MRS Oil announces plans to delist from NGX hours after declaring massive Profits

The company reported a 71.2% increase in revenue, reaching N312.2 billion, and a profit after tax of N6.49 billion, marking a 62.2% year-on-year growth. 

The decision to delist was approved by shareholders during an Extraordinary General Meeting (EGM) held on June 25, 2024.

The move aims to provide the company with greater operational flexibility and reduce the costs associated with maintaining a listing on the NGX.

Post-delist, MRS Oil intends to list its shares on the NASD OTC Securities Exchange to facilitate trading for interested investors.

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.

Despite the positive financial outcomes, the company reported that the hike in Premium Motor Spirit (PMS) prices following full deregulation adversely impacted sales volume performance. However, the overall revenue growth offset this decline. 

In line with the delisting process, MRS Oil plans to undertake a share buyback and share capital reduction.

Shareholders who do not opt for the buyout within this window will have their shares migrated to the NASD platform. 

MRS Oil has assured stakeholders that the delisting process will comply with all requisite regulatory approvals from the Securities and Exchange Commission (SEC) and the NGX.

The company emphasizes that this strategic move will “enable it to focus on long-term growth strategies” without the constraints of public listing requirements.

With this move, MRS Oil joins a growing list of companies that have opted to exit the Nigerian Exchange in recent years.

MRS Oil, which had a market capitalization of around N59 billion before this announcement, represents another dent in the NGX’s overall market size, which currently stands at approximately N63 trillion.