Eterna Plc, a prominent player in Nigeria’s integrated energy sector, has showcased its resilience and adaptability by achieving a remarkable financial turnaround in 2024. Despite grappling with economic headwinds such as fluctuating oil prices, foreign exchange volatility, and intense competition, the company reported a substantial 71% surge in revenue, reaching N313.6 billion, compared to N183.2 billion in 2023. This impressive growth underscores Eterna’s ability to effectively leverage emerging opportunities, optimize its operations, and solidify its market position within the dynamic Nigerian energy landscape. The company’s strategic focus on navigating challenges and seizing opportunities has propelled it from a loss-making position in 2023 to a position of profitability in 2024, demonstrating its strong operational excellence and strategic vision.
Eterna’s revenue growth was primarily driven by a combination of factors, including the increased price of petroleum products, strategic partnerships forged within the industry, and enhanced operational efficiencies. These factors enabled the company to expand its market share and capitalize on the evolving dynamics of Nigeria’s energy sector. The surge in revenue reflects not only favorable market conditions but also Eterna’s proactive approach to leveraging these conditions for its benefit. The company’s ability to adapt to market fluctuations and capitalize on emerging opportunities has played a pivotal role in its impressive financial performance.
Furthermore, Eterna’s commitment to cost management played a crucial role in its return to profitability. While the cost of sales increased in line with the higher revenue, reaching N273.6 billion, the company achieved a significant improvement in its gross profit margin. The gross profit rose to N39.9 billion in 2024, a remarkable 237% increase from N16.8 billion in the previous year. This translates to a gross profit margin of 12.7%, a notable improvement from 9.2% in 2023. Eterna’s focus on cost optimization, combined with increased revenue, has significantly boosted its profitability.
Eterna’s operational performance also witnessed a significant uplift, with operating profit surging to N27.9 billion in 2024, a fourfold increase from N7.8 billion in 2023. This substantial improvement underscores the company’s ability to generate higher returns from its core operations through strategic initiatives such as supply chain optimization, enhanced operational efficiencies, and prudent cost control measures. These efforts have allowed Eterna to maximize profitability and strengthen its financial position.
Despite facing a net foreign exchange loss of N15.7 billion due to the settlement of foreign currency-denominated obligations, a strategic decision aimed at bolstering the company’s balance sheet, Eterna navigated these challenges effectively. The company’s proactive risk management strategies and astute decision-making mitigated the impact of the foreign exchange loss, enabling it to achieve a profit before tax of N4.48 billion, a remarkable turnaround from the N11.97 billion loss incurred in 2023. The profit after tax also saw a substantial improvement, reaching N1.34 billion compared to a loss of N9.43 billion in the previous year. This demonstrates Eterna’s adeptness at managing financial risks and maintaining profitability despite external challenges.
Eterna’s leadership expressed optimism about the company’s future prospects, emphasizing its commitment to innovation, market expansion, and shareholder value creation. The Chairman, Dr. Gabriel Ogbechie, highlighted the 2024 performance as a strong foundation for future growth. He reiterated Eterna’s dedication to driving innovation, expanding its market presence, and delivering consistent value to its shareholders. The Managing Director, Olumide Adeosun, attributed the positive results to the resilience and determination of the Eterna team, emphasizing the company’s focus on sustainable growth and value creation for all stakeholders. He expressed confidence in Eterna’s ability to capitalize on emerging opportunities within Nigeria’s evolving energy landscape and maintain its positive growth trajectory. The leadership’s vision and strategic direction underscore Eterna’s commitment to long-term success and its continued contribution to Nigeria’s energy sector.
