Finance

Total Nigeria’s shares to further drop on the NSE, after a bad year 2019

Total Nigeria’s shares to further drop on the NSE, after a bad year 2019
Thursday, 27 February 2020 17:21

Nigeria-based analysis and investment firm CardinalStone calls upon investors to ditch their interest in Total Nigeria. The capital market company says Total has a current stock market value of 21 times its last net profit. This indicator is on average 8 times the net profit for companies operating on the same segment.

Indeed, the year 2019 was a tough one for the local arm of French group Total, which ended the year with net income of 2.4 billion Naira ($6.58 million), down by 69.9% compared to 2018. This result was only possible thanks to an exceptional income of 2.8 billion naira, generated through asset transfer during the fourth quarter of 2019. Excluding this transaction, Total Nigeria posted a loss of 341.4 million Naira against a gain of 184.9 million Naira in the year 2018.

According to the National Bureau of Statistics, inflation has risen by 12.1%, putting pressure on the consumption capacity of businesses and households. A reduction in demand is to be expected. At the same time, downstream petroleum product marketers are vying for market shares. Most of the fuel sold in Nigeria is imported, and supply charges are likely to increase due to new environmental rules for maritime transport.

Idriss Linge

On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
03

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
04

• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...

EY’s Exit Creates $1bn Opportunity in Francophone Africa Consulting Market
05

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.