MRS Oil reports 71.2% rise in revenues as consumer demand rises

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.

Cursory Analysis

MRS reported that the hike in PMS price following the full deregulation adversely impacted the sales volume performance.

The company also stated that the downstream industry witnessed a “healthy competition” as marketers have “options” between importing and buying locally.

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).

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.