Eterna Plc has opened a N21.5 billion ($14.9 million) rights issue in a fresh bid to stabilise its balance sheet and push into new areas of the energy value chain, marking one of the most ambitious capital raises in its recent history. The downstream oil company, controlled by Nigerian energy magnate Gabriel Ogbechie, is aiming to consolidate its financial recovery and position itself for broader growth after several volatile years in the sector.
The offer, which was formalised at a signing ceremony on Dec. 2, provides for the issuance of 978,108,485 ordinary shares at N22 each. Existing shareholders are entitled to three new shares for every four held as at Nov. 27. The subscription window opens on Jan. 12, 2026 and closes Feb. 18, giving investors more than a month to exercise their rights. Company officials say the timetable is intended to allow all shareholders adequate time to participate.
Founded in 1989 as Eterna Oil & Gas, the company has gradually expanded from a modest petroleum-products distributor into a diversified operator with interests in lubricants, chemicals, crude trading and retail outlets. Its direction shifted considerably in 2021 when Rainoil Ltd., led by Ogbechie, acquired control. With a 62.82 percent stake, the billionaire now shapes the company’s long-term strategy and has been repositioning it for a deeper role in Nigeria’s energy landscape.
Eterna has indicated it may selectively explore midstream and upstream ventures if market conditions and regulatory signals align. The planned capital injection forms the financial backbone of that ambition, giving the company room to pursue new investments while cushioning it against economic headwinds.
The decision to launch the rights issue follows a sharp turnaround in performance. Eterna posted a 71 percent rise in revenue to N313.6 billion ($217 million) in 2024 after closing 2023 with a loss. Profit before tax recovered to $3.1 million, compared with an $8.28 million loss the year before.
The momentum continued into 2025, with first-half revenue climbing to N157.65 billion ($103.9 million) versus N147.53 billion in the same period a year earlier. Net profit reached N573.81 million ($0.4 million), reversing a heavy N4.84 billion loss recorded in the first half of the previous year. A modest FX gain of N13 million replaced the N14.46 billion forex loss previously incurred, easing pressure on the company’s cash flow.
The new shares will rank equally with existing stock once issued. If fully subscribed, the rights issue is expected to strengthen Eterna’s capital structure and support its next phase of expansion, marking another milestone in the ongoing overhaul driven by Ogbechie.
