·
Eterna Oil and
Gas PLC is a
Company operating in the down stream
Sector of the
Nigerian Petroleum Industry along with
Industry heavy weights such as
Conoil PLC ,
Mobil Oil Nigeria PLC ,
Oando PLC ,
CHEVRON (formerly
Texaco )
Nigeria PLC and
Total Nigeria PLC
· The
Company was
Incorporated on January 13, 1989, commenced
Business in 1991 and was listed on The
Nigerian Stock Exchange Business August 3, 1998.
·
Eterna Oil and
Gas PLC manufactures and
markets various lubricants and petrochemicals. The
Company is also into importation and
Sale of
Petroleum Products such as PMS, AGO, LPFO, Bitumen, LPG and provides
Engineering and
Technical Services to its clients in the
Oil and
Gas Industry .
· It is a wholly owned indigenous
Company with
Eterna Marine &
Services Ltd and
Eterna Industries Ltd as its subsidiaries. The majority shareholder and core investor in the
Company is Lenux
Integrated Resources Nigeria Limited with 47.2% ownership of
Equity .
· The
Company ’s performance and fortunes nose-dived sharply in the late 1990s as a result of poor
Management and undercapitalization. The take over of the
Company by a
New Management team in 2005 and a fresh injection of
Fund changed the fortunes of the
Company from a loss profile of N229.67 million in 2005 to a Profit Before Tax of N38.25 million in the Q3-2006 results and also from a turnover of about N1.4b to a third quarter Turnover of N 1.87billion.
·
Eterna Oil is a franchisee to Castrol Subsea (U.S.A) with respect to the
Distribution of Castrol brand of lubricants in
Nigeria and recently, it signed a Contract agreement with Castrol B.P which gives
Eterna Exclusive rights to manufacture and market Castrol’s brand of
Marine lubricants in
Nigeria and the
West African sub region.
· The
International Finance Corporation (IFC) recently made available a venture
loan of US$940,000 to
Eterna Industries to
Fund the establishment of a 15,000 metric tons grease blending plant that will manufacture
Industrial ,
Marine and automotive lubricants from
Products of Castrol
Africa (Pty)
Limited , a subsidiary of Castrol
PLC in the UK.
· The
Company is expanding operations with the opening of 2
Retail outlets in
Abuja and 8 others by end of 2007 as well as strategic
Investments in private refineries and deregulated downstream
Petroleum Products
·
Eterna Oil and
Gas PLC has just launched its
Products logo for a strong
Corporate identity. Furthermore, in order to strengthen its reporting standards especially with the increasing internationalization of its operations, the
Company changed its Auditors from
Messrs Babington Ashaye & co to
Messrs PricewaterhouseCoopers (PWC). The
Company has also indicated its interest to raise
Fund from the
Capital market in order to
Finance its strategic expansion programme.
· We suggest a Buy/Hold recommendation on
Eterna Oil &
Gas PLC shares given its
New Management drive, its
Business growth opportunities as evidenced in significant turnover growth from fresh
Funds (though still inadequate to meet the
Finance needs of the
Company ). ...(click below for full report)
Attachment : MERISTEM
Equity Research REPORT-ETERNA
Oil &
Gas PLC .pdf
--------------------------------------------------------------------------------
MERISTEM
Securities Ltd .
124 Norman
Williams Street,
South
West, Ikoyi,
Lagos .
P.O Box 51585
Falomo, Ikoyi,
Lagos .
Phone:234-1-2717350-5; Fax: 234-1-2717356, 2690118.
Website:www.meristemng.com E-mail:info@meristemng.com
