Nigerian energy company Eterna Plc has announced a significant financial turnaround, reporting a pre-tax profit of ₦1.57 billion (approximately $1.1 million) for the first half of 2025. This marks a sharp reversal from the ₦3.57 billion pre-tax loss recorded during the same period in 2024, according to unaudited financial statements released by the firm. The Lagos-based downstream oil and gas operator attributed the improvement to stronger operational efficiency and strategic adjustments in response to Nigeria’s deregulated energy market.
Group revenue grew 7% year-over-year to ₦157.7 billion, up from ₦147.5 billion in H1 2024. While gross profit stood at ₦6.9 billion, the company’s gross margin remained steady at 4%, reflecting what analysts describe as lingering price pressures in the post-deregulation environment. A notable bright spot emerged in operational performance, with operating profit reaching ₦2.34 billion — bolstered by ₦575 million in ancillary income. This contrasts sharply with the ₦14.5 billion foreign exchange loss that dragged down 2024 results, underscoring improved currency risk management.
After accounting for ₦995 million in tax obligations, net profit settled at ₦574 million. Shareholders saw marked improvement, with earnings per share climbing to ₦0.44 compared to a ₦3.71 per-share loss during the prior-year period. The performance signals stabilization for the company following Nigeria’s controversial fuel subsidy removal in 2023, which dramatically reshaped the competitive landscape.
CEO Olumide Adeosun credited the results to organizational agility amid sector-wide changes. “Our ability to adapt quickly in this evolving environment, coupled with disciplined cost management and growth in lubricant sales, positions us to capitalize on new opportunities,” he said. Analysts note that Eterna’s focus on alternative revenue streams and operational resilience appears to be offsetting challenges in its core petroleum marketing business.
While the forex loss reversal provided a critical boost, industry observers caution that sustainability hinges on Nigeria’s volatile economic conditions. The Central Bank’s ongoing foreign exchange reforms and global crude price fluctuations remain key variables for energy firms. For now, Eterna’s pivot toward higher-margin lubricant products and operational streamlining offers a tentative blueprint for navigating the deregulated market’s uncertainties.
