Despite the challenging downstream sector of the oil and gas industry, Eterna Plc’s consolidated operating revenue increased from N106.9 billion in 2016 to N173 billion in 2017, representing an increase of 61.8 per cent.
The company’s Shareholders’ funds also increased from N10.82 billion in 2016 to N12.41 billion in 2017.
Though, the company recorded a decrease in gross profit during the period under review, its profit before tax increased by 17 per cent as a result of prudent utilisation of resources and the company’s ability to deploy efficient financial management strategies in the year under review.
Speaking on Tuesday at the Company’s yearly general meeting, the Chairman of the company, Lamis Shehu Dikko stated that the company has embarked on the development of a five-year strategic plan, designed to take the company to higher levels of success.
According to him, as part of the plan, Eterna Plc has re-formulated its vision and mission statements in line with its strategic objectives. “We believe that our strategic plans are achievable and measurable. We have also linked our strategic plans to the company’s performance management system, in line with global best practices. The resources needed to achieve these plans have also been articulated and we are confident that we will be able to deliver on our strategic objectives over the next five years”, he added.
In the year under review, Dikko disclosed that the company achieved a significant milestone at its lubricant blending plant, located in Sagamu, Ogun State with the successful manufacturing and local filling of Castrol’s GTX Essential lubricants.
He noted that Nigeria was the first country in the world to manufacture Castrol’s GTX Essential range of Lubricants. “The GTX Essential is a bespoke lubricant manufactured to address the challenges associated with operating high-performance engines in tropical environments such as Nigeria.
“We also expanded our third party blending portfolio. Following on from a rigorous evaluation and assessment of blending plants across Nigeria, NNPC Retail, a subsidiary of the Nigerian National Petroleum Corporation issued a letter of intent to our Company to provide toll blending services for its brand of lubricants.
“We continue to invest in state-of-the-art equipment and cutting-edge technology at our Plant and we are proud to say that our staff have the requisite skills, knowledge and competence to consistently deliver excellent results in product manufacturing, testing and after sales support”, he said.
He expressed the company’s committment to achieving its set goals and delivering excellent service to customers, and returns to Shareholders.
Lamenting the challenges of the downstream sector, Dikko said that rise in international crude oil prices, though beneficial overall to the nation’s economy, resulted in an increased landing cost of petroleum products into Nigeria.
He explained: “We operated in an environment in which landing costs regularly exceeded the stipulated pump price of petroleum products.
We experienced unprecedented liquidity squeeze in the money market, inadequate access to credit, unstable foreign exchange conditions and gradual erosion of confidence by banks because of Government’s failure to honour its obligations to oil marketers as at when due. These conditions led to the scarcity of petroleum products witnessed in the year under review.
“Our Company was not spared the brunt of the scarcity and the attendant revenue loss. We leveraged every relationship to alleviate the hardship of our customers and supplied petroleum products at the stipulated pump price.
“I am proud to inform you that through hard work, innovation and efficient management of available resources, we remained profitable in a turbulent year for the downstream sector of the oil industry.”