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Eterna Plc is embarking on a ₦21.52 billion rights issue, a strategic move designed to fortify its financial foundation and fuel future expansion within the dynamic downstream energy sector. The capital raise, announced by Chairman Dr. Gabriel Ogbechie, comes at a pivotal time as the company navigates ongoing challenges and seeks to capitalize on emerging opportunities.
Strengthening Financial Resilience and Driving Growth
The rights issue, consisting of 978,108,485 ordinary shares of 50 kobo each, is priced at ₦22 per share. It opened on January 12th and is scheduled to close on February 18th. This offering provides existing shareholders with the possibility to subscribe to three new shares for every four shares held as of November 27, 2025, ensuring their continued participation in the company’s growth trajectory. Shares issued thru this process will hold the same rights and privileges as existing ordinary shares.
Dr. Ogbechie emphasized that the rights issue is a crucial step in bolstering Eterna’s balance sheet, enabling the company to navigate the inherent volatility of the downstream oil and gas industry with greater resilience. The funds raised will be strategically allocated to support key areas of expansion and innovation, positioning Eterna for sustained success.
Recent Financial performance underpins Confidence
The decision to pursue this capital raise is underpinned by a strong recent financial performance. Despite industry headwinds, Eterna reported revenue of ₦55.2 billion in the third quarter of 2025, bringing the total revenue for the nine-month period to ₦212.8 billion. This performance translated into a profit before tax of ₦1.39 billion,demonstrating the company’s ability to generate profitability even in challenging market conditions.Eterna Plc Investor Relations
Strategic Allocation of Funds
the proceeds from the rights issue will be deployed across a diverse range of strategic initiatives, designed to enhance eterna’s competitive position and drive long-term value creation. Key areas of investment include:
- Retail Network Expansion: Expanding the company’s retail footprint to reach a wider customer base and increase market share. this includes establishing new service stations and modernizing existing facilities.
- Lubricant Blending Plant Upgrade: Investing in state-of-the-art technology to enhance the efficiency and capacity of the lubricant blending plant, allowing Eterna to meet growing demand and maintain product quality.
- LPG Retail Operations: Strengthening Eterna’s presence in the rapidly growing Liquefied Petroleum Gas (LPG) market, a cleaner and more sustainable energy source.
- Commercial Delivery Assets: Acquiring and upgrading commercial delivery assets to improve logistics and ensure timely product delivery to customers.
- Aviation Fueling Expansion: Expanding operations in the aviation fueling sector,capitalizing on the growth of air travel and the demand for reliable fuel supply.
- ESG Initiatives: Investing in Environmental, social, and Governance (ESG) initiatives to promote sustainable practices and responsible corporate citizenship.
- Working Capital & Inventory: Allocating funds to bolster working capital and optimize inventory financing, mitigating risks associated with market volatility, foreign exchange fluctuations, and potential supply chain disruptions.
These investments reflect Eterna’s commitment to a diversified and resilient business model, capable of adapting to evolving market dynamics and delivering sustainable returns to shareholders.
Commitment to Innovation and Sustainability
Eterna Plc has consistently demonstrated a commitment to innovation,operational efficiency,and sustainable energy solutions. The company recognizes the growing importance of environmental responsibility and is actively pursuing initiatives to reduce its carbon footprint and promote cleaner energy alternatives. This commitment extends to its operations, products, and engagement with stakeholders.
Planet Capital Limited is serving as the lead issuing house for the rights issue, supported by a team of experienced professional advisors. The signing ceremony for the rights issue took place on December 2,2025,following shareholder approval at the Annual General Meeting held on July 24,2025. proshare Nigeria
Looking Ahead
“This rights issue marks an crucial step in consolidating Eterna’s position in the downstream energy sector and driving growth across our value chain while delivering value to shareholders,” stated Dr.Ogbechie. The triumphant completion of this capital raise will position Eterna Plc for continued success in a rapidly evolving energy landscape, enabling the company to capitalize on opportunities and deliver long-term value to its stakeholders.
