Eterna returns to profitability amid COVID-19 pandemic

Eterna Plc, a Nigerian integrated energy company, has reported a profit of N941.04 million for the 2020 financial year, compared with a loss of N144.29 million a year earlier.

The company said on Tuesday that its profit before tax jumped to N548.15 million last year from N111.44 million in 2019.

Its revenue, however, plunged to N58.72 billion in 2020 from N229.27 billion in the previous year, according to its financial statements.

Eterna said the COVID-19 pandemic had had an impact on its business, adding that the lockdown imposed last year resulted in lower sales volume at the filling stations, especially in the second quarter of the year, due to restriction of movement and other business activities.

It said, “The global lockdown also led to a fall in the demand for crude oil and a consequent fall in crude oil prices. This has had a negative impact on the Company’s crude oil trading revenue stream leading to lower revenue from that stream.

“The COVID-19 pandemic also led to a reduction in Nigeria’s foreign exchange earnings and a consequent devaluation of the local currency. The Group reported FX loss of N354 million in 2020 as compared to FX gain of N33 million in 2019.

The company said on Mar. 29, 2021, a dividend of 10 kobo per share was proposed by the directors for approval at the annual general meeting, adding that this would result in a dividend payment of N130 million.