Eterna Oil Plc posted record profits, thanks to the removal of subsidy on Premium Motor Spirits (PMS), however, such gains were wiped out by foreign exchange revaluation loss.
The major player in the downstream oil and gas sector has been investing in the acquisition of new trucks so as to increase its market share.
Analysis by MoneyCentral shows operating profit surged 360.51 percent to N8.18 billion as at March 2024 from N1.77 billion as at March 2023.
The uptick in operating profit which some analysts prefer as a measure of overall profitability because it does not include exceptional items was driven by a strong in revenue.
Sales were up 117.38 percent to N67.78 billion in the period under review from N31.18 billion, buoyed by contribution from fuels, lubricants, and other product distribution (LPG).
Of course Eterna Oil and peer rivals have benefitted from the removal in subsidy on fuel that added strength to earnings, however, the company posted a loss of after tax of N4.06 billion on the back of a foreign exchange revaluation loss of N9.83 billion.
Many companies are reeling from exceptional losses brought on by the sudden devaluation of the currency by the central bank that seeks to stabilise the foreign exchange market and spur foreign direct investment in a battered economy.
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