Eterna’s 9M pre-tax profit surges 635.8% to N10.28 billion, beats Q3 forecast

Eterna Plc reported a consolidated pre-tax profit of N10.28 billion for the nine months ended September 30, 2026, representing an increase of 635.80% from N1.40 billion recorded in the corresponding period of 2025.

In the third quarter, pre-tax profit reached N2.61 billion, reversing the N198.43 million pre-tax loss recorded in Q3 2025.

The company’s standalone Q3 pre-tax profit of N2.54 billion also exceeded its forecast of N1.18 billion by 115.97%, while profit after tax of N1.57 billion surpassed the projected N1.00 billion by 57.29%.

For the nine-month period, consolidated revenue increased by 71.75% to N365.56 billion from N212.84 billion, while profit after tax surged to N7.34 billion from N325.88 million.

The strong earnings performance was supported by substantial growth in fuel revenue and improved gross profitability, despite higher administrative expenses.

Key Highlights

• Revenue: N365.56 billion (Up 71.75% YoY from N212.84 billion).
• Gross profit: N23.33 billion (Up 134.79% YoY from N9.94 billion).
• Operating profit: N11.19 billion (Up 250.52% YoY from N3.19 billion).
• Earnings per share: N3.36 (Up 1,244.00% YoY from N0.25).
• Total borrowings: N46.75 billion (Down 32.55% from N69.31 billion in December 2025).
• Total assets: N114.19 billion (Up 23.86% from N92.19 billion).
• Cash and bank balances: N15.35 billion (Up 223.17% from N4.75 billion).
• Shareholders’ equity: N32.99 billion (Up 324.67% from N7.77 billion).

Driving the numbers

Eterna’s nine-month performance was largely driven by a significant increase in fuel revenue, which remained the group’s largest source of income.

• Revenue from fuel sales increased by 91.19% to N339.92 billion from N177.79 billion in the corresponding period of 2025, accounting for 92.99% of total revenue.
• In contrast, lubricants revenue declined by 42.57% to N18.68 billion from N32.53 billion, contributing 5.11% of total revenue.
• Revenue from other products and services increased by 175.48% to N6.96 billion from N2.53 billion, representing 1.90% of total revenue.

The figures indicate that the group’s revenue expansion was predominantly driven by its fuel business, which more than offset the decline in lubricants sales.

On the cost side, the cost of sales increased by 68.66% to N342.23 billion from N202.91 billion, slower than the growth in revenue.

Consequently, gross profit rose by 134.79% to N23.33 billion, with gross profit margin improving to 6.38% from 4.67% in the corresponding period of 2025.

However, operating expenses also increased significantly.

• General and administrative expenses rose by 68.01% to N12.15 billion from N7.23 billion, partly reflecting technical support service fees of N2.74 billion, which were not recorded in the corresponding period of 2025.
• Repairs and maintenance expenses also increased to N1.83 billion from N1.07 billion, while licence fees rose to N974.22 million from N521.19 million.
• Despite the higher operating costs, operating profit expanded by 250.52% to N11.19 billion from N3.19 billion, reflecting the stronger gross profit contribution.
• On financing, finance costs declined slightly by 1.67% to N1.93 billion from N1.96 billion, while finance income increased to N1.08 billion from N12.25 million, supported by interest income on short-term bank deposits.

The group also recorded a net foreign exchange loss of N66.06 million, compared with a gain of N149.85 million in the corresponding period of 2025.

The third-quarter results were similarly strong, with consolidated revenue increasing by 168.61% to N148.24 billion from N55.19 billion in Q3 2025.

The balance sheet

On the balance sheet, Eterna’s consolidated total assets increased by 23.86% to N114.19 billion as of September 2026, from N92.19 billion in December 2025, largely driven by higher inventories and cash balances.

• Inventories rose by 18.98% to N68.98 billion from N57.98 billion, while cash and bank balances increased by 223.17% to N15.35 billion from N4.75 billion.
• Trade and other receivables declined by 16.40% to N10.77 billion from N12.88 billion.
• On the liabilities side, total borrowings declined to N46.75 billion from N69.31 billion, while trade and other payables increased to N28.27 billion from N11.24 billion.
• Shareholders’ equity expanded to N32.99 billion from N7.77 billion, supported by the issuance of new shares amounting to N18.97 billion and earnings retained during the period.

The cash flow statement showed net cash generated from operating activities of N22.89 billion for the nine months, compared with a net operating cash outflow of N20.10 billion reported for the full year ended December 2025.

The improvement in operating cash generation, alongside reduced borrowings and higher cash balances, indicates a stronger liquidity position at the end of September 2026.

Market reaction

Eterna Plc closed at N42.75 per share on Tuesday, November 3, 2026, unchanged from its previous closing price on November 2.

• The stock has gained 50.00% year-to-date from its opening price of N28.50 at the beginning of 2026.
• Month-to-date, the share price remained unchanged at N42.75, compared with its closing price on October 30, 2026.
• The stock recorded a gain of 9.90% on October 30, rising from N38.90 to N42.75, although the available information does not establish whether this movement was directly related to the earnings announcement.

Over the past three months, Eterna’s share price has gained 29.60%, while its six-month return stood at 18.80%. However, the stock declined by 7.07% over the preceding four weeks.