Total Energies, Eterna Plc, and MRS Oil have recorded a cumulative revenue of N35.7 billion from their lubricant business in the first quarter of 2023, up 0.8 percent from N35.4 billion in the first quarter of 2022.
Nigeria’s automotive lubricants market is estimated to reach $683 million in 2023, according to findings by the TechSci Research, a research-based management consulting firm.
The outlook signals that Nigeria’s lubricant market offers enormous opportunities for investors looking for high returns even as more firms leverage on their competitive advantage to take charge of the country’s lubricants market ahead of the expected boom.
Gravitating towards higher-quality, specialised, and synthetic lubricants, with an increase in end-user awareness of the importance of quality lubricants, more automotive lubricants firms have continued to spring up with many sparing no effort at becoming the household name for lubricants in Nigeria.
The three downstream firms’ lubricant business contributed 18.1 percent to their cumulative total revenue of N197.3 billion in Q1 2023, 680 basis points decline from 24.9 percent contribution to the total revenue of N142.33 in Q1 2022.
Total Energies
Total Energies’ revenue from lubricants dropped 0.9 percent to N30.32 billion in the first quarter of 2023 from N30.62 billion in the first quarter of 2022.
The firm’s sales of lubricants contributed 22.4 percent to the total revenue in the first quarter of 2023, 900 basis points decline from 31.4 percent contribution to the total revenue in the first quarter of 2022.
The firm’s revenue grew 38.6 percent to N135.28 billion in the first quarter of 2023 from N97.61 billion in the first quarter of 2022.
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Total Energies’ cost of sales increased by 44.7 percent to N120.27 billion in the first quarter of 2023 from N83.12 billion in the first quarter of 2022.
The firm’s selling & distribution costs dropped 43 percent to N915.99 million in the first quarter of 2023 from N1.61 billion in the first quarter of 2022. Administrative expenses rose to N7.8 billion, 3 percent increase from N7.57 billion in the period reviewed.
Total Energies’ basic earnings per share stood at N12.26 per share in the first quarter of 2023 from N12.86 per share in the first quarter of 2022.
Eterna Plc
Eterna Plc’s revenue from lubricants stood at N4.35 billion in the first quarter of 2023, 15.7 percent increase from N3.76 billion in the first quarter of 2022.
The firm’s sales of lubricants contributed 14 percent to the total revenue in the first quarter of 2022 and 2023 respectively.
Eterna’s revenue grew 16.3 percent to N31.18 billion in the first quarter of 2023 from N26.82 billion in the first quarter of 2022.
The firm’s cost of sales grew 11.7 percent to N27.64 billion in the first quarter of 2023 from N24.52 billion in the similar period of 2022.
Selling and distribution expenses rose to N70.35 million, 110 percent increase from N33.49 million in the comparable period.
Eterna’s general and administrative expenses stood at N1.73 billion in the first quarter of 2023, 57 percent increase from N1.1 billion in the first quarter of 2022.
Basic earnings per share stood at N0.84 per share from N0.83 per share in the comparable period.
MRS Oil
MRS Oil’s revenue from lubricants and greases stood at N1.01 billion in the first quarter of 2023, 0.1 percent decline from N1.02 billion in the first quarter of 2022.
The sales of lubricants contributed 3.3 percent to the total revenue in the first quarter of 2023, 240 basis points decline from 5.7 percent in the first quarter of 2022.
MRS Oil’s revenue increased to N30.79 billion in the first quarter of 2023, a 72 percent increase from N17.9 billion in the first quarter of 2022.
The firm’s cost of sales increased by 58.3 percent to N26.98 billion in the first quarter of 2023 from N17.04 billion in the first quarter of 2022.
Administrative expenses increased to N1.46 billion in the first quarter of 2023, up 49.7 percent from N975.21 million in the first quarter of 2022.
Selling and distribution expenses grew to N202.26 million in the first quarter of 2023, 126 percent increase from N89.54 million in the first quarter of 2022.
Earnings per share stood at N4.30 per share in the first quarter of 2023 from -0.14 per share in the first quarter of 2022.
