MRS Oil reports N1.29bn FX loss despite strong revenue growth

MRS Oil Nigeria Plc on Thursday, reported a foreign exchange loss of N1.29bn in its audited financial statements for the year ended December 31, 2024, reflecting the impact of currency fluctuations on its operations.

Despite this, the company recorded a 71.3 per cent increase in revenue to N312.23bn from N182.31bn in 2023.

The oil marketing firm’s profit after tax rose by 59.5 per cent to N6.51bn in 2024, up from N4.05bn in the previous year, driven by higher sales and improved operational efficiency.

However, its net finance income stood at N130.09m, reversing a net finance cost of N13.65m recorded in 2023.

The financial report showed that the cost of sales increased to N288.31bn from N167.31bn in the previous year, aligning with the surge in revenue.

Gross profit rose by 59.5 per cent to N23.92bn from N15bn in 2023, underscoring the company’s ability to sustain profitability despite the challenging economic environment.

MRS Oil also declared a dividend of N809.2m at N2.36 per share, reflecting its commitment to rewarding shareholders.

The company’s total assets nearly doubled, rising from N54.83bn in 2023 to N105.43bn at the end of 2024, fuelled by significant growth in inventories, trade receivables, and cash reserves.

Cash and cash equivalents saw a rise to N18.48bn from N5.91bn, indicating stronger liquidity. The company’s trade and other receivables also increased to N26.81bn from N20.75bn, while inventories jumped to N25.74bn from N7.63bn.

On the liabilities side, total obligations surged to N77.11bn from N32.22bn recorded in 2023, driven by an increase in trade payables, which stood at N66.22bn, up from N21.73bn. The company’s tax expense also rose significantly to N3.27bn, compared to N1.94bn in 2023.

A further breakdown of the foreign exchange loss showed that MRS Oil incurred a loss of N1.46bn on vendor balances, partially offset by a gain of N209.6m on customer balances.

Meanwhile, MRS Oil and Gas Limited, a related entity, stored products worth N1.5bn for the company in 2024, compared to N935.70m in the previous year. Transactions with the outfit during the year amounted to N44.73bn, significantly higher than the N10.7bn recorded in 2023.

The PUNCH reported that MRS Oil Nigeria Plc has projected a revenue of N129.36bn for the first quarter of 2025, as revealed in its latest financial forecast.