Total Nigeria Plc forecast free cash flow of N19.17 billion by September 31 after factoring in capital purchases.
The company said in a statement that it expects third quarter revenue of 66.03 billion naira with a gross profit margin of 17.22%.
Total Nigeria estimated its profit before tax and profit after tax at around 3.46 billion naira and 2.34 billion naira respectively.
Investopedia defines free cash flow as the cash that a company produces through its operations after subtracting the expenditure of cash for investing in capital assets such as property, plant and equipment.
In a company with significant costs in its value chain, Total Nigeria estimates that cash paid to suppliers and employees between July and September would swallow N45.66 billion of its expected revenue of 66.03 billion. billion naira.
The company said it would spend around 1.2 billion naira on the purchase of fixed assets.
After taking into account variations in cash flows from financing, investing and operating activities, Total saw its cash and cash equivalents close at 10.28 billion naira as of September 31.
PUNCH recently reported that shareholders of Total Nigeria at the company’s last annual general meeting approved a dividend of 6.08 naira per share amounting to 2.06 billion naira.
“The company’s revenue for 2020 fell 29.79% to 205 billion naira as the effects of the COVID-19 pandemic made the year an unprecedented year,” the president said. Stanislas Mittelman.
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