Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
forex
Advertisement
Stanbic IBTC
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Markets

Eterna Oil Plc – strong revenue potential makes it an attractive stock to own

Published

on

Eterna Oil Plc is a small cap company that operates in the downstream petroleum industry. Small cap companies are those with a share value of less than N100 billion. The company has a market capitalization of N4.5 billion. Market capitalization of a company is the total number of a company’s shares multiplied by its share price.

Half Year 2017 results show the revenue increased from N40.7 billion in 2016 to N79.6 billion in 2017. Profit before tax increased from N1.4 billion in 2016 to N1.5 billion in 2017. Earnings per also increased from 75 kobo in 2016 to 80 kobo in 2017, suggesting the company could exceed its 2016 full year Earnings Per Share of N1.13.

FY 2016 Earnings Per Share means the stock is trading at a Price Earnings (PE) ratio of 3 times earnings making it one of the cheapest in the sector. Total Plc is currently trading at aPE ratio of 3 times earnings. Year to date, Eterna Oil Plc shares are up 6.45%, lagging behind the NSE All Share Index which is up 32.05%.

Petroleum stocks are negative this year, with the exception of Eterna Oil Plc, Seplat Plc and Oando Plc which are up year to date 18.42% and 24.04% respectively. Investors may be bearish on the sector as the likelihood of replicating2016 results are quite slim. Companies in the petroleum sub sector had fantastic 2016 results largely due to the increase in pump prices that occurred within the year.

In view of the company’s low PE ratio, and position as a growth stock, Nairametrics rates the stock a BUY.

Eterna Oil was incorporated on the 13th of January 1989 as Eterna Oil and Gas Limited. The company commenced operations in 1991, and was listed on the Nigerian Stock Exchange in 1998.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Spotlight Stories

Bears claw on Nigerian stocks, Sterling Bank, Nestle tumble

The Nigerian stock market breadth closed negative as 26 stocks posted 28 declines while 17 stocks appreciated.

Published

on

Nigerian stocks ended Tuesday’s trading session negative. Consequently, the NSE All-Share Index fell 0.59% to settle at 39,697.62 points, hence, the YTD performance retracted to 1.17%.

  • A total of 222.5million shares, worth N5,390 billion were traded in 4,470 deals. Transactions in the shares of Zenith Bank topped the activity chart with 48.10 million shares valued at N1.23 billion.
  • Across coverage sectors, the performance was mostly negative as all tracked indices closed negative for the day save for the NSE insurance which gained +0.21%.
  • The NSE consumer goods, oil & gas, industrial, and banking indexes fell by 3.86%, 0.88%, 0.41%, and 0.12%, respectively.
  • The Nigerian stock market breadth closed negative as 26 stocks posted 28 declines while 17 stocks appreciated.

Top gainers

  1. ACADEMY up 9.76% to close at N0.45
  2. PZ up 9.38% to close at N5.25
  3. BETAGLAS up 8.00% to close at N54
  4. ROYALEX up 8.00% to close at N0.27
  5. REGALINS up 7.69% to close at N0.28

Top losers

  1. MBENEFIT down 10.00% to close at N0.36
  2. ARDOVA down 9.97% to close at N16.25
  3. CHAMPION down 9.69% to close at N2.05
  4. INITSPLC down 9.62% to close at N0.47
  5. STERLNBANK down 8.75% to close at N1.46

Outlook

Nigerian bourse suffered significant losses as investors sold ARDOVA (-9.97%), STERLNBANK (-8.75%), WAPCO (-7.08%), and NESTLE (-6.90%).

  • That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.

Continue Reading

Companies

Dangote Sugar proposes N18.2 billion as final dividend for 2020

Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders.

Published

on

Dangote Sugar proposes N18.2 billion as final dividend for 2020

The Board of Directors of Nigeria, Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders for the period ended 31st December 2020.

This announcement was contained in the audited financial statement of the leading integrated sugar company.

In line with the statement of the Board of DSR, the approval of this proposed dividend at the forthcoming Annual General Meeting will see Dangote Sugar pay out a final dividend of N1.50 for each of the outstanding 12,146,878,241 ordinary shares of the company, held by its shareholders.

The proposed dividend is 36.36% higher than the final dividend of N1.1 per share (N13.36 billion) the sugar company paid its shareholders in 2019.

What you should know

  • Dangote Sugar Refinery declared in its audited statement for the period ended 31st December 2020 that its profit for the year climbed to N29.8 billion, from N22.4 billion in 2019.
  • According to these figures, DSR’s earnings per share for 2020 are pegged at N2.45. Hence, with a dividend of N1.50 per share, Dangote Sugar is set to payout 61.2% of its profits for 2020.
  • At the close of trading activities on the floor of the Nigerian Stock Exchange today, shares in Dangote Sugar Refinery declined by 0.83% to close lower at N17.85.
  • At this price, the dividend yield of Dangote Sugar shares is 8.40%.

Continue Reading
Advertisement




Advertisement

Nairametrics | Company Earnings