MRS Oil Nigeria Plc has released its audited full-year financial results for 2024, reporting a 71.2% surge in revenue to N312.2 billion.
The revenue growth was driven by higher petroleum product prices throughout most of 2024, despite a reported decline in sales volumes.
MRS Oil has seen increased consumer demand following its landmark purchase of products from the Dangote Refinery, which are often perceived as superior by fuel-efficiency-conscious customers.
The company also reported a pre-tax profit of N9.8 billion, representing a 66% year-on-year increase, even as rising costs of sales continued to pressure gross margins.
Key Highlights
- Revenue: N312.2 billion, +71.2%
- Gross Profit: N23.8 billion, +58.6%
- Operating Profit: N9.7 billion, +64.4%
- Pre-tax Profit: N9.8 billion, +66.1%
- Profit after tax: N6.49 billion, +62.2%
- EPS: N18.95, +60.5%
- Profit Margin: 2% (2023 FY: 2.1%)
- Total Assets: N105.7 billion, +92.8%
Cursory Analysis
MRS reported that the hike in PMS price following the full deregulation adversely impacted the sales volume performance.
- “The inability of some independent marketers to cope with the required working capital to continue doing business in the industry affected our sales volume performance in the last quarter of the year.”
The company also stated that the downstream industry witnessed a “healthy competition” as marketers have “options” between importing and buying locally.
- On the supply side, MRS Oil noted that the commencement of production at the Dangote Refinery has led to a significant decline in the importation of petroleum products.
The company expects this trend to continue as the refinery moves closer to operating at full capacity.
With the industry’s outlook pointing toward Nigeria achieving self-sufficiency in refined petroleum products — and even emerging as a net exporter MRS Oil says it is aligning its strategy to sustain recent gains and strengthen its competitive position in the evolving market landscape.
A closer look at MRS Oil’s earnings reveals that its revenue was driven primarily by the sale of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO or diesel), aviation fuel, lubricants, and Liquefied Petroleum Gas (LPG).
- The company recorded PMS sales of N272.4 billion in 2024, representing a 68.4% increase, as customers ramped up purchases across the country.
- AGO and aviation fuel jointly contributed N30.5 billion to the company’s top line.
Like many players in the downstream sector, MRS Oil operates on thin margins, with profitability hinging largely on high-volume sales. The company disclosed that it retained just N9 for every N100 worth of PMS sold.
- In 2024, the PMS and AGO segments accounted for 92% of total revenue and 94.6% of gross profit, compared to 94% and 93%, respectively, in the previous year.
- MRS Oil also maintains a relatively conservative capital structure, with no external debt on its balance sheet.
- Instead, it finances its operations primarily through trade payables and related-party funding, including N27.1 billion sourced from affiliated entities.
