Following nearly two decades of consistent profitability, shareholders of TotalEnergies Marketing Nigeria Plc have urged the management to consider the payment of a bonus issue to improve shareholders’ value on investment.
At the company’s 47th annual general meeting (AGM) in Lagos at the weekend, the shareholders approved a final dividend of N40 per share for the 2024 financial year, translating to a total payout of N13.5 billion, representing a 60 percent increase from the N8.5 billion distributed in 2023.
This reflects the company’s solid earnings, which saw revenue surge by 64 percent to N1.04 trillion, while profit before tax (PBT) climbed 140 per cent to N42.25 billion.
The shareholders, while appreciative of the company’s efforts in renewable energy through the solarisation of service stations, encouraged further investment in local energy solutions, including sourcing from the Dangote Refinery.
They also raised concerns about unclaimed dividends, which stood at over N2.4 billion. Founder of the Independent Shareholder Association of Nigeria (ISAN), Sunny Nwosu, expressed appreciation for the dividend but pushed for clarity on the prolonged omission of bonus shares. Another shareholder, Anthony Omoniyi, highlighted the company’s solid balance sheet as a strong basis for bonus issuance.
“We have net earnings of over N74.9 billion. Bonuses are very efficient for us,” he said, adding that rising share prices have made it challenging for retail investors to increase their holdings.
Omoniyi also called for tighter cost controls, noting that some expenses, including consultancy and promotional costs, have ballooned.
“One went from N3.1 billion to N8.4 billion. That’s a huge N5.3 billion increase. If these expenses are lower, the profits become higher,” he added.He also canvassed for the return of interim dividends, particularly during festive seasons, to provide financial support to small investors.
Also, concerns over unclaimed dividends, which stand at over N2.4 billion, were raised.
Shareholder Nonah Awoh urged the company to collaborate more effectively with registrars to trace rightful owners.
“We cannot continue to have figures where Nigerians who have invested are not getting their money,” Awoh said, He also advocated for better corporate governance and transparency, particularly concerning minority representation, technical agreements, and the cost of foreign loans.
