See the oil companies that spent N833 billion on fuel imports in 2024

• Four prominent oil marketers spent about N833 billion importing fuel in the first nine months of 2024
• The oil firms include TotalEnergies Marketing Nigeria, MRS Oil Nigeria, Eterna Plc, and Conoil Plc.
• The information is based on the firm’s nine-month financial statements, listed on the Nigerian Exchange Limited (NGX).

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s prominent oil marketers have benefited from the country’s subsidy removal on petroleum products.

The change has allowed marketers to operate in a more market-driven environment, leading to more financial gains.

Oil marketers show off impressive earnings from petrol sales Credit: Bloomberg/Contributor
Source: UGC

Subsidy removal leads to increasing gains for marketers

In the first nine months of 2024, four prominent oil marketers reported a vast revenue gain, earning about N1.3 trillion from selling petroleum products to Nigerians.

Despite the vast fuel import costs, the oil firms spent N833.86 billion importing petroleum products within the period, increasing their gross profit on petrol sales to N465.92 billion.

The information is based on the firm’s nine-month financial statements, listed on the Nigerian Exchange Limited (NGX).

The oil firms include TotalEnergies Marketing Nigeria, MRS Oil Nigeria, Eterna Plc, and Conoil Plc.

Due to subsidy removal, the companies overcame the rising operational costs to achieve more than 100% yearly growth in their nine-month net profits.

In May 2023, President Tinubu announced the removal of the petroleum products subsidy, which led to a rise in petrol prices from N200 per litre in May last year to N 060 as of November 2024.

The rise in petrol prices increases revenue

The rise in petroleum product prices has led to the revenues of oil marketers surging more than 100%.

The statement indicated the four marketers posted a combined profit after tax of N45.3 billion, representing a significant 146% yearly growth from the N18.5 billion posted in the same period of 2023.

An analysis of the results shows that the firms spent N833.86 billion importing fuel between January and September 2024, representing a rise of 99.4% or N415.76 billion from N418.1 billion in the same period of 2023.

Revenue from petrol sales rose 98.4% or N644.57 billion from N655.2 billion in 2023 to N1.29 trillion in 2024.

Leading oil marketers’ financial reports

According to a Punch report, TotalEnergies Marketing Nigeria spent the most on fuel imports, posting about N234.68 billion in fuel imports in the first three quarters of this year.

The amount represents an increase of 84.95% from N126.88 billion spent on fuel imports in 2023.

It also made a revenue of N634.1 billion from N326.38 billion in 2023.

The development means that the oil company grossed N399.4 billion in profits in 2024, a 100% spike from N199.49 billion gross earnings in 2023.

Also, Conoil spent N220.53 billion importing fuel in the first nine months of this year. The oil company spent N117.13 billion on fuel imports in 2023.

However, Conoil’s revenue from the sales of petroleum products rose by 82.96% to N244.53 in 2024 from N133.65 billion revenue in 2023, showing a gross profit increase of 45.27%.

Eterna Plc spent N179.51 billion on fuel imports but earned N203.18 billion in 2024. Last year, it spent N98.49 billion importing fuel and earned N109 billion as revenue, a gross profit rise of 125.21%.

MRS Oil spent N199.14 billion importing fuel but earned N217.98 billion in 2024.

Reports say the firm spent N75.58 billion on fuel imports and earned N86.17 billion as revenue, a gross profit increase of 77.9%.

The oil firm disclosed in its statement that its average monthly revenue rose 200% relative to revenue performances before the deregulation.

MRS Oil added that sales volume improved in the last quarter of the year, and the business exceeded budget expectations.

However, it added that the policy affected the company’s working capital requirements by more than 180% and increased finance costs on bank credit for product purchases.

Experts predict price moderation

Experts believe that the remarkable performance of the oil firms shows the financial impact of the deregulation of the downstream oil sector and potential profitability in the oil sector.

The policy shift by the Nigerian government transformed the oil industry’s landscape for marketers but raised questions about the implications for consumers and the economy.

Energy policy analyst Adeola Yusuf said the marketers’ remarkable financial results underpin the importance of sound policies.

“The situation is a win-win for both the marketers and the government. However, the consumers currently bearing the brunt will not only adjust but see improvements in pricing as more players and refineries come on stream,” he said.

Seven vessels land with petroleum products

Legit.ng reported that the Nigerian Ports Authority has disclosed that seven ships will dock with crude oil at the Lagos ports on Friday, November 1, 2024.

The NPA disclosed this in its Daily Shipping Position, saying seven vessels out of the nine expected would discharge diesel, crude oil, bulk urea, petrol and aviation fuel.

According to the NPA, about two vessels were waiting to discharge items from the Apapa and Tin Can Island ports with bulk and aviation fuel.

Dangote announces new petrol prices

Legit.ng earlier reported that Dangote Petroleum Refinery has announced that it sells prices of Premium Motor Spirit (PMS), also known as petrol, for ship deliveries at N960 per litre and N990 per litre for truck supplies.

Anthony Chiejina, the refinery’s Group Chief Branding and Communications Officer, disclosed the petrol pricing in a statement.

In the statement, Dangote Refinery also dismissed marketers' claims that its prices are higher than those of imported fuel.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng