Economy
GCR Assigns BBB(NG), A2(NG) Ratings to Eterna
By Dipo Olowookere
The long term and short term national scale Issuer ratings of BBB(NG) and A2(NG) respectively have been assigned to Eterna by Global Credit Ratings (GCR).
Eterna Plc is an integrated energy company with operations focussed on the downstream sector of the oil and gas industry.
Although, Eterna has a relatively small market share for petroleum products, its significant assets across the value chain (including storage facilities and a lubes plant) positions it well to take advantage of opportunities in the industry.
Eterna also leverages upon extensive technical expertise, linkages with well-established international partners, and off-take arrangements with big corporates and oil exploration companies.
Notwithstanding the potential for profit enhancement, GCR said it considers crude trading operation to be highly risky. The volumes and debt funding required to facilitate the business are very large, while the thin margin does not provide any headroom for unexpected delays or oil price volatility.
The rating firm said although, revenue from the retail and lubricant segments are lower, earning streams are more predictable, helping to reduce risk, with the higher margins serving to bolster sustainable earnings.
Furthermore, the network of fuel retail outlets (about 19), combined with the blending capacity in the Lubricant and Chemical segment present less risky opportunities for sustainable growth.
According to GCR, while margins in fuel retail are also thin, due to government regulations, there are opportunities to increase profitability through an improved service offering and economies of scale.
It noted that given the higher margin potential, Eterna plans to expand the retail and distributor network to increase accessibility to lubricants across the country.
Despite the volatility caused by trading activities and crude prices, as evidenced by the spike in the operating margin in FY16 and the decline in FY17, Eterna has steadily increased its scale, with operating profit having doubled between FY13 and FY17.
In this regard, the company has maintained sufficient funding facilities to cover trading and inventory requirements even under stressed scenarios. In this regard, trade credit facilities totalling $500 million have been secured from some leading banks. Up to N10 billion (around $25 million) has been drawn at a given time to import inventories, only a small portion of the available lines.
Nevertheless, having multiple lines with the different banks is important to ensure that Eterna is able to obtain the most competitive rates, while some of the credit facilities also serve as enhancements to secured contracts.
GCR said the retention of earnings has facilitated strong cash accumulation, with cash holdings increasing to a high N7.1 billion at FY16. Accordingly the company has been able to fund a portion of working capital requirements internally, thus maintaining gearing metrics at moderate levels.
Thus, net gearing registered at 27 percent at FY17, from an ungeared position previously. In addition, net interest coverage has been strong over the review period.
The rating agency said positive rating action is likely on attainment of targeted volume growth in all product segments (especially in the retail, chemical and lubricant segment), combined with effective cost management, resulting in improved earnings margins and stronger credit protection metrics.
Conversely, excessive gearing, even to fund profitable transactions, could result in a downgrade. This is particularly true in light of the vagaries of oil market environment and general operating environment, which could materially impact earnings and lead to liquidity strain and debt service challenges.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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