tax profit margin dropping from 3.4 per cent in 2013 to 2.3 per cent in 2014. Profit after tax also dipped by 17 per cent in 2014 as against 14 per cent growth in 2013.

    On the average, Mobil Oil Nigeria shows substantial lead above its competitor. Mobil‘s gross profit has grown by 14.6 per cent over the past two years compared with 3.4 per cent by Total Nigeria. This trend is replicated in all the indices. Mobil has average pre-tax profit growth rate of 45.5 per cent, average gross margin of 13.05 per cent, average pre-tax profit margin of 8.6 per cent and average net profit growth of 52.5 per cent respectively. Total Nigeria, on the other hand, recorded average pre and post-tax profit declines of nine per cent and 1.5 per cent respectively. Average gross margin was lower at 11.85 per cent while average pre-tax profit margin stood at 2.85 per cent.

     

    Actual Returns

     

    While Total Nigeria has steadily maintained a lead in share price at the stock market, Mobil fundamentally makes better returns to investors. Since fundamental returns are intricately linked to underlying profitability, Mobil improved on its returns while Total Nigeria suffered a decline. Mobil returned 17.2 per cent on total assets in 2014 as against 12.6 per cent posted in 2013, indicating a two-year average of 14.9 per cent. Return on equity also increased from 36.5 per cent in 2013 to 47.2 per cent in 2013, representing average return of 41.9 per cent.

    Total Nigeria’s return on total assets almost halved from 10.2 per cent in 2013 to 5.8 per cent in 2014 while return on equity slipped from 40.3 per cent to 31.8 per cent. Average returns on assets and equity thus stood at eight per cent and 36.1 per cent respectively.

     

    The Bottom-line

     

    The queues are back at the petrol filling stations. That is the regular reminder of the state of the downstream sector. With a seemingly stunted deregulation and the intricacies of the politics of the oil business, petroleum companies are influenced by more by exogenous rather than endogenous factors. These compound the almost monolithic nature of the business where little product differentiation gives less room for marginal errors. The margin of profitability, and sustainability of such, thus depends on high level of appropriate mix of often-difficult variables. Total Nigeria is exploring initiatives to break away from the mono-product syndrome with its recent diversification into the solar power business. But this obviously has not gained the traction to fundamentally impact the bottom-line. While Mobil’s performance was somehow boosted by a one-off asset sale, it obviously has shown better choices. Its focus on the midline and financing options has strong influence on overall performance. Mobil has less leverage and financing burden compared with Total, which is substantially leveraged and carries the burden of multi-billion naira financial charges, which further clobbered the overall performance.

  • Tax relief for Total on renewable energy

    Tax relief for Total on renewable energy

    The Federal Government has granted Total Nigeria Plc tax relief for building a renewable energy plant.

    The initiative of the firm to introduce its new ‘Awango’ portable solar lamps into the market would go a long way in leveraging the country’s drive for climate change, the government said.

    Speaking at the launch of Total Sun King Solo Lamp, Awango and Total Sun King Pro Lamp, in Abuja, yesterday, the Minister of State for Power, Hajiya Zainab Kuchi, also promised that the Federal Government would give fiscal incentive to investors in renewable energy.

    She said the incentives form part of government’s support towards increasing the use of renewable energy.

    Hajiya Zainab Kuchi, urged the firm to build a renewable energy factory in Nigeria “because there are tax holidays, fiscal policy incentives and economic incentives. I assure you, that with a population of 160 million Nigerians, is a huge market. You need to harness it even if it is just for the social responsibility that you intend.”

    She said government will ensure that fiscal incentives are made available to investors in all aspects of renewable energy.

    “We have economic incentives for those who import equipment, and look forward to more enhanced participation in this area,” she addded

  • Total cedes Total Nigeria to new core investor

    Total S.A., the majority core investor in Total Nigeria Plc, has formed a new company in conjunction with Elf Aquitance to hold the majority shareholding in Total Nigeria Plc.

    The internal reorganisation involved contribution of shares by both Total SA and Elf Aquitance to a new holding company- Total Raffinage Marketing (TRM) – which will subsequently become the majority core investor in Total Nigeria Plc.

    Under the terms of the restructuring, Total Nigeria would contribute 153.6 million ordinary shares of 50 kobo each while Elf would contribute about 55.96 million ordinary shares of 50 kobo each to form the majority equity holding of TRM in Total Nigeria.

    TRM would subsequently issue shares to both Total SA and Elf in consideration for their contributions to the transaction shares.

    With more than 500 retail outlets, five Liquefied Petroleum Gas (LPG) bottling plants, three lubricant blending plants, four aviation depots and many other facilities, Total Nigeria is the leading oil-marketing company.

    Total Nigeria had witnessed impressive performance in recent period with strong growths in turnover and profitability. Interim report for the third quarter ended September 30, 2012 showed that sales rose by 28 per cent from N129.75 billion in 2011 to N166.39 billion in 2012.

    Profit before tax stood at N5.67 billion in third quarter 2012 compared with N4.1 billion in corresponding period of 2011, indicating an increase of 38 per cent. Profit after tax rose by 45 per cent to N3.72 billion in 2012 as against N2.57 billion in comparable period of 2011.

  • Total rewards dealers, pledges improved services

    The Total Nigeria Plc has rewarded the performing dealers at its filling stations in the seven zones of the country during its NIGOSCARA reward promotion held in Lagos at the weekend.

    The Managing Director, Total Nig Plc, Francois Boussagol, who revealed the motive behind the competition, said customer satisfaction is key and paramount on the company’s profile, hence the dealers are expected to treat customers as king.

    Francois stated that the company business and industry is characteriSed as being customer driven, highly competitive and volatile. Our vision and objective is to continue to sustain our leadership position by ensuring that refined petroleum products are delivered to our customers efficiently and safely.

    However, Lagos south petrol stations zone emerged as winner among other seven (7) zones competitors.

    The other zones that competed alongside Lagos south zone include; Lagos North Centre, Kaduna, Kano, Benin, Ibadan, Abuja and Port Harcourt who came second through effective time management as it was on same aggregate points with 3rd, 4th and 5th position.

    He said all the competitors are winners irrespective of their positions, the performances have shown their capacities toward rendering standard sale and safety servicing to customer without worries.

    “This prove they are working, they know the job and understand the goal of Total, which is customer friendly oriented and training imparted on them is not lost of money or time”, he said

    He emphasised the significant impact of the competition scope to be a way to balancing check and encourage others to do better, adding that, it always has added value and good result on the company’s profile.

    However, the winner of this year’s competitor which is Lagos south will be receiving gift from the management including tours and other benefits.

    According to the helmsman, the NIGOSCARS is an incentive scheme used by the company to encourage and reward commitment and dedication to duty. It is a top service competition geared towards customer satisfaction centred on the delivery of the company’s service offered to customers regularly on its stations forecourts.