TOTAL NIGERIA: TOTALLY UNFORGETTABLE 2016.

The financial year to December 30 2016 may well turn out to one totally unforgettable one for Total Nigeria PLC.

According to the annual report for the year released recently, virtually everything fell in place throughout the year and total Nigeria cruised home with 213.3% jump in profit before tax to N20 353.1m.

First to fall in place was 32% increase in cost of sale to N241,850.7m while generating 39.9% growth in associated revenue to N290,952.5m.

This led to near doubling of gross profit to N49,101.8m as base foundation for overall full year profit.

Total Nigeria built in this foundation so well by limiting selling and distribution expenses growth to only 0.99% to N4715.8m and equally succeeding less remarkably with administration cost which at 5.42% up did threaten the gross profit foundation.

Hence even as finance charges dropped by 52.4% to N851.9m; as finance income dropped by higher 86.5% to N273.6m and N9058.5m other expenses not incurred in 2016 surfaced;  the leap in profit before remained a sure horse.

Then a closer look at the figures bring up some what if questions that can tempt to say waoh.

This is because the years breasted tape also took in its stride net loss associated with foreign exchange of about N9056.5m and loss of about N1716.9m income associated with petroleum subsidy in 2015 that did not produce a drop in 2016.

Then one more thing: What if Total Nigeria had been more tight fisted to disallow 96.9% growth in trade receivables to N48,497.6m; not mounted inventories by 100.6% to N34,902.8m and prepaid 153.9% more, certainly finance charges will have been reduced to almost zero while earning more from cash deposits. Working capital deficit would have closed faster too.

Well the net result was that Total Nigeria's directors are recommending to shareholders N7 more per share as final dividend after paying N10 earlier as interim.

Naturally, hope year 2017 will turn 2016 to  an easily forgettable year with better performance. Yea, that's always why the profit trap is like food, no one eats enough of anything to satisfy hunger forever. The same with annual profit.

TOTAL NIGERIA: Nbn Full year
                                2016.        2015
Total income.      292.7.       211.3
Core revenue.      291.0.       208.0
Cost of sale.         241.9.       183.3
Gross profit.           49.1.         24.8
Other income.        14.5.         12.0
Other expenses.     9.06.          -
Selling Distr.            4.72.          4.67
Administration.      15.8.         15.0
Finance income     0.27.         2.03
Finance expense   0.85.         1.79
Profit b4 tax.         20.4.           6.50
Working capital  (6342.2). (7284.5)
Borrowings.            9.22.        13.9
Inventories.           34.9.          17.4
Receivables          48.5.          24.6
Prepayments.        1.53.         0.60
Payables.              95.7.         48.3


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