Eternal Oil reports a pre-tax loss of N3.3 billion in Q1 2024.


May 2, 2024.

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Azonuchechi Chukwu.

Eternal Oil Plc has released its financial performance for Q1 2024, disclosing a pre-tax loss of N3.302 billion, a stark contrast to the N1.29 billion pre-tax profit reported in Q1 2023.

This downturn can be attributed to a significant foreign exchange loss of N10.69 billion, in contrast to the N182 million loss recorded in Q1 2023.

These figures reflect the prevailing macroeconomic headwinds; heightened inflation, interest rates, and exchange rate fluctuations, which businesses are contending with.

Consequently, in some instances, this has resulted in the depletion of shareholders’ funds. Specifically, Eterna Oil has been particularly affected, with its retained losses reaching N7.01 billion, eroding its shareholders’ funds.

Key highlights (Q1 2024 v. Q1 2023):

Revenue: N67.789 billion +117.39% YoY

Cost of Sales: N57.234 billion +107.04% YoY

Gross Profit: N10.555 billion +198.25% YoY

Administrative Expenses; N2.320 billion +34.42% YoY

Operating Profit: N8.185 billion +260.11% YoY

Finance Cost: N798.971 million +157.20% YoY

Foreign exchange loss: N10.688 billion +5,776% YoY

Loss after tax: N4.064 billion -470.44% YoY

Basic LPS: N3.12 -471.43% YoY

Cash and cash equivalent: N4.838 billion -29.84%.

The cost of fuel, which constitutes about 88% of the total cost of sales, consumes approximately 85% of fuel sales. This has resulted in the narrow gross profit margin of 16% and an operating profit margin of 12% recorded in Q1 2024.

Since the release of its audited results on March 30, the company’s share price has experienced a 6% decline. This suggests that investors may have reacted negatively to the financial performance revealed in the results.

However, investors may find encouragement from management’s optimistic outlook regarding the company’s prospects for enhancing its financial performance and regaining profitability.

The company’s Q2 2024 profit forecast of N1.04 billion, coupled with an anticipated revenue of N118.1 billion, reflects its confidence in reversing its previous loss position. (

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Azonuchechi Chukwu
Azonuchechi Chukwu
Azonuchechi Chukwu - Business Journalist at Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the team.

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