Gabriel Ogbechie’s Eterna stake declines by $6.3 million

Key Points

• Nigerian oil magnate Gabriel Ogbechie’s stake in Eterna Plc has dropped by $6.3 million over the past two months due to a 25.46% share price decline.
• Eterna’s market cap fell to nearly $30 million, but Ogbechie remains a prominent figure, maintaining a strong position on the Nigerian Exchange.
• Eterna’s stock is up 49% year-to-date, reflecting resilience in Nigeria’s oil and gas sector despite broader economic challenges.

Nigerian oil magnate Gabriel Ogbechie, the founder of Rainoil Limited, has seen the value of his stake in Eterna Plc, a publicly traded energy company, drop by $6.3 million over the past two months-a result of a slump in Eterna’s share price on the Nigerian Exchange (NGX).

Ogbechie, who has chaired Eterna Plc since 2021, holds a 62.82 percent stake in the company—equivalent to 819,319,923 shares. In just two months, his holdings have lost N10.16 billion ($6.32 million) due to the recent decline in stock price.

Ogbechie’s holdings decline amid stock drop

Eterna, originally founded in 1989 as Eterna Oil & Gas, has grown into a diversified energy company with interests in lubricants, chemicals, crude oil trading, and retail distribution. Ogbechie became the company’s controlling shareholder in 2021 after Rainoil acquired a significant portion of Eterna. Since then, his vision has centered on expanding the company into the midstream and upstream sectors as part of a broader growth strategy.

Despite a strong financial performance in 2024, Eterna’s stock has struggled in recent times. For the year ending Dec. 31, 2024, the company reported a profit after tax of N1.34 billion ($0.84 million), a turnaround from the N9.43 billion ($5.86 million) loss in 2023. Revenues also grew by 71 percent, reaching N313.6 billion ($195 million), up from N183.3 billion ($113.97 million) the year before, indicating the company’s solid market position.

Eterna’s stock has faced a challenging period recently. In the past two months, the company’s share price has dropped by 25.46 percent, falling from N48.7 ($0.03) on February 12 to N36.3 ($0.023) at the time of writing. This has led to a noticeable decline in the company’s market capitalization, which now stands just below $30 million. As a result, Ogbechie’s holdings, once worth N39.9 billion ($24.81 million), have also decreased to N29.74 billion ($18.49 million).

Eterna stock up 49% year-to-date

However, there is a silver lining. Eterna’s stock is up 49.38 percent year-to-date, a sign of the resilience within Nigeria’s oil and gas sector despite broader economic challenges. For example, a $100,000 investment in Eterna shares at the beginning of the year would now be worth $149,380, demonstrating the potential for long-term growth.

Even with the recent setbacks, Ogbechie remains one of the wealthiest figures on the NGX. Eterna, meanwhile, continues to push forward, recently unveiling a state-of-the-art mega station in Gbagada, Lagos. This move underscores the company’s ongoing commitment to high-quality fuel and excellent customer service.