NSE Reclassified Eterna Oil as medium-price stock

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Regardless of challenges confronting operators in Nigeria’s downstream sector of the oil and gas industry, Eterna Plc’s development of a five-year strategic plan has continued to yield positive results for the company.

 

In the latest development, following a rise in the company’s consolidated operating revenue, authorities at the Nigerian Stock Exchange (NSE) have reclassified Eterna Plc from a low-priced stock to medium, providing additional liquidity that will enhance price discovery for the downstream oil and gas company.

 

As a medium-priced stock, stockbrokers could move the share price of Eterna with a minimum volume of 50,000 shares as against 100,000 minimum shares required for low-priced stocks.

 

The NSE had recently classified quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

 

The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

 

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above, but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

 

Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

 

According to the Exchange, Eterna gained above the N5 mark on January 8, 2018 and traded above N5 up till close of business on June 29, 2018, which indicated that Eterna has traded above N5 in at least four out of the last six months and therefore, would be reclassified from low-priced stock to mid-price stock with effect from Monday this week.

In June, M&P reported that Eterna Plc’s consolidated operating revenue increased by 61.8 per cent from N106.9 billion in 2016 to N173 billion in 2017, while it’s Shareholders’ funds also increased from N10.82 billion in 2016 to N12.41 billion in 2017. Though, the company recorded a decrease in gross profit during the period under review, its profit before tax increased by 17 per cent as a result of prudent utilisation of resources and the company’s ability to deploy efficient financial management strategies in the year under review.

 

Chairman, Lamis Shehu Dikko stated that the recent trends which have coincided with a rise in the company’s financial profile could among other things, be traced to the significant milestone achieved with the successful manufacturing and local filling of Castrol’s GTX Essential lubricants at its lubricant blending plant, located in Sagamu, Ogun State.

He noted that Nigeria was the first country in the world to manufacture Castrol’s GTX Essential range of Lubricants. “The GTX Essential is a bespoke lubricant manufactured to address the challenges associated with operating high-performance engines in tropical environments such as Nigeria.

“We also expanded our third party blending portfolio. Following on from a rigorous evaluation and assessment of blending plants across Nigeria, NNPC Retail, a subsidiary of the Nigerian National Petroleum Corporation issued a letter of intent to our Company to provide toll blending services for its brand of lubricants.

“We continue to invest in state-of-the-art equipment and cutting-edge technology at our Plant and we are proud to say that our staff has the requisite skills, knowledge and competence to consistently deliver excellent results in product manufacturing, testing and after sales support”, he said.


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