Energy  

Eternal oil revenue hits N91.2 billion in four years  

A fuel storage facility in Warri, Delta State, the oil rich Delta region in Nigeria. / AFP PHOTO / STEFAN HEUNIS

Eternal Oil Plc’s operating revenue has increased from N40 billion recorded four years ago to an average of N91. 2billion.The Chairman of the company, Dr. Micheal Ade Ojo, who made this disclosure at the company’s yearly general meeting in Lagos, said gross profit witnessed steady growth from N2.3 billion in 2011 to N3 billion in 2015.

Ojo attributed the fluctuation in the gross profit to foreign exchange losses and the volatility of petroleum products prices in the local market in the given period. “Our bottom line remained strong averaging N1.35 billion in the periods of 2012 to 2015,” he added.

He disclosed that the company’s assets has continued to grow year on year, as the company has been able to plough back its profit into increasing trading portfolio and investments in new business areas.

He hinted that the shareholders’ funds have increased from N5.4 billion in 2011 to N9.68 billion in 2015. “I am confident that our performance will be sustained as new strategic initiatives will be implemented in current and subsequent years that will lead to improved financial performance,” he said.

He said that it has been difficult to carry out business under extreme volatilities of international oil prices. Ojo lamented that both the local and international oil markets have been impossible to forecast with any degree of certainty or reliability. “The up-side to this, is that companies, who have enshrined an integrated demand planning approach to their businesses, should be able to survive these difficult times, as opposed to companies who speculate with the intention of taking advantage of  an arbitrage”, he added.

He explained that the challenges of criminal charge by the Economic and Financial Crimes Commission (EFCC), in respect of petroleum subsidy claims and that the Nigerian Government, which alleged that the Company was complicit in making false claims for petroleum subsidy, said the matter was still on.

According to him, that the charge filed by the EFCC in respect of the transactions is on-going before the Lagos State High Court. “Our Company remains resolute in using available legal means to resolve the issues. Once again, we reiterate that we have not received any illegal benefits from subsidy claims and will take all necessary actions to defend the interest of our Company”, he added.

He said the Company has an outstanding receivable from the Federal Government of Nigeria valued at N1.58 billion in respect of subsidy claims for Premium Motor Spirit (PMS) import.

This balance, according to the chairman has been reconciled with the Petroleum Product Pricing Regulatory Agency (PPPRA) and qualifies for a Sovereign Debt Note (SDN), noting, however, that the SDN is yet to be issued.

Lamenting the challenging business environment, Ojo stated: “Our business is exposed to risks, illiquidity of foreign exchange, financing risks, adverse regulation, fluctuating global market dynamics, unstable local market conditions, competition from major oil companies and adverse price pressure from large independent clients”.



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