business
MRS Oil Nigeria Posts 63% Rise in Annual Pre-Tax Profit
MRS Oil Nigeria Plc recorded a pre-tax profit of N403.5 million for the fourth quarter of 2024, as disclosed in its recent financial statement published on the Nigerian Exchange (NGX) on January 29, 2025.
This marks a 60.67% decline compared to the previous year’s fourth-quarter pre-tax profit of N1 billion. However, the company’s full-year pre-tax profit increased by 63.39% to N9.7 billion, up from N5.9 billion in the preceding year.
Revenue for the quarter dropped to N63.5 billion, down from N81.4 billion in the previous year. However, total revenue for the full year surged to N312.2 billion, reflecting a 71.26% increase compared to N182.3 billion reported in 2023. This growth was primarily driven by strong sales of Premium Motor Spirit (PMS).
MRS Oil Nigeria experienced a significant increase in revenue, reaching N312.2 billion in 2024, compared to N182.3 billion in the previous year. The company’s primary revenue source was PMS, which generated N272.4 billion and accounted for 87.1% of total earnings. Aviation Turbine Kerosene contributed 5.54%, while Automotive Gas Oil added 4.24%, with the remaining revenue coming from lubricants, greases, and liquefied petroleum gas.
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The company also faced a notable rise in its cost of sales, which increased by 72.32% year-on-year to N288.3 billion, up from N167.3 billion. The cost associated with selling PMS accounted for 86% of this expense. Despite the rise in costs, MRS Oil Nigeria achieved a gross profit of N23.9 billion, representing a 59.44% increase from the previous year’s figure of N15 billion.
Other income sources experienced substantial growth, rising by 199.52% to N695.2 million in 2024. Revenue from storage services accounted for 78.67% of this amount, while the rest came from sundry income. Meanwhile, administrative expenses saw a significant rise of 91.62% to N9.7 billion, influenced by depreciation costs, fuel expenses for office generators, management fees, and contract labor. Selling and distribution expenses also increased sharply, growing by 122.30% year-on-year to N1.5 billion, compared to N716.8 million the previous year.
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Operating profit saw an increase of 60.85%, reaching N9.6 billion in 2024 compared to N5.9 billion in the prior year. Finance income grew by 116.91% year-on-year to N265.7 million, primarily due to interest on short-term bank deposits. On the other hand, finance costs experienced a marginal decline of 0.39% to N135.6 million, down from N136.1 million the previous year.
As a result of these financial movements, the company’s pre-tax profit for 2024 stood at N9.7 billion, reflecting a 63.39% increase from the N5.9 billion reported the previous year. Post-tax profit also grew by 60.80%, reaching N6.5 billion.
In terms of assets, MRS Oil Nigeria reported a substantial increase, with total assets rising to N105.4 billion as of December 31, 2024, representing a 92% growth from N54.8 billion in the previous year. Non-current assets increased from N20.3 billion in 2023 to N34 billion, with property, plant, and equipment making up a significant portion at N33.3 billion.
Current assets also experienced considerable growth, climbing from N34.5 billion to N71.4 billion. The key components of current assets included trade and other receivables amounting to N26.8 billion, inventories valued at N25.7 billion, and cash and cash equivalents totaling N18.4 billion.
