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Total Nigeria Plc projects N115.97bn revenue for Q1 2021

Total Nigeria Plc has projected a rise in its revenue to N115.97 billion for the first quarter of 2021 (Q1, 2021), indicating a 157.7 per cent increase from the figure recorded in Q3 2020.

This is according to the latest earnings forecast of the firm, sent to the Nigerian Stock Exchange market.

Information obtained by our correspondent indicated that key highlights of earnings in the first quarter of 2021 as projected shows that Pre-tax profit is expected to rise to N2.23 billion, +55% Q-o-Q, while gross profit is expected to increase to N12.4 billion, +43.7% Q-o-Q.

Other income is expected to rise to N811.8 million, +117.7% Q-o-Q. Cost of sales is expected to hit N103.57 billion, +184.8% Q-o-Q. Gross profit is expected to increase to N12.4 billion, +43.7% Q-o-Q.

Other income is expected to rise to N811.8 million, +117.7% Q-o-Q. Selling and distribution cost is expected to rise to N2.6 billion, +253.8% Q-o-Q.

Administrative expenses are expected to increase to N7.92 billion, +31% Q-o-Q. Operating profit is expected to rise to N2.7 billion, +35% Q-o-Q. Net finance costs is expected to decline to N471 million, -16.1% Q-o-Q, due to relatively higher projected finance costs for Q1 2021.

The optimistic outlook by the firm might be attributable to predictions by analysts and experts of an upward trend in oil prices by 2021.

For example, the U.S Energy Information Administration (EIA) had in its November Short-Term Energy Outlook (STEO) predicted an upward trajectory in oil prices by 2021, just as global oil demand rises. It expects Brent to average $47 per barrel, up from $44 per barrel.

In addition, growing optimism over the approval of an effective vaccine soon (most likely on or before Q1 2021) might trigger an announcement effect.

Source: Independent

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