By Bamidele Famoofo
WorldStage– Eterna Oil Nigeria Plc delivered a modest yet resilient financial performance in the first quarter of 2026, while navigating a challenging operating environment with notable efficiency.
Gross earnings stood at ₦70.51 billion, representing a 3.77 percent year-on-year decline from ₦73.27 billion recorded in Q1 2025.
The dip in revenue was primarily influenced by quiet market conditions and moderated product volumes amid rising product pricing. However, the company demonstrated strong cost containment, as cost of sales fell by 6.04 percent to ₦64.80 billion, compared with ₦68.96 billion in the corresponding period last year.
Despite the decline in top-line revenue, gross profit rose sharply by 32.45 percent to ₦5.71 billion from ₦4.31 billion, underscoring improved margins. This performance was supported by enhanced operational efficiency, disciplined cost management, and strategic optimization across core business segments, which collectively drove stronger profitability.
At the bottom line, profitability strengthened significantly. Earnings before tax (EBT) surged by 35.74 percent to ₦2.58 billion, while profit after tax (PAT) more than doubled, increasing by 101.52 percent to ₦1.38 billion from ₦687 million in Q1 2025.
This robust improvement reflects stronger earnings conversion and effective cost leverage, translating to substantial value accretion for shareholders.
Consequently, earnings per share (EPS) rose impressively by 100 percent to ₦1.06, up from ₦0.53 recorded in the same period last year. Profitability ratios also advanced considerably with Return on Equity (ROE) improving to 15.13 percent from 8.85 percent, while Return on Assets (ROA) increased to 1.97 percent from 0.75 percent, highlighting more efficient utilization of the company’s capital base and asset portfolio.
On the balance sheet, performance was mixed but strategically favourable. Total assets declined by 23.62 percent to ₦70.42 billion from ₦92.19 billion due to prudent working capital adjustments and a leaner operational structure. Total liabilities similarly contracted to ₦61.26 billion from ₦84.43 billion from deleveraging efforts. Meanwhile, shareholders’ equity strengthened by 17.83 percent to ₦9.15 billion from ₦7.77 billion, buoyed by retained earnings and an improved capital structure.
Analysts anticipate a mildly positive reaction from Investors on the share price due to the strong bottom-line
