Four of the major oil marketing companies in Nigeria saw their combined revenue surged by 46.96 per cent last year as fuel demand recovers from the impact of the COVID-19 pandemic.
The companies, namely Conoil Plc, TotalEnergies Marketing Nigeria Plc, MRS Oil Nigeria Plc and Eterna Plc, grew their total revenue by N198.9bn in 2021 to N622.42bn.
Their financial statements, obtained from the Nigerian Exchange Limited on Wednesday, showed that two of them recorded profit growth, one returned to profitability while the remaining one posted a loss.
TotalEnergies Marketing Nigeria, a subsidiary of a French energy major, TotalEnergies, saw its profit before tax soar by 759 per cent to N24.99bn in 2021 from N2.91bn in the previous year. Its revenue increased to N341.17bn from N204.72bn.
TotalEnergies is the only international oil company still operating in the downstream sector of the Nigerian oil and gas industry.
Conoil’s profit before tax surged by 76.6 per cent to N3.79bn last year from N2.15bn in 2020, while its revenue rose to N126.69bn from N117.47bn.
MRS Oil Nigeria Plc posted a profit before income tax of N114.75m, compared with a loss before tax of N2.26bn in 2020. Its revenue grew to N71.98bn from N41.98bn.
Eterna Plc reported a loss before tax of N647.93m last year, compared with a profit after tax of N702.46m in 2020. Its revenue, however, rose to N82.58bn from N59.35bn.
The company had in November last year announced that Preline Limited had completed the acquisition of 794,969,774 ordinary shares of the company, representing 60.98 per cent stake, thus making it the largest and majority shareholder in Eterna.
The market size of the major petroleum products in Nigeria is estimated at N3.4tn, based on 2020 total consumption and average prices, according to a recent report by FSDH Capital Limited and the Major Oil Marketers Association of Nigeria.
The report said Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and others accounted for 82 per cent, 12 per cent and six per cent respectively.
It said, “It is expected that Nigeria’s fuels consumption will grow robustly over the next 10 years. This is typical for an emerging economy with strong demographics, construction sector growth and private consumption expansion.
“Kerosene, diesel and residual fuel are the secondary fuels in terms of consumption and are all set to steadily increase over the coming years. Transport is the main sector driving fuels consumption growth, with the total fleet expected to expand from 950,000 in 2017 to 1.63 million in 2025.”