Eternal Oil Plc beat its Q1 2025 profit forecast, reporting a pre-tax profit of N1.4 billion, well above its projection of N756 million.
The strong result was mainly due to the absence of foreign exchange losses, a major turnaround from the N10.688 billion FX loss recorded in Q1 2024.
This improvement reflects the positive impact of FX stability on the company’s performance and signals a solid start to the year.
Eternal Oil Plc has kicked off 2025 with a win, at least on the surface. The company beat its own profit forecast for the first quarter, thanks largely to one key factor: the disappearance of its foreign exchange losses.
A year ago, FX pressures dragged the oil marketer deep into the red. This time, FX markets were calm, and that calm brought clarity to the bottom line.
The big takeaway for investors? Eternal Oil may have delivered a welcome earnings surprise, but it didn’t come from operational strength.
FX relief played the hero this time. For the rally to last, Eternal will need to do more to improve margins, build resilience, and shift away from an over-reliance on its low-margin fuel segment.
Eterna’s stock has been on a tear this year. It closed at N49.95 on April 30, 2025, marking a year-to-date gain of 106%, ranking it the 8th best performing stock on the NGX.