Eterna Plc Full-Year (FY) profit has risen, thanks to the reduction in interest expense as the company is beneficiary of the central bank gradual adoption of a dovish monetary policy stance in the face of easing inflationary pressures.
For the year ended December 2025, Etena Plc profit spiked by 70.14 percent to N2.28 billion from N1.34 billion in December 2024.
Sales reduced by 3.35 percent to N302.51 billion, as coming on board of Dangote Refinery significantly reduced importation of fuel that was a major driver of the downstream oil and gas firm’s top line (revenue) growth.
The drop in revenue led to a reduction in gross profit and operating profit by 68.85 percent and 67.16 percent to N12.44 billion and N9.18 billion respectively.
A 68.27 percent fall in interest on borrowing to N2.44 billion as well as a foreign exchange (FX) revaluation gains of N107.66 million from a FX revaluation loss of N15.79 billion were pivotal to the uptick in profit.
The company also made a one-time gain on debt extinguishment of N8.7 billion. This was treated In accordance with IFRS 9 – Financial Instruments, the difference between the carrying amount of the financial liabilities extinguished and the consideration paid.
Of course, the relative stability in the foreign exchange market as well as sustained disinflation is supporting listed companies’ earnings growth, which means the bold reforms of president Bola Tinubu is yielding fruits.
However, Eterna finances its operations with more debt than equity, which exposes it to financial risk in the long run when borrowing costs start to rise.
For instance, the company has a debt to equity ratio of 974.15 percent in December 2025, though lower than 2024’s 1099 percent.
A high debt-to-equity (D/E) ratio indicates a company is financing more of its operations with debt than equity, suggesting higher financial risk and leverage.
Generally, a ratio above 1–2 means more debt than equity, which can lead to higher borrowing costs, lower stock prices, and increased bankruptcy risk if the cost of debt outweighs returns.
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