TotalEnergies Marketing Ghana PLC has reported a drop in profitability for the first quarter of 2026, with earnings pressured by declining revenue, rising operating costs and impairment charges, even as gross profit remained stable.
The company posted a group profit after tax of GH¢60.4 million for the period ending March 31, 2026, down from GH¢81.7 million recorded in the same period last year. Profit before tax also fell to GH¢102.6 million, compared with GH¢122.1 million in 2025.
Group revenue declined sharply to GH¢1.18 billion from GH¢1.88 billion a year earlier. However, cost of sales also dropped significantly, helping to keep gross profit relatively unchanged at GH¢228.0 million, compared with GH¢226.4 million previously.
The company noted that “gross profit remained broadly stable,” suggesting that effective margin management helped cushion the impact of weaker sales performance.
Rising Costs and Impairments Weigh on Earnings
Despite stable margins, higher operating expenses eroded profitability. General, administrative and selling expenses increased to GH¢124.6 million from GH¢103.7 million.
In addition, the company recorded an impairment charge on trade receivables of GH¢9.6 million, compared with an impairment release of GH¢1.7 million in the same period last year.
As a result, operating profit declined to GH¢106.2 million from GH¢136.4 million in March 2025.
Finance costs fell sharply to GH¢3.7 million from GH¢15.0 million, offering some support to earnings. Finance income remained largely unchanged.
At the company level, profit after tax also dropped to GH¢57.1 million, while basic earnings per share declined, reflecting the overall reduction in profitability.
Balance Sheet Shows Reduced Assets and Liabilities
Total assets declined to GH¢1.72 billion from GH¢2.01 billion, driven by lower receivables and cash balances. Cash and cash equivalents fell to GH¢100.8 million from GH¢190.3 million.
Liabilities also decreased to GH¢1.11 billion from GH¢1.32 billion, supported by reductions in overdrafts and borrowings. Shareholders’ equity stood at GH¢610.9 million, down from GH¢692.8 million.
The first-quarter results present a mixed performance. While TotalEnergies Ghana maintained margins and improved cash flow from operations, the decline in revenue and rise in costs weighed heavily on overall earnings.
The company acknowledged that “the key test for the rest of 2026 will be whether it can rebuild revenue momentum while preserving margins.”
As competition intensifies in Ghana’s downstream petroleum sector, sustaining profitability will depend on balancing sales growth with cost control and operational efficiency.
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