Eterna Plc posts unaudited loss of N7.9 billion in 2023 due to naira devaluation

Eterna Plc posts unaudited loss of N7.9 billion in 2023 due to naira devaluation

Eterna Plc released its unaudited financial statements for FY 2023, posting a pre-tax loss of N7.9 billion, which reflects a 476% decline from the N2.1 billion pre-tax profit posted in 2022.

The company which operates in the downstream petroleum sector recorded a revenue of N183.4 billion in 2023, marking a 57% increase from the N116.5 billion recorded in 2022.

This revenue growth was driven by a rise in fuel prices in 2023, due to the removal of petroleum subsidy.

In 2023, the company recorded a revenue of N164.6 billion from fuel sales, marking a 71% jump from the N96.5 billion in fuel sales in 2022.

While there was a growth in fuel sale revenue, there was a corresponding 66% growth in fuel cost of sales to N150.3 billion, from 2022’s N90.4 billion.

The company also pulled off a remarkable growth in operating profit to N9.1 billion, representing an 182% growth from the N3.2 billion posted in 2022.

Despite the impressive fundamentals, Eterna Plc was not alienated from the losses that many Nigerian companies had accrued due to foreign exchange exposures in 2023. The devaluation of the Naira from June 2023 to December 2023 cost the company about N15.4 billion in net foreign exchange losses, which resulted in a pre-tax loss of N7.9 billion.

Key Highlights FY 2023 (FY 2022, % Change)

Revenue: N183.4 billion (N116.5 billion, +57%)
Cost of sales: N165.5 billion (N107.5 billion, +54%)
Gross profit: N17.9 billion (N9.0 billion, +99%)
Selling and distribution expenses: N404.3 million (N283.0 million, +43%)
Operating profit: N9.1 billion (N3.2 billion, +182%)
Net foreign exchange loss: N15.4 billion (N159.7 million, -9564%)
Loss/Profit before tax: -N7.9 billion (N2.1 billion, -476%)
Loss/Profit for the year: -N9.3 billion (N1.0 billion, -1022%)
Earnings per share: -N7.16 (N0.78, -1018%)
Cash and bank balances: N6.9 billion (N11.2 billion, -38.2%)
Total assets: N61.0 billion (N54.0 billion, +13.0%)
Retained earnings: -N2.8 billion (N6.7 billion, -143%)

What you should know

In May 2023, Eterna Plc paid dividends of N195.6 million, representing N0.15 per share, after the non-payment in 2022.

Changes in the exchange rate had an impact on the group’s cash, leading to a loss of N10.98 billion. This caused the group’s cash and cash equivalents to drop by 38.2% to N6.9 billion from N10.8 billion in 2022.

The group’s revenue of N183.4 billion in 2023 is the highest revenue recorded since 2019 when the group recorded a revenue performance of N229.3 billion.

Eterna Plc is a subsidiary of Preline Limited, which is an investment vehicle owned by Gabriel Ogbechie’s RainOil Group.

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