Total has released its forecast for the first quarter of next year, and the company expect to surpass its revenue of Q1 2020. Total stated that its revenue will hit NGN115,9 billion in three months of Q1 2021 as the oil industry gradually recoup losses to COVID-19 pandemic and price war between Russia and Saudi Arabia.
AllNews gathered that Total generated NGN70.2 billion in Q1 this year, but the company estimated that its revnue for 2021 first quarter will rise by 12.6% when both quarters are compared. Note that revenue for Q1 2020 failed to surpass NGN77.4 billion generated in Q1 2019.
According to the forecast statement seen by AllNews, Total estimated its Gross Profit to it NGN12.4 billion in Q1 2021, rising above the NGN7.7 billion recorded in Q1 this year, despite its Cost of Sales expected to rise to NGN103.5 billion during the period of Q1 2021 - cost of sales this year's Q1 was NGN62.4 billion.
Total said its Operating Profit will rise to NGN2.6 billion during the period under review, surpassing the NGN926.1 million the company recorded in Q1 2020, and the NGN1.3 billion reported as Operating Profit for same period in 2019.
The oil & gas company had recorded NGN418.3 million and NGN136.9 million losses in Profit Before Tax for both Q1 2019 and Q1 2020 respectively. But next year Q1, Total forecast it will return to profit for PBT, as it projects NGN2.2 billion for the period.
For its Profit After Tax, Total forecast NGN1.5 billiob for the period of Q1 2021. The company had recorded loss in PBT, reporting loss of NGN163.2 million and NGN474.08 million during Q1 2020 and Q1 2019 respectively.
The global oil industry had been hit by COVID-19, which prevented demand for oil, as countries restricted movement into their countries. The COVID-19 impact had occured shortly after the oil price war between Russia and Saudi Arabia.
Both countries had flooded the global oil market with cheap oil, causing price of crude oil to decline. Coupled with the COVID-19 pandemic, brent crude fell to $22.76 per barrel - its lowest since 2002, while US West Texas Intermediate (US crude) declined to $20.09 - also its lowest since 2002.
US West Texas Intermediate now sell at $45.32 per barrel, while brent crude oil sell at $48.72 as at the time of filing this report, 5.26pm (Nigerian time).