Shareholders Laud Eterna’s Impressive 2022 Performance, Upbeat about 2023

UGO AMADI

Shareholders have applauded the performance recorded by Eterna PLC despite the harsh business terrain in the country.

At an Extraordinary General Meeting (EGM) in Lagos, the stakeholders expressed confidence in the company’s transformational journey, saying there is no doubt the company would excel in 2023.

A Shareholder with the company, Mr. Matthew Akinlade (President of Noble Shareholders Solidarity Association) stated the Shareholders understand the necessity for the meeting and noted that the Company has a cut-off date of 31^st December 2022 to comply with the directives of the Corporate Affairs Commission with respect to unissued shares pursuant to the Companies and Allied Matters Act 2020 and the Companies Regulations 2021. He noted that since the company might have paid stamp duty on the shares sought to be cancelled, the amount so expended would be lost once the said shares are cancelled. He noted that some companies dealt with the unissued shares through a bonus issue. However, he noted that the Board must have deliberated and decided on what is best for the interest of the company and thus pledged the support of the shareholders for the cancellation of te unissued Shares. Further, he congratulated the company on the outstanding performance going by the published results thus far, he urged the company to continue this trajectory of performance and expressed optimism that the Company will close the year on a positive note and possibly declare dividends.

Another Shareholder of the Company, Sir Sunny Nwosu noted that cancellation will put a lot of pressure on Companies to pay better dividends.

Mr. Nornah Ewoh a Shareholder urged the management of Eterna to be shareholder-friendly, saying that shareholders are the owners of the business.

On her part, the National Coordinator, Pragmatic Shareholders Association, Mrs. Bisi Bakare, said the decision taken by the management to cancel the unissued share capital is a welcome development. She also mentioned that the cancellation of the shares will consolidate the share price and ensure the dividends paid are not eroded. She commended the management and board of Eterna for the brilliant performance recorded in the year.

Speaking at the event, The Chairman of Eterna PLC, Dr. Gabriel Ogbechie (OON), represented by Barr. Okey Omezi, an Independent Non-Executive Director, assured that the prospects are getting brighter for Eterna PLC.

In 2022, the company reported a profit before tax of N1.9billion against N566.9million reported in Q3 2021, while profit after tax grew significantly by 246 per cent to N1.44billion in Q3 2022 from N416million in Q3 2021.

In the company’s unaudited financial statement for the third quarter (Q3) ended September 30, 2022, the growth in profits was driven by a significant increase in revenue to N91.9 billion in Q3 2022 from N61.37 billion reported in Q3 2021.

It could be recalled that Eterna PLC recorded N4.1bn gross profit for the half year which ended June 30, 2022.

Eterna PLC manufactures, markets and distributes lubricants and chemicals and operates a network of filling stations. Its plan is to further increase its retail network across the country.

Also, Eterna PLC plans to actively play across the energy value chain covering the production, transportation and distribution of energy solutions vital for economic growth and development. It will be the first choice for its customers as it seeks to dominate the African Energy industry by strategically expanding operations and growing market share.