Eterna Plc has recorded a stronger Q1 2026 performance, with pretax profit rising to N1.6 billion from N1.4 billion in the corresponding period of the previous year.

This growth was anchored on a revenue base of N70.5 billion, down from N73.2 billion in the prior year, with fuel sales contributing 92.8 per cent, lubricants 7 per cent, and other sources accounting for the balance.

Alongside the revenue performance, cost of sales eased from N68.9 billion to N64.7 billion, largely reflecting a sharp reduction in lubricant-related selling costs, which dropped from N11.2 billion to N3.8 billion.

Supported by lower tax expenses, post-tax profit settled strongly at N1.3 billion, up from N687.2 million, while retained earnings doubled to N2.7 billion.

Key highlights for Q1 2026 compared to Q1 2025 show revenue at N70.5 billion versus N73.2 billion. Cost of sales was N64.7 billion compared to N68.9 billion. Gross profit stood at N5.7 billion, up 32.45 per cent year on year. Operating profit was N2.5 billion, up 35.74 per cent year on year. Pretax profit reached N1.6 billion, up 15.48 per cent year on year. Post-tax profit was N1.3 billion, up 101.52 per cent year on year. Earnings per share came in at N1.06 compared to N0.53.

A cursory look at Q1 2026 revenue shows N70.5 billion, comprising fuel sales of N65.4 billion, lubricants sales of N4.9 billion, and other streams contributing N165.2 million.

After expenses of N64.7 billion, revenue translated into a gross profit of N5.7 billion, improving from N4.3 billion recorded in the corresponding period of the previous year.

Selling and distribution expenses declined to N19.3 million from N42.4 million, although administrative expenses increased to N3.1 billion from N2.4 billion.

Including other income of N46.6 million, operating profit settled at N2.5 billion, higher than the N1.8 billion recorded previously, reflecting improved core performance.

After finance income of N10.04 million, a foreign exchange loss of N109.2 million, and finance costs of N825.8 million, pretax profit stood at N1.6 billion.

Subsequently, post-tax profit settled at N1.3 billion, up from N687.2 million, while earnings per share increased to N1.06 from N0.53.

On the balance sheet, total assets declined to N70.4 billion from N92.1 billion, mainly driven by a reduction in inventories, the largest asset class, which fell to N37.8 billion from N57.9 billion.

In terms of liabilities, the company’s obligations also reduced, slipping to N61.2 billion from N84.4 billion, largely due to a decline in current borrowings, which dropped to N35.6 billion from N59.8 billion.

On the equity side, total equity rose to N9.1 billion from N7.7 billion, supported by retained earnings, which increased to N2.7 billion from N1.3 billion and accounted for the largest share.

Eterna shares have risen 13.57 per cent since the Q1 2026 results were published on April 30, 2026, with the stock currently priced at N37.25.

If the results are interpreted more positively by the market, the stock could approach a resistance range between N50 and N51.