Total Nigeria Falls to Three-Year Low on Profit Concern
Total Nigeria Plc, which distributes and markets fuel and petroleum products, fell to its lowest price in almost three years on concern profit growth will trail other industries as demand wanes, Vetiva Capital Management said. The stock fell 5 percent, the daily limit, to 125.41 naira, the lowest since August 2009, by the close in Lagos.
The government raised the price of gasoline on Jan. 1 to 97 naira a liter from 65 naira, saying the move was necessary to end a subsidy on local consumption that was costing about 1.7 trillion naira a year. Government’s initial effort to double the price was resisted by labor and civil society organizations that organized a nationwide strike. Despite this, the government says the price will be raised further.
Total Nigeria forecast profit of 1.8 billion naira ($293 million) for the nine months through September on revenue of 54.5 billion naira, according to a statement by the Lagos-based unit of Total SA (FP) published on the Nigerian Stock Exchange website June 11.