Everlasting Oil beats Q1 2025 forecast with N1.4bn pre-tax revenue amid zero FX loss
Everlasting Oil Plc beat its Q1 2025 revenue forecast, reporting a pre-tax revenue of N1.4 billion, nicely above its projection of N756 million.
The sturdy end result was primarily as a result of absence of overseas trade losses, a serious turnaround from the N10.688 billion FX loss recorded in Q1 2024.
This enchancment displays the optimistic influence of FX stability on the corporate’s efficiency and indicators a stable begin to the 12 months.
Different Key highlights (Q1 2025 vs. Q1 2024)
- Income: N73.272 billion +8.09% YoY
- Price of gross sales: N68.959 billion +20.49% YoY
- Gross revenue: N4.313 billion -59.14% YoY
- Finance value: N468 million -41.45% YoY
- Revenue after tax: N687 million -116.91% YoY
- Earnings per share: N0.53 +116.99% YoY
- Money and money equal: N4.768 billion -19.71%
- Complete belongings: N84.928 billion +25.96%
- Retained earnings; -N910 million -43.02%
- Shareholders’ Funds: N5.538 billion +14.17%
Insights
Everlasting Oil Plc has kicked off 2025 with a win, a minimum of on the floor. The corporate beat its personal revenue forecast for the primary quarter, thanks largely to 1 key issue: the disappearance of its overseas trade losses.
A 12 months in the past, FX pressures dragged the oil marketer deep into the pink. This time, FX markets had been calm, and that calm introduced readability to the underside line.
- However scratch beneath the headline quantity, and the image is much less reassuring. The corporate’s mainstay gasoline gross sales stay a quantity recreation with little room for revenue.
- Margins are wafer-thin, and as prices climbed quicker than income, the strain advised. Gross revenue and working earnings each took a major hit, reflecting the structural problem of relying closely on a product that hardly covers its personal value.
- Everlasting’s lubricants enterprise, which carries higher margins, nonetheless performs a minor position in its total earnings story.
- Whereas financing prices got here down, providing some aid, core profitability continues to really feel the squeeze.
- Money technology has additionally softened, and retained earnings stay in detrimental territory. Even so, there are encouraging indicators: the stability sheet is gaining power, belongings are rising, and shareholder fairness is trending in the proper route. It’s clear the corporate is stabilizing slowly however absolutely.
The massive takeaway for traders? Everlasting Oil might have delivered a welcome earnings shock, nevertheless it didn’t come from operational power.
FX aid performed the hero this time. For the rally to final, Everlasting might want to do extra to enhance margins, construct resilience, and shift away from an over-reliance on its low-margin gasoline phase.
Eterna’s inventory has been on a tear this 12 months. It closed at N49.95 on April 30, 2025, marking a year-to-date achieve of 106%, rating it the eighth greatest performing inventory on the NGX.
