MRS Oil Increase Profit By 272% To N5bn

By Clement Alphonsus

The oil & gas firm, MRS Oil Plc, has increased profit by 272 per cent to N4.89bn in 2023.

This was disclosed in its unaudited financial statements for the year ended December 2023 filed with the Nigerian Exchange Limited recently.

The firm revenue increased by 80.90 per cent to N182.31bn from N100.78bn in 2022, driven by a surge in fuel prices and increasing global demand.

On the domestic scene, fuel subsidy was removed in June, and this led to an increase in the price of petrol across Nigeria.

The National Bureau of Statistics indicated that the average retail price paid by consumers for petrol in June 2023 was N545.83, marking an increase of 210.32 per cent relative to the N175.89 recorded in June 2022.

An analysis of MRS Oil’s revenue noted that the Premium Motor Spirit, known as petrol earned the highest revenue for the oil & gas company at N161.74bn in 2023, followed by Automotive Gas Oil, aka diesel at N9.37bn and Aviation Turbine Kerosene, which brought in N6.44bn.

Basic and diluted earnings per share also records an increased in 2023 to N14.28 compared to N3.84 in the prior year.

The total assets of the firm has increased to N55.68bn from N40.53bn. Similarly, its total liabilities also grew by about 46.29 per cent to N32.22bn.

However, the firms projections for revenue and pre-tax profit for the quarter were not met.

MRS Oil disclosed a projection that its revenue would be N154.02bn in Q4 and its pretax would be N1.50bn with its tax projected to come in at N487.61m.

According to its unaudited report for 2023, the company reported a PBT of N637.22m and N81.43bn revenue, which was lower than its projections.

The company said, in its statement of cash flow, that its net cash generated from operating activities would be N2.35bn, and achieved N7.81bn at the end of the fourth quarter, overshooting its projection.

The firm’s cash and cash equivalent stood at N5.77bn as of December 2023.