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TotalEnergies Marketing Nigeria Plc has faced its first financial setback in six years, with its 2025 performance marking a sharp decline.

For the year ended December 31, 2025, the company posted a pre-tax loss of N12.5 billion, a dramatic shift from the N42.26 billion pre-tax profit recorded in 2024.

This downturn was driven by lower revenue, rising costs, and increasing finance expenses.

The drop in revenue was the central factor behind the company’s poor financial performance.

In 2025, TotalEnergies’ revenue fell by 26%, from N1.04 trillion in 2024 to N767.63 billion. The reduction in sales volumes, compounded by external market pressures, left the company struggling to cover its cost of sales, which amounted to N685.56 billion.

This directly resulted in a gross profit of N82.07 billion, a 29% year-on-year decline.

The pre-tax loss is not just a reflection of poor performance in 2025 but also a sign of deeper financial struggles that have weakened the company’s position across several key metrics.

One of the most concerning consequences of TotalEnergies’ financial downturn is the impact on its historically strong dividend track record.

The company’s share price has also shown weakness.

In terms of valuation, TotalEnergies is trading at about 5 times its book value.

While this premium may reflect expectations of future earnings and growth potential, the negative EPS and overall poor performance suggest that investors may be paying a high price for the stock relative to its current financial health.

This raises concerns that the stock may be overvalued, especially given the company’s struggles to maintain profitability and its uncertain future.

As TotalEnergies navigates these financial challenges, its ability to regain profitability and restore its dividend policy will depend on its capacity to manage costs effectively and stimulate revenue growth.