TotalEnergies Marketing Ghana PLC reported a 26% drop in profit after tax for the first quarter ended 31 March 2026, with earnings declining to GHS60.4 million from GHS81.7 million recorded in the same period last year.

The petroleum marketing company has reported a significant drop in revenue for the first quarter of 2026, reflecting challenging trading conditions despite some improvements in cost management and margins.

According to its latest financial results, revenue fell sharply to GHS1.177 billion from GHS1.885 billion in the same period last year, representing a decline of nearly 38%. Although the cost of sales also decreased to GHS948.9 million from GHS1.658 billion, the reduction was not enough to fully cushion the impact on profitability.

Despite the drop in turnover, the company managed to keep its gross profit relatively stable. Gross profit edged up slightly to GHS228 million from GHS226.4 million, suggesting that margins improved even as overall sales weakened.

However, rising operating expenses weighed on performance. Operating profit before financing costs declined to GHS106.2 million, down from GHS136.4 million a year earlier. This was largely due to higher general, administrative and selling expenses, which increased to GHS124.6 million from GHS103.7 million.

The company also recorded an impairment charge on trade receivables of GHS9.6 million, compared to a release of GHS1.7 million in the prior year, further affecting earnings.

There was some relief from lower borrowing costs. Finance costs dropped significantly to GHS3.7 million from GHS15 million, a reduction of nearly 75%, helping to ease pressure on the bottom line. Finance income remained unchanged at GHS163,000.

In addition, the company benefited from a contribution of GHS515,000 as its share of profit from an associate, compared to no contribution in the same period last year.

Even so, higher tax expenses and other factors continued to weigh on final earnings. Tax rose to GHS42.2 million from GHS40.4 million, while total comprehensive income declined to GHS58.3 million from GHS83 million. This was further impacted by a foreign exchange loss of GHS2.1 million from the translation of foreign operations.

Earnings per share also dropped to GHS0.5266 from GHS0.7170, reflecting the overall decline in profitability.

On the cash flow side, the company recorded some improvement. Net cash generated from operating activities increased to GHS27.9 million from GHS18.2 million, supported by favourable changes in inventory levels and trade payables.

However, its cash position weakened compared to the previous year. Cash and cash equivalents stood at GHS46.9 million at the end of the period, down from GHS88.7 million a year earlier.

During the quarter, the company paid GHS33.2 million in income taxes and GHS6.8 million in lease obligations, while investing GHS5 million in property, plant and equipment.

The financial statements, dated April 30, 2026, were signed off by management as presenting a true and fair view, with no misleading information.

Overall, the results highlight a mixed performance, with improved margins and lower finance costs providing some support, but declining revenue and rising expenses continuing to weigh on profitability.