Total Nigeria Forecasts Cash Flow Of N19.17bn In Q3, 2021

Total Nigeria Forecasts Cash Flow Of N19.17bn In Q3, 2021

Total Exploration and Production Nigeria Total Nigeria Forecasts Cash Flow Of N19.17bn In Q3, 2021

Total Nigeria Plc has forecast a free cash flow of N19.17bn by September 31 after purchases of fixed assets have been accounted for.

The company said in a statement that it expects revenue of N66.03bn in the third quarter with a gross profit margin of 17.22 per cent.

Total Nigeria put its expected profit before tax and profit after tax at about N3.46bn and N2.34bn respectively.

Investopedia defines free cash flow as the cash a company produces through its operations after subtracting an outlays for cash for investment in fixed assets like property, plant and equipment.

In a business with significant costs expended within its value chain, Total Nigeria estimates that cash paid to suppliers and employees between July and September would gulp N45.66bn from its N66.03bn projected revenue.

The company said it would spend about N1.2bn on the purchase of fixed assets.

After accounting for changes in cash flows from financing, investing and operating activities, Total sees its cash and cash equivalents closing at N10.28bn by September 31.

It was recently reported that shareholders of Total Nigeria at the company’s last annual general meeting had approved a dividend of N6.08 per share amounting to N2.06bn.

“The company’s turnover for 2020 dropped by 29.79 per cent to N205bn as the effects of the COVID-19 pandemic made the year an unprecedented one,” the Chairman, Stanislas Mittelman, said.

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