MRS Oil Nigeria’s FY 2024 Soars By 71.26% In Revenue

MRS Oil Nigeria Plc has reported a strong financial performance in financial year (FY) 2024, marked by a 71.26 percent surge in revenue to N312.2 billion, driven primarily by robust sales of premium motor spirit (PMS), which accounted for 87.1 percent of total revenue.

Despite a significant 72.32 percent increase in the cost of sales to N288.3 billion, the company achieved a 59.44 percent rise in gross profit, reaching N23.9 billion.

This highlights the company’s ability to manage costs effectively while capitalising on strong demand for its products.

The company’s operating profit grew by 60.85 percent to N9.6 billion, supported by a 199.25 percent increase in other income, largely from storage services.

However, administrative expenses and selling/distribution costs rose sharply by 91.62 percent and 122.30 percent, respectively, reflecting higher operational costs, including fuel for generators and contract labour.

Despite these challenges, MRS Oil Nigeria maintained strong profitability, with pre-tax profit increasing by 63.39 percent to N9.7 billion and post-tax profit rising by 60.80 percent to N6.5 billion.

On the balance sheet, total assets grew by 92 percent to N105.4 billion, with significant increases in both non-current assets (up to N34 billion) and current assets (up to N71.4 billion). The company’s cash and cash equivalents stood at N18.4 billion, while trade receivables and inventories also saw substantial growth, indicating improved liquidity and inventory management.

MRS Oil Nigeria’s FY 2024 performance reflects strong revenue growth and profitability, driven by PMS sales, despite rising operational costs. The company’s solid asset growth and improved liquidity position it well for future expansion, though investors should monitor the rising administrative and distribution expenses, which could pressure margins if not managed effectively. Overall, MRS Oil Nigeria remains a resilient player in the Nigerian oil and gas sector, with potential for sustained growth.