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In the face of subsidy removal, Eterna Oil Nigeria more than doubled its operating profit as the downstream oil and gas firm is grappling with foreign currency denominated loans.
For the year ended December 2023, Eterna Oil’s operating profit spiked by 182.25 percent to N9.05 billion from N3.20 billion as at December 2022.
Revenues were up 57.44 percent to N183.37 billion in the period under review from N116.47 billion the previous year.
Gross profit margin increased to 9.75 percent in the period under review from 7.72 percent as at December 2022.
A breakdown of the revenue figures shows sales from fuel rose 70.56 percent to N164.56 billion while revenue from lubricate was up 21.43 percent to N18.58 billion as at December 2023.
Despite the stellar performance, the company faced challenges in obtaining sufficient foreign exchange amid illiquidity and continuous depreciation of the Naira, thus unable to import petroleum products actively.
The devaluation of the currency stoked N15.43 billion in foreign exchange losses that resulted in a loss after tax of N9.33 billion as at December 2023, but the good tiding is that the company will return to net profit as devaluation loss will wane on the back of reforms by the central bank.
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