Following the public announcement of the proposed issuance of a N10 billion, 270-day Commercial Paper by Eterna Plc (an integrated oil & energy company); its share price has remained flat in the last three (3) trading days.
The company had represented that the proceeds of the N10bn Commercial Paper would be used for working capital and general corporate purposes.
That is to be expected and believed but for the information available to high-end investors who posit that the fund raising is for the purchase of the shares of an equally listed entity in the downstream oil and energy sector.
That notwithstanding, the non-movement of the stock reflects a far much more statement on the sector’s fortunes and we will continue to monitor developments in that market space.
To date (YTD), the share price of EternaPlc has moved up by +52.71% as against -15.23% YTD loss recorded by the NSEASI (outperformed the NSEASI by +37.5%).
A cursory review of the Q2 2018 results of the company represented that revenue moved up by +117.2% from N79.64bn in Q2 2017 to N172.98bn in Q2 2018; while its Profit After Tax (PAT) dropped by 8% from N1.05bn in Q2 2017 to N965.3mln in Q2 2018.
Source Proshare Research