TOTALENERGIES MARKETING NIGERIA : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

TOTALENERGIES MARKETING NIGERIA PLC

UNAUDITED FINANCIAL STATEMENTS

SEPTEMBER 2023

Contents	Page
Results at a glance	1
Statement of financial position	2
Statement of profit or loss and other comprehensive income	3
Statement of changes in equity	4
Statement of cash flows	5
Notes to the financial statements	6

TOTALENERGIES MARKETING NIGERIA PLC

RESULTS AT A GLANCE
FOR THE PERIOD ENDED	30 September		30 September
	2023		2022		Change
	₦'000		₦'000	%
Revenue	422,576,366	337,187,970	25
Profit before income taxation	16,621,122	18,783,302	(12)
Profit for the period	10,820,700	12,505,812	(13)
Total comprehensive income for the period	10,820,700	12,505,812	(13)
Share capital	169,761	169,761	-
Shareholders' funds	53,977,551	48,038,701	12
Total dividend	7,129,959	1,358,087
Interim dividend - declared	-	1,358,087
	30 September		30 September
	2023		2022		Change
PER SHARE DATA:				%
Based on 339,521,837 ordinary
shares of 50 kobo each:
Earnings per 50 kobo share (Naira) - basic	31.87	36.83	(13)
Stock exchange quotation (Naira)	385.00	211.10	82
Number of staff	425	432	(2)

At the board of directors meeting of 26 October, 2023, no interim dividend was declared for the period ended 30th September, 2023 (2022: ₦4.00)

1

TOTALENERGIES MARKETING NIGERIA PLC

STATEMENT OF FINANCIAL POSITION
AS AT	30 September		31 December
	2023	2022
Notes	₦'000		₦'000
Non-current assets

Property, plant and equipment Right-of-use assets Intangible assets

Trade and other receivables

Total non-current assets

Current Assets

Inventories

Witholding tax receivables Trade and other receivables Prepayments

Cash and cash equivalents

Total current assets

Total assets

Equity

Share capital

Retained earnings

Total equity

Non-current liabilities

Deferred tax liabilities

Lease liabilities

Employee benefits

Total non-current liabilities

Current liabilities

Current tax liabilities

Witholding tax payables Loans and borrowings

Trade and other payables

Deferred income

Lease liabilities

Total current liabilities

Total liabilities

Total equity and liabilities

16	42,628,622	41,866,105
17 (i)	7,765,105	7,938,283
15	147,974	191,875
19.1	5,319,461		1,985,733
	55,861,162		51,981,996
18	59,880,805	59,275,749
11.2.1	-	984,265
19	190,197,737	111,391,821
20	1,661,566	1,457,577
27	118,982,171		82,724,315
	370,722,279		255,833,727
	426,583,441	307,815,723
26
169,761	169,761
	53,807,790		50,117,049
	53,977,551		50,286,810
11.3	6,024,077	7,655,848
22	227,197	361,427
12	1,843,948		1,551,290
	8,095,222		9,568,565
11.2	7,122,226	6,351,740
11.2.1	206,743	-
21	146,111,618	47,741,972
24	206,524,629	190,091,170
25	4,311,210	3,402,832
22	234,242		372,634
	364,510,668		247,960,348
	372,605,890		257,528,913
	426,583,441	307,815,723

These financial statements were approved and authorised for issue by the Board of Directors of the Company on 26 October 2023 and signed on behalf of the Board by:

Seye Samba - Managing Director	Olubunmi Popoola-Mordi - Executive Director
FRC/2021/003/00000024858	FRC/2013/ICSAN/00000002042
Additionally certified by:

Samson Eghwerehe - Head of Finance

FRC/2018/ICAN/00000018952

The accompanying notes form an integral part of these financial statements.

2

TOTALENERGIES MARKETING NIGERIA PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months ended		For the nine months ended
30 September		30 September		30 September	30 September
2023		2022		2023	2022

Notes

₦'000

₦'000

₦'000

₦'000

Revenue	6
Cost of sales	7
Gross profit
Other income	8.1
Other expenses	8.1.2
Selling & distribution costs	10.1
Administrative expenses	10.2
Impairment write-back/ (loss) on	30 (iv)
financial assets
Operating profit
Finance income	9
Finance costs	9
Net finance costs
Profit before income taxation
Income taxation	11.1.1

Profit for the period

Other comprehensive income

Total comprehensive income for the period

Earnings per share

147,973,506 128,173,598

(126,888,550) (113,316,305)

21,084,956 14,857,293

1,230,199913,217

(4,805,084)-

(1,780,644) (721,564)

(11,228,719) (8,280,623)

(4,072) 376,062

4,496,636 7,144,385

1,034,113316,725

(2,385,680) (1,410,382)

(1,351,567) (1,093,657)

3,145,069 6,050,728

(1,111,717) (2,073,742)

2,033,352 3,976,986

--

2,033,352 3,976,986

422,576,366 337,187,970

(366,456,731) (292,528,715)

56,119,635 44,659,255

3,201,878 2,654,473

(6,307,886)-

(3,970,507) (3,050,405)

(29,156,230) (23,706,430)

75,223 124,596

19,962,113 20,681,489

2,284,610 1,438,639

(5,625,601) (3,336,826)

(3,340,991) (1,898,187)

16,621,122 18,783,302

(5,800,422) (6,277,490)

10,820,700 12,505,812

--

10,820,700 12,505,812

Basic and diluted earnings per share

14

5.99	11.71	31.87	36.83

The accompaying notes form an integral part of these financial statements.

3

TOTALENERGIES MARKETING NIGERIA PLC

STATEMENT OF CHANGES IN EQUITY

Balance at 1 January 2023

Profit for the period

Total comprehensive income for the period

Transactions with owners of the Company:

Contributions and Distributions

Prior year final dividend

Total transactions with owners of the Company

Balance at 30 September 2023

for the period ended 30 September 2023

Share		Retained		Total
capital		earnings		equity
₦'000		₦'000		₦'000

Notes

169,761 50,117,049 50,286,810

- 10,820,700 10,820,700

- 10,820,700 10,820,700

13.1	-		(7,129,959)		(7,129,959)
	-		(7,129,959)		(7,129,959)
	169,761	53,807,790	53,977,551
	for the period ended 30 September 2022
	Share		Retained		Total
	capital		earnings		equity
	₦'000		₦'000		₦'000

Notes

Balance as at 1 January 2022		169,761		41,449,544		41,619,305
Profit for the period		-	12,505,812	12,505,812
Total comprehensive income for the period
	-	12,505,812	12,505,812
Transactions with owners of the Company:
Contributions and Distributions
Forfeited dividend	13.1	-	92,881	92,881
Prior year final dividend	13.1	-		(6,179,297)		(6,179,297)
Total transactions with owners of the Company		-		(6,086,416)		(6,086,416)
Balance at 30 September 2022		169,761		47,868,940		48,038,701

The accompanying notes form an integral part of these financial statements.

4

TOTALENERGIES MARKETING NIGERIA PLC

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED		30 September		30 September
		2023	2022
	Note	₦'000		₦'000
Profit for the period		10,820,700	12,505,812
Adjustments for:
Depreciation of property, plant and equipment	16	4,181,644	3,964,152
Depreciation of right-of-use asset	17 (i)	1,557,786	1,586,472
Amortisation of intangible assets	15	57,173	34,612
Provision for employee benefits	12 (a)	326,496	249,000
Write back of inventory (Net)	18.1	175,661	259,798
Gain on disposal of property, plant and equipment	8	(269,827)	(17,554)
Net foreign exchange loss/(gain)	8.1.2	6,307,886	(71,414)
Net finance costs	9	3,340,991	1,898,187
Income taxation	11.1.1	5,800,422		6,277,490
		32,298,932	26,686,555
Changes in:
- Inventories	18 (a)	(780,717)	(27,218,425)
- Trade and other receivables	19.1 (a)	(84,817,470)	(46,678,475)
- Prepayments	20 (a)	(203,989)	746,338
- Trade and other payables	24	(10,734,000)	7,864,543
- Lease liabilities	23	22,754	74,743
- Witholding tax receivable	11.2.1	1,191,008	894,989
- Deferred income	25	908,378		250,334
Cash used in operating activities		(62,115,104)	(37,379,398)
Payment for employee benefits	12	(33,838)	(177,043)
Interest on staff loans	9	222,275	203,775
Interest on lease liabilities	9	(70,702)	(80,403)
Tax paid	11.2	(5,460,464)		(5,545,175)
Net cash used in operating activities		(68,659,076)	(44,114,810)
Cash flows from investing activities
Additions to right-of-use asset	17 (iii)	(1,384,608)	(803,831)
Purchase of property, plant and equipment	16	(5,003,146)	(6,357,648)
Purchase of intangible assets	15	(13,272)	(91,053)
Interest received on deposits for unclaimed dividend	9	62,844	58,232
Interest received on deposits	9	1,999,491	1,176,632
Proceeds from disposal of property, plant and equipment		328,810		48,725
Net cash used in investing activities		(4,009,881)	(5,968,943)
Cash flows from financing activities
Interest paid on import loans	9	(2,772,083)	(1,950,494)
Interest paid on other loans	9	(2,539,679)	(1,305,929)
Payment on lease liabilities	23	(295,375)	(440,934)
Additional borrowings	23	406,512,209	133,572,781
Repayment of borrowings	23	(365,130,565)	(41,755,725)
Dividends paid	13.1	(7,131,328)		(3,266,509)

Net cash generated from financing activities Net increase in cash and cash equivalents

Cash and cash equivalents at 1 January

Effect of movement in exchange rates on cash held

Cash and cash equivalents as at year ended 30 September

Cash and cash equivalents as at year ended 31 December

	28,400,041		84,853,190
	(44,268,916)	34,769,437
	82,724,315	62,952,682
8.2	22,909,019		758,170
27	61,364,418		98,480,289
			82,724,315

The accompanying notes form an integral part of these financial statements.

5

TOTALENERGIES MARKETING NIGERIA PLC

NOTES TO THE FINANCIAL STATEMENTS

1 The Company

Legal form:

The Company was incorporated as a private limited liability company in 1956 and was converted to a public company in 1978. The merger of the Company with Elf Oil Nigeria Limited which commenced globally in November 1999 was completed in Nigeria in 2002. With this development, the authorised, issued and fully paid share capital was ₦148,541,000 made up of 297,082,000 ordinary shares of 50k each. In 2003, to mark the completion of its corporate mergers, Total Group worldwide reverted to its former name Total and adopted a new logo with a unifying design to express its corporate ambition.

With the capitalisation of the bonus issue of 42,440,228 ordinary shares of 50k each in March 2004, the authorised share capital became ₦169,760,918 made up of 339,521,837 ordinary shares of 50k each. 61.72% of the Company's ordinary shares were held by Total Societe Anonyme up until 2013 when a restructuring was concluded and Total Raffinage Marketing became the shareholders of 61.72% of Total Nigeria Plc (now TotalEnergies Marketing Nigeria Plc) while the remaining 38.28% are held by some members of the general public. Total Raffinage Marketing is now called TotalEnergies Marketing Services.

In 2021, Total Group worldwide changed its name to TotalEnergies and adopted a new logo, thereby anchoring the transformation into a broad energy business within the Company's identity. Accordingly, the Company changed its name from Total Nigeria Plc to TotalEnergies Marketing Nigeria Plc in the same year.

	30 September 2023		31 December 2022
	Number		Holdings		Number		Holdings
	'000	%	'000	%
TotalEnergies Marketing Service	209,560	61.72	209,560	61.72
Other shareholders	129,962		38.28		129,962		38.28
	339,522	100.00	339,522	100.00

No shareholder, except as disclosed above, held more than 5% of the issued share capital of the Company as at 30 September 2023 (2022: nil).

Principal activities

The principal activity of the Company is the blending of lubricants, sales and marketing of refined petroleum products and solar products .

Description of business

TotalEnergies Marketing Nigeria Plc. ("the Company") is a subsidiary of TotalEnergies Marketing Services ("the Parent Company") in France and operates in the petroleum marketing and distribution business in Nigeria. The Company's registered office is situated at:

No. 4, Churchgate Street Victoria Island

Lagos State

2 Basis of preparation

1. Statement of compliance
   These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in the manner required by the Financial Reporting Council (FRC) of Nigeria (Amendment) Act, 2023 and the Companies and Allied Matters Act (CAMA), 2020.
2. Basis of measurement
   These financial statements have been prepared on the historical cost basis except otherwise indicated.
3. Functional and presentation currency
   These financial statements are presented in Nigerian Naira (NGN), which is the Company's functional currency. All financial information presented in Nigerian Naira have been rounded to the nearest thousand except otherwise stated.

6

TOTALENERGIES MARKETING NIGERIA PLC

NOTES TO THE FINANCIAL STATEMENTS

1. Financial period
   These financial statements cover the financial period from 01 January 2023 to 30 September 2023, with corresponding figures for the financial period from 01 January, 2022 to 30 September, 2022 and 01 January 2022 to 31 December, 2022 where applicable.
2. Going concern
   The directors have undertaken a review of the Company's business activities and have concluded that the Company will still be able to realise its assets and settle its obligations as they fall due and as such these financial statements have been prepared on the basis applicable to a going concern.
3. Significant events and transactions
   Other than events already disclosed in the various notes, there are no other significant events in the period that are required to be disclosed.
4. Use of estimates and judgments
   In preparing these financial statements, the directors have made certain judgements, estimates and assumptions that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
   Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised prospectively.

1. Judgement
   Information about judgements made in applying accounting policies that have the most significant effects on amounts recognised in the financial statements are as follows;

1. Cash held with Total Treasury - Note 27
   Determining if balances held with Total Treasury meets the criteria for classification as cash and cash equivalents.
2. Lease term - Note 17 (iv)
   In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
3. Asset retirement obligation - Note 17 (iv)
   Whether the Company will dismantle and remove its leasehold improvements on underlying asset or restore underlying asset.

1. Assumptions and estimation uncertainties
   Information about assumptions and estimation uncertainties at 31 December 2022 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year includes;

1. Measurement of defined benefit obligation: Key actuarial assumptions
   The amount recognised in note 12 of the financial statements as employee benefits - measurement of the Company's employee benefits. This estimate relates to the discount rate, withdrawal, mortality and inflation rate applied in the computation of the Company's liabilities.
2. Measurement of Expected Credit Loss (ECL) allowance - Note 30(iv)
   Information about measurement of trade receivables and contract assets: Key assumptions in determining the weighted-average loss rate.
3. Measurement of contingencies - Note 28
   Recognition of contingencies - key assumptions about likelihood and magnitude of an outflow of resources.
4. Incremental borrowing rate - Note 23 Estimation of the applicable borrowing rates.

7

TOTALENERGIES MARKETING NIGERIA PLC

NOTES TO THE FINANCIAL STATEMENTS

3 New standards and interpretations not yet adopted

Amendments to Standards and Interpretations are effective for annual periods beginning after 1 January 2023 and early application is permitted; however, the Company has not applied the amended standards in preparing these financial statements. Those Amendments to Standards and Interpretations which may be relevant to the Company are set out below.

The directors are of the opinion that the impact of the application of the relevant standards and interpretations will be as follows:

Standard/Interpretation		Date	Effective date
	Periods
effective	as	at	30	issued	Summary of the requirements and assessment of impact
beginning on
September 2023			by IASB	or after
Amendments		Disclosure		January	1 January 2023	The IASB amended IAS 1 to require entities to disclose their material
to IAS 1 and		of			2020		rather than their significant accounting policies. The amendments define
IFRS Practice	Accounting			what is 'material accounting policy information' and explain how to identify
Statement 2		Policies				when accounting policy information is material.
							They further clarify that immaterial accounting policy information does not
							need to be disclosed. If it is disclosed, it should not obscure material
							accounting information. To support this amendment, the IASB also
							amended IFRS Practice Statement 2 Making Materiality Judgements to
							provide guidance on how to apply the concept of materiality to accounting
							policy disclosures.
							The amendments are not expected to have a significant impact on the
							Company's financial statements.
Amendments		Definition	of	January	1 January 2023	The amendment to IAS 8 Accounting Policies, Changes in Accounting
to IAS 8		Accounting	2020		Estimates and Errors clarifies how companies should distinguish changes
		Estimates				in accounting policies from changes in accounting estimates.
							The distinction is important, because changes in accounting estimates are
							applied prospectively to future transactions and other future events,
							whereas changes in accounting policies are generally applied
							retrospectively to past transactions and other past events as well as the
							current period.
							The amendments are not expected to have a significant impact on the
							Company's financial statements.
Amendments		Deferred		January	1 January 2023	The amendments to IAS 12 Income Taxes require companies to recognise
to IAS 12		Tax	related	2020		deferred tax on transactions that, on initial recognition, give rise to equal
		to	Assets			amounts of taxable and deductible temporary differences. They will typically
		and					apply to transactions such as leases of lessees and decommissioning
		Liabilities				obligations, and will require the recognition of additional deferred tax assets
		arising from			and liabilities.
		a	Single
		Transaction			The amendment should be applied to transactions that occur on or after the
							beginning of the earliest comparative period presented. In addition, entities
							should recognise deferred tax assets (to the extent that it is probable that
							they can be utilised) and deferred tax liabilities at the beginning of the
							earliest comparative period for all deductible and taxable temporary
							differences associated with:
							- right-of-use assets and lease liabilities, and
							- decommissioning, restoration and similar liabilities, and the corresponding
							amounts recognised as part of the cost of the related assets.
							The cumulative effect of recognising these adjustments is recognised in
							retained earnings, or another component of equity, as appropriate.
							IAS 12 did not previously address how to account for the tax effects of on-
							balance sheet leases and similar transactions and various approaches
							were considered acceptable.
							The amendments are not expected to have a significant impact on the
							Company's financial statements.

8