By Chukwuma Umeorah
Shareholders of TotalEnergies Marketing Nigeria Plc have intensified calls for the issuance of bonus shares, citing the company’s robust financial performance and nearly two decades of consistent profitability.
The demand was made at the 47th Annual General Meeting (AGM) of the company held in Lagos, where the board announced a N40 per share dividend for the 2024 financial year translating to a total payout of N13.58 billion, up 60 per cent from N25 in 2023.
Prominent shareholder and leader of the Independent Shareholders Association of Nigeria (ISAN), Sunny Nwosu, expressed appreciation for the dividend but pressed for clarity on the prolonged omission of bonus shares. “We want to find out from this company why, since 2004, they have not paid any bonus to shareholders. You have done everything to make us happy, but you have refused to give us a bonus. We don’t know why,” he said.
Another shareholder, Anthony Omoniyi, supported the call by pointing to the firm’s strong balance sheet: “We have a net earning of over N74.9 billion. Bonuses are very important for us,” he said, lamenting that escalating share prices have made it difficult for many retail investors to increase their holdings through the open market.
Omoniyi, while praising the 64 per cent rise in revenue and 140 per cent growth in profit before tax, called for tighter control on expenses citing rising consultancy and promotion costs as areas that need monitoring. “One went from N3.1 billion to N8.4 billion. That’s a very huge N5.3 billion increase. If these expenses are lower, the profits become higher. ”
In addition to dividend and bonus demands, shareholders called for several other measures, including the return of interim dividends during the festive season to support low-income investors.
Chairman, TotalEnergies, Jean-Philippe Torres, responded that the company remains committed to rewarding shareholders, noting that “we allocate 50 per cent of the profit before tax to the shareholders, and the rest is to run the company and mainly to maintain profitability and continue to deliver value to shareholders.”
He added that the 2024 dividend payout reflects this balance. “After all that, we have to pay many things. If you calculate the ratio between the dividend paid and the profit before tax, it’s something like 50 per cent.”
Torres explained that some of the increasing costs were unavoidable, as strategic decisions had to be taken to safeguard asset quality and customer experience. “We decided to spend a bit more on maintenance in order to make sure that the assets are really state-of-the-art. In terms of publicity, yes, we decided also to be a lot more active,” he said, attributing further cost spikes to inflation, forex volatility, and regulatory changes especially in insurance and working capital.
Concerns were also raised about unclaimed dividends, which stood at over N2.4 billion. Nonah Awoh, another shareholder, urged the company to proactively collaborate with registrars to trace rightful owners, warning, “We can’t continue to have figures where Nigerians who have invested are not getting their money.”
Awoh also called for better governance and operational transparency, particularly regarding minority representation, and urged greater disclosure on technical agreements, executive activities, and the cost of foreign loans.
On sustainability, shareholders applauded the company’s effort in solarizing several service stations and encouraged expansion into local energy solutions. They also advocated increased local sourcing, including from the Dangote Refinery. Torres confirmed progress in this regard, stating, “We are already buying from the refinery and we will continue, most likely in a bigger manner.”
Despite these demands, the shareholders collectively lauded the company’s 64 per cent revenue growth to N1.04 trillion and a 140 per cent surge in profit before tax to N42.25 billion. Comprehensive income grew by 113 per cent to N27.49 billion. They praised the board and management for strategic decisions that have positioned the company competitively despite economic headwinds.