TOTALENERGIES EP IRAQ : revenue, balance sheet and financial ratios

In 2024, TOTALENERGIES EP IRAQ achieves revenue of 341.2 M€. Revenue is growing positively over 9 years (CAGR: +4.1%). Vs 2023, growth of +21% (282.8 M€ -> 341.2 M€). After deducting consumption (98.2 M€), gross margin stands at 243.0 M€, i.e. a rate of 71%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 238.9 M€, representing 70.0% of revenue. Warning negative scissor effect: despite revenue change (+21%), EBITDA varies by -21%, reducing margin by 37.4 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 26.1 M€, i.e. 7.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 146%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.8 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 62.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 524.71. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 2.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 8 days. Favorable situation: supplier credit is longer than customer credit by 8 days. Inventory turnover is 195 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 188 days of revenue, i.e. 178.1 M€ to permanently finance. Over 2016-2024, WCR increased by +54%, requiring additional financing.

Based on 98 transactions of similar company sales (all years), the value of TOTALENERGIES EP IRAQ is estimated at 476 394 551 € (range 120 441 935€ - 784 032 520€). With an EBITDA of 238 933 508€, the sector multiple of 3.5x is applied. The price/revenue ratio is 0.36x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.