Eterna Plc posted its strongest annual profit growth in more than 10 years after booking a one-off debt gain and containing foreign-exchange losses, even as revenue slipped and borrowing remained elevated.
Net income rose 69 percent to N2.28 billion in the year ended December 31, from N1.35 billion a year earlier, according to the company’s unaudited results. Earnings per share climbed to N1.75 from N1.03.
The performance exceeded management’s earlier full-year guidance, which projected net profit of N1.0 billion and turnover of N243.06 billion. Actual revenue came in at N302.52 billion, beating the forecast by about 24 percent, while profit more than doubled the target.
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Still, topline declined 3.5 percent from N313.62 billion in 2024, reflecting softer fuel volumes and pricing dynamics across the downstream market. Fuel sales, the company’s largest segment, fell to N261.85 billion from N272.41 billion, while lubricants dipped to N38.53 billion.
Margins were compressed. Gross profit dropped sharply to N12.45 billion from N39.94 billion as the cost of sales rose 6 percent to N290.07 billion. Administrative expenses increased to N12.52 billion, driven by higher staff costs, technical support fees, and repairs.
The swing factor was other income, which surged to N9.42 billion from just under N100 million a year earlier. The company disclosed that the figure includes a one-time gain of N8.7 billion from debt extinguishment, treated under IFRS 9 as the difference between the carrying amount of financial liabilities and the consideration paid.
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Operating profit settled at N9.19 billion, down from N27.96 billion in 2024. But below the line, the picture improved markedly. Net foreign-exchange movements turned positive at N107.7 million, compared with a N15.8 billion loss in the prior year, when currency volatility battered import-dependent marketers.
Finance costs also eased to N2.45 billion from N7.69 billion, reflecting lower overdraft charges and a moderation in interest expense. Profit before tax rose 53 percent to N6.86 billion.
In the fourth quarter alone, profit more than doubled to N4.34 billion from N2.35 billion a year earlier, supported by N8.79 billion in other income. Revenue for the quarter increased 12 percent to N89.67 billion.
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The balance sheet expanded, underscoring the working-capital intensity of the business. Total assets jumped to N93.48 billion from N67.42 billion, driven largely by a build-up in inventory to N59.14 billion, more than double the prior year’s level.
Short-term borrowings rose to N60.06 billion from N41.64 billion, while total liabilities increased to N86.34 billion. Equity improved to N7.13 billion from N4.85 billion as retained earnings returned to positive territory at N685.7 million, compared with a deficit of N1.60 billion a year earlier.
Cash generated from operations turned negative at N11.0 billion, reflecting the heavy inventory position and working-capital movements, despite N14.1 billion in operating cash flow before changes in working capital. Financing activities provided N15.5 billion, as new borrowings exceeded repayments.
The results come at a time when Nigeria’s downstream oil market is adjusting to subsidy removal and a more market-driven pricing regime. Marketers have had to navigate volatile exchange rates, higher funding costs, and shifting supply arrangements.
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For Eterna, the year’s earnings rebound hinges significantly on non-recurring income and improved currency dynamics. The durability of that recovery will depend on margin stability, funding costs, and the company’s ability to manage its enlarged inventory and debt load in a still-fragile operating environment.
Investors are noticing the improved operational efficiency and strong fundamentals, as shares of Eterna that shed 23.4 percent of their value a year ago have returned 14 percent year-to-date, with its share price climbing to N32.50 compared to N28.50 at the start of the year.
The stock is also currently ranked as the 85th best on the NGX in terms of year-to-date performance, according to data analytics platform African Exchange.
