Eterna Plc has finalized a rights issue of 978,108,485 ordinary shares at ₦22.00 per share, aiming to raise approximately ₦21.52 billion. The capital raise is designed to strengthen the company’s balance sheet and support strategic expansion across its business segments, including fuel distribution, lubricant manufacturing, LPG retailing, and aviation fueling.
The rights issue was formally signed on Tuesday, marking a major milestone in the company’s capital-raising program, following shareholder approval at the Annual General Meeting in July 2025. Existing shareholders are entitled to subscribe for three new ordinary shares of 50 kobo each for every four ordinary shares held as of November 27, 2025. The subscription period will run from January 12, 2026, to February 18, 2026.
The capital raise follows Eterna Plc’s strong financial performance in recent years, with a 71% increase in revenue to ₦313.6 billion in 2024, compared to ₦183.2 billion in 2023. The company also returned to profitability with a profit before tax of ₦4.48 billion, representing a significant turnaround from the ₦11.97 billion loss recorded in 2023. This financial momentum has continued into 2025, with half-year results showing a 6.9% increase in consolidated revenue and a 143.9% rise in profit before tax to ₦1.57 billion.
Proceeds from the rights issue will be deployed to support several strategic initiatives, including the expansion of the retail network, upgrading of the lubricant blending plant, and enhancement of LPG retail assets. A portion of the capital raised will also serve as an operational working capital buffer to enhance day-to-day liquidity, providing resilience against market volatility and potential supply disruptions.
The Nigerian downstream oil and gas sector is undergoing structural reforms, regulatory adjustments, and macroeconomic pressures. Despite these challenges, Eterna Plc has maintained resilience through diversified and integrated operations. The company’s chairman, Dr. Gabriel Ogbechie, noted that the rights issue will further strengthen Eterna’s competitive positioning in the downstream sector, enabling the company to pursue opportunities in energy transition, LPG network expansion, and accelerated retail growth.
The successful completion of the rights issue is expected to have a positive impact on Eterna Plc’s future growth and profitability, allowing the company to navigate the challenges of the Nigerian downstream oil and gas sector and capitalize on emerging opportunities. With the additional capital, Eterna Plc is poised to strengthen its position in the market and drive long-term value creation for its shareholders.