Could you provide an overview of Eterna and its presence in Nigeria?

Eterna is an energy company listed on the Nigerian Stock Exchange, with a rich history spanning 35 years. We operate in over 21 states across Nigeria, in approximately 85 locations, and this footprint continues to expand as we grow our business. Our strategic assets include retail outlets and depots, with our main depot located in Lagos. As a key player in the distribution of petroleum products throughout the country, we play a crucial role in ensuring the energy needs of Nigerians are met. We supply fuel, diesel, jet fuel, lubricants and gas, including LPG. Our partnership with Castrol further strengthens our position in the market. While we recognize the growing importance of alternative energy sources, we understand that petrol and diesel remain primary fuels for transportation in Nigeria. Therefore, our focus remains on efficiently distributing petroleum products while also exploring opportunities for future growth and innovation in the broader energy sector.

Can you discuss your lubricant line of business and demand for industrial lubricants in the country?

We provide a range of lubricants and our product lines include the Eterna and Castrol brands of lubricants. Our industrial chemical-based products, like the ones used in drilling processes for IOCs, are increasingly important. For example, our product, TransAqua, is popular among IOCs and underscores the value of our relationship with Castrol. Additionally, we have a lubricant blending plant in Ogun State, established with Castrol's partnership to ensure top-notch quality. This plant produces various lubricants, including custom orders, and reflects our commitment to both quality and our local community engagement. 

Can you discuss your official distribution partnership with Dangote Refinery?

Despite our energy abundance, Nigeria has traditionally faced challenges in refining these resources, relying heavily on importing refined products, which incurs significant costs and exposes us to the volatility of global markets. The Dangote refinery represents a pivotal shift. It mitigates risks associated with external supply chains and ensures a more stable energy supply for the nation. By reducing the need for forex allocations to import refined products, local production can alleviate pressure on public sector finances. Nigeria has the potential to become a net exporter of refined products, enhancing our position in the global energy market. Local production allows us to optimize our distribution network. 

Can you outline the challenges faced by downstream operators in Nigeria?

Importing goods or major components becomes a significant challenge when currency fluctuations affect costs. Infrastructure is another hurdle. Most goods rely on roads, which present logistical and cost challenges. Power is also a significant concern. Planning for consistent power supply is essential for manufacturing plants and running stations. While the country is working to address this longstanding issue, there is progress to be made. However, amidst these challenges, there are opportunities, particularly in renewable energy. Leveraging solar power, for example, can help mitigate reliance on traditional energy sources. We are exploring opportunities such as implementing 100% solar-powered retail stations, to ensure reliable and sustainable energy distribution.

Can you discuss your company's CSR initiatives?

Our strategy prioritizes working closely with our host communities to have a positive impact. We have collaborated with the School for Children with Special Needs in Sagamu to enhance its facilities and continue to invest in projects like these. Additionally, we are committed to supporting projects that facilitate youth and women empowerment. We have selected a school with a focus on aiding children with disabilities, aiming to improve their learning experiences. This initiative reflects our dedication to making a difference where it matters most. We are passionate about youth empowerment and plan to increase our efforts in this area. 

What are your goals and milestones for the next year?

Our aim is to optimize stakeholder management and maximize value. By prioritizing customer satisfaction, employee well-being, strong partnerships in the supply chain, and financial stability, we can create substantial value for our shareholders. This involves capitalizing on Nigeria's gas opportunities, participating in initiatives like CNG to contribute to a smarter energy mix, aligning with the energy transition agenda and driving sustainable value creation for our shareholders. Additionally, we aim to refresh our brand and expand our service offerings to capture a larger share of the energy market, including commercial, industrial, and retail sectors. Ultimately, our goal is to ensure that Eterna continues to excel as a public company, delivering returns that make our shareholders proud.