Eterna Plc Launches Major Rights Issue to Fuel Strategic Growth and Strengthen Financial Position
Eterna Plc, a prominent integrated energy company, has officially commenced its Rights Issue, a pivotal initiative designed to bolster its capital base and propel its long-term expansion strategy. This significant undertaking offers existing shareholders the opportunity to increase their stake in the company and collectively contribute to its future development.
The Rights Issue involves the offering of 978,108,485 ordinary shares, each with a nominal value of 50 kobo, priced at N22.00 per share. The company anticipates raising approximately N21.52 billion through this exercise. The primary objectives behind this capital injection are to fortify Eterna Plc’s balance sheet and to provide the necessary financial resources for strategic growth initiatives across its diverse business segments.
The offer officially opened on Monday, January 12, 2026, and is scheduled to conclude on Wednesday, February 18, 2026. Under the established terms, current shareholders are granted the right to subscribe for three new ordinary shares for every four ordinary shares they held as of the close of business on November 27, 2025. Crucially, all newly issued shares will carry the same rights and privileges as Eterna Plc’s existing ordinary shares, ensuring equitable treatment for all shareholders.
The formal proceedings for the Rights Issue were marked by a signing ceremony held on December 2, 2025. This event followed the crucial approval secured from shareholders during the company’s Annual General Meeting on July 24, 2025, underscoring broad support for the capital-raising plan.
This strategic capital raise comes on the heels of Eterna Plc’s robust financial performance during the third quarter of 2025 and the nine-month period concluding in September 2025. The company reported a revenue of N55.2 billion for the third quarter and a substantial N212.8 billion for the nine-month period. Despite facing industry-wide pressures that have led to declining margins, Eterna Plc demonstrated remarkable resilience by maintaining profitability throughout this period, posting a profit before tax of N1.39 billion.
Strategic Allocation of Funds for Future Expansion
The proceeds generated from this Rights Issue are earmarked for deployment across a range of strategic initiatives aimed at enhancing Eterna Plc’s competitive edge and operational capabilities. Key areas of investment include:
- Retail Network Expansion: Strengthening and broadening the company’s footprint in the retail fuel distribution market.
- Lubricant Blending Plant Upgrade: Modernizing and enhancing the efficiency and capacity of its lubricant manufacturing facilities.
- LPG Retail Asset Enhancement: Investing in and improving its liquefied petroleum gas (LPG) retail infrastructure.
- Commercial Delivery Asset Acquisition: Expanding its fleet and capabilities for commercial product delivery.
- Aviation Fuelling Operations Expansion: Growing its services and reach within the aviation fuel sector.
- ESG-Related Projects: Allocating resources to environmental, social, and governance (ESG) initiatives that align with the company’s long-term sustainability objectives.
Furthermore, a portion of the raised capital will serve as a vital operational working capital buffer. This will enhance the company’s day-to-day liquidity, facilitating smoother inventory management, supporting inventory financing, and managing short-term trade payables. The company believes this strategic allocation will significantly bolster its resilience against market volatility, fluctuations in foreign exchange rates, and potential supply chain disruptions, ensuring a more stable operational environment.
Leadership Vision and Market Resilience
Dr. Gabriel Ogbechie, OON, Chairman of the Board, emphasized the significance of the Rights Issue, describing it as a critical juncture in the company’s growth trajectory. He stated, “This Rights Issue marks a significant step forward in our long-term strategy to consolidate Eterna’s leadership position in the downstream energy sector. It will enable us to pursue growth opportunities across our value chain while delivering sustained value to our shareholders.”
Eterna Plc has consistently demonstrated its ability to navigate the complexities of the Nigerian downstream oil and gas sector. Despite prevailing challenges such as fuel price deregulation and global oil price volatility, the company’s diversified operational model, which spans fuel distribution, lubricant manufacturing, LPG retailing, and aviation fuelling, has proven to be a source of enduring resilience. This diversification allows Eterna Plc to mitigate risks and capitalize on opportunities across different facets of the energy market.
Planet Capital Limited is spearheading the Rights Issue as the Lead Issuing House, supported by a team of other professional advisers who are guiding the process. Eterna Plc reiterates its unwavering commitment to innovation, operational excellence, and the provision of sustainable energy solutions, all of which are fundamental to creating enduring value for its shareholders and all stakeholders involved.
