ETERNA PLC: STOCK ANALYSIS
OVERVIEW OF ETERNA PLC
Eterna Plc is a Nigerian company engaged in the manufacturing and marketing of lubricating oils and petrochemicals. The company also operates in the importation and bulk sales of petroleum products, including gasoline, diesel, and kerosene. Eterna Plc is listed on the Nigerian Exchange Group (NGX). Eterna is traded on the NGX under the ticker symbol “ETERNA”. Eterna Plc is currently the 60th most valuable stock on the NGX with a market capitalization of NGN 28.7 billion, which is about 0.053% of the Nigerian Stock Exchange equity market. Eterna is the 74th most traded stock on the Nigerian Stock Exchange over the past three months (May 21 - Aug 20, 2024).
2024 FINANCIAL RESULTS (AS OF Q2 2024)
- Revenue: ₦79.78 B NGN (17.69% higher compared to the previous quarter)
- Net Income: ₦ -771.54 M
- Gross Profit: ₦6.67 billion
- Operating Profit: ₦4.72 billion
- Earnings Per Share (Basic and Diluted): ₦-0.59
- Total Assets: ₦72.03 Billion
- Total Liabilities: ₦73.36 Billion
- Total Equity: ₦ -1.33 Billion
The company faced significant challenges in the first half of 2024, resulting in a loss for the period. However, they managed to maintain a strong revenue stream, indicating potential for recovery and growth.
MARKET POSITION
The company competes with other major firms like MRS Oil Nigeria, Conoil, TotalEnergies Marketing Nigeria, and Oando.
ANALYST RECOMMENDATIONS
There are mixed recommendations on Eterna while some have a neutral stance, some suggest a BUY while others suggest a SELL. It's important to carry out your own research.
DIVIDEND HISTORY
- Latest Dividend: ₦0.15 per share, paid on May 12, 2023.
STOCK PRICE
Eterna Plc's stock price is ₦22.00.
SWOT ANALYSIS OF ETERNA PLC
STRENGTHS
1. Diverse Product Portfolio: Eterna Plc offers a wide range of products, including lubricating oils, petrochemicals, and petroleum products, which helps mitigate risks associated with market fluctuations.
2. Strong Brand Recognition: The company has established a strong brand presence in Nigeria, which enhances customer loyalty and market penetration.
3. Strategic Partnerships: Collaborations with international and local partners provide access to advanced technologies and broader market reach.
4. Experienced Management Team: The leadership team has extensive experience in the oil and gas industry, contributing to effective strategic planning and execution.
WEAKNESSES
1. High Operating Costs: The company faces significant operating costs, which can impact profitability, especially during periods of low oil prices.
2. Debt Levels: Eterna Plc has a relatively high level of liabilities compared to its assets, which can strain financial stability and limit growth opportunities.
3. Limited Analyst Coverage: The lack of extensive analyst coverage can result in lower visibility and investor interest in the stock.
OPPORTUNITIES
1. Market Expansion: There is potential for growth in both domestic and international markets, particularly in the retail and industrial sectors.
2. Renewable Energy: Diversifying into renewable energy sources can open new revenue streams and align with global sustainability trends.
3. Technological Advancements: Investing in new technologies can improve operational efficiency and product quality, enhancing competitive advantage.
4. Government Initiatives: Supportive government policies and initiatives aimed at boosting the oil and gas sector can create favorable conditions for growth.
THREATS
1. Volatile Oil Prices: Fluctuations in global oil prices can significantly impact revenue and profitability.
2. Regulatory Changes: Changes in government regulations and policies can affect operational costs and compliance requirements.
3. Economic Instability: Economic downturns and inflation can reduce consumer spending and impact overall market demand.
4. Competition: Intense competition from both local and international players can pressure market share and profit margins.
OVERVIEW OF ETERNA PLC
Eterna Plc is a Nigerian company engaged in the manufacturing and marketing of lubricating oils and petrochemicals. The company also operates in the importation and bulk sales of petroleum products, including gasoline, diesel, and kerosene. Eterna Plc is listed on the Nigerian Exchange Group (NGX). Eterna is traded on the NGX under the ticker symbol “ETERNA”. Eterna Plc is currently the 60th most valuable stock on the NGX with a market capitalization of NGN 28.7 billion, which is about 0.053% of the Nigerian Stock Exchange equity market. Eterna is the 74th most traded stock on the Nigerian Stock Exchange over the past three months (May 21 - Aug 20, 2024).
2024 FINANCIAL RESULTS (AS OF Q2 2024)
- Revenue: ₦79.78 B NGN (17.69% higher compared to the previous quarter)
- Net Income: ₦ -771.54 M
- Gross Profit: ₦6.67 billion
- Operating Profit: ₦4.72 billion
- Earnings Per Share (Basic and Diluted): ₦-0.59
- Total Assets: ₦72.03 Billion
- Total Liabilities: ₦73.36 Billion
- Total Equity: ₦ -1.33 Billion
The company faced significant challenges in the first half of 2024, resulting in a loss for the period. However, they managed to maintain a strong revenue stream, indicating potential for recovery and growth.
MARKET POSITION
The company competes with other major firms like MRS Oil Nigeria, Conoil, TotalEnergies Marketing Nigeria, and Oando.
ANALYST RECOMMENDATIONS
There are mixed recommendations on Eterna while some have a neutral stance, some suggest a BUY while others suggest a SELL. It's important to carry out your own research.
DIVIDEND HISTORY
- Latest Dividend: ₦0.15 per share, paid on May 12, 2023.
STOCK PRICE
Eterna Plc's stock price is ₦22.00.
SWOT ANALYSIS OF ETERNA PLC
STRENGTHS
1. Diverse Product Portfolio: Eterna Plc offers a wide range of products, including lubricating oils, petrochemicals, and petroleum products, which helps mitigate risks associated with market fluctuations.
2. Strong Brand Recognition: The company has established a strong brand presence in Nigeria, which enhances customer loyalty and market penetration.
3. Strategic Partnerships: Collaborations with international and local partners provide access to advanced technologies and broader market reach.
4. Experienced Management Team: The leadership team has extensive experience in the oil and gas industry, contributing to effective strategic planning and execution.
WEAKNESSES
1. High Operating Costs: The company faces significant operating costs, which can impact profitability, especially during periods of low oil prices.
2. Debt Levels: Eterna Plc has a relatively high level of liabilities compared to its assets, which can strain financial stability and limit growth opportunities.
3. Limited Analyst Coverage: The lack of extensive analyst coverage can result in lower visibility and investor interest in the stock.
OPPORTUNITIES
1. Market Expansion: There is potential for growth in both domestic and international markets, particularly in the retail and industrial sectors.
2. Renewable Energy: Diversifying into renewable energy sources can open new revenue streams and align with global sustainability trends.
3. Technological Advancements: Investing in new technologies can improve operational efficiency and product quality, enhancing competitive advantage.
4. Government Initiatives: Supportive government policies and initiatives aimed at boosting the oil and gas sector can create favorable conditions for growth.
THREATS
1. Volatile Oil Prices: Fluctuations in global oil prices can significantly impact revenue and profitability.
2. Regulatory Changes: Changes in government regulations and policies can affect operational costs and compliance requirements.
3. Economic Instability: Economic downturns and inflation can reduce consumer spending and impact overall market demand.
4. Competition: Intense competition from both local and international players can pressure market share and profit margins.