Eterna Plc records significant depreciation in revenue

money03 September 2014, Lagos – Despite the recent improvement in the fortunes of petroleum marketing companies, Eterna Plc’s situation seemed different  as the company’s half year results showed significant decline in turnover.

Eterna Plc ‘s financial statements for the half-year period ended June 30 2014 filed with the Nigerian Stock Exchange (NSE), showed its revenue plunged by 71 per cent or N33.877 billion to N13.979 billion from the N47.856 billion in the corresponding period of 2013.

According to results, the group’s gross profit for the period stood at N1.291billion, 10 per cent lower than the N1.443 billion it posted for the corresponding period of 2013.

Despite the drop in revenue and gross profit, the company’s profit before tax and net profit were much higher than what it made in the same period last year.

Analysis of the results showed that its profit before tax and net profit each rose by 48 per cent to N974.4 million in the period ended June 30, 2014 from the N658.9 million it declared as profit for the same period of 2013.

The company also grew its shareholders’ funds by 15 per cent to N8.085 billion from N7.042 billion with its authorised share capital at N1.6 billion.

The group’s basic earnings per share appreciated by 48 per cent to 75 kobo in the period under review from 51 kobo in the corresponding period of 2013, while its fully diluted earnings per share surged by 215 per cent to 75 kobo from 24 kobo in the period ended June 30, 2013.
Its market capitalisation stood at N5.334 billion with 1.304 billion shares outstanding.

Chairman of the board of Eternal Oil Plc, Mr. Fola Adeola, had at the company’s general meeting assured the company’s shareholders that the management would continue to do what it could to ensure a rewarding future for stakeholders and investors.

Adeola said Eternal had made progress in terms of its strategic objectives by investing in business areas that have improved its profitability and also enhanced its goodwill among customers and other industry players.

He said: “Fresh initiatives are being vigorously executed to ensure that profitability is sustained, both in succeeding (current) year and in future. The board and management intend to continue the implementation of innovative and far reaching plans geared towards improving profitability, without compromising quality or sacrificing any of our core values.”

Adeola also announced that the company’s trade debtors, customers buying goods without paying cash immediately short up 41 per cent to N1.45 billion from N1.02 billion, “which may have been partly responsible for a 75 per cent drop in its cash and bank balances to N262 million from about N1.03 billion in 2009.”


– This Day

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