Fuel, Lubricants business favour Eterna as revenue hits N69.34bn

Eterna Plc has reported a 21.2 percent increase in revenue, reaching N69.3 billion for the half-year ending June 30, 2023, compared to N57.22 billion in the corresponding period of 2022.

The revenue was generated from its main business lines, which include fuels, lubricants, and other product distribution (LPG).

Fuel sales contributed N61.72 billion, lubricant sales amounted to N7.55 billion, and other products brought in N0.67 billion in the first half of 2023.

The cost of sales increased to N33.13 billion in the first half of 2023 from N28.56 billion recorded in the same period of 2022.

The company’s gross profit increased to N8.57 billion in the first half of 2023, up from N4.14 billion in the same period of 2022.

Operating income also rose to N4.85 billion in the first half of 2023, compared to N1.98 billion in the same period of 2022.

However, Eterna faced a foreign exchange loss of N9.8 billion in the first half of 2023, in contrast to the N76.15 million foreign exchange loss in the previous year.

This loss was attributed to the Central Bank of Nigeria’s (CBN) move to unify the foreign exchange market.

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As a result, Eterna reported a loss of N5.87 billion in its profit after tax for the first half of 2023, compared to N1.25 billion recorded in the same period of 2022.

In the 2022 financial year, Eterna reported a profit before tax of N2.09 billion from the N0.9 billion loss in 2021. The company also declared a dividend of 15 kobo per ordinary share of 50 kobo.

Net cash generated used in operating activities recorded a loss of N176.9 million, from a profit of N5.89 billion recorded in the same period of 2022.

Net cash used in investing activities also recorded a loss of N541.3 million in the period under review from a profit of N483.43 billion recorded in the same period of 2022.

Net cash generated from financing activities however recorded a profit of N14.64 billion in the period under review from N569.56 million recorded in the same period of 2022.

Cash And Cash Equivalents as of 30th June 2023 amounted to N15.05 billion from N12.2 billion recorded in the same period of 2022.

Analysts are closely watching to see how companies that were impacted by the CBN’s policy on the foreign exchange market will adapt in a post-unification exchange rate market.