Business
Eterna Plc loses N69.23m in foreign exchange forward contract
Domestic oil and gas company, Eterna Plc, recorded a decline in its foreign exchange forward contract, but managed to raise its total revenue for the year ended December 31, 2022.
Ripples Nigeria gathered from an overview of Eterna’s Consolidated Financial Statements obtained on Friday that the foreign exchange forward contract dropped by 13.51 per cent year-on-year.
A foreign exchange (Forex) forward contract is a trade agreement in foreign currency that sees a company charge a higher price (than the current market price) for a long-term supply that could last for two years.
Forex forward contracts are often entered into by two companies to avoid volatility in the foreign exchange market.
READ ALSO:Eterna Plc shareholders make N17.5bn in Preline Limited deal
Eterna’s foreign exchange forward contract dropped N69.23 million when its N443.25 million forex forward contract reported as of December 31, 2022, is compared to the N512.49 million generated during the same period in 2021.
Meanwhile, its total revenue rose by 42.8 per cent to NN117.45 billion within the 12-month of last year, as Eterna earned N35.26 million more than the N82.19 billion grossed in the corresponding period of 2021.
In the same vein, the company’s expenses also moved in an upward direction, as Eterna spent N283.02 million to have its products and distribute them to the market. This is above the N235,66 million posted as cost in 2021.
The company recovered from the N1.10 billion loss recorded between January to December 2021, as it closed the same 12-month period in 2022 with N1.76 billion.
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