Oil company, Eterna Plc, has revealed that its revenue will rebound in Q1 2021 following a poor financial outing in Q1 2020. Despite the forecast of a rebound, AllNews findings showed that the projected turnover by Eterna, for next year Q1, will fail to surpass that of Q1 2019 - this is as Eterna plans to invest NGN1.04 billion cash during the three months of Q1 2021.
The company had generated NGN17.54 billion between January to March (Q3) 2020, and Eterna expects this amount to rise in Q1 2021, forecasting NGN21.05 billion as revenue. However, this projected amount is way below the NGN60.47 billion Eterna generated in Q1 2019.
Eterna also stated that its Gross Profit for the period of Q1 2021 is projected to hit NGN1.53 billion, surpassing the NGN1.2 billion of the corresponding of Q1 this year, and rising slightly above the NGN1.40 billion the company reported as total profit for the period of Q1 2019.
This is despite the Cost of Sales for Q1 next year estimated to surpass that of Q1 this year. Eterna said the Cost of Sales is forecasted to hit NGN19.5 billion in Q1 2021, rising beyond the NGN16.2 billion of Q1 2020. The figure is, however, lower than the NGN59.06 billion of Q1 2019.
In the forecast statement of Eterna, AllNews gathered that Profit Before Tax for next year Q1 will remain lower at NGN156.4 million, than that of Q1 2019, which was NGN502.1 million. The company had a recorded loss of NGN274.1 million in PBT in Q1 this year.
Also, Eterna forecast its Profit After Tax will rebound in Q1 2021, as it expects to record NGN106.3 million, against the corresponding period of Q1 this year, when it record a loss of NGN358.2 million. In Q1 2019, Eterna had recorded NGN341.4 million as PAT.