Eterna grows  gross profit to N3bn

Eterna plc, an indigenous player in the nation’s oil and gas sector, has announced a gross profit of N3 billion for the fiscal year 2015.

 The gross profit witnessed steady growth from N2.3billion in 2011 to N3billion in 2015, but this is not without some level of fluctuations which was due to foreign exchange losses and volatility of petroleum products prices in the local market in the given period.

  It has also achieved consolidated revenue of N92.1 billion representing overall percentage increase of 12 % compared to N82.3 billion revenue achieved in 2014.

 The company has for the first time in 15 years declared a dividend of 25 kobo per share during its 23th Annual General Meeting which was held over the weekend in Lagos and promised to sustain the dividend payment from now onward with a view to adding value to the shareholders.

Micheal Ade Ojo, who is the chairman of the company at the meeting said: “This is the first time in fifteen years that a dividend has been declared by our company and I’m confident that your company has now embarked on a continuous dividend payment trajectory having regard to the enduring corporate structures that have been put in place in the last few years”.

He said the company’s rate of turnover hit N92.6billion in 2015, representing 11.82 increase over the rate declared in 2014

He said:”I am pleased to inform you that our company’s net assets have continued to grow year on year,as the company has been able to plough back its profits into increasing its trading portfolio and investments in new business areas. As a result our shareholders’ funds have increased from N5.4billion in 2011 to 9.68billion in 2015”.

He spoke on the company’s future outlook, stressing that the prospects are great on the premise of all the foundations laid for continuous strategic growth in the past years.

The company, he added, is confident that the coming years are the years of harvest.

 On the issue of fuel subsidy case which is now a subject of litigation, the company in its annual report said that even though problem of petroleum subsidy claims is one of the challenges it is facing currently as result of the charge filed by the Economic and Financial Crime Commission (EFCC), it remains resolute  in using all the available legal means to resolve the issue.

“Once again we have not received any illegal benefits from subsidy claims and will take all necessary actions to defend the interest of our company.”

  The report claimed that the company has an outstanding receivable from the Federal Government  valued at N1.58 billion in respect  of subsidy claims for Premium Motor Spirit (PMS) import. “This balance has been reconciled with the Petroleum Product Pricing Regulatory Agency (PPPRA) and qualified for sovereign Debt Note (SDN) however, the SDN is yet to be issued.

Mahmud Tukur, managing director of the company, in response to some of the questions raised by the shareholders allayed their fears concerning Daewoo Securities  bond  saying that  that everything would be settled  next year.

 However shareholders at the meeting were full of praises for the management for it doggedness to return the company to profitability and pay dividends to its   shareholders.

Sunny Nwosu one the leaders of the shareholders associations however suggested to the management of the company that it should always mentor the shareholders on issues that affect the company, saying that the management has done well by returning the company to profitability.

“After several years the company is paying dividend, we would want this to continue”.

 Another shareholder,  Timothy Adesiyun  expressed happiness that Eterna Plc  has re-engaged Castro  of South Africa  which would further strengthened  the capacity  of the  company  in terms  of production of  lubricants.

Olusola Bello