Eterna PLC has been appointed as domestic distributor of Dangote Petroleum Refinery products.
“We are proud to be appointed as an official distributor of Dangote Refinery domestic sales in Nigeria,” a statement signed by the company’s secretary Mandella Golkus says.
This announcement by the leading integrated energy providers in Nigeria comes days after Dangote Refinery disclosed that seven organizations would be appointed as distributors of its products.
The company which notified the Nigerian Exchange (NGX) Limited in a filing described the partnership as “our commitment to providing Nigerians with world-class energy solutions that meet their needs and expectations.”
The elated chief executive of Eterna, Mr Benjamin Nwaezeigwe, said, “We are happy that we are keeping to our promise to stakeholders that the company will remain competitive even in the face of fuel subsidy removal.”
It disclosed that it will improve product supply with the assurance of significant investment in trucking “both through truck acquisition and strategic partnership with third-party transportation.”
In November 2021, an Energy firm Rainoil Limited purchased a 61 per cent holding in Eterna Oil Plc via an indirect acquisition.
Worth more than $20 billion with the capability to refine 650,000 barrels of crude oil per day, it is owned by Africa’s wealthiest man Alhaji Aliko Dangote, and commenced production of diesel and aviation fuel on January 12, 2024.
The largest single-train refinery in the world was commissioned in May 2023 by former President Muhammadu Buhari.
Why it matters for investors
With Eterna shares trading at N20.90 and N24.8 billion market capitalization at the time of publication, there may be a surge in eternaplc shares as the company becomes one of the official domestic distributors for Dangote Petroleum products.
It isn’t just a win for the company, it’s also going to be a win for existing investors and others that might want to come on board.