Totalenergies Marketing Nigeria PlcNSENG: TOTAL

Quarter 1 - financial statement for 2026

Apr 29, 2026 at 7:16 PM UTC · Issued by Totalenergies Marketing Nigeria Plc

TOTALENERGIES MARKETING NIGERIA PLC UNAUDITED FINANCIAL STATEMENTS 31 MARCH 2026

RESULTS AT A GLANCE FOR THE PERIOD ENDED	31 March		31 March
	2026		2025	Change
	₦'000		₦'000	%
Revenue	197,180,236		221,621,207	(11)
Profit before income taxation	1,913,861		1,121,951	71
Profit/(loss) for the period	1,171,296		(120,027)	(1,076)
Total comprehensive income/(loss) for the period	1,171,296		(120,027)	(1,076)
Share capital	169,761		169,761	-
Shareholders' funds	48,711,197		61,380,138	(21)
	31 March		31 March
	2026		2025	Change
PER SHARE DATA:				%
Based on 339,521,837 ordinary shares of 50 kobo each:
Earnings/(Loss) per 50 kobo share (Naira) - basic	3.45		(0.35)	(1,076)
Stock exchange quotation (Naira)	640.00		679.70	(6)
Number of staff	404	420		(4)

STATEMENT OF FINANCIAL POSITION
AS AT		31 March	31 December
		2026	2025
	Notes	₦'000	₦'000
Non-current assets
Property, plant and equipment	16	60,411,165	62,038,414
Right-of-use assets	17 (i)	12,848,474	9,772,313
Intangible assets	15	60,209	74,426
Trade and other receivables	19.1	4,918,217	6,021,005
Total non-current assets		78,238,065	77,906,158
Current Assets
Inventories	18	97,692,514	133,460,192
Witholding tax receivables	11.2.1	1,459,422	845,156
Trade and other receivables	19	125,596,435	129,575,047
Prepayments	20	4,474,494	1,979,387
Cash and cash equivalents	27	48,551,802	44,784,443
Total current assets		277,774,667	310,644,225
Total assets		356,012,732	388,550,383
Equity Share capital	26	169,761	169,761
Retained earnings		48,541,436	47,370,140
Total equity		48,711,197	47,539,901
Non-current liabilities
Deferred tax liabilities	11.3	6,901,258	6,416,452
Lease liabilities	22	966,657	343,925
Employee benefits	12	3,758,693	3,456,959
Total non-current liabilities		11,626,608	10,217,336
Current liabilities
Current tax liabilities	11.2	3,952,795	3,695,036
Loans and borrowings	21	100,008,736	84,671,515
Trade and other payables	24	185,535,175	236,527,566
Deferred income	25	5,181,588	5,544,439
Lease liabilities	22	996,633	354,590
Total current liabilities		295,674,927	330,793,146
Total liabilities		307,301,535	341,010,482
Total equity and liabilities		356,012,732	388,550,383

These financial statements were approved and authorised for issue by the Board of Directors of the Company on 27th April 2026 and signed on behalf of the Board by:

Wilfried Konde - Managing Director Olubunmi Popoola-Mordi - Executive Director

FRC/2013/IODN/00000002084 FRC/2013/ICSAN/00000002042

Additionally certified by:

Samson Eghwerehe - Head of Finance

FRC/2018/ICAN/00000018952

The accompanying notes form an integral part of these financial statements.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED
	31 March 2026	31 March 2025
Notes	₦'000	₦'000
Revenue 6	197,180,236	221,621,207
Cost of sales 7	(170,227,608)	(197,112,889)
Gross profit	26,952,628	24,508,318
Other income 8.1	1,962,115	2,393,211
Other expenses 8.1.2	-	(6,586)
Selling & distribution costs 10.1	(2,246,299)	(2,204,114)
Administrative expenses 10.2	(20,453,786)	(17,709,464)
Net impairment loss on financial assets 30 (iv)	(23,912)	(17,095)
Operating profit	6,190,746	6,964,270
Finance income 9	490,923	986,979
Finance costs 9	(4,767,808)	(6,829,298)
Net finance costs	(4,276,885)	(5,842,319)
Profit before income taxation	1,913,861	1,121,951
Minimum taxation 11.1.3	-	(1,108,106)
Income taxation 11.1.1	(742,565)	(133,872)
Total comprehensive income/(loss) for the period	1,171,296	(120,027)
Earnings per share
Basic and diluted earning/(loss) per share 14	3.45	(0.35)
The accompanying notes form an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY
			for the year ended	31 March 2026
		Share capital ₦'000	Retained earnings ₦'000	Total equity ₦'000
	Notes
Balance at 1 January 2026		169,761	47,370,140	47,539,901
Profit for the period	14	-	1,171,296	1,171,296
Total comprehensive profit for the period		-	1,171,296	1,171,296
Balance at 31 March 2026		169,761	48,541,436	48,711,197

for the year ended 31 March 2025

		Share capital ₦'000	Retained earnings ₦'000	Total equity ₦'000
	Notes
Balance as at 1 January 2025		169,761	74,911,277	75,081,038
Profit for the period	14	-	(120,027)	(120,027)
Total comprehensive income for the period		-	(120,027)	(120,027)
Transactions with owners of the Company:
Contributions and Distributions Prior year final dividend	13.1	-	(13,580,873)	(13,580,873)
Total transactions with owners of the Company		-	(13,580,873)	(13,580,873)
Balance at 31 March 2025		169,761	61,210,377	61,380,138

The accompanying notes form an integral part of these financial statements.

TOTALENERGIES MARKETING NIGERIA PLC
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED	31 March	31 March
	2026	2025
Note	₦'000	₦'000
Profit/(loss) for the period	1,171,296	(120,027)
Adjustments for:
Depreciation of property, plant and equipment 16	3,040,795	1,753,096
Depreciation of right-of-use asset 17 (i)	744,222	496,617
Amortisation of intangible assets 15	14,217	14,474
Provision for employee benefits 12 (i)	306,757	477,200
Net impairment write-back on financial assets 19 (a)	23,912	17,095
Write back of inventory (Net) 18 (a)	1,492,232	-
(Gain)/loss on disposal of property, plant and equipment 8.1	(696)	6,586
Net foreign exchange gain 8.2	(172,981)	(490,417)
Net finance costs 9	4,276,885	5,842,319
Income taxation 11.1.1	742,565	133,872
Minimum taxation 11.1.3	-	1,108,106
	11,639,205	9,238,921
Changes in:
- Inventories 18 (a)	34,275,446	37,063,096
- Trade and other receivables 19.1 (a)	3,767,081	(13,641,213)
- Prepayments 20 (a)	(2,495,107)	(143,006)
- Trade and other payables 24 (a)	(48,330,548)	(28,368,890)
- Witholding tax credit note utilized 11.2.1	(614,267)	(8,792)
- Deferred income 25 (a)	(362,851)	353,721
Cash (used in)/generated from operating activities	(2,121,041)	4,493,837
Payment for employee benefits 12 (i)	(5,023)	(821)
Interest received on staff loans 9	66,228	86,503
Interest paid on lease liabilities 9	(188,926)	(46,895)
Net cash (used in)/generated from operating activities	(2,248,762)	4,532,624
Cash flows from investing activities
Additions to right-of-use asset 17 (iii)	(3,820,383)	(12,750)
Purchase of property, plant and equipment 16	(1,413,546)	(1,715,669)
Interest received on deposits for unclaimed dividend 9	66,987	28,867
Decrease/(increase) in long term receivables 19.1 (a)	1,102,788	1,550,094
New leases 23	1,585,227	(93,452)
Interest received on deposits 9	357,708	871,609
Proceeds from disposal of property, plant and equipment 16.2	696	-
Net cash (used in)/generated from investing activities	(2,120,523)	628,700
Cash flows from financing activities
Interest paid on bank overdraft 9	(4,578,882)	(6,782,403)
Payment on lease liabilities 23	(320,452)	(625,860)
Dividends paid 13.1	(5,153)	-
Net cash used in financing activities	(4,904,487)	(7,408,262)
Net decrease in cash and cash equivalents	(9,273,772)	(2,246,938)
Cash and cash equivalents at 1 January	(39,887,072)	(24,387,135)
Effect of movement in exchange rates on cash held 8.2	(2,296,090)	14,961,740
Cash and cash equivalents as at period ended 31 March 27	(51,456,934)	(11,672,333)
Cash and cash equivalents as at year ended 31 December		(39,887,072)
The accompanying notes form an integral part of these financial statements.

The Company Legal form:

The Company was incorporated in NIgeria as a private limited liability company in 1956 and was converted to a public company in 1978. The merger of the Company with Elf Oil Nigeria Limited which commenced globally in November 1999 was completed in Nigeria in 2002. With this development, the authorised, issued and fully paid share capital was ₦148,541,000 made up of 297,082,000 ordinary shares of 50k each. In 2003, to mark the completion of its corporate mergers, Total Group worldwide reverted to its former name Total and adopted a new logo with a unifying design to express its corporate ambition.

With the capitalisation of the bonus issue of 42,440,228 ordinary shares of 50k each in March 2004, the authorised share capital became

₦169,760,918 made up of 339,521,837 ordinary shares of 50k each. 61.72% of the Company's ordinary shares were held by Total Societe Anonyme up until 2013 when a restructuring was concluded and Total Raffinage Marketing became the shareholders of 61.72% of Total Nigeria Plc (now TotalEnergies Marketing Nigeria Plc) while the remaining 38.28% are held by some members of the general public. Total Raffinage Marketing is now called TotalEnergies Marketing Services.

In 2021, Total Group worldwide changed its name to TotalEnergies and adopted a new logo, thereby anchoring the transformation into a broad energy business within the Company's identity. Accordingly, the Company changed its name from Total Nigeria Plc to TotalEnergies Marketing Nigeria Plc in the same period.

31 March 2026 31 December 2025

	Number	Holdings	Number	Holdings
	'000	%	'000	%
TotalEnergies Marketing Service	209,560	61.72	209,560	61.72
Other shareholders	129,962	38.28	129,962	38.28
	339,522	100.00	339,522	100.00

No shareholder, except as disclosed above, held more than 5% of the issued share capital of the Company as at 31 March 2026 (2025: nil).

Principal activities

The principal activity of the Company is the blending of lubricants, sales and marketing of refined petroleum products and solar products.

Description of business

TotalEnergies Marketing Nigeria Plc. ("the Company") is a subsidiary of TotalEnergies Marketing Services ("the Parent Company") in France and operates in the petroleum marketing and distribution business in Nigeria. The Company's registered office is situated at:

Plot 1415-E, Adetokunbo Ademola Street Victoria Island

Lagos State

Basis of preparation
These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS Acounting Standards) as issued by the International Accounting Standards Board (IASB) and interpretations issued by the IFRS Interpretations Committee (IFRIC). The financial statements comply with IFRS Accounting Standards Board as issued, applicable to companies reporting under IFRS Accounting Standards, in the manner required by the Financial Reporting Council (FRC) of Nigeria (Amendment) Act, 2023 and the Companies and Allied Matters Act (CAMA), 2020.
1. Basis of measurement
  These financial statements have been prepared under the going concern and historical cost convention except for defined benefit liability measured using the projected unit credit method and lease liabilty measured at the present value of future lease payments.
2. Functional and presentation currency
  These financial statements are presented in Nigerian Naira (NGN), which is the Company's functional currency. All financial information presented in Nigerian Naira have been rounded to the nearest thousand except otherwise stated.
3. Financial period
  These financial statements cover the financial period from 01 January 2026 to 31 March 2026, with corresponding figures for the financial period from 01 January, 2025 to 31 March, 2025 and 01 January 2025 to 31 December, 2025 where applicable.
4. Going concern
  The directors have undertaken a review of the Company's business activities and have concluded that the Company will still be able to realise its assets and settle its obligations as they fall due and as such these financial statements have been prepared on the basis applicable to a going concern.
5. Significant events and transactions
  Other than events already disclosed in the relevant notes, there are no other significant events in the period that are required to be disclosed.
6. Use of estimates and judgments
  In preparing these financial statements, the directors have made certain judgements, estimates and assumptions that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
  Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised prospectively.
  1. Judgement
    Information about judgements made in applying accounting policies that have the most significant effects on amounts recognised in the financial statements are as follows;
    1. Lease term - Note 17 (iv)
      In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or years after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
    2. Asset retirement - Note 17 (iv)
      Management is required to estimate asset retirement obligations relating to the dismantling and the restoration of leased sites. These estimates involve significant judgement regarding the expected costs and timing of decommissioning activities. Based on current assessments, the financial impact of these obligations are considered immaterial.
  2. Assumptions and estimation uncertainties
    Information about assumptions and estimation uncertainties at 31 March 2026 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial period includes;
    1. Measurement of defined benefit obligation: Key actuarial assumptions
      The amount recognised in note 12 of the financial statements as employee benefits - measurement of the Company's employee benefits. This estimate relates to the discount rate, withdrawal, mortality and inflation rate applied in the computation of the Company's liabilities.
    2. Measurement of Expected Credit Loss (ECL) allowance - Note 30(iv)
      Information about measurement of trade receivables and contract assets: Key assumptions in determining the weighted-average loss rate.
    3. Depreciation
      Depreciation is based on management's estimates of asset useful lives and residual values, which may change over time.
    4. Income and deferred tax - Note 11
      The determination of income and deferred tax requires management judgement in estimating taxable profits and the recoverability of deferred tax assets.
    5. Measurement of contingencies - Note 28
      Recognition of contingencies - key assumptions about likelihood and magnitude of an outflow of resources.
    6. Incremental borrowing rate - Note 23
      Estimation of the applicable borrowing rates for lease liability.
      TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

New standards and interpretations

Amendments to Standards and Interpretations are effective for annual periods beginning after 1 January 2026 and early application is permitted; however, the Company has not applied the amended standards in preparing these financial statements. Those Amendments to Standards and Interpretations which may be relevant to the Company are set out below.

The directors are of the opinion that the impact of the application of the relevant standards and interpretations will be as follows:

Standard/Interpretation effective as at 31 March 2026

Date issued by IASB

Effective date Periods beginning on or

after

Summary of the requirements and assessment of impact

Amendment to

IFRS 9 and IFRS 7

Amendment to the

classification and measurement of financial instruments

May 2024

1 January 2026

On 30 May 2024, the IASB issued targeted amendments to IFRS Accounting

Standards 9 Financial Instruments and IFRS Accounting Standards 7 Financial Instruments: Disclosure to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:

The amendments in (b) are most relevant to financial institutions, but the amendments in (a), (c) and (d) are relevant to all entities.

The amendments are not expected to have a significant impact on the company's financial statements.

Amendment to

IFRS 1

Hedge accounting by a

first-time adopter

July 2024

1 January 2026

This amendment clarifies the interaction between IFRS 1 and IFRS 9 regarding

hedge accounting on transition. It resolves a potential inconsistency between paragraph B6 of IFRS 1 and the hedge accounting requirements of IFRS 9. Specifically, the amendment confirms that a first-time adopter can only continue hedge accounting relationships at the date of transition if those relationships meet the qualifying criteria under IFRS 9. Hedging relationships that were valid under previous GAAP but do not comply with IFRS 9 must be discontinued on transition. The amendments are not expected to have a significant impact on the company's financial statements.

Amendment to

IFRS 7

Gain or loss on

derecognition.

July 2024

1 January 2026

The amendment clarifies wording in paragraph B38 of IFRS 7 regarding

disclosures related to gains or losses arising from the derecognition of financial assets. The previous wording included an obsolete reference to a paragraph that was removed when IFRS 13 Fair Value Measurement was issued. The amendment corrects this reference to eliminate potential confusion and ensure consistent application of the disclosure requirements. The amendments are not expected to have a significant impact on the company's financial statements.

Amendment to

IFRS 7

Disclosure of deferred

difference between fair value and transaction price.

July 2024

1 January 2026

This amendment corrects an inconsistency between paragraph 28 of IFRS 7

and the related paragraph in the Implementation Guidance (IG). The inconsistency arose after a consequential amendment made to IFRS 7 following the issuance of IFRS 13 Fair Value Measurement. While paragraph 28 was updated to align with IFRS 13's fair value concepts, the corresponding paragraph in the implementation guidance was not updated, resulting in conflicting wording regarding the disclosure of deferred differences between fair value and transaction price. The amendment updates the implementation guidance to ensure consistency with the revised requirements in paragraph 28. The amendments are not expected to have a significant impact on the company's financial statements.

Amendment to

IFRS 7

Introduction and credit

risk disclosures.

July 2024

1 January 2026

The amendment addresses a potential confusion by clarifying in paragraph IG1

that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7 and by simplifying some explanations. The amendments are not expected to have a significant impact on the company's financial statements.

Amendment to

IFRS 9

Lessee derecognition of

lease liabilities.

July 2024

1 January 2026

The amendment addresses a potential lack of clarity in the application of the

requirements in IFRS 9 to account for an extinguishment of a lessee's lease liability that arises because paragraph 2.1(b)(ii) of IFRS 9 includes a cross-reference to paragraph 3.3.1, but not also to paragraph 3.3.3 of IFRS 9. The amendments are not expected to have a significant impact on the company's financial statements.

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion
add new disclosure for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and
update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS 3.1 New standards and interpretations not yet adopted (cont'd)

Standard/Interpretation effective as at 31 March 2026		Date issued by IASB	Effective date Periods beginning on or after	Summary of the requirements and assessment of impact
Amendment to IFRS 9	Transaction price	July 2024	1 January 2026	The amendment addresses a potential confusion arising from a reference in Appendix A to IFRS 9 to the definition of 'transaction price' in IFRS 15 Revenue from Contracts with Customers while term 'transaction price' is used in particular paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of that term in IFRS 15. The amendments are not expected to have a significant impact on the company's financial statements.
Amendment to IFRS 10	Determination of a 'de facto agent'	July 2024	1 January 2026	This amendment clarifies potential confusion in determining whether another party is acting as a 'de facto agent' of an investor. The previous wording in paragraphs B73 and B74 of IFRS 10 was not fully aligned and could lead to inconsistent interpretations when assessing whether a party is acting on behalf of the investor. The amendment aligns the language in both paragraphs to ensure a consistent approach when evaluating whether relationships or decision-making rights indicate that another party is effectively acting as the investor's agent. The amendments are not expected to have a significant impact on the company's financial statements.
Amendment to IAS 7	Use of the Term "Cost Method	July 2024	1 January 2026	This amendment clarifies wording in paragraph 37 of IAS 7 regarding cash flows arising from dividends received. The term "cost method", previously used in the standard, is no longer defined within IFRS Accounting Standards and therefore created potential confusion in interpretation. The amendment removes the obsolete terminology and replaces it with language that aligns with current IFRS concepts for accounting for investments, thereby improving clarity and consistency in application. The amendments are not expected to have a significant impact on the company's financial statements.

Standard/Interpretation not yet effective as at 31 March 2026

Date issued by IASB

Effective date Periods beginning on or after

Summary of the requirements and assessment of impact

IFRS 18

Presentation and

disclosure in financial statements

April 2024

1 January 2027

The objective of IFRS 18 is to set out requirements for the presentation and

disclosure of information in general purpose financial statements (financial statements) to help ensure they provide relevant information that faithfully represents an entity's assets, liabilities, equity, income and expenses. [IFRS 18.1]

IFRS 18 applies to all financial statements that are prepared and presented in accordance with International Financial Reporting Standards (IFRSs). [IFRS 18.2] Standards for recognising, measuring, and disclosing specific transactions are addressed in other Standards and Interpretations. [IFRS 18.4]

A complete set of financial statements comprises: [IFRS 18.10]

-a statement (or statements) of financial performance for the reporting period (presented as either a single statement or by presenting a statement of profit or loss immediately followed by a separate statement presenting comprehensive income beginning with profit and loss);

-a statement of financial position as at the end of the reporting period;

-a statement of changes in equity for the reporting period;

-a statement of cash flows for the reporting period;

-notes for the reporting period;

-comparative information in respect of the preceding period as specified by the standard;

-a statement of financial position as at the beginning of the preceding period if the entity applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements or reclassifies items in its financial statements (given that this results in material information).

The amendments are not expected to have a significant impact on the company's financial statements.

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Foreign currency transactions
Transactions denominated in foreign currencies are translated at the exchange rate on the transaction date. At each reporting date, monetary assets and liabilities are translated at the closing rate. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency translated at the exchange rate at the date of the transaction. Exchange differences are recognised in profit or loss on a net basis as "Other income" (net foreign exchange gain) or "Other expenses" (net foreign exchange loss).

Revenue and other income

Revenue recognition

The Company accounts for contracts within the scope of IFRS 15 'Revenue from contracts with customers' when a contract has been approved by both parties, each party's rights have been clearly identified, payment terms have been clearly identified, the contract has commercial substance and it is probable that the Company will collect the consideration it is entitled to for the transfer of refined petroleum products and lubricants to the customer.

Definition of customer

A customer is a party that has contracted with the Company to obtain refined petroleum products and lubricants that are an output of the Company's ordinary activities in exchange for consideration. A counterparty would not be a customer if it has entered into a contract to share in the risk and benefits that result from the activity or process.

Revenue streams

The Company generates revenue primarily from the sale of refined petroleum products and lubricants to its customers (see note 6). Other sources of revenue include sale of special fluids and solar products.

Performance obligations and revenue recognition policies

Revenue is measured based on the consideration specified in a contract with a customer. The Company recognises revenue when it transfers control over a good or service to a customer. Revenue from the sale of non-regulated products in the course of ordinary activities is measured at the fair value of the received consideration or receivable, net of value adde tax, sales returns, trade discounts and volume rebates where applicable. Revenue for regulated products is measured at the regulated price of the products net of standard distribution cost directly recoverable from the prices of the regulated products.

The following table provides information about the timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies.

Nature and timing of satisfaction of performance obligations, including significant payment terms.

Revenue recognition policies

Customers obtain control of products when the goods are delivered to and have

been accepted at their premises or picked up by the customer. Invoices are generated and revenue is recognised when the product is released. Credit sales are due for collection within 30 days. This applies to all sales products.

Revenue is recognised when the goods are released to nominated

transporter, delivered and have been accepted by customers at their premises or picked up by the customer.

Transaction price

Transaction price is the amount allocated to the performance obligations identified in the contract. It represents the amount of revenue recognised as those performance obligations are satisfied. Complexities may arise where a contract includes variable consideration, significant financing component or consideration payable to a customer.

Financing component

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

Contract assets and liabilities

The Company recognises contract assets for unbilled revenue from lubricant sales and sales of refined petroleum products where right is conditioned on factors other than the passage of time. The Company recognises contract liability for consideration received for which performance obligation has not been met.

Disaggregation of revenue from contract with customers

The Company derives revenue mainly from two types of products, lubricants and refined petroleum products. Other sources of revenue include sale of special fluids and solar products. The Company has determined that the disaggregation of revenue based on the criteria of type of products meets the disclosure requirement of IFRS 15.

Revenue and other income (cont'd)

Other income

The Company recognises income from commission on sales at its bonjour shops as well as the rental of some of its space. The period of occupancy is the basis upon which rental income is recognised and the lease term is usually for 12 months. Rental income are for short term leases and are recognised in profit or loss on a straight line basis over the term of the lease.

Finance income and finance costs
The Company's finance income comprises interest income on bank balances, deposit for unclaimed dividend and advances to employees. Interest income on bank balances, deposit for unclaimed dividend and advances to employees, is recognised as it accrues in profit or loss, using the effective interest method.
Finance costs comprise interest on lease liabilities, interest on import loans, interest on bank overdrafts and interest on other loans. Interest expenses are recognised in profit or loss using the effective interest method.
The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
- the gross carrying amount of the financial asset; or
- the amortised cost of the financial liability.
Income taxes

Income tax expense comprises current tax (company income tax and Development levy) and deferred tax movement. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

The Company had determined that interest and penalties relating to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore are accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Current taxes

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, and any adjustment to tax payable or receivable in respect of previous years.

The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date and is assessed as follows:

Company income tax is computed on taxable profits (i.e the assessable profit after capital allowances (tax depreciation) and brought forward losses (if any) have been considered).
Development Levy is computed on assessable profits (i.e the profit of the Company that is liable to tax after exempting non-taxable income and subjecting to tax, expenses which were not wholly or exclusively incurred for the operations of the Company, but before the consideration of capital allowances and losses).

Total amount of tax payable under NTA 2025 is determined based on the higher of two components namely Company Income Tax (based on taxable income (or loss) for the year); and minimum effective tax. Taxes based on profit for the period are treated as income tax in line with IAS 12.

Minimum effective tax

Minimum effective tax (15% of adjusted net profit) is outside the scope of IAS 12 and therefore, are not presented as part of income tax expense in the profit or loss. Under the NTA 2025, a company must ensure that its effective tax rate for a financial year is not less than 15% of its Adjusted Net Profit. Where the company's effective tax rate is below 15%, the company must pay additional tax to bring the effective tax rate up to exactly 15%.

In line with the NTA 2025, minimum effective tax is determined at a base rate of 15% of the qualifying company's adjusted net profit. In defining effective tax rate, section 57 (5) states that "effective tax rate" means the rate produced by dividing the aggregate covered tax paid or payable by a company for a year of assessment by the profits of the company; and "profits" means the net profits before tax as reported in the audited financial statement less 5% of depreciation and personnel cost for the year. The NTA 2025 defines covered taxes as companies' income tax, petroleum profit tax, and hydrocarbon tax paid or payable, development levy, and priority sector tax credits while net income refers to the profit before tax as reported in the audited financial statements excluding franked investment income and unrealised gains or losses.

Income taxes (cont'd)
Where the minimum effective tax charge is higher than the Company Income Tax (CIT), a hybrid tax situation exists. In this situation, the CIT is recognised in the income tax expense line in the profit or loss and the excess amount is presented above the income tax line as minimum tax.
The Company offsets the tax assets arising from withholding tax (WHT) credits and current tax liabilities if, and only if, the entity has a legally enforceable right to set off the recognised amounts, and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. The tax asset is reviewed at each reporting date and written down to the extent that it is no longer probable that future economic benefit would be realised.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
- temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
- taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences.
If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans of the Company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if certain criteria are met,
- if the entity has the legal right and the intention to settle on a net basis
- if the entity has the legal right to settle current tax amounts on a net basis and the deferred tax amounts are levied by the same taxing authority on the same entity or different entities that intend to realise the asset and settle the liability at the same time.
The Company has the legal right to settle current tax amounts on a net basis as the deferred tax amounts are levied by the same tax authority.
Accounting for uncertain tax treatments under IFRIC 23
The Company's judgements with respect to income taxes are based on the likelihoods that the tax authority will accept an uncertain tax treatment that has been taken or is expected to be taken on its tax returns. The Company specifically reviews whether its tax treatments are consistent with requirements and recommendations of tax laws while ensuring its proper coverage of avoidable tax risks and exposures in the process.
The Company measures the impact of the uncertainty using the method that best predicts the resolution of the uncertainty; either the most likely amount method or the expected value method. Furthermore, the judgements and estimates made to recognise and measure the effect of uncertain tax treatments are reassessed whenever circumstances change or when there is new information that affects those judgements.
Earnings per share (EPS)
1. Basic earnings per share
  Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares issued during the period.
2. Diluted earnings per share
  Diluted earnings per share adjusts the figures used in the determination of Basic earnings per share to take into account the weighted average number of additional shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
Property, plant and equipment
1. Recognition, derecognition and measurement
  Property, plant and equipment are measured at cost at initial recognition and cost less accumulated depreciation and any accumulated impairment losses for subsequent recognition.
  The cost of an item of property, plant and equipment shall be recognised as an asset if;
  - it is possible that future economic benefits associates with the item will flow to the entity: and
  - the cost of the item can be measured reliably.
    Property, plant and equipment under construction are disclosed as work in progress. The cost of self-constructed assets includes the cost of materials, direct labour and any other costs directly attributable to bringing the asset to a working condition for their intended use including, where applicable, the cost of dismantling and removing the items and restoring the site on which they are located and borrowing costs on qualifying assets.
    When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
    Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised in profit or loss.
    Property, plant and equipment are derecognised on disposal or when it is withdrawn from use and no future economic benefits are expected from its disposal.
2. Subsequent costs
  The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
3. Depreciation
  Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss.
  Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.
  Property, plant and equipment are depreciated to their residual values using the straight-line method over their useful lives for current and comparative years as follows:
  Type of asset Useful lives
  - Motor vehicles 5 Years
  - Office equipment and furniture 4 years
  - Computer equipment and other tangibles 4 - 20 years
  - Plant, machinery and fittings 3 - 30 years
  - Buildings 10 - 25 years
  - Land Not depreciated
  Capital work in progress and land are not depreciated and are carried at cost less accumulated impairment. The attributable cost of each asset is transferred to the relevant asset category immediately the asset is available for use and depreciated accordingly.
Intangible assets
1. Recognition and measurement
  Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.
  Intangible assets are computer software and software licenses. These are capitalised on the basis of acquisition costs as well as costs incurred to bring the assets to use.
  Intangible assets are derecognised upon sale. The gain or loss arising from the derecognition of an intangible asset shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.
2. Subsequent expenditure
  Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific intangible asset to which it relates. All other expenditure is recognised in profit or loss as incurred.
3. Amortisation of intangible assets
  Amortisation is calculated on the cost of the asset, or other amount substituted for cost, less its estimated residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.
  Computer software and software licences have estimated useful lives of 3 to 5 years.
  Amortisation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.
Dividend payable
An accrual is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the Company, on or before the end of the reporting year but not distributed at the end of the reporting year.
Any accrual made in respect of dividend payable is recognised as a deduction from equity.
Impairment
1. Non-derivative financial assets
  Financial instruments
  The Company recognises loss allowances for Expected Credit Losses (ECLs) on financial assets measured at amortised cost. The company also recognises loss allowances for ECLs on employee loan receivables which are disclosed as part of trade and other receivables. (See note 19)
  The Company measures loss allowances at an amount equal to lifetime ECLs, except for bank balances, lease and loan receivables for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition, which are measured at 12-month ECLs. Loss allowance for trade receivables are always measured at an amount equal to lifetime ECL.
  When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward-looking information.
  Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
  The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk
  The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.
  The Company's credit terms to customers vary from 30 days to 90 days depending on the nature of industry, customer preferences and negotiation. Based on the logistics, distribution and operational dynamics of our major customers, the significant increase credit risk threshold is set at 90 days.
  The company considers a financial asset to be in default when:
  - the debtor is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held).
  - balances are over 90 days past due in line with the Company's provisioning matrix.
  The Company applies simplified approach to determine impairment of trade receivables. The three-stage model is applied to cash and cash equivalent.
  The simplified approach requires expected lifetime losses to be recognised from initial recognition of the trade receivables. This involves determining the expected loss rates using a provision matrix that is based on the Company's historical default rates observed over the expected life of the trade receivables and adjusted forward-looking estimates. This is then applied to the gross carrying amount of the trade receivables to arrive at the loss allowance for the period.
  The three-stage approach assesses impairment based on changes in credit risk since initial recognition using the past due criterion and other qualitative indicators such as increase in political concerns or other macroeconomic factors and the risk of legal action, sanction or other regulatory penalties that may impair future financial performance.
  1. Impairment (cont'd) Measurement of ECLs
    ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value
    of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive).
    Credit-impaired financial assets
    At each reporting date, the Company assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:
    - significant financial difficulty of the borrower or issuer;
    - a breach of contract such as a default or being more than 360 days past due; or
    - it is probable that the borrower will enter bankruptcy or other financial reorganisation.
    Presentation of allowance for ECL in the statement of financial position
    Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
    Write-off
    The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For customers, the Company makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery of amounts due.
2. Non financial assets
  At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.
  For impairment testing, assets are grouped together into the smallest group of assets that generates cash flows from continuing use that are largely independent of the cash flows of other assets or Cash Generating Units (CGUs).
  The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
  An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount.
  Impairment losses are recognised in profit or loss. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
  1. Financial instruments
    1. Recognition and initial measurement
      Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
      A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
      The Company does not have any financial assets measured at FVOCI or FVTPL.
Financial instruments (cont'd)

Classification and subsequent measurement Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI - debt
investment; FVOCI - equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting year following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cashflows.
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
  Financial Assets at Fair value through OCI (FVOCI)
  Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses, which are recognised in profit or loss.
  When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses), and impairment expenses are presented as separate line item in the statement of profit or loss.
  The Company has no debt instruments within this category.
  All financial assets not classified as measured at amortised cost or fair value through other comprehensive income (FVOCI) are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
  Financial assets - Business model assessment
  The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:
- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management's strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets:
- how the performance of the portfolio is evaluated and reported to the Company's management;
- the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;
- the frequency, volume and timing of sales of financial assets in prior years, the reasons for such sales and expectations about future sales activity.
Transfer of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose consistent with the company's continuing recognition of the assets.
Financial assets that are held for trading or are merged and whose performance is evaluated on a fair value basis are measured at FVTPL.
Financial assets - Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
1. Financial instruments (cont'd)
  In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:
  - contingent events that would change the amount or timing of cash flows;
  - terms that may adjust the contractual coupon rate, including variable-rate features;
  - prepayment and extension features; and
  - terms that limit the Company's claim to cash flows from specified assets (e.g. non-recourse features).
  A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
  Financial assets - Subsequent measurement and gains and losses
  Financial assets at amortised cost
  These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost, net of impairment is recognised in the statement of financial position. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
  Financial liabilities - Classification, subsequent measurement and gains and losses
  Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. The Company does not have any financial liabilities measured at FVTPL.
Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Share capital
The Company has only one class of shares namely ordinary shares. Ordinary shares are classified as equity. When new shares are issued, they are recorded in share capital at their par value. The excess of the issue price over the par value is recorded in the share premium reserve.
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity.
Statement of cash flows
The statement of cash flows is prepared using the indirect method. Dividends paid to ordinary shareholders are included in financing activities. Interest paid is also included in financing activities while interest received is included in investing activities. Interest received on employee loans and receivables, foreign exchange differential and Interest on lease liabilities are included in operating activities.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash balances with commercial banks and Total Treasury as well as call deposits with original maturities of three months or less. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of blended products/lubricants includes an appropriate share of production overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Inventory values are adjusted for obsolete, slow-moving or defective items.

The basis of costing inventories based on the product types are as follows:

Product Type	Cost Basis
Refined Petroleum Products (AGO, ATK, PMS, DPK, LPFO)	First In First Out (FIFO)
Packaging Materials, Solar Lamps, Lubricants, base oils, Greases, Special fuids and Car care products	Weighted Average Cost
Inventories-in-transit	Total purchase cost incurred at transaction date

Provisions
Provisions comprise liabilities for which the amount and the timing are uncertain. They arise from environmental risks, legal and tax risks, litigation and other risks. A provision is recognised when the Company has a present obligation (legal or constructive) as a result of a past event for which it is probable that an outflow of resources will be required and when a reliable estimate can be made regarding the amount of the obligation. Provisions are determined by discounting the expected future cash flow at a pre-tax rate that reflects current market assessment of the value and the risk specific to the liability. The unwinding of the discount is recognised in profit or loss as a finance cost.
However, possible obligations depending on whether or not certain future events occur are disclosed as contingent liabilities.
Prepayment

Prepayments represent amounts paid in advance for goods or services to be received in future periods. Prepayments are initially recognised at the amount of cash paid and are subsequently expensed to profit or loss in the period to which the related goods or services are consumed. Prepayments are classified as current assets when the underlying benefit is expected to be realised within twelve (12) months after the reporting date; otherwise, they are classified as non-current assets.

Employee benefits
Post-employment benefit
1. Defined contribution plan
  A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
  In line with the provisions of the Pension Reform Act 2014, the Company has instituted a defined contribution pension scheme for its permanent staff. Employees contribute 8% of their Basic salary, Transport and Housing Allowances to the Fund on a monthly basis. The Company's contribution is 10% of each employee's Basic salary, Transport and Housing Allowances. Staff contributions to the scheme are funded through payroll deductions while the Company's contribution is recognised in profit or loss as staff costs in the periods during which services are rendered by employees.
2. Defined benefit plan i Gratuity scheme
The Company operates a gratuity scheme for its employees in service before January 2001. This is funded by the Company on a monthly basis, at a rate of contribution of 9.5% of total annual emolument and paid to Fund Managers chosen by each employee.
The Company's obligation are extinguished once the amounts have been transferred to the Fund Managers.
1. Other long-term employee benefits
  The Company's other long-term employee benefits represents a Long Service Award scheme for a minimum milestone of ten
  (10) years and the Total home ownership scheme (TEHOS) which is a one-off payment upon tenth anniversary. These schemes are instituted for all permanent employees. The Company's obligations in respect of these schemes are the amounts of future benefits that employees have earned in return for their service in the current and prior periods. The benefit is discounted to determine its present value. The liability duration of the scheme is estimated at 2.64 years. The Company has compared this with the Macaulay duration of the closest Federal Government of Nigeria bonds as at 31st December 2025 which were 2.52 years with a gross redemption yield of about 16.98%. Thus, we adopted a discount rate of 17%. The calculation is performed using the Projected Unit Credit method. Remeasurements are recognised in profit or loss in the period in which they arise. This Scheme is not funded. The obligations are paid out of the Company's cash flows as and when due.
2. Termination benefits
  Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of those benefits and when the Company recognises costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then they are discounted.
3. Post-employment medical services
The Company's post-retirement medical coverage is for seven (7) years on early retirement or ten (10) years on normal retirement (i.e. at the retirement age of 60 years). This scheme is instituted for all permanent employees and is provided after the completion of employment via the Health Insurance Scheme offered third party providers. The Company's exposure under this arrangement is limited to premium payable to the providers. The benefit is discounted to determine its present value. return for their service in the current and prior years. The benefit is discounted to determine its present value. The discount rate is a result of the Company's objective to ensure underlying cost inflation remains below country headline inflation having considered the weighted average of Seven (7) years yield on Federal Government of Nigeria issued bonds that have maturity dates approximating the term of the Company's obligation. The calculation is performed using the Projected Unit Credit method. Remeasurements which comprise actuarial gains or losses are recognized in other comprehensive income in the period in which they arise. Net interest expense and other expenses related to the post employment benefits are recognised in profit or loss. This Scheme is not funded. The obligations are paid out of the Company's cash flows as and when due.
Other benefits
1. Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
Decommissioning cost
Provisions for costs to dismantle, remove or restore property, plant and equipment, including leased assets are recognised when the obligation arises, either at the commencement of the lease or as a result of using the underlying asset during the lease term. The provision represents management's best estimate of the expected expenditure required to restore the asset or site in accordance with the relevant contractual terms.
Government grant
Petroleum Products Pricing Regulatory Agency (PPPRA) subsidises the cost of importation of certain refined petroleum products whose prices are regulated in the Nigerian market. The subsidies are recognised when there is reasonable assurance that they will be recovered and the Company has complied with the conditions attached to receiving the subsidy. The subsidies are recognised as a reduction to the landing cost of the subsidised petroleum product in the period in which the Company makes the determination that all conditions have been met and the amount will be recovered. Where the amounts relate to interest and foreign exchange differentials, they are recognised in profit or loss when there is reasonable assurance that the amounts will be recovered. (Note 30)
Operating Profit
Operating profit is the result generated from the continuing principal revenue producing activities of the Company as well as other income and expenses related to operating activities. Operating profit excludes net finance costs and income taxes.
Measurement of fair values
Some of the Company's accounting policies and disclosures require the determination of fair value, for both financial and nonfinancial assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values. The Final Accounts Manager (FAM) has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the Board of Directors.
The FAM regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the FAM assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Audit Committee and the Board of Directors.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
1. As a lessee
  At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.
  The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
  The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
  The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
  The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following:
  - fixed payments, including in-substance fixed payments;
  - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
  - amounts expected to be payable under a residual value guarantee; and
  - the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.
  The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets that do not meet the definition of investment property in 'property, plant and equipment' and lease liabilities in 'loans and borrowings' in the statement of financial position.
  Type of asset
  - Leasehold building
  - Storage tanks
  - Motor vehicles
  Useful lives
  5 - 10 years
  5 years
  1. years
    4.21 Leases (cont'd) Short-term leases
    The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases. The Company recognises the
    lease payments associated with these leases as an expense on a straight-line basis over the lease term.
2. As a lessor

The Company leases out trucks to its transporters and these are classified as finance leases.

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease.

As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset.

If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, then the Company applies IFRS 15 to allocate the consideration in the contract.

The Company applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease and regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease. The Company recognises lease payments received under operating leases as income on a straightline basis over the lease term as part of 'other income'.

Seasonality and Segment Reporting Seasonality of Operations
The Company's operations are such that revenue and cost are not affected by the impact of seasonality.
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The Board has given the Company's Chief Executive Officer (CEO) the power to assess the financial performance and position of the Company, allocate resources and make strategic decisions. Segment reports that are reported to the CEO includes items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Products and services from which reportable segments derive their revenues
Information reported to the Company's CEO for the purposes of resource allocation and assessment of segment performance is focused on the sales channels for the company's products (white products, lubricants and others). The principal sales channels are Network, General Trade and Aviation. The Company's reportable segments under IFRS 8 are therefore as follows: Network, General Trade and Aviation.
The following summary describes the operations of each reportable segment.
Reportable Segment Operations
Network Sales to service stations
General Trade Sales to corporate customers excluding customers in the aviation industry
Aviation Sales to customers in the aviation industry
Segment revenue reported below represents revenue generated from external customers. There were no inter-segment sales in the current period (2025: nil). Performance is measured based on segment which correspond with IFRS amounts in the Financial Statement.
1. Segment profit or loss (key items)

31 March 2026 GENERAL NETWORK TRADE AVIATION								TOTAL
		₦'000		₦'000		₦'000		₦'000
Revenue	60%	106,477,327	34%	69,013,083	6%	21,689,826	100%	197,180,236
- Petroleum products	53%	69,103,875	30%	38,817,311	17%	21,689,826	100%	129,611,012
- Lubricant and others	55%	37,373,452	45%	30,195,772	0%	-	100%	67,569,224
Gross profit	58%	15,632,524	40%	10,781,051	2%	539,053	100%	26,952,628
- Petroleum products	63%	4,331,707	29%	2,036,893	8%	539,053	100%	6,907,653
- Lubricant and others	56%	11,300,817	44%	8,744,159	0%	-	100%	20,044,976
Finance income	69%	382,920	27%	88,366	4%	19,637	100%	490,923
Finance costs	69%	(3,718,890)	27%	(858,207)	4%	(190,711)	100%	(4,767,808)
Income taxation	73%	(542,072)	23%	(170,790)	4%	(29,703)	100%	(742,565)
Impairment (loss)/write back on trade
receivable	115%	(8,130)	-24%	7,891	8%	(23,673)	100%	(23,912)
Depreciation	88%	(2,675,900)	6%	(279,707)	6%	(85,188)	100%	(3,040,795)
Amortisation	37%	(5,260)	63%	(8,957)	0%	-	100%	(14,217)
Depreciation of Right-of-use asset	88%	(654,915)	12%	(89,307)	0%	-	100%	(744,222)

Segment profit or loss (key items) (cont'd)

31 March 2025 GENERAL NETWORK TRADE AVIATION								TOTAL
		₦'000		₦'000		₦'000		₦'000
Revenue	61%	119,675,452	31%	77,567,422	8%	24,378,333	100%	221,621,207
- Petroleum products	54%	83,801,996	30%	47,359,594	16%	24,378,333	100%	155,539,923
- Lubricant and others	54%	35,873,456	46%	30,207,828	0%	-	100%	66,081,284
Gross profit	57%	13,969,741	39%	9,558,244	4%	980,333	100%	24,508,318
- Petroleum products	56%	3,786,039	29%	1,975,373	15%	980,333	100%	6,741,745
- Lubricant and others	57%	10,183,702	43%	7,582,872	0%	-	100%	17,766,574
Finance income	81%	769,844	15%	177,656	4%	39,479	100%	986,979
Finance costs	81%	(5,326,852)	15%	(1,229,275)	4%	(273,171)	100%	(6,829,298)
Income taxation	-437%	585,021	539%	(721,570)	-2%	2,677	100%	(133,872)
Impairment writeback on trade receivable	55%	(5,812)	-189%	5,641	234%	(16,924)	100%	(17,095)
Depreciation	92%	(1,612,848)	8%	(140,248)	0%	-	100%	(1,753,096)
Amortisation	54%	(7,816)	46%	(6,658)	0%	-	100%	(14,474)
Depreciation of Right-of-use asset	92%	(456,888)	8%	(39,729)	0%	-	100%	(496,617)

Segment assets and liabilities

31 March 2026

GENERAL

NETWORK TRADE

AVIATION

TOTAL

Non-current assets Current tax assets Inventories

Receivables and prepayments

Cash and cash equivalents1

₦'000 ₦'000

72% 56,573,918 21% 16,525,542

55% 801,056 40% 587,746

55% 53,622,031 40% 39,343,255

55% 71,394,083 40% 52,382,864

60% 29,131,081 34% 16,507,613

₦'000

7% 5,138,605

5% 70,620

5% 4,727,228

5% 6,293,982

6% 2,913,108

100%

₦'000

78,238,065

1,459,422

97,692,514

130,070,929

48,551,802

ASSETS

211,522,169 125,347,020

19,143,543

356,012,732

Reduction to non-current assets Payables, deferred income, employee benefits and current tax liabilities2

Borrowings1

Non-current liabilities (less non-current portion of lease liabilities)

Lease liabilities

72% 240,002 21% 70,106

55% 106,851,351 40% 78,398,371

60% 60,005,243 34% 34,002,970

58% 6,182,771 40% 4,263,980

100% 1,963,290 0% -

7% 21,799

5% 9,419,835

6% 6,000,523

2% 213,200

0% -

100%

331,907

194,669,558

100,008,736

10,659,951

1,963,290

LIABILITIES 175,002,655 116,665,321 15,633,558

307,301,535

31 December 2025

GENERAL

NETWORK TRADE

AVIATION

TOTAL

Non-current assets Current tax assets Inventories

Receivables and prepayments

Cash and cash equivalents1

₦'000 ₦'000

72% 56,292,893 22% 16,750,218

59% 497,696 37% 316,205

59% 78,592,078 37% 49,932,503

59% 77,469,814 37% 49,219,487

60% 26,870,666 33% 14,778,866

₦'000

6% 4,863,047

4% 31,255

4% 4,935,612

4% 4,865,133

7% 3,134,911

100%

₦'000

77,906,158

845,156

133,460,192

131,554,434

44,784,443

ASSETS 239,723,147 130,997,279 17,829,958

388,550,383

Addition to non-current assets

Payables, deferred income, employee benefits and current tax liabilities

Borrowings1

Non-current liabilities (less non-current portion of lease liabilities)

Lease liabilities

72% (783,358) 22% (233,092)

59% 144,727,368 37% 91,950,740

60% 50,802,910 33% 27,941,600

58% 5,726,577 39% 3,850,630

100% 698,515 0% -

6% (67,673)

4% 9,088,932

7% 5,927,005

3% 296,203

0% -

100%

(1,084,123)

245,767,041

84,671,515

9,873,411

698,515

LIABILITIES 201,955,370 123,742,970 15,312,140

341,010,482

1 For the purposes of monitoring segment performance and allocating resources between segments, cash and borrowings are allocated to reportable segments on the basis of the revenues earned by individual segments.

2 Payables, deferred income, employee benefits and current tax liabilities are allocated based on the ratio of business activity of individual segments.

Geographic information

The Company is domiciled in Nigeria. During the period, no products were sold to any of its affiliates in Congo, Cameroon, Niger and Gabon. However, sales were made to TotalEnergies Lubrifiants and TotalEnergies E&P within Nigeria.

The Company does not hold non-current assets in these foreign countries.

FOR THE PERIOD ENDED

6	Revenue
	Revenue generated from the Company's revenue streams are as follows;
		31 March 2026	31 March 2025
		₦'000	₦'000
	White products1	129,611,012	155,539,923
	Lubricants and others2	67,569,224	66,081,284
		197,180,236	221,621,207

The above revenue streams are recognised at a point in time. Nigeria is the primary geographical segment of the Company and all of the Company's sales are made in Nigeria.

1 White products revenue relates to the sale of Premium Motor Spirit (PMS), Automotive Gasoline Oil (AGO) and Aviation Turbine Kerosene (ATK).

2 Others relates to the sales of solar products and special fluids.

7	Cost of sales	31 March 2026 ₦'000	31 March 2025 ₦'000
	Net changes in inventory of lubes, greases and refined products1	166,958,014	193,080,042
	Custom duties	1,399,548	2,346,855
	Transport of supplies	1,870,046	1,685,992
		170,227,608	197,112,889

1 Net changes in inventory of lubes, greases and refined products relate to product-related purchases, utilization and provisions during the period.

8 Other income and expenses	31 March	31 March
	2026	2025
	₦'000	₦'000
8.1 Other income
Network income1	1,788,438	1,902,795
Gain on disposal of property, plant and equipment (note 16.2)	696	-
Net foreign exchange gain (note 8.2)	172,981	490,416
	1,962,115	2,393,211

1 Network income represents income from Bonjour shop, rent, vendor management fees, solar lamps and other miscellaneous income.

8.1.2 Other expenses

Loss on disposal of property, plant and equipment	-	(6,586)
	-	(6,586)
8.2 Net foreign exchange gain	31 March 2026	31 March 2025
	₦'000	₦'000
Foreign exchange impact on trade and other receivables (Note 19.1(a))	(187,619)	(86,133)
Foreign exchange impact on trade and other payables (Note 24(a))	2,656,690	(14,385,190)
Foreign exchange impact on cash held	(2,296,090)	14,961,740
	172,981	490,417
9 Net finance costs	31 March	31 March
	2026	2025
Finance income:	₦'000	₦'000
Interest income
Interest on loans1	66,228	86,503
Interest on deposits	357,708	871,609
Total interest income arising from financial assets measured at amortized cost	423,936	958,112
Interest on deposits for unclaimed dividend	66,987	28,867
Total finance income	490,923	986,979
Finance costs:
Interest on lease liabilities	(188,926)	(46,895)
Interest on bank overdrafts	(4,578,882)	(6,782,403)
Total finance costs	(4,767,808)	(6,829,298)
Net finance costs	(4,276,885)	(5,842,319)
1 Amount relates primarily to interest on staff loan

NOTES TO THE FINANCIAL STATEMENTS

Expenses by nature Selling & distribution
	31 March	31 March
	2026	2025
	₦'000	₦'000
Transport on sales	2,246,299	2,204,114
	2,246,299	2,204,114
10.2 Administrative expenses
	31 March	31 March
	2026	2025
Staff costs (Note 10.2.3)	₦'000 6,167,001	₦'000 6,489,276
Depreciation (Note 16)	3,040,795	1,753,096
Depreciation - Right-of-use asset (Note 17 (i))	744,222	496,617
Amortisation of software (Note 15)	14,217	14,474
Rent1	306,373	104,597
Technical assistance and management fees (Note 34.2)	2,875,491	2,658,604
Maintenance expenses	587,161	797,332
Motor fuels and travelling expenses	1,020,645	813,275
Communication, computer and stationery expenses	253,388	119,230
Directors' remuneration (Note 34.3)	467,784	432,590
Bank charges	52,474	117,011
Business promotion and publicity	34,430	241,172
Other expenses2	80,099	247,536
Security and guarding	115,097	56,202
Bad debts written off	35,819	-
Fees paid to professional consultants (Note 10.2.2)	3,151,395	2,208,081
Purchase of consumables	101,950	88,386
Insurance	574,932	534,201
Service charge	85,291	56,166
Levies	531,616	192,202
Entertainment expenses	33,155	74,095
Engineering studies	152,745	191,134
Auditor's Remuneration (Note 10.2.1)	27,706	24,187
	20,453,786	17,709,464
1 Relates to rent on short-term leases to which practical expedient under IFRS 16 applies.
2 Relates to cost of other administrative activities.
10.2.1 Auditor's remuneration
The analysis of auditors' remuneration is as follows:
	31 March	31 March
	2026	2025
	₦'000	₦'000
Statutory audit fees	27,706	24,187
Total fees	27,706	24,187
10.2.2 Fees paid to professional consultants
	31 March	31 March
	2026	2025
	₦'000	₦'000
Tax services	83,870	44,139
Information technology services	1,751,597	1,740,176
Litigation services	1,054,264	4,570
Recruitment and remuneration services	39	-
Air Total International subrogation fees	53,913	103,713
Product supply fees and certifications	131,920	215,335
Other services1	75,792	100,148
	3,151,395	2,208,081

1 Other services relate majorly to financial services fees and professional fees incurred for the procurement of licences.

10.2.3 Staff costs

The related staff cost amounted to ₦6.17 billion (2025: ₦6.49 billion).

	31 March 2026 ₦'000	31 March 2025 ₦'000
Short term employee benefits
- Salaries and wages	4,718,509	4,816,548
- Staff welfare and training	525,675	324,218
- Other staff expenses	292,560	622,639
Other long term employee benefits
- Pension and social benefit	312,813	247,280
Post employment benefits
- Defined benefit plan (Note 12i)	306,757	477,200
Termination benefits	10,687	1,391
	6,167,001	6,489,276

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

11 Company Income Tax Income tax expense

The tax charge for the period has been computed after adjusting for certain items of expenditure and income, which are not deductible or chargeable for tax purposes and comprises:

Minimum Tax

The Company has considered the provisions of the Nigeria Tax Act 2025 (section 57 (1a) which provides that where, in any year of assessment, the effective tax rate, that is, covered taxes as a percentage of net income (adjusted net profit), of a company is less than 15%, such company shall recompute and pay an additional (top up) tax that makes its effective tax rate equal 15%. But, where a tax payer's covered taxes as a percentage of adjusted net profit is higher than the statutory minimum of 15%, the computed tax (CIT + Develeopment Levy) becomes payable. The Company's assessment based on the minimum effective tax legislation for the period ended 31 March 2026 is nil (31 March 2025: ₦1.11 billion). Minimum tax relating to prior period (₦1.11 billion) was computed in accordance to Company Income Tax Act (CITA) at 0.5% of gross turnover.

The Directors believe that the tax liabilities recognised represents best estimate based on their interpretation of the tax law.

11.1.1 Amounts recognised in profit or loss
	31 March	31 March
	2026	2025
Current tax expenses:	₦'000	₦'000
Development Levy	257,759	-
Minimum Tax	-	1,108,106
Tertiary Education Tax (TET)	-	108,964
Nigeria Police Trust Fund Levy (NPTF)	-	56
National Agency for Science and Engineering Infrastructure (NASENI) Levy	-	2,805
Current period tax expense	257,759	1,219,931
Deferred tax
Origination and reversal of temporary differences (Note 11.3)	484,806	22,047
	742,565	1,241,978
11.1.2 Reconciliation of effective tax rate
	31 March	31 March
	2026	2025
	₦'000	₦'000
Profit before tax	1,913,861	1,121,951
Income tax using the statutory tax rate - 30%	574,158	336,585
Effect of:
Devt Levy (4%) ( NTA 2025)	76,554	-
Tertiary education tax rate - 3%	-	33,659
Nigeria Police Trust Fund Levy (NPTF)	-	56
Non-deductible expenses	332,562	240,725
Non-taxable income	(7,883)	(2,448)
National Agency for Science and Engineering Infrastructure (NASENI) Levy	-	2,805
Other differences (expenses and income giving rise to permanent difference)	(354,999)	630,597
Difference in CIT and TET rates	122,173	-
	742,565	1,241,978
Effective tax rates	39%	111%
11.1.3 Minimum tax payable by the company	31 March	31 March
	2026	2025
	₦'000	₦'000
Turnover (Note 6)	197,180,236	221,621,207
Minimum tax @ 0.5% (2025: ₦1.11 billion)	-	1,108,106
11.2 Movement in current tax liability	31 March	31 December
	2026	2025
	₦'000	₦'000
Balance as at 1 January	3,695,036	14,173,566
Provision for the period (Note 11.1.1)	257,759	4,273,926
Payments during the period	-	(13,712,848)
Withholding tax credit notes utilized	-	(1,039,609)
Balance as at 31 March	3,952,795	3,695,036

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS
					31 March		31 December
11.2.1 Movement in Withholding tax					2026		2025
					₦'000		₦'000
Balance as at 1 January					845,156		897,239
WHT credit notes received during the period					614,266		987,525
Withholding Tax used to offset CIT					-		(1,039,609)
Balance as at 31 March					1,459,422		845,156
Analysed as
Current					1,459,422		845,156
					1,459,422		845,156
Amount recognised in statement of cashflows					(614,266)		52,083
11.3 Deferred taxation
Deferred tax assets and liabilities are attributable to the following;
		Assets	Liabilities		Net
	31 March	31 December	31 March	31 December	31 March	31 December
	2026	2025	2026	2025	2026	2025
	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Property, plant and equipment	-	-	(8,954,504)	(8,205,062)	(8,954,504)	(8,205,062)
Provision for doubtful debts	411,634	391,636	-	-	411,634	391,636
Provision for employee benefits	2,073,304	1,842,716	-	-	2,073,304	1,842,716
Lease liability	-	-	62,567	33,980	62,567	33,980
Net unrealised foreign exchange differences	-	-	(494,259)	(479,722)	(494,259)	(479,722)
	2,484,938	1,288,258	(9,386,196)	(9,759,997)	(6,901,258)	(6,416,452)
Movement in deferred tax balances during the period;
	Balance	Recognised		Balance	Recognised	Balance
	1 January	in profit or	Recognised	31 December	in profit or	31 March
	2025	loss	in OCI	2025	loss	2026
	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Property, plant and equipment	(11,004,474)	2,799,412	-	(8,205,062)	(749,442)	(8,954,504)
Provision for doubtful debts	328,932	62,704	-	391,636	19,998	411,634
Provision for employee benefits	959,326	909,971	(26,581)	1,842,716	230,588	2,073,304
Lease liability	63,225	(29,245)	-	33,980	28,587	62,567
Net unrealised foreign exchange differences	1,181,252	(1,660,974)	-	(479,722)	(14,537)	(494,259)
	(8,471,739)	2,081,868	(26,581)	(6,416,452)	(484,806)	(6,901,258)

11.4 The charge for income tax, Development Levy and Minimum effective tax in these financial statements is based on the provisions of the Nigeria Tax Act 2025.

12 Employee benefits Long term employee benefits	31 March 2026	31 December 2025
Long service awards (Note 12(i))	₦'000 3,454,167	₦'000 3,200,433
Home ownership scheme (Note 12(i))	86,682	68,682
	3,540,849	3,269,115
Post employment benefit
Post employment medical services (Note 12(i))	217,844	187,844
Balance as at 31 March	3,758,693	3,456,959
Analysed as:
Current	-	-
Non-current	3,758,693	3,456,959
	3,758,693	3,456,959

Employee benefits represents the Company's liability for:

Long service awards - Staff who have attained the milestones for the specified number of years of service in the Company (i.e. 10, 15, 20, 25, 30, 35, 40 years) are rewarded with cash and gift items as long service awards.
Home ownership scheme - Under the home ownership scheme, qualifying staff are entitled to a grant which is a one-off payment upon tenth anniversary.
Post employment medical benefits - A post-retirement medical coverage is extended to ex-staff for seven (7) years on early retirement or ten (10) years on normal retirement (i.e. at the retirement age of 60 years) as well as three (3) years for dependent relatives of a deceased staff. The liability duration of this scheme is estimated at 7.58 years.

Movement in net defined benefit liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components.

2026	Long service awards	Home ownership scheme	Post employment medical service	Total
	₦'000	₦'000	₦'000	₦'000
Balance as at 1 January	3,200,433	68,682	187,844	3,456,959
Included in profit or loss
Current service costs	95,537	7,248	7,268	110,053
Past service cost due to plan amendment	3,952	-	2,311	6,263
Interest cost	162,244	5,949	20,421	188,614
Actuarial (Gains)/Losses - Assumption	(2,975)	4,803	-	1,828
Included in other comprehensive income	258,757	18,000	30,000	306,757
Remeasurement loss:
- Experience adjustment	-	-	-	-
	-	-	-	-
Other
Benefits paid	(5,023)	-	-	(5,023)
	(5,023)	-	-	(5,023)
Balance as at 31 March	3,454,167	86,682	217,844	3,758,693
		Home ownership	Post employment
2025	Long service awards	scheme	medical service	Total
	₦'000	₦'000	₦'000	₦'000
Balance as at 1 January	2,690,331	50,419	98,078	2,838,828
Included in profit or loss
Current service costs	265,845	10,089	5,819	281,753
Past service cost due to plan amendment	10,997	-	1,850	12,847
Interest cost	451,468	8,281	16,350	476,100
Actuarial (Gains)/Losses - Assumption	(8,279)	6,686	-	(1,594)
Actuarial losses - Experience	-	-	-	-
Included in other comprehensive income	720,031	25,056	24,019	769,107
Remeasurement loss:
- Experience adjustment	-	-	80,550	80,550
	-	-	80,550	80,550
Other
Benefits paid	(209,929)	(6,793)	(14,803)	(231,525)
	(209,929)	(6,793)	(14,803)	(231,525)
Balance as at 31 December	3,200,433	68,682	187,844	3,456,959

(a)

Employee benefits (cont'd)

Allocation of employee benefits provisions during the period

Amount recognised in profit or loss (Note 10.2.3) 306,757 477,200

306,757 477,200 Actuarial Assumptions

The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages).

2026		2025
Discount rate
- Long service awards	15.5%	17.5%
- Home ownership scheme	17.0%	17.5%
- Post employment medical services	15.5%	17.5%
Future salary growth	15.0%	15.0%
Benefit increase rate
- Long service awards	20.0%	20.0%
- Home ownership scheme	7.5%	7.5%
- Post employment medical services	7.5%	7.5%

The Company is exposed to several risks arising from the defined benefits plan. The most significant of which are inflation risk, changes in bond yields and life expectancy.

The assumptions below further depict management's estimate of the likely future experience of the Company.

Demographic assumptions

Withdrawal Rates	2026	2025
Age band
Less than or equal to 29	2%	2%
31 - 39	1%	1%
40 - 49	0%	0%
50 - 59	0%	0%
Mortality assumptions Active Staff	A67/70 UK Tables
Retirees	PA90

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions,holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

2026 Long service awards Home ownership scheme Post employment medical benefits

Mortality

year

Base		₦'000 3,454,167		₦'000 86,682		₦'000 217,844
Discount rate	+1%	3,172,872	+1%	85,132	+1%	206,097
	-1%	3,778,885	-1%	88,310	-1%	230,777
Salary increase rate	+1%	3,494,968	+1%	-	+1%	-
	-1%	3,416,878	-1%	-	-1%	-
Benefit increase rate	+1%	3,739,690	+1%	-	+1%	224,997
	-1%	3,203,115	-1%	-	-1%	211,041
Age Rated up by 1 3,434,001 Age Rated up by 86,645 Age Rated up by 1 219,396

Age Rated down by 1 year

1 year

by 1 year

3,472,427 Age Rated down

2025

year

86,714

Age Rated down by 1 year

216,449

Long service awards Home ownership scheme Post employment medical benefits

Mortality

year

Base		₦'000 3,200,433		₦'000 68,682		₦'000 187,844
	+1%	2,939,801	+1%	67,454	+1%	177,715
Discount rate	-1%	3,501,297	-1%	69,972	-1%	198,996
	+1%	3,238,236	+1%	-	+1%	-
Salary increase rate	-1%	3,165,883	-1%	-	-1%	-
	+1%	3,464,982	+1%	-	+1%	194,012
Benefit increase rate	-1%	2,967,822	-1%	-	-1%	181,978
Age Rated up by 1 3,181,748 Age Rated up by 68,653 Age Rated up by 1 189,182

Age Rated down by 1 year

1 year

by 1 year

3,217,351 Age Rated down

year

68,707

Age Rated down by 1 year

186,641

Although the analysis does not take account of the full distribution of cash flows expected under the schemes, it does provide an approximation of the sensitivity of the assumptions shown.

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

Dividends Declared dividends
The following dividends were declared by the Company during the period.
Final dividend - Prior year
31 March 31 December 2026 2025 ₦'000 ₦'000
₦0.00 per qualifying ordinary share (2025: ₦40.00) - 13,580,873
- 13,580,873
1. Dividend payable 31 March 31 December 2026 2025 ₦'000 ₦'000
  Balance as at 1 January 2,605,754 2,418,314
  Final dividend (prior year) - 13,580,873
  2,605,754 15,999,187
  Dividend paid (5,153) (13,393,433)
  Balance as at 31 March 2,600,601 2,605,754
  (a) By the provision of Section 429 of the Companies and Allied Matters Act (CAMA), 2020, where dividends paid by a company remain unclaimed, the company shall publish in two national newspapers, a list of the unclaimed dividends and the names of the persons entitled to the dividends, and attach the list, as published in the national newspapers, to the notice that is sent to the members of the company for each subsequent annual general meeting of the company.
  After the expiration of three months of the publication and notice, the company may invest the unclaimed dividend for its own benefit in investments outside the company and no interest shall accrue on the dividends against the company.
  However, Section 60 (3) of the Finance Act 2020 provides that dividends of a public limited liability company quoted on the Nigerian Stock Exchange which has remained unclaimed for a period of six years or more from the date of declaring the dividend shall be immediately transferred to the Unclaimed Funds Trust Fund.
Earnings/(loss) per share (EPS) Basic earnings/(loss) per share

Basic earnings/(loss) per share of ₦3.45 (2025: (₦0.35)) is based on profit/(loss) attributable to ordinary shareholders of ₦1.17 billion (2025:

(₦120.03) million), and on the 339,521,837 ordinary shares of 50 kobo each, being the weighted average number of ordinary shares in issue

during the period (2025: 339,521,837 ordinary shares).

The Company has no dilutive potential ordinary shares and as such, diluted and basic earnings/(loss) per share are the same.

Earnings	31 March 2026	31 March 2025
Profit/(loss) for the period attributable to shareholders (expressed in Naira)	1,171,296,173	(120,026,913)
Number of shares
Weighted average ordinary shares of 50 kobo each	339,521,837	339,521,837
Basic profit/(loss) per 50 kobo share (expressed in Naira)	3.45	(0.35)

The denominators for the purposes of calculating basic earnings/(loss) per share are based on issued and paid ordinary shares of 50 kobo each as at 31 March 2026.

Intangible assets The movement on these accounts were as follows:	Computer software and software licensing
Cost	₦'000
Balance as at 1 January 2025	836,694
Additions	-
Balance as at 31 December 2025	836,694
Balance as at 1 January 2026	836,694
Additions	-
Balance as at 31 March 2026	836,694
Amortisation1 Balance as at 1 January 2025	703,805
Charge for the year	58,463
Balance as at 31 December 2025	762,268
Balance as at 1 January 2026	762,268
Charge for the period	14,217
Balance as at 31 March 2026	776,485
Carrying amount
At 1 January 2025	132,889
At 31 December 2025	74,426
At 31 March 2026	60,209
1 Amortisation of intangible assets is included in administrative expenses in Profit or Loss. (See note 10.2)

There are no items of intangible assets restricted or pledged as security. There are also no contractual commitments to purchase any items of intangible assets as at period end.

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

Property, plant and equipment

The movement on these accounts were as follows:

	Land	Buildings	Plant, machinery and fittings	Office equipment and furniture	Computer equipment and other tangibles	Motor vehicles	Capital work in progress	Total
	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Cost Balance as at 1 January 2025	4,863,857	27,333,163	42,055,649	4,591,374	21,935,422	16,003,052	1,557,149	118,339,664
Additions	531,473	1,029,468	2,080,668	3,055	4,475,668	-	2,756,007	10,876,339
Disposals	(531,472)	(472,835)	(145,584)	(8,141)	(79,693)	(106,261)	-	(1,343,986)
Reclassification	610	(73,294)	(994,175)	(3,748,437)	5,953,927	(1,358,509)	219,878	-
Balance as at 31 December 2025	4,864,468	27,816,502	42,996,558	837,851	32,285,324	14,538,282	4,533,034	127,872,017
Balance as at 1 January 2026	4,864,468	27,816,502	42,996,558	837,851	32,285,324	14,538,282	4,533,034	127,872,017
Additions	-	19,031	56,847	-	856,729	-	480,939	1,413,546
Transfers (Note 16.1)	-	487,440	732,234	4,187	251,099	-	(1,474,960)	-
Disposals	-	-	-	-	-	(23,184)	-	(23,184)
Balance as at 31 March 2026	4,864,468	28,322,973	43,785,639	842,038	33,393,152	14,515,098	3,539,013	129,262,379

Accumulated depreciation and impairment

Balance as at 1 January 2025	686,406	10,368,739	19,770,985	604,647	19,861,010	5,319,395	-	56,611,182
Charge for the year	-	1,269,967	2,925,952	65,569	3,367,849	2,249,967	-	9,879,304
Eliminated on disposals	-	(343,584)	(144,742)	(8,140)	(69,314)	(106,261)	-	(672,041)
Reclassification	-	15,158	-	-	-	-	-	15,158
Balance as at 31 December 2025	686,406	11,310,280	22,552,195	662,076	23,159,545	7,463,101	-	65,833,603
Balance as at 1 January 2026	686,406	11,310,280	22,552,195	662,076	23,159,545	7,463,101	-	65,833,603
Charge for the period	-	336,562	819,336	19,486	1,213,590	651,821	-	3,040,795
Eliminated on disposal	-	-	-	-	-	(23,184)	-	(23,184)
Balance as at 31 March 2026	686,406	11,646,842	23,371,531	681,562	24,373,135	8,091,738	-	68,851,214
Carrying amount
At 1 January 2025	4,177,451	16,964,424	22,284,663	3,986,727	2,074,412	10,683,657	1,557,149	61,728,482
At 31 December 2025	4,178,062	16,506,222	20,444,362	175,775	9,125,779	7,075,181	4,533,034	62,038,413
At 31 March 2026	4,178,062	16,676,131	20,414,107	160,476	9,020,017	6,423,360	3,539,013	60,411,165

No item of property, plant and equipment has been restricted or pledged as security.

Transfers represent additions to other categories of PPE as well as from prior year's work-in-progress as they become completed.

Capital work in progress (CWIP) items include construction and other tangible assets awaiting completion. Included in transfers out of CWIP are tangible items for which constructions were finalised.

There were no impairment losses on any class of property plant and equipment during the period.

None of the company's assets were financed from borrowings. Hence, no borrowing cost has been capitalised as part of asset cost. There were no pledged assets in any class of property, plant and equipment during the period.

16.2	Gain on disposal of property, plant and equipment	31 March	31 March
		2026	2025
		₦'000	₦'000
	Cost of disposed tangible asset	(23,184)	(7,418)
	Accumulated depreciation of disposed tangible asset	23,184	832
	Carrying amount of tangible assets disposed Disposal proceeds	-696	(6,586) -
	Gain on disposal	696	(6,586)

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

Company as a lessee (IFRS 16)

The Company leases service stations, storage facilities and staff buses. Service station leases typically run for a period of 10 years, with an option to renew the lease after that date. Option to renew is not legally enforceable as it is not unilateral and requires the consent of both parties. See note 17 (iv). Storage facilities leases run for 5 years. Staff bus leases typically run for 5 years which is the useful life of the asset.

Service station leases entered into are usually combined leases of land and buildings. The Company leases residential spaces with contract terms of one year. These leases are short term. See note 10.2 (Rent). The renewal option of these residential spaces is mostly at the sole instance of the Company. The renewal of these spaces is based on them fulfilling the business needs of the Company per time. The Company has elected not to recognise right-of-use assets and lease liabilities for these leases. Lease payments on these short-term leases are recognised as expense on a straight-line basis over the lease term. Information about leases for which the Company is a lessee is presented below:

Right-of-use assets

Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as a separate line item on the statement of financial position.

	Leasehold buildings	Motor vehicles	Storage facilities	Total
	₦'000	₦'000	₦'000	₦'000
Cost
Balance as at 1 January 2025	17,684,737	2,531,919	756,609	20,973,265
Additions	1,717,434	537,795	1,252,500	3,507,729
Balance as at 31 December 2025	19,402,171	3,069,714	2,009,109	24,480,994
At 1 January 2026	19,402,171	3,069,714	2,009,109	24,480,994
Additions	2,513,048	1,307,335	-	3,820,383
Balance as at 31 March 2026	21,915,219	4,377,049	2,009,109	28,301,377
Accumulated depreciation and impairment
Balance as at 1 January 2025	9,364,014	1,890,088	756,176	12,010,278
Charge for the year	2,120,798	403,685	189,078	2,713,561
Reclassification	(15,158)	-	-	(15,158)
Balance as at 31 December 2025	11,469,654	2,293,773	945,254	14,708,681
At 1 January 2026	11,469,654	2,293,773	945,254	14,708,681
Charge for the period	470,222	212,233	61,767	744,222
Balance as at 31 March 2026	11,939,876	2,506,006	1,007,021	15,452,903
Carrying amount
At 1 January 2025	8,320,723	641,831	433	8,962,987
At 31 December 2025	7,932,517	775,941	1,063,855	9,772,313
At 31 March 2026	9,975,343	1,871,043	1,002,088	12,848,474

Amounts recognised in profit or loss
Depreciation
Amounts recognised in statement of cash flows
Additions to right-of-use assets
Extension options

2026 2025

₦'000 ₦'000

744,222 2,713,561

2026 2025

₦'000 ₦'000

(3,820,383) (3,507,729)

The Company's service station lease agreements contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in its leases to provide operational flexibility. The extension options held are exercisable only by the Company but require the consent of the lessors. The Company assesses at lease commencement date whether it is reasonably certain to exercise the extension options because the Company usually prepays its station leases for about 7 -10 years and due to the fact that the decision to renew is usually based on the results of an economic evaluation of each individual service station's performance to determine if it is finanically viable to extend the lease. The directors have concluded that it is not reasonably certain at commencement of the leases to determine whether or not the leases will be renewed.

The Company has estimated that there are no potential future lease payments as its current assessment is that it is not probable that the lease extention option would be exercised.

The Company has assessed that obligations arising from termination of leases remain insignificant. While decommissioning obligations exist for underground storage tanks at certain locations, these are expected to be minimal and associated decommissioning costs are assessed to be immaterial. Additionally, movable assets are reassigned to other locations at minimal transport cost.

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

18	Inventories
	Inventories comprise:
		31 March	31 December
		2026	2025
		₦'000	₦'000
	Raw materials1	28,331,987	40,193,266
	Goods in transit	9,809,332	19,471,096
	Finished goods2	58,527,977	72,858,275
	Consumable equipment and spares	1,023,218	937,555
		97,692,514	133,460,192
	1 Raw materials relate to packaging materials, additives and baseoils.
	2 Finished goods relate to lubricants, all white products, special fluids, car care products.

In 2026, inventories amounting ₦166.96 billion (2025: ₦193.08 billion) were recognised as an expense during the period and included in 'cost of sales'.

No item of inventory was pledged as securities for liabilities during the period.

(a) Reconciliation of changes in inventory to statement of cashflows is as follows:

		31 March	31 March
		2026	2025
	Balance at 1 January	₦'000 133,460,192	₦'000 152,023,837
	Balance at 31 March	(97,692,514)	(114,960,741)
	Write down of inventory (See note 18.1)	(1,492,232)	-
	Amount recognised in statement of cashflows	34,275,446	37,063,096
18.1	Movement in write down of inventories
		31 March	31 December
		2026	2025
		₦'000	₦'000
	Write down of inventory1	1,492,232	649,511
	Reversal of write downs from previous years2	-	(4,528)
		1,492,232	644,983

1 During the period, amounts of ₦1.49 billion were written down and recognised in cost of sales (2025: ₦649.51 million), due to operational losses.

2 Reversal of provision made on slow moving goods no longer required.

19	Trade and other receivables (Current)	31 March 2026 ₦'000	31 December 2025 ₦'000
	Customers account	87,075,522	84,442,244
	Due from related parties (Note 34.2)	351,531	723,589
	Total trade receivables 1	87,427,053	85,165,833
	Financial assets
	Net investment in finance lease (Note 19.1.1)	328,165	357,234
	Bridging claims2	19,113,617	19,113,617
	Unclaimed dividends3	2,600,601	2,605,754
	Employee loans and receivables	910,938	2,269,184
	Other receivables4	7,391,919	5,033,515
		30,345,240	29,379,304
	Advance to supplier5	7,824,142	15,029,910
	Total other receivables	38,169,382	44,409,214
		125,596,435	129,575,047

1 Amount presented above is net of impairment, refer to note 30(iv) for more information on impairment.

2 See note 30(iv) for more information on bridging claims.

3 This relates to portion of unclaimed dividend currently held by the Company Registrars.

4 Other receivables include employee salary advances, electronic settlement banking balances and other miscellaneous debtor balances.

5 This relates to advance payments made to suppliers.

		31 March	31 December
19.1	Trade and other receivables (Non-current)	2026	2025
	Non-current portion of trade and other receivables comprise:	₦'000	₦'000
	Employee receivables1	3,353,428	4,242,432
	Net investment in finance lease (Note 19.1.1)2	1,521,036	1,655,767
	Advance for PPE3	43,753	122,806
		4,918,217	6,021,005
	1 Amount represents loan receivables due from employees which are not considered due within twelve (12) months.

2 Amount represents the sum of net investment in finance lease between one and five years and more than five years. (See note 19.1.1)

3 Amount represents advance to suppliers relating to procurement of PPE.

(a) Reconciliation of changes in trade and other receivables to statement of cashflows is as follows:

	31 March 2026 ₦'000	31 March 2025 ₦'000
Balance at 1 January (current)	129,575,047	144,135,425
Balance at 31 March (current)	(125,596,435)	(157,673,410)
Net impairment loss on financial assets (Note 30(iv))	(23,912)	(17,095)
Foreign exchange impact on trade and other receivables (See note 8.2)	(187,619)	(86,133)
Amount recognised in statement of cashflows	3,767,081	(13,641,213)
Balance at 1 January (non-current)	6,021,005	8,165,923
Balance at 31 March (non-current)	(4,918,217)	(6,615,829)
Amount recognised in statement of cashflows	1,102,788	1,550,094

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

Finance lease receivable

The Company leases transport equipment to some of its transporters under a finance lease arrangement. The lease term is between three to five years, with options to extend. The finance lease receivables at the end of the reporting year are neither past due nor impaired. The carrying amount of the current portion of finance lease receivables approximates their fair value. Finance lease receivable may be analysed as follows:

31 March 31 December 2026 2025

Gross investment in finance lease	₦'000 2,029,710	₦'000 2,209,500
Unearned finance income	(180,509)	(196,499)
Net investment in finance lease	1,849,201	2,013,001
Net investment in finance lease	31 March	31 December
	2026	2025
Current:	₦'000	₦'000
Less than one year (note 19)	328,165	357,234
Non current: Between one and five years (note 19.1)	1,099,718	1,197,129
More than five years (note 19.1)	421,318	458,638
	1,849,201	2,013,001

Leases as lessor

The Company has lease arrangements with its transporters consisting of leased trucks. These leases are classified as a finance lease.

(i) Finance lease

The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date.

	31 March	31 December
	2026	2025
	₦'000	₦'000
	Less than one year 360,199	392,105
	One to two years 1,207,066	1,313,986
	More than five years 462,445	503,408
	Total undiscounted lease receivable 2,029,710	2,209,500
	Unearned finance income (180,509)	(196,499)
	Net investment in the lease 1,849,201	2,013,001
20	Prepayments
	31 March	31 December
	2026	2025
	₦'000	₦'000
	Current
	Prepaid rent1 5,754	303
	Prepaid insurance 1,379,897	-
	Employee advances2 3,088,843	1,979,084
	Total prepayments 4,474,494	1,979,387
	1 Prepaid rent are short-term leases for which the Company has elected not to recognise as ROU asset.
	2 Amount relates to advances paid to employees.
(a)	Reconciliation of changes in prepayments to statement of cashflows is as follows:
	31 March	31 March
	2026	2025
	₦'000	₦'000
	Balance at 1 January 1,979,387	3,762,951
	Balance at 31 March (4,474,494)	(3,905,957)
	Amount recognised in statement of cashflows (2,495,107)	(143,006)
	31 March	31 December
	2026	2025
21	Loans and other borrowings ₦'000	₦'000
	Bank overdrafts (Note 27) 100,008,736	84,671,515
	Total borrowings 100,008,736	84,671,515
22	Lease liabilities
	Non-current portion of lease liabilities 966,657	343,925
	Current portion of lease liabilities 996,633	354,590
	Total lease liabilities 1,963,290	698,515

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS 23 Movement of liabilities Reconciliation of movements of liabilities to cash flows arising from financing activities

	Bank overdrafts	Other loans and borrowings	Lease liabilities	Total
	₦'000	₦'000	₦'000	₦'000
Balance at 1 January 2026	84,671,515	-	698,515	85,370,030
Changes from financing cash flows
Additional borrowings	-	-	-	-
Repayment of borrowings	15,337,221	-	-	15,337,221
Payment of lease liabilities	-	-	(320,452)	(320,452)
Total changes from financing cash flows	15,337,221	-	(320,452)	15,016,769
The effect of changes in foreign exchange rates	-	-	-	-
Other changes
New leases	-	-	1,585,227	1,585,227
Interest paid	(4,578,882)	-	(188,926)	(4,767,808)
Interest expense	4,578,882	-	188,926	4,767,808
Total liability-related other changes	-	-	1,585,227	1,585,227
Balance at 31 March 2026	100,008,736	-	1,963,290	101,972,026

	Bank	Other loans and	Lease
	overdrafts	borrowings	liabilities	Total
	₦'000	₦'000	₦'000	₦'000
Balance at 1 January 2025	115,700,078	-	793,718	116,493,796
Changes from financing cash flows
Additional borrowings	-	-	-	-
Repayment of borrowings	(31,028,563)	-	-	(31,028,563)
Payment of lease liabilities	-	-	(975,095)	(975,095)
Total changes from financing cash flows	(31,028,563)	-	(975,095)	(32,003,658)
The effect of changes in foreign exchange rates	-	-	-	-
Other changes
New leases	-	-	879,892	879,892
Interest paid	(25,130,751)	(6,520)	(482,445)	(25,619,716)
Interest expense	25,130,751	6,520	482,445	25,619,716
Total liability - related other changes	-	-	879,892	879,892
Balance at 31 December 2025	84,671,515	-	698,515	85,370,030
The principal features of the Company's borrowings are as follows:

Bank overdrafts are repayable on demand. The actual average interest rate on bank overdrafts as at 31 March 2026 was approximately 18.5%. This was determined based on banks' cost of funding plus lenders' mark-up. Overdrafts are neither guaranteed nor is any collateral given on the balances.
Trade finance loan represents short term borrowings obtained to fund letters of credits for product importation. The interest charged on these loans vary depending on the SOFR. The interest rate on these loans are usually between 10% to 32%.
The Commercial paper instrument is a ₦30 billion programme established by TotalEnergies Marketing Nigeria Plc under which the company may from time to time issue Commercial Paper Notes, as may be agreed between the Arranger and the Issuer, in separate series or tranches. The programme has been renewed but there is currently no issuance.
The carrying amount of current borrowings is a reasonable approximation of fair value as at 31 March, 2026.

a. Terms and repayment schedule

The terms and conditions of loans and borrowings are as follows;

31 March 31 December 2026 2025

	Currency	Nominal interest rate	Year of maturity	Face value	Carrying amount	Face value	Carrying amount
				₦'000	₦'000	₦'000	₦'000
Lease liabilities	NGN	25%	2025 - 2028	2,600,384	1,963,290	925,185	698,515
Bank overdraft	NGN	18.5%	-	100,008,736	100,008,736	84,671,515	84,671,515
				102,609,120	101,972,026	85,596,700	85,370,030

The Company has discounted lease liabilities using incremental borrowing rate of 25% (2025: 25%) which represents the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

TOTALENERGIES MARKETING NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS

24	Trade and other payables Trade payables :	31 March 2026 ₦'000	31 December 2025 ₦'000
	Amount due to related companies (note 34.2)	66,941,389	96,336,162
	Trade creditors	12,047,174	67,275,479
	Bridging contribution1	16,894,930	16,894,930
	PPPRA administrative charges	647,039	647,039
	Payable to Petroleum Support Fund	74,318	74,318
		96,604,850	181,227,928
	Other payables:
	Other creditors2	35,705,771	5,468,340
	Security deposits3	14,626,247	14,329,170
	Accrued liabilities4	35,594,837	32,456,589
	Dividend payable (note 13.1)	2,600,601	2,605,754
	Pay As You Earn (PAYE)	336,191	404,957
	Staff pension	66,678	34,828
		88,930,325	55,299,638
	Total trade and other payables	185,535,175	236,527,566

1 Amount payable to PEF with respect to bridging activities on imported products. See note 30(iv) for more information.

2 Amount relates to other non-trade related payables and sundry creditors.

3 Amount relates to security deposits paid by dealers who maintain credit facilities with the Company.

4 Accrued liabilities principally comprise accrual for product bills and other charges for which invoices were not yet received at the end of the period.

Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs.

The Directors consider that the carrying amount of trade payables as at 31 March 2026 approximates their fair value.

Information about the Company's exposure to currency and liquidity risks is included in note 30(iii).

(a) Reconciliation of changes in trade and other payables to statement of cashflows is as follows:

		31 March 2026 ₦'000	31 March 2025 ₦'000
	Balance at 1 January	(236,527,566)	(248,002,473)
	Balance at 31 March	185,535,175	247,599,648
	Movement in dividend payable (See note 13.1)	5,153	(13,580,874)
	Foreign exchange impact on trade and other payables (See note 8.2)	2,656,690	(14,385,190)
	Amount recognised in statement of cashflows	(48,330,548)	(28,368,889)
		31 March	31 December
25	Deferred income	2026	2025
		₦'000	₦'000
	Contract liabilities1	5,181,588	5,544,439
		5,181,588	5,544,439
1 Contract liabilities represents advance consideration received from customers for the sale of goods, for which revenue is recognised upon delivery. (a) Reconciliation of changes in deferred income to statement of cashflows is as follows:
		31 March 2026	31 March 2025
		₦'000	₦'000
	Balance at 1 January	(5,544,439)	(6,061,236)
	Balance at 31 March	5,181,588	6,414,957
	Amount recognised in statement of cashflows	(362,851)	353,721
25.1	Movement of contract liabilities
	Balance at 1 January	5,544,439	6,061,236
	Amount recognised as revenue in the period	(12,203,638)	(13,087,701)
	Advance payments received from customers	11,840,786	13,441,423
	Balance at 31 March	5,181,588	6,414,957

The deferred income represents amounts billed and collected in accordance with contractual terms in advance of when the goods are delivered or services rendered. These advance payments primarily relate to contract liabilities. Contract liabilities primarily relate to the advance consideration received from customers for the sale of goods, for which revenue is recognised once the goods are delivered and have been accepted in the customers premises or picked up by the customer. The Company estimates this will be earned as revenue during the subsequent financial periods.

31 March

2026

2025

Share capital

Authorised, Issued and fully paid:

339,521,837 ordinary shares of 50 kobo each

₦'000

169,761

₦'000

169,761

All ordinary shares rank equally with regard to the Company's residual assets. Holders of these shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.

27	Cash and cash equivalents	31 March 2026 ₦'000	31 March 2025 ₦'000
	Bank and cash balances	17,633,845	25,688,991
	Cash on hand	16,702	12,787
	Cash balances with TotalEnergies Treasury (note 34.2)	30,901,255	65,776,200
	Cash & cash equivalents in statement of financial position	48,551,802	91,477,978
	Bank overdrafts (Note 21)	(100,008,736)	(103,150,311)
	Cash & cash equivalents in statement of cash flows	(51,456,934)	(11,672,333)

The Company classifies amounts held with TotalEnergies Treasury as cash and cash equivalents because they can be withdrawn at any time without penalties.

Commitments and contigent liabilities Financial commitments

The Company did not restrict or deposit any of its assets to secure liabilities of third parties.

The Directors are of the opinion that all known liabilities and commitments have been taken into account in the preparation of these financial statements. These liabilities are relevant in assessing the Company's state of affairs.

	31 March	31 December
	2025	2025
Bonds	₦'000	₦'000
Total commitments given	30,000,000	30,000,000
Total commitments received	2,370,000	2,420,000

Commitments given primarily include guarantee to Dangote petroleum refinery and petrochemicals for bulk purchase of petroleum products. No losses are anticipated in respect of these.

Commitments received include customers' guarantees. Commitments received and given are held with local banks.

At 31 March 2026, the Company had contractual commitments (given) for the acquisition of property, plant and equipment

amounting to ₦768.39 million (2025: ₦1.56 billion).

Contingent liabilities

There are contingent liabilities in respect of legal actions against the Company amounting to approximately ₦1.257 trillion (2025: ₦1.257 trillion). The Directors have not made provisions for these contingent liabilities as consultations have been made with the in-house legal team led by Olubunmi Popoola-Mordi - (FRC/2013/ICSAN/00000002042). The in-house legal team holds regular discussions and obtains expert opinion from the Company's external solicitors (on a need basis). Based on all information available as at date of issue of these financial statements (including historical reference of these cases), the directors, based on the advice of the in-house legal team have concluded that no material losses will crystalise against the Company.

Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of its debt and equity balance. The Company's overall strategy remains unchanged from prior period.

The capital structure of the Company consists of debt, which includes the borrowings disclosed in note 21, cash and cash equivalents and equity attributable to equity holders, comprising issued capital, reserves and retained earnings.

The Company is not subject to any externally imposed capital requirements.
Gearing ratio
Gearing ratio is net debt to equity ratio.
	31 March	31 December
	2025	2025
	₦'000	₦'000
Borrowings including bank overdraft (note 21)	100,008,736	84,671,515
Cash and cash equivalents excluding bank overdraft (note 27)	(48,551,802)	(44,784,443)
Lease liabilities (note 22)	1,963,290	698,515
Net debt (calculated)	53,420,224	40,585,587
Net debt (restricted to a minimum of zero)	-	-
Equity	48,711,197	47,539,901
Net debt to equity ratio	1.10	0.85

Net debt is expressed as an aggregate of lease liabilities, long and short-term borrowings less cash and cash equivalents. The net debt applied in determining the net debt to equity ratio has been restricted to a minimum of zero. The positive position of the calculated net debt is as a result of increased in borrowings and lease liability during the period.

Equity includes all capital and reserves of the Company that are managed as capital.

Financial risk management

Financial risk management objectives
The Company's Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk), credit risk and liquidity risk.
The Company's Treasury function reports monthly to the Group's Treasury, a section of the Group that monitor's risk and policies implemented to mitigate risk exposures.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk management

The Company is exposed to interest rate risk as it borrows funds at multiple interest rates. The risk is managed by the Company by constantly negotiating with the banks to ensure that interest rates are consistent with the monetary policy rates as defined by the Central Bank of Nigeria.

Interest rate risk Sensitivity analysis

At the reporting date the interest rate profile of the Company's interest-bearing financial instruments was:

	31 March	31 December
	2026 ₦'000	2025 ₦'000
Variable rate instruments
Borrowings (note 21)	100,008,736	84,671,515
Lease liabilities (Note 22)	1,963,290	698,515
	101,972,026	85,370,030

Sensitivity analysis for variable rate instruments

A reasonable possible change of 1000 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

	31 March	31 December
	2026	2025
	₦'000	₦'000
Effect of 10% increase on interest rates (2025: 10%)	(10,197,203)	(8,537,003)
Effect of 10% decrease on interest rates (2025: 10%)	10,197,203	8,537,003

30 Financial Risk Management (cont'd) Currency risk management

The Company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and the respective currencies of the Company. The functional currency of the Company is the Nigerian Naira. The Company also transacts in United States Dollars (USD), Euros (EURO) and Swiss Franc (CHF). Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts.

A movement in the exchange rate either positively or negatively by 30 percent is illustrated below. Such movements would have increased (decreased) the profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant.

As at 31 March 2026

	'000	'000			₦'000
Trade receivables USD	9,678	13,418,547	1,386.50	'30%	4,025,564
Cash deposits USD	29,581	41,014,057	1,386.50	'30%	12,304,217
EURO	947	1,513,513	1,598.22	'30%	454,054
Trade payables
USD	(8,346)	(11,571,729)	1,386.50	'30%	(3,471,519)
EURO	(2,525)	(4,035,502)	1,598.22	'30%	(1,210,651)
CHF	(37)	(64,172)	1,734.37	'30%	(19,252)
Net impact on profit or loss
USD	30,913	42,860,875	1,386.50	30%	12,858,262
EURO	(1,578)	(2,521,989)	1,598.22	30%	(756,598)
CHF	(37)	(64,172)	1,734.37	30%	(19,252)
As at 31 December 2025

Foreign currency Foreign currency Naira balance Naira balance Exchange rate* Exchange rate Effect of increase/decrease in exchange rate Effect of increase/decrease in exchange rate

Trade receivables	'000	'000			₦'000
USD	1,796	2,613,862	1,455.38	'30%	784,159
Cash deposits
USD	29,716	43,248,072	1,455.38	'30%	12,974,422
EURO	237	404,804	1,708.03	'30%	121,441
Trade payables
USD	(15,213)	(22,140,696)	1,455.38	'30%	(6,642,209)
EURO	(1,319)	(2,252,897)	1,708.03	'30%	(675,869)
CHF	(37)	(66,050)	1,785.13	'30%	(19,815)
Net impact on profit or loss
USD	16,299	23,721,239	1,455.38	30%	7,116,371
EURO	(1,082)	(1,848,093)	1,708.03	30%	(554,429)
CHF	(37)	(66,050)	1,785.13	30%	(19,815)

A decrease in exchange rate by 30 percent (2025: 30 percent) against the above currencies at the reporting period would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

*These exchange rates have been derived by computing the weighted average of the CBN intervention rate, bank rate, and NAFEM which represents the Company's expected pattern of realisation and settlement.

The following exchange rates were applied during the period:

Average rate Reporting date spot rate

	2026	2025	2026	2025
USD	1383.79	1,521.07	1386.50	1,455.38
EURO	1618.26	1,721.10	1598.22	1,708.03
CHF	1774.75	1,841.78	1734.37	1,785.13

Financial Risk Management (cont'd)

Liquidity risk management Liquidity risk tables

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

The following tables detail the Company's remaining contractual maturity for its derivative and non-derivative financial liabilities with agreed repayment periods. The contractual cashflows are gross and undiscounted and include contractual interest payments.

Contractual cashflows

		Carrying amount	Total	Less than 1 month	1 to 3 months	3 months to 1 year	More than 1 year
31 March 2026		₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Borrowings	(Note 21)	100,008,736	100,008,736	-	-	100,008,736	-
Trade payables	(Note 24)	96,604,850	96,604,850	12,047,174	67,015,707	17,541,969	-
Other payables1	(Note 24)	87,586,294	87,586,294	31,315,763	29,422,985	26,847,546	-
Lease liabilities	(Note 22)	1,963,290	1,963,290	-	-	996,633	966,657
		286,163,170	286,163,170	43,362,937	96,438,692	145,394,884	966,657
31 December 2025 Borrowings	(Note 21)	84,671,515	84,671,515	-	-	84,671,515	-
Trade payables	(Note 24)	181,227,928	181,227,928	67,275,479	96,410,480	16,894,930	-
Other payables1	(Note 24)	54,034,029	54,034,029	19,319,425	18,151,726	16,562,878	-
Lease liabilities	(Note 22)	698,515	698,515	-	-	354,590	343,925
		320,631,987	320,631,987	86,594,904	114,562,206	118,483,913	343,925

1The amount of other payables does not include statute-based deductions (Pay As You Earn tax, Witholding tax and Value Added Tax payables).

The Company manages liquidity risk by maintaining reserves, monitoring forecasts of banking facilities and actual cash flows and matching the maturity profiles of financial assets and liabilities. Below is a listing of financing facilities that the Company has at its disposal to further reduce liquidity risk.

Financing facilities

Unsecured bank loans which are revolving trade loans with a tenure of one year and overdrafts payable at call are reviewed annually. Commercial papers are unsecured instruments which are payable at the expiration of their tenure.

	2026	2025
	₦'000	₦'000
Amount used	98,458,175	91,491,456
Amount unused	111,541,825	118,508,544
Total facilities	210,000,000	210,000,000

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