MRS reports 66.7% profit drop

Fuel dispencer20 May 2013, Lagos – Leading oil marketing company, MRS Oil Nigeria, saw its profit after tax drop by 66.7 percent for the year ended 31st December, 2013, according to a financial statement it filed with the Nigerian Stock Exchange, NSE.

The statement indicated that while revenue grew by 11.5 percent to N79.72 billion from N71.49 billion in 2011, profit after tax fell to N205.121 million from N615.624 million – a 66.7 percent slump.

Also, profit before tax fell by 73.2 percent, from N1.413 billion in 2011 to N378.755 million in the year under review.

Gross profit at N5.71 billion showed a 16.3 percent decrease, from N6.822 billion in the previous year.

The company’s selling and distribution expenses grew 28.8 percent, from N996.307 million in 2011 to N709.67 million.

Cost of sales moved up 14.5 percent to N74.015 billion as against N64.67 billion in the preceding period of 2011, according to the financial statement, which also indicated that the company’s board of directors has approved payment of N23.34 kobo dividend to shareholders.

This amounts to about N59.28 million gross dividends and would be paid on August 15, if approved by members of the company.

But, only investors whose names are on the register of company as at July 19, 2013 will benefit from the dividend.

With the release of the company’s financials, huge movement was recorded in the stock as it rose maximally by 10 percent within the day, which analysts attributed to huge institutional trading.

MRS recorded a year high share price at N29.00 on February 12, 2013 with YTD price appreciation of 22.05 percent, following the impressive rally experienced in the preceding year.

Investors had sold-down consistently between February 12 and May 15 2013, depleting the YTD performance to 24.24 percent, while the stock remained at an all-time-low of N18.00.

“Technical indicators (MACD) however points out that there is an improved bargain tendency towards the stock, with a growing appetite as the stock has stepped out of the bearish zone to close neutral in short term, indicating investors are willing to pay higher to acquire the stock in the near term,” said analysts at Proshare.

At present, about 23,551 Nigerian shareholders and one foreign shareholder, MRS Africa Holdings Limited, Bermuda, hold about 253.99 million shares in MRS Oil Nigeria Plc.

A major player in Nigeria’s petroleum products marketing industry, MRS Oil Nigeria Plc boasts about 138 active company-owned operating outlets and more than 255 third party owned operating outlets.

The Company is principally engaged in the business of marketing and distribution of refined petroleum products, blending of lubricants and manufacturing of greases.

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