Eterna Plc has reported a remarkable rebound in profitability for the 2025 financial year, posting a profit before tax of N7.2 billion, a 62.22% increase from N4.4 billion in 2024, according to its recently audited results. The performance reflects a combination of stable revenue streams, significant gains from other income, foreign exchange improvements, and lower finance costs, which collectively offset pressures on the top line.
Revenue for the year stood at N302.3 billion, down 3.59% from N313.6 billion in 2024, highlighting the challenges in the broader market. Fuel sales remained the company’s main revenue driver, contributing N261 billion, while lubricants added N38.5 billion. Other segments together accounted for N2.7 billion, maintaining a diverse but concentrated revenue mix.
The company’s cost of sales rose 4.83% to N286.8 billion, with fuel-related costs representing the largest component at N254.1 billion. Lubricants and other segments added N29.6 billion and N3.1 billion respectively. The increased cost pressure contributed to a sharp decline in gross profit, which fell to N15.4 billion from N39.9 billion the previous year.
Despite the contraction in gross margin, Eterna Plc’s overall profitability was buoyed by a dramatic 9,370% increase in other income to N9.4 billion, as well as a shift to a net foreign exchange gain of N599.1 million compared to a N15.7 billion loss in 2024. These gains, coupled with lower impairment charges, helped preserve earnings. Operating profit edged up slightly to N12.5 billion from N12.1 billion in 2024, even as administrative expenses climbed 36.32%.
Finance costs dropped by 30.8% to N5.3 billion, contributing further to the pre-tax profit surge. After accounting for a tax expense of N4.3 billion, the company reported a net profit of N2.9 billion.
Eterna’s balance sheet also reflected significant growth, with total assets rising 36.74% to N92.1 billion, largely driven by inventories, which stood at N57.9 billion. On the liabilities side, total obligations increased to N84.4 billion, while equity grew to N7.7 billion from N4.8 billion, aided by the reversal of a N1.5 billion retained loss into a N1.3 billion profit.
The market has yet to react to the results following their release on April 3, 2026, coinciding with the Easter holiday. Trading is expected to resume on Tuesday, with investors likely considering the stock’s 22.46% year-to-date gain and current price of N34.90, which could suggest potential upside toward the N50 mark.