We maintain a favorable outlook for Total Energies Marketing Nigeria PLC (TOTAL). The company has successfully grown its topline to over a trillion Naira, driven by its leadership position within Nigeria’s downstream oil and gas sector as demonstrated in its robust FY’24 financial performance.
Consequently, we have revised our 12-month Target Price (‘TP’) to N795.04 (vs N587.50 previously), reaffirming our BUY recommendation. This stance is premised on TOTAL’s demonstrated ability to strategically leverage the deregulation of the PMS market, which we believe will provide significant opportunities for revenue expansion and operational efficiency in FY’25. Furthermore, with enhanced refining capacity and reduced reliance on imports in Nigeria, we anticipate that TOTAL will deliver relatively stable profit margins in FY’25. This improvement is expected to be driven by a combination of gradual reduction in input costs, the implementation of global market-reflective pricing, and TOTAL’s extensive retail market coverage, which enhances its ability to capitalise on emerging opportunities in the downstream sector, including the gradual transition to Compressed Natural Gas (CNG).
