Eterna Plc, a prominent player in Nigeria's downstream energy sector, has officially set in motion a major capital-raising initiative aimed at bolstering its financial base and funding aggressive growth plans.
Details of the Rights Issue
The company has finalized plans for a rights issue of 978,108,485 ordinary shares at a price of N22 per share. This move is projected to generate approximately N21.52 billion for the firm. The formal signing ceremony for the issue marks a critical step following earlier approval by shareholders at the Annual General Meeting.
Under the terms of the offer, existing shareholders are granted the right to purchase three new ordinary shares for every four ordinary shares they owned as of the close of business on November 27, 2025. The subscription window is scheduled to open on January 12, 2026, and will run until its official closure on February 18, 2026. All newly issued shares will carry equal rights with the existing ordinary shares of the company.
Strong Financial Performance Fuels Ambition
The decision to seek fresh capital is backed by a remarkable financial turnaround and sustained growth. Eterna reported a staggering 71 per cent surge in revenue to N313.6 billion in 2024, a significant jump from N183.2 billion the previous year. More importantly, the company swung back to profitability, posting a profit before tax of N4.48 billion in 2024. This represents a dramatic recovery from a loss of N11.97 billion recorded in 2023.
This positive momentum has carried into the current year. The firm's half-year results for 2025 show a 6.9 per cent increase in consolidated revenue and an impressive 143.9 per cent rise in profit before tax, which reached N1.57 billion compared to the same period in 2024.
Strategic Use of Proceeds for Expansion
According to the company's board, the substantial funds from the rights issue will be strategically deployed across several key areas to drive future growth. The capital will finance:
- Expansion of the company's retail service station network.
- Upgrading and modernizing its lubricant blending plant.
- Enhancing its Liquefied Petroleum Gas (LPG) retail assets and network.
- Acquisition of new commercial delivery assets.
- Expansion of its aviation fueling operations.
- Investment in Environmental, Social, and Governance (ESG) related projects.
The Board of Directors, led by its Chairman, Dr. Gabriel Ogbechie, emphasized that this capital injection is designed to solidify Eterna's competitive edge in the downstream market. It will also provide the financial muscle to seize emerging opportunities in the energy transition space, accelerate LPG network growth, and fuel faster retail expansion.
