MRS Oil Plc, a prominent player in the oil and gas industry, has announced a remarkable surge in profit, growing by a staggering 272% to N4.89 billion in 2023.
This significant growth was revealed in the company’s unaudited financial statements for the year ended December 2023, recently filed with the Nigerian Exchange Limited.
The surge in profit can be attributed to several factors, including a robust increase in revenue, which soared by 80.90% to N182.31 billion from N100.78 billion in the previous year. This surge in revenue was fueled by a rise in fuel prices and increasing global demand.
On the domestic front, the removal of fuel subsidy in June resulted in a hike in petrol prices across Nigeria. According to the National Bureau of Statistics, the average retail price paid by consumers for petrol in June 2023 surged by 210.32% relative to the previous year.
An analysis of MRS Oil’s revenue breakdown revealed that Premium Motor Spirit (petrol) contributed the highest revenue, amounting to N161.74 billion in 2023, followed by Automotive Gas Oil (diesel) at N9.37 billion and Aviation Turbine Kerosene at N6.44 billion.
Basic and diluted earnings per share also witnessed a significant increase in 2023, reaching N14.28 compared to N3.84 in the preceding year.
The company’s total assets improved to N55.68 billion from N40.53 billion, reflecting a substantial growth trajectory. However, total liabilities also saw an uptick of about 46.29% to N32.22 billion.
In the fourth quarter, MRS Oil exceeded its projected profit after tax, recording N1.45 billion in post-tax profit, surpassing its projection of N1.02 billion. However, its revenue and pre-tax profit for the quarter fell short of expectations.
Despite the variance in projections, MRS Oil showcased resilience in cash flow management. The company reported a net cash generated from operating activities of N2.35 billion, surpassing its projection with N7.81 billion by the end of the fourth quarter.
As of December 2023, MRS Oil’s cash and cash equivalent stood at N5.77 billion, underscoring its financial stability and strategic growth outlook.
The impressive financial performance of MRS Oil highlights its resilience and adaptability in navigating the dynamic oil and gas landscape, positioning the company for sustained growth and profitability in the coming years.